15 Important Life Lessons; Factors To Consider Before Buying A Car

New, used, or demo? One of the first decisions you need to make when buying a car is whether to buy new, used or a demonstrator model. Your budget and what you want the car for will be the big factors to consider. But just a little bit of research can help you decide with confidence. New cars One of the most appealing parts about buying a new car is that you can buy precisely the make, model, grade and colour that you want. It will have the benefit of all the latest technology and safety research. And many dealers are now offering competitive interest rates on new cars which can help make them more affordable for the average buyer. Unlike a used car, a new car is less likely to break down or develop problems. So for many people a new car is simply about peace of mind. Capped price servicing, available from some manufacturers, further reduces the cost of running a new car. Of course, all cars depreciate. They depreciate most in the first three years. But there are big differences between makes and models. Choosing the right one, with a good track record for quality and reliability, will mean a better resale value. Used cars A used car can make sense if your budget doesn't stretch to a new car or you want to get a higher grade of car for your money. A car that's less than three years old can be a good choice. Depreciation has slowed and it's still relatively new and modern. The downside is the difficulty in making sure you get what you pay for. Nobody wants to buy a lemon. So it's important to check the history of the car and get independent advice or advice from a reputable dealer. It's also a good idea to look for manufacturers with a certified used car program (see Buying from a used car dealer). It is important that you are comfortable with your choice of vendor. A reputable franchise dealer should conduct comprehensive vehicle inspections with a minimum requirement of a 100 point mechanical and safety check prior to vehicles going onto their lot, so ask to see the vehicle inspection report. Depending on the make of car you're after, you'll probably find the model and year that you want. But you may have to compromise on the colour, options & accessories. Demonstrators If you're still undecided about whether to buy new or used, you could consider a demonstrator. There is the opportunity to save and potentially a lot of value in a demonstrator car. A demonstrator is the car that customers take for test drives. It will have kilometres on the clock, although probably not enough to cause significant wear and tear. Expect a lower price based on the age of the car and the kilometres driven. A demonstrator is likely to be the current model and have a few options and accessories over the standard equipment but they aren't always available, so you may have to compromise on colour & grade. As a demonstrator is already registered, it's classed and priced as a used car but as it is registered the manufacturer's warranty will be partially used. So find out how long is left. Buying from a dealership Look for manufacturer-approved dealerships as they will have the backing of the manufacturer and offer a high level of customer service and support. You can usually find these on the manufacturer's website. Buying privately In some instances, people find the car they are looking for privately rather than buying from a dealership. But there are some important checks you need to go through before handing over your cash. For example, has the car been fully paid for? Has it been through a serious accident or suffered flood or storm damage? And has the odometer been wound back? These are all things that can only be checked through proper research and by calling in an expert. Some manufacturers have certified used car schemes, such as the Toyota Certified Used Cars program, and cars bought through these will have been checked thoroughly, according to the particular manufacturer's standards. If the car isn't sold through a manufacturer certified program or similar or a reputable dealer, it's a good idea to have it assessed by an expert. They will charge a fee, but it is money well spent. It's also important to ascertain title to the car and also check the vehicle's history. Completing a Personal Property Securities Register (PPSR) check, formerly known as the Register of Encumbered Vehicles (REVS Check) will give you access to this information. This should be done on the day you settle. Buying at auction A large range of vehicles can be found at vehicle auctions. But you could also buy a lemon. So it's important to go to a reputable auctioneer. If you can, take with you someone who really understands cars to make sure the car is in good condition. A friendly, trained mechanic would be ideal. Take care not to get carried away with the excitement of the occasion and spend more than you planned on a car that's not right. It's best to follow the advice of your friendly expert and decide, before the bidding starts, which car or cars you're interested in and how much you're prepared to pay. If the bidding goes over that figure, don't be tempted. Once you buy under the hammer you own it. There is usually no cooling off period at auction so make sure you are sure of what you are doing before you start. Buying from a used car dealer You can buy from a used car dealer who sells across a range of makes and models. But it makes sense to look for manufacturer-approved dealerships as they will have the backing of the manufacturer and offer a high level of customer service and support. Some manufacturers will have a certified used car scheme, which guarantees the quality of the car and its history. Used vehicles sold through the Toyota Certified Used Cars scheme, for instance, have undergone highly detailed checks by factory-trained mechanics on everything from the engine to the car's history. Some of the checks covered in the Toyota Certified Used Cars scheme, for example, include: Battery System Braking System Emissions & State Inspection Engine Compartment Engine Coolant & HVAC System Frame, Structure & Underbody Instrument Panel & Electronic Systems Steering System Tires & Suspension System Transmission/Transaxle Vehicle History If the car is still under the manufacturer's warranty, check that the warranty can be transferred to you, as some warranties are restricted to the original owner. If the previous owner signed up to a capped-price servicing schedule, this may also be transferrable to you. But you need to check with the individual manufacturer. Some general used car dealerships will offer warranties on used cars up to seven years old. They may also be able to organise finance and offer a trade-in for your current vehicle. Buying privately or from a dealer Take your time to be realistic and work out the right car for your needs and your budget. You may want a convertible red sports car. But what you need is a zippy hatchback that's economical on fuel and has room to transport you and your friends around town. Don't rush into it. Take your time and think carefully before making an offer. Buying a car is exciting, especially if it's the first one you've ever owned. Be careful the excitement doesn't over-rule your good judgement. Make sure this really is the right car at the right price for you. If it's a brand new car, make sure you have considered all the options before you commit. Make sure this car offers the features and performance you need. If it's a used car, have you looked at enough cars to be sure this one offers good value? If it's not being purchased from a reputable franchised dealer have it checked over by a mechanic to ensure it is in good condition. Does the price being asked match the price quoted for this year and model in car buyer guides? A car is likely to be one of the most expensive purchases you will make, so before you make an offer, make sure you check that your budget will meet all the costs you will incur. The internet is a great source of information. You can use it to confirm what you are told in the dealership, use it to find answers to any questions you have and to learn more about cars you are considering. Online reviews are useful but make sure it's a trustworthy source. Make a shortlist that focuses on the best few makes and models, so it's easier to do proper research. In the heat of the moment, it's easy to forget details. Make a list of all the things you need to check and take it with you whenever you inspect a car. Never buy a car you haven't test-driven. Make sure the car has a good service record and check its history. Whether you're buying privately or from a dealer, there is almost always room to move on the initial price given. If you're going for a used car, don't settle for the first one you see. Be sure to test-drive several so you can make informed comparisons. Take your time. Before you make an offer it's always a good idea to go away and think it over to make sure the car really is the right car for you. Be prepared to travel. And don't limit your radius too severely when buying privately. Remember, if you are buying a car privately be careful as you don't have the same level of consumer protections as you would through a licenced motor dealer.