Published 30 January 2026. Figures and market conditions described here were current at that time and may have changed since.
Buying a second-hand vehicle typically comes with a lower price tag, but they can also have hidden risks.
If you're thinking about upgrading your car without breaking the bank, here's what to consider before signing on the dotted line.
Understand your budget and finance options
Before anything else, know how much you’re willing and able to spend. This means factoring in more than just the purchase price. Consider ongoing costs like insurance, registration, fuel, and maintenance.
If you’re not paying cash, investigate used car finance options. Many lenders offer loans for second-hand vehicles, but they may have age or condition restrictions.
Speaking with a finance broker can help you find a loan that suits your situation and compare interest rates and features. Getting pre-approved can also give you greater confidence when negotiating.
Inspect the car inside and out
A car’s appearance can tell you a lot about its history. Walk around the vehicle and look for dents, scratches, rust, or paint inconsistencies as these could signal past accidents or neglect. Check the tyres for wear and ensure the lights and windows are all working properly.
Inside, look for signs of wear and tear on the upholstery, dashboard, and flooring. Pay attention to any musty smells, which could be a sign of water damage or mould. If anything seems off, ask questions.
Don’t skip the test drive
Photos and ads don’t always tell the full story. A test drive is essential. Take the car for a drive on different road types, if possible, residential streets, highways, and inclines. Listen for unusual noises, check the brakes, steering response, and make sure all electronics (radio, windows, air con) are working.
If the seller hesitates or refuses a test drive, that’s a red flag.
Review the service history
Ask for the vehicle’s logbook and service records. A well-maintained car should have consistent records showing routine servicing. If there are big gaps between services or if repairs seem frequent, it could be a sign of future problems.
You should also check the vehicle’s history using the Personal Property Securities Register (PPSR) to ensure there’s no money owing on it and that it hasn’t been written off or stolen.
Get a professional inspection
Even if everything looks and sounds fine, a pre-purchase inspection by a qualified mechanic is still a good idea. They’ll be able to assess the engine, suspension, brakes, and other components that you may not know how to check. This small upfront cost could save you thousands down the track.
Buying a used car doesn’t need to be stressful. With a little preparation, you can avoid the pitfalls and find a vehicle that fits your lifestyle and budget.
A finance broker can help you compare your options and help ensure you get the loan to suit your needs.
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