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you are here: home /  products & services /  loan products /  car loans /  guide to buying a car Wednesday 07 January 2009
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Defcredit // Car Loans


Guide to buying a car



When buying a car, it is wise to avoid pitfalls and inspect the car closely.

Avoid pitfalls
  • Consider the future resale value of the car and the insurance costs.

  • Be very careful if you are purchasing a car privately. Make sure it is unencumbered by checking the vehicle security register in your state.

  • Make sure you have the car checked by a qualified mechanic or your state motoring association. Ask for a list of what is wrong with the car and an estimate of the cost to fix it.

  • Get an estimate of the value of the type of car you are buying by visiting www.redbook.com.au

  • Take the car for a test drive and check all key areas, for example brakes and gauges; also check for any vibrations.


Inspect the car closely
  • Compliance plate: check the year and model.

  • Check the oil: not just the level, but the appearance. If it's thick or has water globules - beware, you could be up for more expenses soon.

  • Registration: if nearly expired, allow for the extra cost.

  • Rust: check under mats, bottoms of doors and around the engine. If there is rust, cross the car off your list or make sure the price is low enough to cover repairs.

  • Tyres: check the tyres against the minimum tread depth in your state. If the tread depth is close to the limit, ask for new tyres and make sure the asking price reflects this cost.

  • Paintwork: if irregular or blotchy, the car may have been in a crash and the paint may be covering rust. Ask about the history of the car.

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