Get out there - February 2012 |
Welcome to the Get out there newsletter. Are you in the market for a car - either your first one or an upgrade? This month we offer important tips for buying a car.
Tips for buying your first set of wheels
For most people, buying a car is a major decision. There are certain things that will affect your decision about what car you choose.
Some things to keep in mind when buying a car include:
- try to save as much money as you can for a deposit to minimise interest payments on a loan, also do your research to find the best loan
- think about what type of car you need, the amount of driving you will do, the amount of space you will need and the ongoing costs
- some costs include registration, stamp duty, mechanical inspection fee, insurance costs, maintenance, fuel etcdo some research and compare prices, conditions and warranties for the type of car you want to get from a number of sources (ie. online, auction, dealer and private sales). This will give you an idea of the market price you may have to pay
- the Get out there website has an interactive budget planner to help you save.
Buying second-hand?
Even though it can be more expensive, the safest way to buy a car is through a licensed dealer, as they have certain responsibilities under the law that will protect you.
If you do buy a car, don´t leave the dealership without a copy of the contract. Remember that you have a one day cooling-off period when you buy from a licensed motor dealer to reconsider the purchase. This only applies if you don´t take immediate possession of the car.
If you buy a vehicle from a licensed motor dealer, in most cases you are entitled to a mandatory statutory warranty. Ensure that the car is free from any defects by having the car checked out by an independent qualified mechanic. You are not entitled to any warranties if you buy privately or at auction (unless the vehicle is owned by an auctioneer or licensed motor dealer). Check out the Get out there website and the Office of Fair Trading website for more on licensed dealers.
When you are buying a car privately, remember:
- you are not entitled to the normal protection of the cooling-off period
- you will not get a statutory warranty
- the seller is not bound by the same laws and Code of Conduct as licensed dealers
- you cannot access the compensation claim fund if anything goes wrong
- you should obtain a Personal Property Securities Register (PPSR) certificate on the day of purchase to ensure that there are no outstanding loans on the vehicle, the vehicle is not stolen and that the vehicle is not water-damaged
- you should obtain a current safety certificate.
Make sure you find a reputable repairer
Unfortunately, at some point you may have a problem with your car which has to be fixed. Make sure the repairer or mechanic is qualified to do the job and has access to the necessary equipment. You should get multiple quotes and go with the quote that best suits your needs and budget.
Only pay for the repairs that you authorised. The repairer must ask your permission to do any other repairs to your car. If they conduct repairs without your knowledge this is considered unsolicited supply of goods and services and you do not have to pay. Find out more about unsolicited supply on the Office of Fair Trading website.
It is important to keep a record of repairs and services carried out on your car. These may help to substantiate any warranty or repair disputes and will show it has been well maintained if you decide to sell.
Insurance basics
In Queensland, Compulsory Third Party insurance (sometimes called ´CTP´ insurance) comes as part of vehicle registration. It is not like the usual insurance products you might be familiar with. It will not provide you with repairs for damage to either your vehicle or any other vehicle or property. For more information about CTP insurance visit the Motor Accident Insurance Commission website.
Voluntary Compulsory Third party insurance is obtained through insurance companies and covers you for damage caused to other cars or property if you have an accident. You still have to pay for the damage to your car, but claiming through insurance for other damage means you could save thousands if you have a bad accident.
Full car insurance protects you against the cost of repairs to your car and other property if you have an accident. Depending on the policy, it might also cover damage caused by hail, floods etc.
It´s worth shopping around to find an insurance policy that is right for you. When you apply for insurance you may be asked the following questions:
- who the regular drivers of the car will be and their ages
- about the driving record of the regular drivers
- if there are any modifications to the car
If the insurance company discovers any of your answers are incorrect they are likely to reject any claims you make. Make sure you read the terms and conditions in the policy documents and the product disclosure statement before signing anything. It is important to understand what the policy does and does not cover.
Always keep a copy of these documents and make a note of any conversations you have with the insurance company about the policy. You will need these if you want to make a claim or if you have a problem. For more information about car insurance, visit the Get out there website or the Australian Securities and Investment Commission.
Stay in touch with get out there
As you begin the next phase of your lives after school, remember to visit Get out there for information on a variety of topics. Learn about finding the right job, starting university, renting your first place, buying a car or buying a house.
Tell your friends to sign up - Get out there really is the ultimate survival guide for young adults!
Last reviewed 10/02/2012 |
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