Buying your first car is a milestone within a young driver's life. A number of life lessons are thrust upon you in a short amount of time and for many, this may be the first significant purchase you make.
When buying a first car it is important to consider a few factors:
Your budget and what you can afford to spend
Will you be purchasing a new or used car?
Will you be using your car for personal use only or for work?
What are the on-road costs of the vehicle?
If you are a first-time driver you will want to consider you will most likely hit a few curbs and objects along the way as you are getting your bearings of driving, so you will most likely want to look for something second hand, cheap and reliable. Smaller cars are easier to maneuver and generally pretty cheap to insure.
According to ubisafe’s first car buyers guide the list of the safest small cars for first-time drivers is as follows
Of this list the cheapest initial vehicles are the older models which will set you back around $6,000, however, you will need to consider the cost of insurance as well as registration and repairs along the way. A newer car will have less on-road costs while an older car will have more. The below video goes into more detail on these costs.
Your Toyota, Honda, BMW, Audi and Benz brands will most likely cost you more to purchase and have high repair costs and high insurance, however, these cars have better resale potential and will maintain greater value down the track. One of the most sought after first cars is your classic Toyota corolla.
Comparing a Toyota corolla 2007 model and a Ford Fiesta 2013, you will see a similar price point with 6 years apart in manufacture. For a complete guide on the value of each car, you can compare with drive.com.au car valuation services.
Suzuki and Volkswagen, Seat and Skodas are both cheap to buy and cheap to maintain. Seat and Skodas are a cheaper price point, however, as they are newer to the market in Australia repair parts could be less abundant and repair costs slightly higher.
Kia and Hyundai were looked upon in their earlier models as being light and plasticky, however, they come with great warranties and service packages which generally will mean they will have been looked after throughout their life so generally have lower insurance and on-road costs.
Of the American car makers Ford and Chevrolet, Fords have a better reputation for making a better starter car, while your Chevrolet is a higher price point and doesn’t have a classic starter car.
To assess what’s out there you can cross-reference auto classify websites such as carsguide. Ensure you compare your options with private sellers vs dealers, as you will most likely get a better deal negotiating with a private seller directly.
Buying a new car is a great option if you have the funds to do so. There are many arguments on the pros vs cons of buying new vs used on the web.
One of the biggest pros of buying new is that you know the complete history of that vehicle and have great insurance and warranty in case of any faults, including complete replacement if the car gets written off. However, obviously a new car is more expensive and if you don’t have the finances you will need to apply for a car loan.
A complete list of pros and cons are below:
This is a very common circumstance with over 60% of the cars on road in Australia being financed. If you have decided on a used car, get the best loan options with our used car loans matching service. However, you may find the repayments end up being so affordable that a new car is actually in your budget as generally your new car loans will have a lower interest rate so you will be paying a similar amount overall. Compare new car loans to find out.
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