Car buying tips

Always put in plenty of preparation before you splash on a new set of wheels.

• Do some homework on car values before you go shopping and you'll be in a better position to negotiate.

• Check out the Trading Post and online sites such as www.carpoint.com.au.

• Don't buy the first car you see — shop around and compare deals before you hand over any money.

• Ask for the service history of the car.

• Get the car inspected — it might cost you a few hundred dollars but could end up saving you thousands if there's something wrong and the car's a dud.

• Check with the RTA or Department of Transport in your state to make sure there is no finance owing on the vehicle — this is called a REVS check in NSW.

• Take it for a test drive to make sure it feels right. A car may look good but you might not feel comfortable driving it.

• Keep in mind, when buying a car privately, that you're not entitled to a refund if you change your mind and you won't receive a warranty.

• It's worth getting an estimate on car insurance before buying to make sure it's not too expensive. A different car might cost less to insure.

• If you're buying from a dealer, find out whether a warranty is included and what sort of after-sales service you'll get.

• Inspect the car during the day rather than at night to spot any defects or damage.

• Don't overlook additional costs such as stamp duty.

Check out our guide to getting a car loan

For the complete story see Money Magazine's October 2006 issue. Subscribe now.