What you can expect for your money when buying old cars

First time young car buyers should consider their budget wisely. Most will have limited funds, or will look at small used car loans to begin with. The good news is that there are many small cheap used cars in the Perth car market.

Koby Mckeddie from Cash For Cars Perth, the largest used car broker Perth has advise on what you can expect for your money with used cars in Adelaide.

Cheap used cars under $5,000

Take a look at small 4 cylinder used cars of popular makes such as Holden Barina. A stylish Holden used car with lots of modern features and excellent value for money. Used car dealers such as AA Family Motors will often have 6 cylinder models including Mitsubishi Magna, Holden Commodores and Ford Falcon. While they are not sports cars, they are cheaper to insure, parts are plentiful; and cheap and they have strong engines that have stood the test of time.

Avoid looking at unpopular, 8 cylinder and modified used cars, as they’re likely to cost more to insure and maintain. You will be looking at cars 10 to 15 years old with 100,000 plus kilometres.

Cheap used cars under $10,000

Generally, the more you spend the more choices of lower kilometer cars you will find that are also newer. Used cars for sale under $10,000 is the most popular price bracket for young people, and car loans are quite manageable on this amount for those on smaller incomes. Again look for cars that are popular and have a good review. Examples include models such as Lancer, Falcon, Camry, and Commodores. It is still good advice to avoid V8 models; apart from the cost of insurance and maintenance, they would have done many Kilometres for this price bracket.

Used cars $10,000 to $15,000

This price bracket for first time car buyers is when you make the decision to buy used cars or a new car. You can get a good quality used car, larger and perhaps more ‘cool’ but you can also get small new cars as well.

New cars to $15,000

New car dealers will often have demonstration models with very low kilometres to save even more money. Holden Barina 1.6-litre three-door hatch costs around $13,690 and there are many at Holden dealers in South Australia.

Top 10 Tips for first car buyers by motoring expert Koby Mckeddie

  1.     Research online first or talk to your local used dealers.
  2.     Bring someone older with you like a parent.
  3.     Don’t rush to buy the first used car you test-drive. Compare a few then decide.
  4.     Think about a used car warranty, those few extra dollars may save you thousands.
  5.     Ask about the safety and mechanical inspection done by the dealer. If they haven’t done one, stay clear.
  6.     Ask plenty of questions; at your age you are not expected to know the answers.
  7.     Always get a copy of any contract you sign, and understand what you are signing.
  8.     Obtain used car finance approval, if required, before you purchase your car.
  9.     Insure the car with a respectable insurer, comprehensive insurance if you can afford the premium.
  10.   Look after your first car, wash and maintain it. Good habits will serve you well!

If you are looking at finance as a young person, you may need a co-borrower on the loan documentation, so discuss this with your parents first before venturing out, and if possible have a parent with you to help explain what is involved.