Never been a better time to buy a used car
21 August 2007
A Current Affair
If you're looking to buy a new car, experts say you should consider a second-hand model. We take you through what to look out for when getting yourself a car bargain.
Used vehicles come with fewer hidden on-road costs and prices are dropping, according to Wheels magazine.
"People are increasingly unprepared to own a second-hand car... so there's less demand," Wheels features editor John Cadogan said.
"You can knock 30 percent off the price after two years and you don't have to pay the registration and on-road costs, which are often hidden costs anyway."
"You can pick up cars that were probably $25,000 or $30,000 six or eight months ago for $5000 less," said Greg Roebuck from carsales.com.
For buyers, a second-hand car is a lot cheaper than a new one as there are usually a lot of extra costs associated with a new car.
"The first registration costs a lot more than the second registration…the disparity in price (new versus used) is much greater than it first appears."
Greg and Rika have been looking for a new car at car auctions and they aren't disappointed with what they found.
"My last car was a 98 model Falcon, I paid $19,500 for it for the same amount of kilometres on it. Today I bought the same car for just $15,300," Greg said.
What to look for: John Cadogan's tips
The car should only be two years old : Ideally you want a car that's two years old. "This means it will still have one year on its warranty so if there's a manufacturing default it is still covered…that's great protection."
Sales tactics : A car salesperson may try to pressure you into buying a car quickly by suggesting the price will soon go up or that there are other buyers who will happily snap it up. Don't give into this pressure. "Decide to buy when it's right for you."
How much registration is left on the car?: Registration the second time around is cheaper, but you should know when it's due to run out.
Get a REVS check : For a small fee, check with your state's REVS body to ensure there is no money owed on the car and that it isn't encumbered — which means the seller has the legal right to put the car on the market.
Has the vehicle been in an accident? : If you are concerned the car has been in an accident or you just want to be sure it's up to scratch, take it to a panel beater. For a fee, the panel beater can check the car over for you.
Get a mechanic to look it over : Have an independent mechanic check the car over for any hidden problems like faulty breaks or tires. "Find an independent mechanic who is reputable…you will have to pay a fee."