Finding the right car

New vs. used

When you decide to buy a car, one of the most important considerations is whether it’s a new or used car that you’re after. Both options have their pros and cons so this is where a little research can go a long way.

New cars

A new car often comes with special dealer offers and full warranty so you know you’re generally covered for repairs and parts if anything goes wrong. The downside is that as soon as you drive the car out of the dealership it could depreciate by as much as 20% so it’s good to know which models hold their value better than others.

Used cars

Buying a used car usually means the first owner has absorbed a large part of the depreciation costs so the purchase price is lower. On the other hand, you don’t really know the full history of the car and even though you can get it checked out, you’ll never really know how it’s been treated in the past and what costs could be incurred down the track. That’s why it’s vital to find out as much as possible about the car before you make your decision.

For added peace of mind, why not get it inspected by your local motoring club, a mechanic or even an informed friend or family member.

Going, going…

Sometimes buying a car at an auction can be a little risky so if you’re not mechanically minded, consider taking along someone who is. Also some auctioneers add high fees so take that into account when you’re working out how much the vehicle will cost.

Useful links

Whether you’re looking at new or used cars, it’s a good idea to know what they’re going for and how well they hold their value. These websites can help:

• www.redbook.com.au
• www.glassguide.com.au
• www.carsguide.com.au

 

You can also check this website to make sure the car you are considering is not carrying any hidden debt from a previous owner:

www.revs.nsw.gov.au

Once you’ve decided what’s right for you, apply quickly and easily online, by calling 13 1431 or visiting any branch. If you’re an existing customer you could get instant approval and same-day funding^*.

 

On road costs

Remember to allow for costs over and above the purchase price as not all dealers advertise their vehicles as ‘drive away’ or ‘no more to pay’. You’ll want to know exactly what’s included in the cost of your new car upfront so you have the funds to cover it.

Stamp Duty

This is a percentage of the purchase price of any new or used vehicle that must be paid to the relevant state or territory government.

Compulsory Third Party insurance

Required by law in Australia, this covers people who are injured through the fault of the driver of your car.

Other car insurance

While not compulsory, it’s a good idea to protect your new purchase. You wouldn’t want to keep paying off a loan for a car that’s been stolen or for damage you’ve caused to another vehicle which could run into thousands of dollars. CommInsure can help with an insurance^ option to suit your needs and budget.

New car extras

If you’re buying a brand new car, you’ll also need to pay for number plates, registration and dealer delivery charges unless you’ve been quoted a total on road price.

Keeping it going

Remember to factor in running and maintenance costs. Depending on whether it’s a new or used car and what type, these costs vary but can include things like registration, servicing, joining a motoring organisation and, of course, the much more regular cost of filling the tank. This website could help you find the best petrol price in your area:

www.motormouth.com.au

Now you know how much you need, you can apply quickly and easily online, by calling 13 1431 or visiting any branch. If you’re an existing customer you could get instant approval and same-day funding^*.

 

Using a guarantor

If you’re applying for an unsecured personal loan to buy your car, you could strengthen your application by using a guarantor. This is someone, often a close relative such as a parent or partner, who will sign the application confirming that they will be responsible for the loan repayments if ever you can’t meet your commitments.

As your guarantor would be taking on a considerable financial responsibility, it’s important to feel sure you can comfortably repay your regular loan amount yourself before asking anyone to be your guarantor. 

If you and your guarantor are ready, apply by calling 13 1431 or visiting any branch.

Learn more about the difference between secured and unsecured loans in our guide to a personal loan.

 

• Important information:
  *Apply before midday Monday to Friday, and if you’re approved, we’ll give you access to your loan that day. Unavailable for secured loans, when a guarantor is required, if an application is incomplete or needs to be referred for a more detailed review by a lending specialist and subject to system availability. Applications for finance are subject to the Bank's normal credit approval. Full terms and conditions will be included in our loan offer. Fees and charges are payable. 
  
  ^CommInsure is a registered business name of Commonwealth Insurance Limited (CIL) ABN 96 067 524 216 AFSL 235030 a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.