Buying Your First Car: Complete Guide
Everything you need to know about buying, financing, and running your first car in Australia.
🚗 New vs Used: First Car Decision
Buy New
- + Full warranty (3-7 years)
- + Latest safety features
- + No hidden history
- + Financing deals available
- - 20-30% depreciation year 1
- - Higher insurance cost
- - Higher purchase price
Buy Used
- + Much lower purchase price
- + Less depreciation
- + Lower insurance
- + More car for your budget
- - Unknown history possible
- - May need repairs
- - Limited/no warranty
Recommendation: For first car buyers, a 3-5 year old reliable model often offers the best value.
First Car Budget Guide
| Budget | Category | Examples |
|---|---|---|
| $5,000-10,000 | Budget Used | Toyota Corolla, Mazda 3, Hyundai i30 (5-10 years old) |
| $10,000-20,000 | Mid-Range Used | Toyota Camry, Mazda CX-3, Honda Civic (3-7 years old) |
| $20,000-35,000 | Nearly New / New Small | New Kia Cerato, MG ZS, Suzuki Swift, 1-3 year old mid-size |
| $35,000+ | New Mid-Range | New Toyota Corolla, Mazda 3, Hyundai Tucson |
Financing Options
Save & Pay Cash
- • No interest payments
- • Better negotiating power
- • No debt/repayments
- • Takes time to save
Best option if possible
Car Loan
- • Fixed monthly payments
- • You own the car
- • 5-8% interest typical
- • Shop around for rates
Compare secured vs unsecured
Novated Lease
- • Pre-tax salary payments
- • Running costs included
- • Requires employer setup
- • Best for higher incomes
Check our novated calculator
Annual Running Costs
| Expense | Annual Cost | Notes |
|---|---|---|
| Registration | $300-800 | State dependent |
| Comprehensive insurance | $800-2,500 | Age & history dependent |
| CTP/Green slip | $400-700 | Included in rego in some states |
| Fuel (15,000 km) | $2,000-4,000 | Depends on efficiency |
| Servicing | $500-1,500 | Every 10,000-15,000 km |
| Tyres | $200-400 | Average over time |
| Roadside assist | $100-200 | NRMA, RACV, etc. |
Total: $4,300 - $10,100 per year
That's $80-195 per week just to keep your car on the road!
Used Car Buying Checklist
Before Viewing
- ☐ Set your maximum budget (including on-roads)
- ☐ Research reliable models
- ☐ Check market prices (carsales, carsguide)
- ☐ Get pre-approved financing if needed
At Inspection
- ☐ Check PPSR (Personal Property Securities Register)
- ☐ Get a pre-purchase inspection (~$200)
- ☐ Test drive thoroughly
- ☐ Check service history
- ☐ Verify VIN matches rego papers
Important: Never rush into buying. Walk away if something feels wrong.
Insurance for First-Time Drivers
Comprehensive
Covers damage to your car, others' cars, fire, theft, weather
$800-2,500/year
Third Party Property
Covers damage to others' cars/property only
$300-600/year
CTP/Green Slip
Compulsory - covers injury to people
$400-700/year
Young Driver Tip: Adding an experienced driver to your policy or completing advanced driving courses can lower premiums.
Novated Lease Calculator
Calculate salary packaging
Car Loan Calculator
Calculate repayments
Budget Planner
Plan car ownership costs