5 Steps to Buying a Car in Australia

  • Posted 27 Aug

5 Steps to Buying a Car in Australia

Purchasing a car requires research, negotiation, and financial management skills. Here are the steps you’ll need to make your next vehicle purchase a resounding success:




If you don’t already have a specific car in mind, you’ll want to consider a few questions to help you narrow down your choices:

  • Do you typically drive alone or do you have a large family you need to haul around?
  • Are you willing to spend more to get the best fuel efficiency, such as by investing in a hybrid or electric vehicle?
  • Do you need a vehicle that can transport cargo and tools for work, or is passenger friendliness your main concern?

These types of questions can help you examine your expectations and choose a vehicle that is a good match for your needs. Once you have a general idea of what you want, online research can help you compare safety ratings, fuel economy, reliability statistics, and features for various makes and models.


Car finance


Unless you have a large amount saved, chances are that part of your car buying experience will be arranging a loan. Dealers almost always offer financing, but in many cases you are better off securing your own car finance. You may save hundreds or thousands over the length of your car note by shopping around for the best rate.


Finding the right vehicle


Buying from a dealer offers more protections than purchasing from an individual. For instance, a dealership will certify that a used car has a clear title with no lien against it and has not suffered flood damage. You may also have the option to purchase an extended warranty covering major systems, offering a few years of worry-free ownership.

The downside is that dealers will almost always charge more than a private seller. If you have the time and patience to do the research, you may find a great deal from an individual selling her personal vehicle. You can always take the car to a mechanic you trust if you want to have an expert look it over before making the purchase.


Understanding the details


Before signing the contract, make sure that you’ve read the fine print and that the details of the sale match your expectations. Know the rules and regulations for your state, such as specifics about safety certificates and ownership transfer paperwork. This is especially important if you are buying from a private seller. Dealers are required to know and follow local regulations, but if you are dealing with an individual it’s up to you to make sure everything is in place.


Final steps


Once you’ve sorted out the purchase price, financing, and fine details, you are ready to take ownership and drive away. Make sure that you’ve included stamp duty and local taxes in the price you’ve negotiated, and don’t forget insurance. If you get a car loan from a dealership or other source, you’ll be required to carry maximum coverage. Otherwise you’ll want to research your options and choose according to local laws and your own personal comfort.

Are you searching for a great low interest car loan? Let Australian Credit and Finance help. Contact our experts today and we’ll help you get started on your car buying adventure.

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