Before you start shopping, you need to decide if you should buy a new or used car. There are pros and cons for both so knowing what you want from your car is the key.
We’ve put together some things to consider for both new and used options.
And don’t forget, all RACQ members can access our car brokerage service to help you find the right car and get the best deal. That’s how membership makes all the difference.
There are lots of things to consider when looking at a new car.
New cars are less likely to break down than used cars, and are likely to remain mechanically sound for many years after purchase if serviced correctly. They are also covered by a warranty which provides some certainty about future operating costs. New car warranties typically provide cover for 3 to 5 years and 60,000 to 100,000km.
If features are important to you then a new car could be a better choice as they tend to come with the latest technology. For example, later models are more likely to have the latest safety and fuel efficiency technologies, driver aids and infotainment features.
Every year car makers aim to improve fuel efficiency. This can translate to savings for those that buy a new car as they tend to be more fuel efficient.
New cars are more exposed to depreciation which typically occurs more rapidly in the years immediately after purchase. For example, new cars can lose about 40 per cent of their value within the first three years.
Vehicles with the previous year’s build date (or earlier) can also be a good buy, as can a superseded model (one that’s been replaced by a new model). In determining if these vehicles are a good buy and what is an appropriate price for them, you will need to consider things like:
Tips when considering superseded or old stock vehicles:
Consider a car history check.
Buying a new car can be a daunting experience with everything from finance, safety and running costs to consider. So here are five top tips with the information you need to make buying a new car easier!
There are a lot of pros and cons for buying a used car.
It might not seem as glamorous as a new car, but there are thousands of well maintained and serviced used cars available. If you do your research and negotiate well, it could save you a lot of money. You might even find that the new car you have been considering is available as a used car at a much cheaper price, with only a handful of kilometres on the odometer.
The key is research.
There is plenty of information available. Use this site, search the web for cars you're interested in.
Demonstrators are cars the dealer uses to show the model to customers. They are usually kept for a short time and may only travel a few thousand kilometres before they are sold. Demonstrators can be an acceptable buy provided the price is right. Things to think about:
Private sales are high risk and unregulated. As such, you must be extra vigilant with your checks.
Be sure to complete a PPSR check (formally REVS check) to help identify if a car has money owing on it or if it has been reported stolen.
To protect yourself we suggest buying from a licensed motor dealer.
New cars often use the latest technology to save on costs such as maintenance and fuel so keep the age of the vehicle in mind as this can impact on the cost of servicing and maintenance.
A used vehicle may also lack some of the features you require. Modern safety features such as airbags and anti-lock brakes are less common in older vehicles.
The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Motor Vehicle Consultants is a separate business conducted by Platinum Nominees Pty Ltd ABN 44 010 878 252 trading as The Motor Vehicle Consultants and not a related party or credit representative of Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit license 241195 trading as RACQ Bank.