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The single mum guide to buying a second hand car
Buying a second-hand car can be intimidating, mainly if it is your first rodeo. So, where do you start if you’ve never had to purchase a new car?
HOW MUCH SHOULD I PAY FOR A SECOND HAND CAR?
Understanding all of the costs involved when you’re buying a second hand car is one of the most essential factors in working out what vehicle will be best for your family.
We all work to a budget, and a car can be a significant suck on your finances. The cost doesn’t stop once you’ve completed the purchase – insurance, rego, fuel, servicing, tyres and maintenance will all add up.
Work out what you can afford and then refine a monthly budget. How many kilometres you travel will determine how frequently you’ll need to service your vehicle. A more fuel-efficient vehicle will cost you less to run, while a later-model vehicle will (typically) cost you less to maintain.
The ASIC Moneysmart website offers some great insight into running costs, and the Moneysmart Cars App, available for Apple and Android phone users, helps calculate costs as you plan your budget.
Also, think about the cost of the car and whether you need to borrow the money to make the purchase. Speak to Liberty Loans to discover your options and the best way forward in your current situation.
SECOND HAND CAR SAFETY FEATURES
When you are buying a used car, ideally, you want to look for a vehicle with a five-star ANCAP safety rating and inspect the odometer reading. This gives assurance that it will perform in the event of an accident. As you refine your shortlist, check out the ANCAP website for crash tests and safety data, including the green vehicle guide. The website will let you compare different models to see how they stack up.
Other features you may want to look at include car seat configurations. If you are swapping children frequently between vehicles, you may want to look at cars with ISOFIX securing points, as they will make car seat fitting easy and safe every time if you have ISOFIX seats.
All vehicles sold in recent years have features designed to make them safer on the road for you and pedestrians. And if your current car is more than ten years old, there’s a chance you won’t have come across some of these great features.
Reverse cameras are a massive help in manoeuvring in car parks, but they also help you spot stray children, animals and pushchairs and avoid tragic accidents. While autonomous emergency braking will brake your car automatically if it senses an imminent collision, blind spot monitoring will alert you to vehicles in your blind spot. Adaptive cruise control is like cruise control but sets your speed to keep a safe distance from the vehicle in front, reducing wear and tear on your brakes. Most car manufacturers include good demonstrations of the technology on their websites or can show you at test drive.
Further reading: Choosing a car seat for your child.
BUYING A SECOND HAND CAR TO BEST SUIT YOUR NEEDS?
Be realistic about the kind of driving you’ll be doing and the work your vehicle will have to do. A sporty red convertible is a great mid-life crisis car, but a two-door vehicle is a pain in the bum when you have to get out of your seat every trip to let the kids in and out.
A small car like a Toyota Corolla or Volkswagen Golf might be an ideal choice if you live in a small suburb, but if you’re in the country and frequently called upon to carry about extra children, it won’t serve as the mum-bus you might need.
A big, flashy European SUV might be the styling wheels you want to be seen in at the school gates. Still, in reality, it will quite possibly turn into a money pit with expensive replacement tyres, brakes and other components likely to bite into your budget.
Ask your friends and family what they like about their vehicle. Is it cheap to maintain and reliable, and what features does it have that they want? Is it flexible enough to deliver what they need from a car? And what is it like on fuel compared to other cars in Australia? This is all the sensible stuff that needs consideration – you want a car to fit in with you, not one that will be a fuss (or exxy) to maintain.
WHERE SHOULD I LOOK FOR A GOOD SECOND HAND CAR?
Generally speaking, the best second-hand car to buy is the newest one you can afford, with the lowest mileage, a good service history and, ideally, a warranty.
When buying a car from a car dealer, statutory warranties for used vehicles vary from State to State, so use a checklist to ensure compliance. Rules for NSW may differ from those for Victoria or South Australia. Check your State’s consumer affairs or fair-trading site for the specific terms. Older vehicles, vehicles that have travelled over a certain number of kilometres and some commercial vehicles are not always covered by warranties. Hence, it pays to check the small print if buying from a dealer.
Some retailers will sell an extended warranty, and these can be a good option if they come at the right price and are affordable for you. However, extended warranties do come with strict caveats.
If a car looks like it is too good to be true, then it most likely is, so always verify the vehicle identification number (VIN). When buying a car privately, unless you have a lot of mechanical knowledge or a family member with a workshop, it is best to stay clear of something that looks like an outright bargain.
SHOULD I BUY PRIVATELY OR FROM A DEALER?
Once you’ve got your budget worked out and a short list of makes and models, it’s time to do some research online. Carsales.com.au provides resources for checking the value of the car. It is a great place to check out what cars are selling for and what’s available in your area from private sellers and dealers.
If you haven’t yet settled on a brand, you can start by searching by body type or lifestyle. Refine your search by selecting budget, year, and location from the guide to buying a used car, and you will start to narrow down a list of options.
Deciding between buying from a private seller or car dealership will depend significantly on your available budget and location.
On the plus side, buying privately could get you a car at a better price. Yet there’s no warranty with a private sale, so buyer beware. On the other hand, buying a used car from a dealer can be challenging. So you may want to take a friend or knowledgeable acquaintance to help you make the deal.
DO THESE THREE THINGS BEFORE YOU HAND OVER YOUR CASH!
- Once you’ve settled on a car, carry out a PPSR check. The personal property securities register will let you know if the car you’re looking at has any finance on it. It could also tell you if it has been stolen or has ever been written off. Avoid any car with a red flag against it.
- Take the used car to a reliable auto mechanic workshop for a pre-purchase inspection. Any reputable seller should be comfortable letting you take the car for an inspection. Or presenting the car on your behalf to a mechanic for an independent inspection. An inspection will let you know of any safety items that need to be addressed. Such as when tyres or brakes need to be replaced, whether services have been carried out to schedule, what major service items are due, and whether there is work that will need to be done in the near future. This check will be over and above a roadworthy inspection. Giving you more advice and insight into the car rather than just a ‘pass’ or ‘fail’ assessment, ensuring you are sure the car is worth the investment.
- Sign up with your State’s motoring club for roadside assistance. Unfortunately, there are no guarantees when it comes to second hand cars, so having roadside coverage in place will be peace of mind should you break down or have a flat tyre or issue with your battery.
Further reading: Getting a car loan: What you seriously need to know.
Frequently Asked Questions about buying a used car in Australia
What should I consider when buying a used car in Australia?
When you decide to buy a used car in Australia, you should consider several factors. First, determine your budget, including the cost of the vehicle and any additional expenses such as car insurance and registration fees. It's also essential to consider the purpose of the car—whether it's for commuting, family trips, or a combination of both. Additionally, research various used vehicles to find models known for reliability and safety. Furthermore, always check the odometer reading and ensure it aligns with the car’s age and condition. Create a checklist to keep track of your research and findings.
How can I effectively inspect a used car before purchasing?
To effectively inspect a used car, examine the interior and exterior for any signs of damage or wear and tear. Look for rust, paint inconsistencies, and the condition of the tyres. Check under the hood for leaks or corrosion and ensure all fluids are at appropriate levels. It's also advisable to take the car for a test drive to assess its performance. Listen for any unusual sounds and pay attention to how it handles. If you're unsure about your ability to inspect the vehicle thoroughly, consider hiring a professional to conduct a car inspection.
What is the value of the car I'm interested in?
The value of the car you're interested in can be determined through several avenues. Research online platforms like RedBook or CarsGuide to get an estimate based on the make, model, year, and condition. You can also check current listings for similar used cars in your area to gauge market value. If buying from a private seller, negotiate based on your findings and any issues identified during your inspection. Always pay a fair price based on the car's condition and market trends.
What documents should I check when purchasing a used car?
Checking several documents is crucial to ensure a smooth transaction when purchasing a used vehicle. Firstly, request the vehicle identification number (VIN) and confirm it matches the details in the registration papers. Additionally, obtain a Personal Property Securities Register (PPSR) certificate to check for any money owing on the car or if it has been written off. Ask for the car’s service history to understand how well the vehicle has been maintained.
