6 Tips for Buying a Used Car

In the market to buy a second-hand car? Before you do, here are 6 important tips to help you have the best experience.

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Do Your Research

Before you go shopping for a used car, it’s important to do some research and understand what type of car will suit your needs. Ask yourself questions like “What size of car will I need? What running costs can I manage?”. There are a lot of unique options available in the second-hand car market and this will help you to narrow down your search.
Once you have an idea of the type of cars that will suit your needs, it’s time to start comparing models in your budget. To do this, you will need to know key specs such as engine type, fuel economy and features. This process will help you to further narrow down your search making it easier to act fast once you find the right car for sale.
Now it’s time to start looking. Begin your search by googling for “second-hand (desired car make and model) for sale”. You can also use platforms such as Facebook Marketplace and Gumtree, as well as local used car dealerships.


Bonus Tip: A lot of new car dealerships will have stock available from car trade-ins. This can be a great way to get a used car that’s in good condition, especially if you are looking for a specific make or model.

Be Prepared

 Unlike new cars that have lots of stock, second-hand cars are unique and once they’re sold, that’s it. To avoid missing out, go prepared for any test drive or appointment. This way, if you find the right car you can act fast.

Important documents you will need to bring include a valid driver’s license and proof of insurance (if required by the seller).

Bonus Tip: Bring a pen and paper or use your phone to take notes and photos when shopping for a used car.

Inspect the Car Before Taking it for a Test Drive

Just like you would with a rental car, it’s important to document any visible damage, scratches or irregularities on a second-hand car before taking it for a test drive. A great way to do this is by taking photos on your phone. This way they will be time stamped and you can be protected from being blamed for pre-existing damage following your test drive. You also don’t want to purchase the car without being aware of any defects or problems that you may need to fix later. Some lesser known things to check are the lights, wipers and any features in the car such as air temperature control, heated seats or entertainment systems.

Test Features & Tech

  • Test the infotainment unit, navigation, bluetooth and sound system
  • Check how easy it is to use key features (e.g. parking sensors, reverse camera)
  • Take note of any distracting or over complicated controls

During these checks, it’s also important to assess if the car is the right fit for you. Examine the boot space, test out the seat comfortability and ensure you are able to adjust the car’s settings for your comfort. Things like your seat position when driving, mirrors and how easily you can reach controls and pedals will all make a huge difference to your experience so you want to know that you can find the right fit.

When It's Time to Test Drive, Remember These Things

Ready to take it for a test drive? Before you hit the gas, ensure to set your seat to the right height and position and adjust your mirrors to the appropriate setting.

During your test drive, it’s a good idea to test driving in different conditions. This means driving both city streets and highways if possible. Throughout your drive, test acceleration, braking and cornering to see how the vehicle handles. You may also look to try some bumps and uneven roads.

Pay Attention to Feel

Throughout the test drive, it’s important to consider how you feel in the car. A car is a big purchase and you want to know that you’re 100% happy with the vehicle you’ll be driving.

Some ways to do this are by:

  • Assessing comfort, noise levels and steering response
  • Asking yourself is the ride smooth or stiff?
  • Noticing if you feel confident and stable behind the wheel

Don't Rush the Decision

Because second-hand cars are usually one of one, it can feel like there is a lot of pressure to make a decision in the moment. But don’t be afraid to take your time and compare notes. It’s better to walk away and consider your options than sign on the spot and be locked into a bad deal.

If you’re looking for a certain model, you may also wish to check online for other deals or look at what options are available, such as a demo model, before committing to anything completely.

Ask Questions

The best tip for shopping for a used car that we can offer you is to not be afraid to ask questions. Asking about topics like warranty, servicing and other on-road costs can help you to avoid scams and falling into the wrong deal. You should also clarify any special features or concerns that you noticed. This will give the seller the opportunity to provide you with more information that could be very valuable when considering a decision.

Some examples of questions we recommend asking while shopping for a used car:

  • "Can I see the service and maintenance records, including receipts for recent work?"
  • "Has the car been in any accidents?"
  • "What are the typical running costs?"

Bonus Tip: Before agreeing to purchase any used car it’s essential to run a PPSR (Personal Property Securities) check first. The check costs just $2 and protects you from scams by sharing important information you need to know about the car you plan on buying. For example, it will tell you if there’s money owing on a car, if it’s been written off or if it’s been reported stolen.

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Frequently Asked Questions

Car Loan FAQs

Yes, you may be able to get a car loan with bad credit. A low credit score, defaults or previous missed repayments don't automatically rule you out. At Jacaranda Finance, we consider your current financial situation and ability to afford repayments alongside your credit history.

A car loan is taken out for the specific purpose of buying a vehicle, and the vehicle is held as security for the loan. Because of that, Jacaranda Finance pays the funds directly to the seller rather than into your account. A personal loan is not tied to a particular purchase and the funds are paid to you.

Car loans from Jacaranda Finance range from $3,000 to $40,000 over terms of 25 to 48 months. The amount you may be offered depends on your income, expenses, existing commitments and what you can comfortably afford to repay.

Yes, with Jacaranda Finance you can apply entirely online in just a few minutes1.

Apply before 3:00pm AEST and get a same-day outcome on your application2.

A deposit is not required. Reducing the amount you need to borrow will lower your repayments and the total cost of the loan, but the assessment is based on whether the repayments on the amount you are asking for are affordable for you.

For a car loan under $10,000, comprehensive insurance is not required, although we recommend it. For a car loan of $10,000 or more, comprehensive insurance on the vehicle is required before the loan can be finalised.

Yes, you could use a car loan to purchase from a private seller. To complete the sale, we’ll require additional information such as the seller's identification and registration details, verification of their bank details, a roadworthy certificate, a signed sale agreement, photographs of the vehicle and odometer, and proof of comprehensive insurance.

Checking if you qualify has no impact on your credit score*. If you proceed to a full application, we may perform a credit check, and that enquiry is recorded on your credit file for five years.

No. No lender holding an Australian Credit Licence can guarantee approval, because responsible lending obligations require an assessment of each individual application. We may carry out a credit check if you proceed to a full application, and we weigh your credit history alongside your current circumstances rather than treating it as the only factor.

Yes. The interest rate on a Jacaranda Finance car loan is fixed for the life of the loan, so your repayment amount does not change once your contract is signed.

Yes. There are no early repayment fees on a Jacaranda Finance car loan.