Tips on Buying New and Used cars  

So you want to buy a car and are wondering if there are problems associated with this for the first time buyer. 

The answer is yes, it is also true that even the most experienced can some times get their fingers burnt. 

The first car is perhaps the most difficult because of financial restraints. 

Two choices new or Used. 

New is easier because finance is generally available via the dealers finance. Just because it is easy does not mean it is right for you. There are problems in heading out to buy as no doubt you will get a car alright, but not necessarily the best one for you. Remember if you cant pay for this purchase how will you be able to pay for it later and run it- fuel, services, tyres and registration, the list is endless. 

A new car is at it’s dearest when you drive it out of the dealers door, you have lost the equivalent of many weeks wages. 

Think about saving as much as possible, even enough to pay for your car plus registration, on road costs, dealer charges etc. This may not be an option if your aim is a Ute for instance and you are starting an apprenticeship and need a vehicle straight away for work. 

This is one of the fairly rare situations that a reasonable debt can be acceptable. 

Don’t think for a minute that $1000- you earn can pay $1000- off your car. Think in terms of 10% of that $1000- to go towards car finance repayments. It is far better to err on the side of caution. 

 Copyright Noel Leo 2007-9.All rights reserved.