What to do before looking to buy your first car (Part 1)
- Posted in Getting Started
Buying your first car can be one of the most exciting times in your life. But are you aware of everything that's involved? In part one of this two-part series, we take you through the various considerations you need to be aware of when buying a car for the first time.
What type of car do you need?
Is it for work, just getting around or for enjoying the great outdoors? Before you start looking at the best deals, you need to determine the purpose of the vehicle. That way you can narrow down the best vehicle type to purchase.
This will then open the door to other considerations. An automatic hatchback, for instance, might be more suitable for stop-start city driving, while a manual could be better for working vehicles – or even a 4WD for road trips.
New or used?
When you’ve decided on the vehicle type, you’ll need to consider whether to buy brand new or go second-hand.
Getting a brand new car means you’ll spend more, but it comes with certain benefits like having an almost faultless vehicle with full warranty. However, a new car could lose 30 to 40 per cent of its value in depreciation over the first few years, and while a second-hand vehicle will be cheaper, you are forced to take the vehicle as is.
How much can you really afford?
The upfront price of a new car is not the only thing you need to consider. You'll need to factor in the ongoing costs of maintaining a car as well. For instance, when you first buy a car there may be stamp duty and transfer fees – on top of the price of the vehicle. Then you need to factor in servicing, insurance and petrol, which all add to the general cost.
Work out what they'll add up to over a year before making a decision. Otherwise you might find yourself with a nice new car you can't afford to keep.
Do your research
Before buying, do your research on the vehicle you have in mind. Search online for information on pricing, depreciation and running costs, as well as reviews from other owners, so you get a clearer idea of what you'll be in for if you’re thinking of purchasing a particular make or model. Doing your research can also open your eyes to other car options.
Manufacturer and dealership websites are good starting points. You can also check through newspapers, catalogues and car magazines. Don't forget to ask family and friends for their honest and helpful opinions.
It’s worth taking the time to look around and consider all your options before buying your first car. The right auto loan can also make all the difference in how much you can afford.
For more information on how you can finance a vehicle that’s right for you, contact one of our Lending Specialist about your car loan options on 13 73 77 or speak to an accredited Pepper Money Broker.
To read Part 2 of this series, click here
All applications are subject to Pepper Money’s normal credit assessment and loan suitability criteria. Terms, conditions, fees and charges apply.