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Fiona Lippey, founder of popular money management website Simple Savings, says "Buying a car is one of the stages in life where you can get it right or make a very expensive blunder. With a bit of research and know-how you can get what you're after and have money left over. However, if you go into buying a car without planning or proper advice, you could be ripped off or end up in debt."

Before hooking that shiny new key on your key ring, here are a few tips from Fiona and eBay for getting yourself on the road with less stress and more money left in your pocket!

  • Look at pre-loved vehicles: According to eBay research up to 89% of Australians first car is second hand. "Luckily for first car buyers there are a lot of really good second hand cars available - we're not talking rattlers or lemons but older model cars in great condition at great prices".
  • The personal finance pitfall: Be very careful when choosing a lender. "Interest rates on personal loans are high - over 20% in some cases. Borrowing $5000 for your car at 11.2% over five years will cost you $1552 in interest. At 22.95%, you're looking at $3448.53 in interest repayments alone," Fiona advises.
  • Pay cash: Ideally when buying your first car you should save up and pay cash. This may mean you'd have to go without some luxuries and use public transport while you save but it is worth it in the long run.
  • Be informed: Make sure you find out about all the costs involved in purchasing the car, such as insurance, rate of fuel consumption and replacement parts. "When buying a used car it's really important to get a vehicle history check through a site like checkitout.com.au to ensure that the car doesn't have any money left owing on it. You don't want any surprises after you've bought the car when it's too late."
  • There's no such thing as too much information: Regularly scroll through car sales websites like eBay Motors. The wealth of information on car buying generally, and individual car models and car sellers at these sites is huge. Use the site to gather information on particular cars, build watch lists of great bargains and investigate seller Feedback fully - Feedback gives buyers critical insight into a seller's reputation.
  • Avoid the hard sell: According to eBay research 41% of car buyers agreed that a benefit of buying a car on sites such as eBay Motors is that they can avoid face to face negotiations and the "hard sell" if need be. Other popular benefits include the ability to comparison shop (56%), the convenience factor (anywhere, anytime!) (55%), and the fact that they can get a great bargain (39%).
  • Cover yourself: Don't forget to factor insurance costs for the make and model of car you choose into your budget. Also, check to see if you are covered by the Vehicle Purchase Protection program (www.ebaymotors.com.au/vpp.html). If you buy an eligible vehicle from eBay Motors, it may cover you for up to $20,000 in the unlikely event that something should go wrong with your purchase.
  • Finally found your dream car? Make sure it won't give you nightmares in the long run. Get a mechanic to give it a good once over and it's a good idea to take it for a test drive or before you buy.
 
 

As an avid eBay user Andrew Sherwell naturally turned to eBay Motors to buy his first family car and managed to find the perfect Nissan Patrol for the great value price of $5,500.

"The best thing about buying a car on eBay is the price and range. The seller was very helpful and flexible, I felt totally comfortable purchasing a car through the site - particularly with the Vehicle Purchase Protection program, which covered me for up to $20,000*. Having easy access through the site to a vehicle history check and inspection gave me added peace of mind that I was buying the right car for my family."


And it seems eBay runs in the family! Andrew's 18-year-old son Josh recently bought his first car on eBay Motors also. He too found a Holden Commodore on the site for the bargain price of $3,000 and Andrew couldn't be happier with his son's purchase. "It's the perfect first car for Josh. He's getting his license next week and has been practicing in the lead up to the test."

       *Terms and conditions apply. Check www.ebaymotors.com.au/vpp.html for more information*