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You’ve just landed your first full-time job, which is great. But the trouble is, it’s on the other side of town and difficult to get to on public transport. 

Is this the time to buy your first car? To help you answer this, let’s take a closer look at what your financing options are.

New vs. Used

To put it simply – what do you actually want from a car? If it’s total peace of mind (and you can afford it), a new model could be the way to go. Your car will come with a reliable warranty, all the latest safety and technology features, and improved fuel efficiency. 

On the other hand, buying a used car can save you big bucks. But to find a decent set of wheels, you need to do plenty of research. This takes time, effort and expertise. Safety comes first, check any potential purchases with the Used Car Safety Rating chart. You need to get familiar with your rights and how to properly inspect the vehicle, as well as complete a PPSR check to identify if the car has money owning on it or has been reported stolen. If you can cut through the noise, you might find a car that’s perfectly suited to your needs – and budget. 

Loan terms and interest rates

Whether you decide to buy a new or used car, taking out a car loan can be a smart way to make it all happen. But before you commit to this, it’s important to know how much you can afford to borrow, and what your repayments will look like. For a better idea, check out this handy loan calculator.

You’ll also need to decide on the term length of your secured loan, and the different interest rates available. As an example, terms with RACQ range from one to seven years. And with fixed interest rates on new and used cars, you’ll be protected against any surprises in the market.   

The purchase process

Where should you buy your car? You’ve got a few options here. For example, a private sale can be a cheaper way to go. However, this process is largely unregulated, so you’ll need to be extra aware of the financial risks – such as no warranty or faulty safety features. 

Going through a car dealership might be more expensive, but you’ll have the full protection of Queensland law, which can save you plenty of money if there’s anything wrong with your vehicle, or you’re simply unhappy with it. 

Buying from an auction can be cheaper than going through a dealership, but again, you’ll need to know exactly what you’re doing and be aware of the risks involved.  

Finally, you can also chat to a Motor Vehicle Consultant. They can do all the legwork for you to find a great deal – free of charge for RACQ members. 

The right cover for you

An important part of financing your first car is getting properly covered. Whether you’re an off-road adventurer who enjoys total peace of mind or just use the car to run errands throughout the week, comprehensive car insurance is the option for you. If you just want financial protection against causing accidents, then take a look into third party liability insurance. And just in case your car breaks down on the road, you should also consider Roadside Assistance.

When it comes to financing your first car, there’s certainly a lot to think about. However, with the right research and advice, you’ll be on the road in no time. 

 
The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs. You should obtain and consider the Product Disclosure Statement or terms and conditions relating to the products mentioned, before deciding whether to acquire any products.

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The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs. You should obtain and consider the Product Disclosure Statement or terms and conditions relating to the products mentioned, before deciding whether to acquire any products.

RACQ Bank loans and banking products are issued by Members Banking Group Limited ABN 83 087 651 054 AFSL and Australian credit licence 241195 trading as RACQ Bank.

Retail partners, offers and discounts may change at any time without notice. Get the RACQ Discounts App or visit racq.com/discounts for the conditions, limits and exclusions for each offer.