Buying a car

Your guide to buying a car

Purchasing a car is a significant decision, whether it's your first vehicle or an upgrade. Our comprehensive guide offers insights into different purchasing methods, essential checklists, and financial considerations to help you make an informed choice.

Different ways to buy

• Private sale – Often cheaper, but doesn’t usually come with a warranty unless it’s still under a transferable manufacturer warranty.
• Dealer finance – Convenient, but may come with higher interest rates and less flexibility.
• Personal loan – Securing a loan in advance can give you more bargaining power and help you avoid rushed decisions.

Checklist for selecting the right car

• Does it seat enough people and carry what you need?
• Is the cost of comprehensive insurance reasonable?
• Are you choosing based on emotion or practicality?

Look at the full cost

The price on the ad isn’t the full cost of ownership. Don’t forget to factor in:

• Stamp duty and registration or transfer fees
• Dealer preparation charges
• Compulsory third-party and comprehensive insurance
• Potential fringe benefits tax (for business vehicles)

How to work out what the car is worth

Research is key. Check car valuation guides, motoring sites or tools like Red Book or AutoEdge to get an idea of fair pricing for similar vehicles.

Where to buy: Pros and cons

• Private sale – May save money, but you’ll need to do more checks and won’t get a warranty.
• Car markets – Allows you to compare lots of options, but still needs thorough inspection.
• Used car dealerships – More expensive, but usually offer warranties and service records.
• Auctions – Possible bargains, but higher risk and limited inspection time.
• Vehicle brokers – Can help find and negotiate the deal for you, often at no cost.

Check for finance owing

Before you buy, make sure there’s no money owing on the vehicle. Use the Personal Property Securities Register (PPSR) to check for any outstanding loans linked to the car.

Types of insurance to consider

• Comprehensive insurance – Covers your car and damage to others.
• Third-party property insurance – Covers damage to other people’s vehicles or property.
• Third-party fire and theft – Covers your car for theft or fire, but not for damage in an accident.
• Compulsory third party (CTP) – Required by law, covers injuries caused to others.

Finance your car with Transport Mutual

A Transport Mutual car loan can help you drive away with a great rate, flexible terms and no ongoing fees. Choose from: