Spending the more than you should on a second-hand car
According to CarHistory, the average oversees holiday costs $4,750 while a second-hand purchase will cost an average of 1.2 million Australians an estimated sum of $11,000. The hardest part of making lemonade out of your lemon is the additional costs of car repairs that come with it, which CarHistory has estimated to be the equivalent of $2,000.
In 2016 the Australian Bureau Statistics (ABS) released a report showing that 76 out of 100 Australians own a car. Furthermore, research conducted by the online automotive bureau, which forms part of credit card agency Equifax, shows that more than half of Australians (59%) have fallen into a trap of buying a lemon.
Lack of research having huge repercussions
The main reason being the lack of research that is put in by second-hand buyers. 32% of Australians spent 1-2 hours before deciding on buying their second-hand car. While 61% would trust the seller based on their appearance. This being determined by whether they knew them personally or the enthusiasm of the seller. By putting in the hours of researching your potential car, and reading on tips of how to figure out whether your new car is a stud or a dud you will be able to make a solid deal that benefits you.
Buying a car is one of the biggest purchases anyone could make. It comes as no surprise then that the appeal of slashed car prices by second-hand car dealers will attract anyone who needs wheels. Especially when the car looks and feels right when you take it out for a test drive. However, studies conducted in 2012 by ABS gave warning signs of where Australians priorities lie when it comes to purchasing a car.
Australian priorities when looking for a car
Out of the 1.7 million households that purchased one or more cars, more than 58% considered purchase cost as a key factor. Fuel economy costs came second by 46%. Other factors such as size and the type of car followed close by. Reliability and the safety of the car ranked lower with just under 40% of people being concerned about it.
As much as there are pro’s to buying a second-hand car there are con’s such as:
- Not knowing the level of maintenance the previous owner kept on it.
- The lack of the latest safety features.
- The upkeep of the car could be pricey.
- Finding replacement parts can be difficult or costly if the car is old.
- The older the car is the more fuel it guzzles due to old cars not being fuel efficient.
In the end, second-hand vehicles should not be considered a no-go area. By taking your time to do the research, or getting a second party to assist you in securing a deal will make both you and your pocket smiles, leaving less frowns in the future.