At Henderson Cars we want your purchase process to go through as smoothly as possible so here are some helpful tips on buying a used car

Understanding what you need

Why do you need the car? What will it be mainly used for? Long trips or just around town? How many people will it usually have to carry? How many cylinders should it have (bearing in mind that a bigger engine uses more petrol)? Do you need it to go off-road (a 4WD will be more expensive in terms of purchase price, fuel consumption and maintenance)?

Research the market before you make your purchase

Search the internet, newspaper adverts, car magazines and car yards to find out what is available and get an idea of the current market price. Give yourself time to compare deals to help you make the best decision.

Your Budget

Set yourself a budget to work out how much you can afford to spend. Remember that car buying always incurs additional expenses, such as insurance, registration, servicing, repairs and fuel costs. Also, take into account the possible expenses involved in maintaining and insuring an unusual model of car. The following points may help to plan your purchase:

  • Asking price
  • Extras
  • REVS certificate
  • Pre-purchase inspection fee
  • Transfer fee
  • Stamp duty
  • Insurance
  • Registration
  • Servicing and repair
  • Ongoing costs (such as fuel, tyres, parts, RACQ membership)

Benefits of buying from a licensed dealer

The advantage of buying used cars from a licensed motor dealer, rather than from a private seller, is that the dealer is legally bound to provide you with the following:

  • A copy of the signed contract immediately after signing
  • A security interest certificate showing no one else has a registered claim to the car
  • A form stating particulars about the vehicle and the odometer reading
  • A safety certificate
  • A notice about the one business day cooling-off period should be within the contract
  • A notice about the car’s legal warranty
  • Notice of whether the car has been water damaged and appears on REVS (Register of Encumbered Vehicles)

Insurance

We highly recommend you insure your car before driving it away. At Henderson Cars we can arrange car insurance for you when you are making your purchase. Insurance cover can be obtained either as a new policy or by transferring your existing policy from your old car to your new one. Before taking out any insurance, ensure you check the following details:

  • Driver(s) – who is allowed to drive the car under the policy?
  • Policy excess – how much would you have to pay in the event of a claim?
  • Vehicle value – how much is your vehicle insured for? Market value or an agreed fixed amount?
  • Exclusions – what is not covered by your insurance?
  • Rating or no claims discount – premiums are usually charged on the basis of a customer’s rating, according to whether they have made any recent claims.

Obtaining a loan

Before applying for a loan work out much you can comfortably repay each week, on top of the expected maintenance and running costs. Having done your sums, the team at Henderson Cars can then help arrange affordable car finance on your new purchase. Before you agree on any type of a loan make sure you fully understand:

  • The type of loan
  • All fees and interest rates
  • The monthly repayment rates and due date
  • The total amount you will have paid at the end of the loan period
  • Particular insurance requirements

Cooling-off period

The advantage of buying from a licensed dealer is that you get a one-business day cooling-off period to consider your prospective purchase. During this time you have the right to take the car for a test drive. If however, you change your mind about buying the car, you must put this in writing before the cooling-off period ends. In this circumstance, the dealer will be entitled to retain up to $100 of the deposit paid.

Contact us today for more helpful buying tips or to discuss the purchase of your next car.