Tuesday, 5th January 2010.

Hi everyone!

Tonight we covered buying your first car!!
Here's our amazing guide! (Again, we're not financial advisors.)


Step by Step.
1. Have you got your license?
- Is it worth buying a car when you haven’t got your P’s yet?
- It is common to buy a car while still on your L plates so that you can learn in the car that you will be frequently driving in.
- Buying a car is probably the biggest purchase you will have made by the time it comes around. The next biggest thing is usually buying a house, or a business.

2. How much are you willing to spend?
- If you can afford a very expensive car, is it still worth buying?
- Don’t forget, a lot of accidents occur to young people in their first few years of driving. So be aware that insurance and the costs of running a car can get quite excessive.
- Search around for deals. There are plenty of people selling cars for legitimate reasons, for reasonable prices. Maybe they are moving away, or got a new job with a company car. They will just want to get rid of their car, and get a bit of extra cash.
3. Do you really need a car?
- If you live in the city and are always close by to public transport, maybe you don’t need a car.
- Or even if you live close by to a train station, and only go to school/uni and the city. Public transport is cheaper.
4. Things to remember when checking out cars.
Making a checklist of your requirements and assessing each vehicle against it will speed up the whole process. Don't forget to include common questions more directly involved with the condition of the car or bike:
How old is it?
How many kilometres on the clock?
Is there any rust?
How much longer is it registered for and when was it last serviced?
When were the brakes last checked?
Has it been involved in a serious accident?
Don’t forget to consider size of your car. Will you be driving people around, or is getting a two door, smaller car so your friends don’t rely on your too much.
All of these factors will help you decide when buying a car. Don’t forget that any previous condition the car is in, won’t fix itself, and most of the time, wont be fixed by the time you get the car. It will also affect your chances with getting reasonable insurance.


1. Insurance
Insurance companies can often ‘take advantage’ of young people. The price for a young person to comprehensively insure their car is exorbitant, often thousands of dollars. Research this and consider your options. Different companies offer different deals, such as reducing your premium but increasing your excess so you pay more IF something happens.

There are a few options about insurance.
-Comprehensive insurance – Covers you AND the other driver in the event of an accident.
-Third Party Insurance – Covers the other driver (to a certain amount) for damage you caused to them, however does not cover you!
-Fire and property Damage – Covers you for damage you cause to peoples property, through fire or accident.
2. Rego
Another cost to a car, is registration. Year after year. Around $500 p.a has to be paid to keep your car on the road.
3. Petrol
Petrol is really not cheap at the moment, so keep in mind when you are thinking about what car suits you, it’s litres/100km is important. Compare them against maybe a parents car who you can figure out how much per week it will cost you for petrol.
4. Car Loans
If you haven’t saved up enough for a car, a car loan might be the next best option. Your bank isn’t always the best option, credit unions and even your family can loan you money for a car. Speak to them, write down what expenses there are in terms of getting your car going, and make sure you have enough money when going to get your car.
Dealer or private
There are a number of ways to check out what cars are available. Online, newspapers or going to a car yard are all great ways to get info about prospective vehicles. Organising a test drive will help you get the feel for the car. Buying from a dealer also gives u a limited warranty in case the important parts of the car that should be good to go when you buy it, go wrong. When the sale is private, there is no guarantee for the car.

As always, bills come at the worst time of the year. Maybe set up an account that has no fees so that you can begin putting money away incase something happens to your car.

In Victoria, a Certificate of Roadworthiness is required for the transfer of ownership of all second-hand vehicles - don't be caught in a deal without one. If you are sold a lemon there are places where you can seek help. The 'Cars' section of the Consumer Affairs Victoria website is a good starting point for information.


We also covered the new words going into the dictionary for 2010.

Fergalicious?
Frenemy?

there's plenty more options!
Jump on the Macquarie website and vote!
www.macquariedictionary.com.au

Catch you all next week!