Buying A New Car? Don't Buy A Lemon!

A lot of us have fallen into the trap of buying used vehicles which have turned out to be … well … less satisfactory! While purchasing a second-hand car has its advantages, it also comes with some additional risks. These might include hidden or undiscovered mechanical or structural issues, a lack of warranty coverage, or even potential misrepresentation of the car’s condition by the seller.

When purchasing a new car, your challenge as the buyer is to make the most of the advantages, while minimising the risks! So, before launching your search for a good deal on a used car, it pays to spend some time considering your options, understanding your financial limits and finance options. The good news is we’ve got some great advice on how to avoid buying a dud and what you can do to make the most of your new (used) car!

Top 6 Tips For Finding The Right Used Car

Searching for a new used car can be a big undertaking, but with a solid plan, you can find a great vehicle that meets your needs and budget. There is quite a bit to consider so we have put together some tips on how to approach the process.

1. Define Your Needs. Many of the same factors that would apply to a new car purchase also apply to buying a second-hand car, including understanding how you will use the vehicle, how long you plan to keep it, the size, style, features and appearance you need or prefer as well as future operation, maintenance, and repair costs.
2. Do Your Research. Before you start looking, think about what you really need in a car. Consider factors like budget (not just the purchase price, but also ongoing costs like insurance, fuel, and maintenance), size and body style, preferred features (must-haves like safety features vs. like-to-haves such as a good sound system) and last but not least, reliability! Always research a car’s reputation for dependability, look up unbiased online research and surveys or even reviews for some guidance on this one. You can often find car reliability surveys and reviews online.
3. Find Reputable Sellers. Generally speaking, here in NZ you can either buy a used car from a private seller or a used car dealer. Dealers may offer more protection (warranties) and greater convenience, plus they are also legally obligated to provide you with certain information about the vehicle’s history. Whereas private sellers are often favoured because lower prices are more achievable however in general legal recourse is more complex if something goes wrong.
4. Shop Around. Go nuts on this one - check car buyer’s guides online, look for websites that advertise used cars like Trade Me Motors or Autotrader, or even Facebook Marketplace, as well as car dealership websites, and get a really good understanding of what’s available for the make, model and mileage you are looking for (and fair market pricing).
5. Carry Out An Inspection. Whether you do it yourself, rope in a friend or hire someone, you must take a good look at the car and take it for a decent test drive (and listen for any unusual noises). Pre-purchase inspections can be a lifesaver especially if you know nothing about cars! The cost of an inspection is a small price to pay to avoid a potentially expensive “lemon”.
6. Check the Car’s History. Once you have your eye on a specific vehicle, a vehicle history report is a good idea as it can reveal important information about the car’s past, including any previous accidents, outstanding debts, odometer readings, and stolen status.

Used Car Pre-Purchase Checklist - What To Look Out For

Speaking of inspections, what do you need to look out for and what are some red flags when buying a used car? While you can’t expect a used car to be in perfect condition, there are some definite things you should look out for. Here is a quick list of pointers to get you started.

The Exterior

• Look for rust, peeling paint or discolouration.
• Check for mismatched paint/panels (this can indicate a past repair or that the car has accident damage)
• Inspect the tires for even wear and adequate tread depth (uneven wear can signal alignment or suspension problems).

Under The Hood

• Look for any signs of leaks, frayed wires, or damaged hoses
• Check the oil, it should be golden to brown, not black or gritty
• Check the coolant, it should be a blue or green tint, not oily
• Rumbling or knocking noises from the engine when you start the car could indicate deeper problems
• Check for thick blue smoke coming from the exhaust when you start up and rev the engine with the gear in neutral or park - this is not a great sign!
• Let the car stand for a while and check for puddles of oil or liquid coming from underneath.
• Make sure that the engine power is adequate for the size/weight of the vehicle.
• Check for over-heating (when test driving the car).
• Check that the car follows a straight line and brakes in a straight line.

The Interior

• Look for signs of wear and tear that seem inconsistent with the mileage.
• Check for damp areas or musty smells, which could indicate water damage.
• Test all the electronics, including the radio, air conditioning, wipers, lights, and windows.
• For older vehicles, it might pay to check the speedometer hasn’t been tampered with, you can do a quick online follow-up using a platform like Checka to validate this information.

Top 10 Expert Car Buying Tips To Take Away

Ready to buy a used car without the stress? Forget the confusing (and sometimes biased) advice. We’ve compiled the top 10 expert tips to guide you through the process.

1. A warrant of fitness certificate (WOF) does not mean the car is problem-free. WOFs simply state that the vehicle meets the minimum statutory requirements to be allowed on NZ roads.
2. Always ask to see all the car’s paperwork and check the service record. A car with a comprehensive service history is a good sign that it has been well-maintained.
3. Seriously consider a pre-purchase mechanical check - this can save you lots of money!
4. Be aware of dealers posing as private sellers, sometimes you are actually talking to a dealer even though you answered a private-looking advertisement.
5. It is perfectly OK to try to negotiate a lower price than what is stated on the advertisement, in fact this is usually expected. Pre-approved finance will put you in a stronger position to haggle for a better price.
6. If uncertain, don’t be afraid to just walk away from the deal, there is always another car.
7. Stick to your budget, don’t stretch the finances too far or you could end up regretting your purchase.
8. Shop around for your vehicle finance; often, dealers will offer in-house financing, but you will almost always get a better rate by working with private vehicle finance companies, which specialise in these types of loans.
9. Make sure the registration and warrant of fitness are current and valid.
10. If you’re buying from a dealer, always read the sale agreement carefully before you sign anything. Be particularly aware of any additional fees or unfavourable clauses.

Getting pre-approved for a vehicle loan lets you know exactly how much you can borrow before you start car shopping. This puts you in a much stronger negotiating position at the dealership, as you’re effectively a cash buyer. Apply for your vehicle finance with CarMoney here.

‍