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What if I choose used car instead of new car? - A guide for used car finance Australia


Since the day you learnt the lesson to drive, it becomes your ever wanted desire to own your private car. What if you are an international student, a pensioner or have just started your job? You must find it difficult to choose among the range of cars with different models and making and also your mind gets stuck in this debate of used car financing vs new one. Honestly speaking, pros and cons are there for both even if your car finance dealers claim for zero or merely 1% interest rate. So before getting yourself on the steering that troubles you later on, get acquaint with car finance rates and its relative quotes. Having said that, it is always advisable to get new car except the load of cost. All this raise question of right decision without any regrets! This guide can help you to choose either new or used car on financing with summed up details and the benefits to give you confidence to drive away smoothly.


  • USED CAR – Cheaper in cost, Limited in available options, Requires technical investigation before purchase, Less options of financing, No warranty against auto parts and other maintenance.
  • NEW CAR – Expensive in cost, Wide range of variety, Requires sales tactic for best quite before purchase, Range of financing options, Warranty documentation and detailed information of manufacturer specs.

What is the difference in Price range of new vs used car finance deals?

The difference in price range of new and old car solely depends on its manufacturing life. i.e., the new the model, more is its price. Therefore, it is clearly noticeable that a used car finance rates are comparatively less. Other factors involved in the pricing list are: type of vehicle model no., external and internal auto condition, and maintenance etc. One can simply evaluate the price of used vehicle to be purchased by comparing it from the same new market vehicle. Auto finance dealers generally assume that a second hand car should be 20% cheaper in cost than a new model. No matter how much good is the condition and how often its wheels touched the roads, a used car must be at least 20% cheaper or more. The more car is used or rests in your garage, the less is the market price which is understandable due to the fact of featured advancements in new model vehicle. 

It is seen that sometimes new car cost-saving measures expenses you more than a profitable trade of used car finance dealership. So with the help of auto finance dealers, you can always make a secured dealing of used car finance.

How to select among series of Models variety?

Talking about the model, new car certainly gives you more variety and options to choose right away. But in used cars, options are very limited with some compromising facts like repaired dents or bald tires of your chosen vehicle. If we consider color range, the card goes in the pocket of new car again. It would maybe the right model for you, but it’s color may be too feminist, dark or white for you. It is your luck that which model color is being sold to you. The next factor is time; you never know how long will your search ends. It may happen that you travel long to your desired model and finds out it to be an extortionate rust bucket. On the contrary, it might be your lucky day and pay off long travel and tiredness by getting exactly the model you needed with perfect specifications and no extra cost on maintenance.

What to see before purchasing used car finance near me?

You may have often researched used car finance deals near me but have you wondered that what are the measurements needed to be checked before buying your private vehicle? This factor is optimized in the purchase of new care as it gives you consistency for price check, auto conditions and other related specs. It saves you a lot if you are a time poor individual searching for your own wheels. But if you are on a search of second hand car, risks are high for bad purchase. For this, safety of private vehicle other than the protection of your wallet is needed. It is safer to bring along a technical or mechanic resource to help you in the purchase before dealing.

How to finance my car?

No matter it is a brand new car or used one, one has to finance it and check for the eligibility. The auto finance dealers are usually same for new car loans and used car finance with bad credit. However, the terms and conditions are varied for each depending upon the category of car financing option. For new car on lease, packages of financing are more with divergent benefits categories and offers of 0% interest rate. If analyzed carefully, one still has to pay more overall due to certain factors. Read more about new car financing.

 For used car finance, loan terms differ from seller to seller, borrower, model and other factors. One can simply compare among the financing of new vs old car through car loan calculator.

How to get secured and guaranteed documentation and maintenance?

The manufacturers and the dealers provide you detailed information on specifications used car finance company, model features, color range and fuel per mileage consumption, etc. However, used car finance company can never be sure of descriptions such as original auto parts intact, no invisible problems or repair defects and working airbags. Therefore, it is mandatory to check the car history, road performance, scheduled maintenance service account for any outstanding payments before giving the massive money for it.


It may happen that you find a new car within warranty duration and you may not have to check for the above parameters. But do you know how to check the warranty validation of a new car?


  • - The guarantee card is reliable and reimbursable for its first 12 months of initial purchase.
  • - There is also a limit to warranty i.e., 20,000 km driven since the manufacturing date.

It also acts by reducing 2000 km for every month of its initial purchase which means if a car used 18,000 km in its first 6 months of initial purchase. It will be eligible for only 2000 km left for the remaining 6 months. Similarly, a brand new car purchased and left in garage for 11 months with saved 20, 000 km will be eligible for one month only, no matter the saved kilometers remained left for the whole duration.


Therefore, it is wise decision to choose among two used cars with more remaining months and kilometers in its warranty card. In some cases, previous vehicle owner buys the car on an extended warranty option from the manufacturing seller. It is advised to check with the original warranty documentation for secured purchasing and also demand for the entitlement of full warranty privileges, right after its purchase.

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Always run a Quick Revs check before buying a used car.

It is a financially prudent habit and can save you from huge legal problems.

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