The Complete Guide to Buying a Used Car

Step 1: Setting Your Budget

Know what you can truly afford. The purchase price is just the beginning - factor in registration, insurance, fuel, maintenance, and repairs.

The 20/4/10 Rule: Aim for 20% down payment, finance for no more than 4 years, and keep total transport costs under 10% of gross income.

Pro Tip: Set aside $1,500-$2,000 emergency fund for unexpected repairs in the first year.

Step 2: Choosing the Right Car

Match vehicle to your needs: daily commute distance, passenger capacity, parking situation, and lifestyle requirements.

Most Reliable Used Cars: Toyota Corolla, Mazda 3, Honda Civic, Hyundai i30, and Subaru Impreza consistently rate highly.

Step 3: Where to Buy

Licensed Dealer: Statutory warranty and finance options, but higher prices and sales pressure.

Private Sale: Lower prices and direct history, but no warranty and more risk.

Step 4: Vehicle History Checks

Never buy without a PPSR check - it costs $2 and could save you thousands. Check for written-off status, money owing, and stolen vehicle records.

Step 5: Physical Inspection

Check paint consistency, panel gaps, rust spots, tyre tread, seat wear, engine oil condition, and all electronics function.

Step 6: Test Drive Checklist

Test acceleration, braking, steering feel, gear changes. Listen for unusual vibrations, grinding noises, or warning lights. Always test drive in daylight.

Step 7: Negotiation Strategies

Research market value using RedBook and CarsGuide. Begin 10-15% below asking price for private sales. Use inspection findings as leverage.

Step 8: Paperwork & Legal Requirements

Required documents: signed transfer form, receipt, roadworthy certificate, proof of identity, PPSR certificate, and service records.

Step 9: After Purchase Care

Service the car regardless of seller claims, change all fluids, check all safety systems, and establish maintenance records.