Find out how to go about purchasing a used vehicle and how Aussie can help
12 October 2021|4 minute read
Buying a car can be stressful - after all it’s a big financial and emotional decision. When it’s time to buy a car, you might consider purchasing a used one.
You might have heard that due to the pandemic there has been a shortage of new cars available. In turn, this has made used cars a more popular option for buyers, with second-hand vehicle prices jumping to 35% more than they were before the pandemic.
Plus, buying a used car doesn’t always mean buying an old car - there are plenty of used cars on the market that are less than five years old.
In this article, we’ll explain what used car buyers should be aware of to help you avoid a lemon and find a car that’ll take you miles into the future.
Whether you’re buying a new car or a used one, doing your research first is essential. Take the time to explore your options and figure out what model suits your needs and financial situation.
For example, a family might prefer an SUV, while a single person might opt for a hatchback. Or if you’re someone that gets in a lot of kilometers, it might be worth considering a fuel efficient or hybrid car.
Cars can depreciate in value quickly, so if money is tight it may make more sense to opt for a practical, affordable car, rather than a flashy one. It’s important to research what a reasonable asking price is for the model of car you are after.
Be sure to compare with similar private and dealership listings to get a good idea of what the car is worth. Hot tip: having this information handy could also help you when negotiating a price with a private seller or dealer.
Be sure to read reviews on your dream car for additional insights. This is important if you are taking a click and collect approach in choosing a car due to lockdown, or are confident with the manufacturer and warranty terms.
You can buy from a used car dealership which allows you to view and compare a range of vehicles in one place. Alternatively, you might find your dream car from a private sales listing. Whichever route you choose, make sure you test drive the car and ask plenty of questions.
When you’re looking at used cars online, the photos may be different (or more flattering) compared to real life. So, be skeptical and don’t get your hopes up too much. Be prepared to keep searching if you check out a car and it isn’t quite what you need or expected.
Here are some quick tips for buying a used car:
Purchasing a used car through a private seller is very common, and it can be cheaper than buying from a dealer. Private sales are often advertised through car sales websites, social media, and car markets.
However, there are some risks involved that may not come up when buying from a used car dealership. Here are some questions to consider before you commit to buying from a private seller:
It’s also a good idea to watch out for ‘clunk’ noises when changing gears, smoke from the exhaust, a warning light on the dashboard, wear on the tyres, steering pulling to either side, leaking fluids and any rattling or other body noises when driving.
If you’re not a car expert, don’t worry. You can get an independent vehicle inspection through the motoring body in your state. There are often specialist inspectors for different manufacturers, for example those that specialise in German manufacturers.
If you take out a loan through Aussie, we will arrange the inspection and check the PPSR on your behalf.
Ultimately, you don’t want to sign until you are fully comfortable with the purchase. Don’t be afraid to ask the seller questions about the vehicle’s history. If you still have hesitations after asking questions and getting a formal inspection, you may want to move on. Even though used cars are less expensive than new ones, it’s still a major financial decision.
Buying from a used car dealer can come with a number of advantages when compared to buying from a private seller. To start with, you can look at a range of used cars all in one place. This can make your search more efficient, and you’ll often find that staff can clearly explain the car specs. Other advantages can include:
On the downside, buying from a dealer can be more expensive. The dealer will want to make a profit somewhere, either with a lower trade-in value or higher cost for the vehicle you are buying.
It’s also important to note that the states and territories regulate used car sales differently. For example, some states offer cooling-off periods after the purchase agreement has been signed, while others don’t.
Even though buying through a used car dealer may be a more professional, streamlined process than buying through a private seller, it’s still smart to get an inspection. If you take out a loan through Aussie, we will arrange the inspection and check the PPSR on your behalf.
Don’t forget to look up reviews on the dealership to find out if they have a good track record of honesty, customer service and high-quality sales.
There are many pros and cons to consider when buying a used or new car. Here is a brief comparison to help you make a decision.
Yes, car loans are available for used cars, whether bought from a dealer or privately. It’s a common misconception that car loans are only available for new cars.
Used cars may be cheaper than new ones, but they can still put a big dent in your wallet, so getting a loan can help.
A used car loan is much the same as a regular car loan or personal loan.
You borrow money to purchase a vehicle and repay it over a set period of time, with interest added. Interest rates for car loans are typically higher than home loan interest rates.
For used car loans, lenders may have stipulations on the age of the car and loan amount. Aussie can help you find a suitable car loan for your next used car purchase. Get in touch today to learn more.