What to look for (and look out for) when buying your first car.

Buying your first car is exciting, but also daunting. For many, it’s their first big ticket purchase. But if you don’t do your research, you can get more than you bargained for. From budgeting and insurance to choosing which model, these new car buyer tips may help you avoid a lemon; and get you out on the road sooner.

Do your own research

Before you start looking, consider what might be a good fit for your lifestyle and needs. Do you want to drive a manual or automatic? How often will you drive it? How far will you travel? These are also considerations. A small hatchback might be perfect for city driving, but might not be appropriate if you venture out of town and need to drive on gravel roads.

If you have a manufacturer in mind, do some research into the safety rating of the model and if there have been safety recalls or reoccurring issues. It is also important to check that the car is unencumbered: this means there are no liabilities against the car. There is a great resource called the Personal Property Securities Register, which will tell you if a car has any money owing on it, is stolen, or has been written off due to an accident or damage.

Ongoing costs and maintenance

Also consider the cost of insurance that comes with owning a car. The make, model and engine size can significantly influence what you’ll pay (so maybe that race car with spoilers might not be the best choice for a first car). Similarly, there are many models and engine sizes that are restricted according to licence class and age, on a state-by-state basis. Also consider that certain models of cars are more costly to repair and service, or you might need to wait for parts to be shipped from overseas.

When considering your budget, remember it’s not just about having the funds for buying a car, but all the other costs that come with being a car owner, like fees for changing the registration from the previous owner to your name if you’re buying second hand, compulsory third-party insurance and comprehensive insurance for protecting the vehicle.

Pre-purchase checks

Ideally, you want your car purchase to have no mechanical issues. Having the car inspected by a certified mechanic could save you a lot of heartache and expense further down the road. You also may want  to consider how much registration the vehicle has left on it before it needs to be renewed, as this can be a significant additional cost.

How to buy your first car

If you’re purchasing a car second hand, make sure you use a trusted method to transfer the payment for the car and double check all details, as there are increasingly sophisticated scams around exchanging money. Likewise, if you’re getting a secured loan, be sure the car you’ve chosen meets all the terms and conditions of the loan. Ensure you file the change of ownership papers in the time set out by your state government or territory, and arrange a cover note with your insurance company so you can safely get the car home.

Insure your first car

Once you’ve found your vehicle of choice, now’s the time to think about getting cover. GIO Comprehensive Car Insurance covers damage to your own car, damage to other vehicles and property – and it also offers cover for fire, theft and malicious damage. If you’re ready to buy now, you might save up to 10% on your first year of cover by purchasing Comprehensive Car Insurance online.

GIO Comprehensive Car Insurance

Read more:

• 12 must-have accessories for your car
  
• What to do when buying a used car
• How to change a tyre: Car Maintenance 101

Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Registered Office, Level 23, 80 Ann Street, Brisbane QLD 4000.

Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.