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Welcome to Lesson 5 of Car Loan University 🎓
Today's learning objectives are:
Considering different factors to choose the right car
How to choose the right car for yourself
Choosing the right car can be a daunting task with so many options available. New or used? Petrol or diesel or electric vehicle? Big or small? Here are some car-buying tips to help you make an informed decision that suits your needs and lifestyle in the Australian market.
1. Set a realistic budget
Consider the cost of loan repayments and the running costs we covered in Lesson 3. Use our Budget Planner Calculator to help set a realistic budget.
2. Assess your needs
Think about what you need from a car. Consider factors such as passenger space, cargo capacity, fuel efficiency, and the type of driving you do most often. Websites like CarsGuide and CarAdvice offer reviews and comparisons that can help you decide.
3. Do your homework
Read reviews by buyers and professionals for insights into the reliability, performance, and features. Online platforms, such as Drive, provide comprehensive guides and driver feedback. The Green Vehicle Guide offers detailed information on the fuel efficiency and environmental performance of new cars.
4. Consider tax concessions
You may be able to access tax and registration concessions available for electric vehicles (EVs). For instance:
Reduced Registration Fees
Some states offer lower registration fees for EVs compared to traditional petrol or diesel vehicles. For example, in the ACT, EVs enjoy free registration for two years.
Stamp Duty Exemptions
Some states provide stamp duty exemptions or reductions for EV purchases. In NSW, buyers of new and used EVs up to $78,000 are exempt from stamp duty.
Federal and State Incentives
Various federal and state incentives can reduce the cost of buying an EV, including rebates and grants. Check the Electric Vehicle Council for up-to-date information on incentives.
5. Test Drive
Whether the car is new or secondhand, always try to take it for a test drive before making a decision. This helps you personally assess the car’s comfort, handling, and performance, ensuring it meets your expectations and preferences.
*Please note this has not taken into account any of your personal objectives, financial situation, or needs. Some providers' products may not be available to all applicants.
6. Pre-purchase inspection
Don't buy a secondhand car without a thorough examination of the vehicle by a qualified mechanic. This inspection helps identify any existing issues or potential problems, ensuring that you're fully informed about the vehicle's condition before any money changes hands.
7. Conduct a Personal Property Securities Register check
A PPSR check is a government-run service that verifies the vehicle's history. For the cost of a few dollars, it will show you if the vehicle you want to buy is recorded as free from debt, stolen or written off. See more here.
8. Consider Resale Value
Some cars retain their value beter than others. Research the resale value of the models you're considering to ensure you make a wise investment. Cars with high resale value can save you money in the long run if you decide to sell or trade-in your vehicle. RedBook is a great resource for checking car values and resale information.
By following these tips, you can find the right car that fits your needs, budget, and lifestyle. Take your time to research and compare options to make an informed decision.
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