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So you’ve got your heart set on a new, demo or used car. Here are some great car buying tips to consider before you take the plunge.disclaimer

It would be a good idea to allocate a budget for ongoing things aside from your car loan, such as:

  • Registration
  • Fuel
  • Servicing
  • Road toll charges
  • New tyres
  • Insurance

 

Tips for buying a new or demo car

Did you get the best price? Not all dealerships will give you the same deal. It may be worth checking out a few different ones. Do your homework and use online sites to get a better understanding of the options. Consider timing your purchase to capitalise on any available deals.

Keep an eye on extra dealer costs such as ‘Dealer Delivery Fees’ or the ‘Dealer Origination Fees’ –which is the fee charged for doing your loan paperwork.

Ask for the total on-road costs (no more to pay or drive away) to try to avoid hidden costs or extras.

Be careful of the temptation to add optional extras.  It’s all too easy to say ‘yes’ to all the different things a dealer offers like tinted windows, paint protection and floor mats.  Bear in mind that all these costs may quickly add up and may not reap a higher resale price when it comes to selling the car.

Think about roadside assistance. Some car manufacturers include this with the car. If it’s not included, consider whether you should sign up. 

 

Tips for buying a used car

Even if the car has a roadworthy certificate, consider whether you (or someone you know who’s good with cars) should inspect it carefully. Consider organising an inspection by an independent party, like a qualified mechanic.

Ask about owner history and don’t forget the service history (including the service record or receipts).

According to the Australian Bureau of Statistics in 2014, an estimate of typical mileage was around 13,000kms per yeardisclaimer. So check that the kilometres done on the car are average (or ideally lower than average) for the vintage of the car.

 

Buying from a licensed dealer

There are different things to consider depending on who you are buying the car from.

  1. Check what warranty and ‘cooling off period’ are included.
  2. If you are buying a second hand car, check if the vehicle is still covered under the manufacturer’s warranty.
  3. Ask the dealer to guarantee that the car is free from all security interests. If the vehicle is subject to security interest in favour of another person, that person could potentially repossess the vehicle. You can check this by going to the Personal Property Securities Register (PPSR) website.
  4. For a more comprehensive report on the used vehicle, it may be worth getting a car history report. This type of report (which you may have to pay a fee for) provides you with information about the vehicle and may include:disclaimer
    • Reported insurance claims
    • Written off records 
    • Finance owing 
    • Odometer check 
    • Stolen vehicle check 
    • Registration details

 

Buying from a private seller or at an auction

  1. When buying from an auction, you could be picking up a bargain, but you should consider that you might not get to test drive or inspect the car. Before the auction you should also investigate whether you get a roadworthy certificate, warranty or a cooling-off period.
  2. Check the car thoroughly from the electrics, windscreen wipers, to the tread on the tyres, the jack and spare tyre in the boot and everything in between.
  3. If the vehicle is subject to a security interest in favour of another person, the other person could potentially repossess the vehicle. You can check this by going to the Personal Property Securities Register (PPSR) website.
  4. For a more comprehensive report on the used vehicle, it may be worth getting a car history report. This type of report (which you may have to pay a fee for) provides you with information about the vehicle and may include:disclaimer
    • Reported insurance claims
    • Written off records 
    • Finance owing 
    • Odometer check 
    • Stolen vehicle check 
    • Registration details
  5. Make sure you don't forget to transfer the car registration.
  6. Ensure you get a receipt for your deposit as well as for the full purchase price of the car.

All applications for credit are subject to ANZ’s credit assessment criteria. Terms and conditions are available on application. Fees and charges apply. 

  

The information set out above is general in nature and has been prepared without taking into account your objectives financial situation or needs.  By providing this information ANZ does not intend to provide any financial advice or other advice or recommendations.  You should seek independent financial, legal, tax and other relevant advice having regard to your particular circumstances.

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Australian Bureau of Statistics, McCrindle Research, "Getting to Work", 2014.

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The information and topics covered in a car history report may vary. Before you order a report, check that it contains the information you need.

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