The Complete Beginner's Guide to Buying a Used Car

Before You Start: Setting Your Budget

The most important step in buying a used car is determining what you can actually afford—not just the purchase price, but ongoing costs too.

Total Cost of Ownership

Calculate beyond the sticker price: insurance, registration, fuel, maintenance, and repairs. These ongoing expenses can significantly impact your budget.

The 20/4/10 Rule

Put down at least 20%, finance for no more than 4 years, and keep total monthly expenses under 10% of gross income. This ensures you don't overextend financially.

Hidden Costs to Consider

Pre-purchase inspections, transfer fees, immediate repairs, and first-year maintenance. Budget an additional 10-15% beyond the purchase price.

Understanding Your Needs vs. Wants

Separating essential requirements from nice-to-haves will help you focus your search and avoid overspending.

• Daily commute distance and conditions
• Passenger and cargo requirements
• Parking constraints
• Fuel efficiency priorities
• Safety feature requirements

Types of Used Cars: Pros and Cons

Where to Buy: Dealerships vs. Private Sellers

Researching Vehicle History

Always verify the vehicle's background before committing to purchase:

• PPSR (Personal Property Securities Register) for finance owing
• Written-off vehicle register check
• Stolen vehicle database search
• Odometer fraud verification
• Service and maintenance records
• Previous accident reports

What to Inspect During Viewings

Exterior Checks

• Panel gaps and alignment
• Paint consistency and overspray
• Rust spots, especially wheel arches
• Tyre tread depth and even wear

Interior Checks

• Seat condition and adjustments
• Odometer reading vs. wear
• Dashboard warning lights
• Air conditioning function

Under Bonnet

• Fluid levels and condition
• Belt condition
• Corrosion or leaks
• Battery condition

Test Driving Tips

Test drive in various conditions: cold start, highway speeds, stop-and-go traffic, and different road surfaces.

What to Listen For

• Engine unusual noises
• Transmission shifting smoothness
• Brake squealing or grinding
• Suspension clunks

What to Feel For

• Steering responsiveness
• Brake pedal firmness
• Acceleration responsiveness
• Vibrations through steering wheel

Understanding Mechanical Inspections

Even if the car looks perfect, hidden mechanical issues can cost thousands. A professional inspection is your insurance policy.

Our inspections cover engine compression, transmission condition, suspension systems, brake integrity, structural damage, electrical systems, and more.

Negotiation Strategies That Work

Armed with inspection results, market research, and comparable listings, you're ready to negotiate effectively.

• Start 10-15% below asking price
• Use inspection findings as leverage
• Reference comparable vehicles
• Remain willing to walk away
• Request seller to address issues

Paperwork and Legal Requirements

Essential Documents

• Vehicle registration certificate
• Roadworthy certificate (if required)
• Service history and logbook
• Owner's manual
• Proof of identity for transfer

Complete transfer of registration within required timeframe to avoid penalties. Understand your rights under Australian Consumer Law.

Key Takeaways for First-Time Buyers

• Budget for total ownership costs, not just purchase price
• Always get a professional pre-purchase inspection
• Research thoroughly and don't rush decisions
• Verify vehicle history through official channels
• Negotiate using facts and inspection findings
• Trust your instincts—walk away if something feels wrong

Buying a used car doesn't have to be stressful. With proper preparation, professional support, and patience, you'll find the perfect vehicle for your needs and budget.