There are many incredible milestones to look forward to in your late teens – finally passing your driving test is definitely up there!
Whether you’ve been saving for years and are finally ready to buy your first car, or you’re just getting started with lessons and want to prepare by knowing what to look for, we’ve got you covered.
Check our top tips below to help you make this milestone a success!
10 Things to Know Before Purchasing Your First Car
When making any significant financial purchase it’s always a good idea to make sure you plan carefully.
It’s important not to rush and buy any old car just because you’re excited to get one! Below we’ve collated our top tips for getting this right (trust us, these are based on some hard-learned lessons!).
1.Create a realistic budget.
It’s not just purchasing the car you need to think about. You also need to budget appropriately for the additional costs of owning and maintaining a car long-term. This includes:
- Fuel costs
- Cleaning and maintenance
- Insurance and registration
- Tyre maintenance and checks
- Unexpected repairs
Dedicate some time to planning this out, so you know what owning a car will look like realistically – is now the best time to be making this investment or could you wait a little longer?
2. Make a ‘Want’ and “Need’ list.
Picking a car can be overwhelming, and getting caught up in all the latest and greatest features and additions is easy! For your first car, it’s a good idea to keep things simple.
Make a list of the things your car must have and the nice to haves. Keep this in mind when looking at cars so you don’t get swept up and spend more than you should on features you don’t need right now.
3. Do some homework.
Dedicate a little time to researching the top-recommended cars for first-time buyers and new drivers. Make a list of the best models and then research their ongoing reliability based on how old the car is – this can help when looking at new versus secondhand cars and their prices.
Having all this information to hand will definitely help when you buy a car, as you’ll be clear on what you’re looking for and won’t get caught up on sales pitches or indecisiveness!
4. Secondhand cars can often be of great value.
While getting a new car might be ideal, it won’t work for every person and their budget. Secondhand cars are tested and checked rigorously when you buy them from a reliable car dealership, and there’s nothing wrong with saving money by purchasing an excellent secondhand model.
Some dealerships also offer great deals on models that have been used for test drives, so it’s worth asking.
Always be wary of purchasing a car from secondhand sites like Gumtree or Facebook Marketplace, where there’s less reliability, and you might not get the full story behind a vehicle’s history.
5. Shop around – there’s no rush!
We know you’ll be eager to get your hands on something, but it can pay to shop around and wait a little longer to get the car you want that’s reliable and will see you through for a few years than compromising on something you want to sell in a year.
6. Don’t be afraid to negotiate.
On that note, shopping around will also help you get a picture of the current market value of different cars and models and can significantly help you negotiate a fair price.
Many first-time buyers make the mistake of thinking they have to go with the offer price, but don’t be afraid to negotiate a little bit and see what kind of deals you might get.
Don’t be afraid to ask a parent to help you if you don’t feel confident yet!
7. Take it for a test drive!
Take cars for test drives, and don’t be afraid to ask if you can do this more than once to get a feel for the car and make sure you’re comfortable before committing to the purchase.
Sometimes a car might look great on paper (or in the showroom!), but once you’re behind the wheel, you realise it’s just not quite right for you. Test drives are a must!
8. Research your insurance options.
We touched on this already, but it can be a significant expense – especially for new drivers.
Once you know your car’s make, model, and age, it can also help you get a better insurance quote, so once you know this, start looking into and comparing your insurance. You should also do this beforehand to see what you can expect to spend.
Don’t let the financial shock stop you from getting behind the wheel!
9. Make sure you ask for help.
We can guarantee there are plenty of people in your life who’ve made a mistake or two when buying a car. Whether it’s spending too much money – or not enough! – not checking the insurance small print or focusing on the wrong features – there’s a lot to think about.
Make sure you speak to your parents, grandparents, older siblings, teachers – anyone who can help you shed a little light on the process and make sure your journey is smooth.
10. Stay safe.
Above all else, remember to stay safe. Once you have your car, don’t be ashamed to ask a parent or trusted adult to sit in on a few drives while you get used to it.
Brush up on the rules and requirements for your age and licence status, and do not take being able to drive for granted.
A 17-year-old driver with a P1 licence is four times more likely to be involved in a fatal crash than a driver over 26 years. Make sure you keep yourself – and others – safe on the roads and enjoy this freedom sensibly.
Want More Tips?
Our employer partner, Commonwealth Bank, has a super handy checklist for anyone looking to purchase their first car!
And if it’s money and budgeting tips you’re after, our Explore Careers Money Management blog series can help – why not check out some of the other blogs online now.
