According to a countrywide market examination facilitated by a reputable oversight group, there are roughly 3.6 million total vehicle sales in Australia each year, but it’s important to note that transactions involving second-hand automobiles are far more prevalent than new car sales.
As a matter of fact, approximately 2.5 million used vehicles change hands every year, compared to only 1.1 million newly manufactured cars, trucks, and SUVs, which is why you shouldn’t be surprised to find out that the median age of automobiles in Australia is almost 10 years.
In this regard, purchasing a used vehicle makes a lot of financial sense, particularly when considering the advancements that have taken place in manufacturing, engineering, and safety ratings over the past decade. A well-maintained seven-year-old vehicle, for example, will be able to provide years of reliable transportation but you have to ensure that you stay disciplined when hunting down a reliable used car.
Understanding the Popularity of Used Cars
First of all, you have to reflect upon the factors that are leading people to choose second-hand cars over brand-new ones:
- After taking into account the interest payments that are lumped into every new car sale, the average car loan now costs almost $36,000. Financial institutions lent a startling $8.5 billion for new cars during the last year.
- To make matters worse, the typical repayment schedule for Australian purchasers spans almost 70 months, which creates an inordinate long-term strain for individuals who rush into new car transactions.
- Out of the 1.18 million new cars that were sold during the past year, nearly 300,000 of them were obtained with vehicle loans. Of the individuals who went with the financing route, almost 65% stated that they regretted making the deal after just 10 months of paying the monthly bills.
These figures underscore the growing aversion towards financing overpriced new cars and it’s worth noting that experts estimate that there will be five used car sales for every new car sale by the year 2022.
The Secret to Securing a Fantastic Used Car
It goes without saying that you’d probably like to avoid outrageous vehicle repair bills for at least a few years after buying a used car, which is why you have to emphasise the following pillars as you initiate your shopping efforts:
- Stay away from generic merchants that only have a few dozen vehicles in their lots. You’ll be best served by visiting a respectable, well-established organisation that can tout multi-site yards because these resourceful companies have hundreds of certified Canberra used cars on offer at any given point in time.
- Generate a list of five or six brands that pique your interest so that your sales assistant can provide an individualised level of guidance.
- When you speak with the salesperson, establish a firm budget range but do not tell him or her what your actual target happens to be. This will give you control and power during the negotiating phase.
- Request a vehicle history report.
- Perform a test drive with the radio off and be sure to listen for strange noises when starting the engine, turning, braking, and backing up.
Lastly, you should ask about mechanical protection plans, warranties, and tailor-made breakdown support before confirming the sale.
Follow these steps and you’ll be cruising around in a cost-effective used vehicle in no time!
