Buying Used Cars in Brisbane? Read this first!
30 May 2022 · Our Blog - Read The Latest Articles
Buying used cars made easy.
The best new cars make the best pre-owned vehicles, so getting a high-quality used car at a fantastic price is an incredibly smart move in this current market.
Here as your local Toyota used car dealer in Brisbane, we’ve provided information to help you make the most informed and easy decisions when buying used cars.
Here's what we'll cover
- The Post Pandemic landscape for the automotive industry
- Ways you’re able to buy used cars
- Top 3 benefits of buying a used car and the downsides
- Certified pre-owned VS Pre-owned: What’s the difference?
- Industry Tips when Buying a Used Car
Buying Used Cars Post COVID-19
The pandemic has changed the landscape of so many industries and the automotive industry was not immune. In fact, the automotive industry has been hard hit by the pandemic. With factory shutdowns delaying production and international shipping and logistics heavily disrupted the industry has seen unprecedented delays to new car production. Pair this with an increased appetite for private vehicles to avoid public transport and more disposable income due to less overseas spending then you see how buying used cars has become a popular choice.
10 ways COVID-19 has impacted automotive
Here's the 10 ways carsales.com summarises COVID-19's impact on the automotive industry;
- Car usage increases
- Non-car owners surge into the market
- New Licence holders enter the market
- Sustained urgency to buy a car
- Superannuation withdrawals fuel affordable cars
- Instant asset write-off fuels sustained LCV interest
- Prices surge for used cars
- Online research and shopping acceleration
- Record volume of sales and prospects for dealers
- Increased interest in auto-based travel
"While the new car market has been resilient, the used car market has become highly competitive as customers who are unwilling to wait for a new vehicle move towards quality used stock"
- CAMERON MCINTYRE CEO & MANAGING DIRECTOR CARSALES.COM LTD
Ways to buy used cars
In our post pandemic world there are now more ways to your new car than ever.
The four main ways you can buy used cars in Brisbane right now are;
- Online only
- Private Sellers/Market
- Dealers
- Online / Private combo
You can now buy your used car totally online from new online dealers such as blinkr.com.au.
The private sellers and buyers market is incredibly buoyant and is another avenue. Prices in this space have skyrocketed post-pandemic so be sure to demand the right price.
Private sales are high-risk and unregulated. As such, you must be extra vigilant with your checks. Check out our industry tips below or read more in this in our article exploring benefits of buying used cars from dealers.
Buying A Used Car From A Dealership
Currently buying from a licensed motor dealer has never been better. Although traditionally dealers can be more expensive than a private sale, in the current market this has evened out a little.
The Queensland Government also advises that it is the safest way to buy a used vehicle and provides many advantages.
When you buy a used car from a licensed dealer such as Downtown Toyota, your local used car dealer in Brisbane, you are entitled to:
- test drive the vehicle
- a 1 business day cooling-off period - this means if you change your mind you have 1 business day to end the contract without big penalties.
IMPORTANT NOTE - if you sign the contract on a Friday and the dealer is open on Saturday, Saturday counts as your 1 business day. If you pick up the vehicle and take it home, the cooling-off period ends straight away (you give up your right to it).
- a statutory warranty (for certain vehicles) - with certified pre-owned you may also be eligible for extended warranties!
- a clear title guarantee - this means it's guaranteed there is no unpaid debt against the vehicle
- be protected by the motor dealers legislation
- access to a claim fund that may compensate you if you lose money because of the dealer’s actions
Statutory warranty covers you when the vehicle’s:
- odometer reading is less than 160,000km AND
- date of manufacture is less than 10 years before the sale date.
- The warranty expires after 3 months or the first 5,000km
Top 3 benefits of buying used cars
#1 Benefit for buying a used car - Available now (with compromise)
You can get just about anything you want if you're buying a new car, however, vehicle manufacturers globally are experiencing production and shipping delays due to the global pandemic and you will face extended wait times.
If you're going with a used model, you may not have every option available to you, but you won’t have to wait either. There are thousands of great certified quality used cars available right now. With great research and flexibility, you can find a fantastic option for your next vehicle.
You may not be able to choose the exact variant or interior however with a little compromise you will find excellent choices that you could be driving away in today!
#2 Benefit for buying a used car - Lower & Slower Depreciation
Like most assets - depreciation is an unavoidable part of car ownership. Simply you could express a car’s depreciation with the following formula;
Purchase price - Resale price = Depreciation
Research has shown that a used vehicle offers less depreciation than a new vehicle. This is because most of the depreciation occurs when it was a brand new vehicle. New vehicles can depreciate as much as 30% in the first year alone! During the next two years it slows to a rate somewhere between 5% to 8%. Then you reach year 4 to 5 where depreciation begins to increase again due largely to warranties expiring and mileage accumulating.
Financial experts recommend purchasing a late-model (1-2 years old) used car whenever possible.
You’ll get a low-mileage vehicle at a reduced price and it won’t depreciate much over the next couple of years. You may even be able to sell the car for around the same amount that you paid for it, in the next few years. Slower depreciation means more bang for your driving buck! Consider selling your vehicles before year four to get the maximum return on your investment. Then start the process again searching for 1 yr old or late model vehicle.
#3 Benefit for buying a used car - Great value for money
In the past, used cars may have carried a stigma of being more risky than new, however the increased quality of cars from manufacturers and the increased availability of a vehicle history has altered this perception greatly.
Many vehicle manufacturers also offer certified pre-owned programs now to further guarantee the cars quality and provide peace of mind to car buyers. Certified pre-owned vehicles are accident-free, gently used, low-mileage vehicles that are typically only a few years old.
Ensuring you buy a car from a brand with a reputation for holding it’s value is a sound decision.
Toyota consistently ranks in the top three for resale value. In 2021, Kelley Blue Book recognized Toyota as the Best Resale Value Brand. Readers Digest Australia recently voted Toyota the most trusted car brand for the 14th year in a row.
Maximise your benefits when buying a used car go with a certified pre-owned vehicle. These high-quality, low-mileage, brand backed options offer a great balance for car buyers between investment and value.
Reasons why you may not want to buy a used car
Like every decision in life there will always be many considerations to take into account.
There are also a few reasons why you may not want to buy a used car. Examples include;
- Compromise is required - you can order what you’d like you will need to be flexible and work with what the market offers. For instance, you may not get the color you want if you choose the car that offers better history or lower KM’s.
- Potentially more maintenance - A used car simply due to it’s age may require more maintenance than a new car. You may also have to consider paying for repairs if your used car warranty has expired.
- Finance rates can attract higher interest - depending on your lender your finance may attract higher interest rates on used cars, ultimately meaning increased costs down the line. Counter this by ensuring you get the best possible finance deal upfront.
Is it better to buy a new or used car? The answer depends on you and what you are looking for from your next new car.
- Toyota Australia
Pre-owned VS Certified Pre-owned: What’s the difference?
When looking at buying a used car in Brisbane you will be faced with two options; an ordinary pre-owned car or a certified pre-owned car. Which one is for you will need to be carefully weighed before making your final decision. It is important to remember that not all used cars are created equal. Dealerships carefully decide which used cars to sell to their guests and generally will only stock higher quality used cars.
Here’s the difference between the two.
What is a pre-owned vehicle?
Pre-owned vehicles refer to any used cars. To be considered a used car it must have had a least one owner in the past. Prices on used cars varies greatly depending on it’s make, model, year, condition and service history. Depending on the age of the vehicle, it may or may not still be under manufacturers warranty.
What is a Certified pre-owned vehicle?
A certified pre-owned vehicle is a factory-certified used car that’s available for purchase at a dealership of the same brand. As mentioned earlier they are typically low-mileage, accident free and only a few years old.
The Certified pre-owned program depends on the car manufacturer and most have different requirements that need to be met.
Our Toyota Certified Pre-Owned Vehicle program is proof of our commitment to constant improvement and sets the benchmark for peace of mind for those in the pre-owned vehicle or used car market.
- Sean Hanley, VP Sales & Marketing Toyota Motor Corporation Australia
Pros and Cons of each?
Your choice between a regular pre-owned vehicle or a certified pre-owned vehicle depends on your personal needs and budget.
Regular pre-owned vehicles may offer a slightly lower price, and many times much more options to choose from however since it doesn't have to meet any quality standards, except those to maintain roadworthiness, it could be in any condition. Most time factory warranties have also expired and offer no further protection for future repairs or vehicle faults.
To be thorough, you’ll need to check your potential vehicle’s ownership and service history along with ensuring you have a trained technician to give it a fine-tooth comb check. Alternatively, you can simply select a Toyota Certified Used Vehicle.
Toyota Certified Pre-owned Vehicles come with warranty coverage from the manufacturer as a form of quality assurance, some models now come with an extended warranty, which is one of the most compelling benefits. During the warranty period, you can have your vehicle repaired at your local Toyota dealership for free if you experience any problems covered under the warranty.
In saying that, you can expect your certified pre-owned vehicle to be more problem-free for longer as the dealership will have thoroughly inspected the car to certification standards and fixed all the issues initially detected.
Compared to a poorly cared-for vehicle, a properly maintained vehicle is more likely to operate well for a longer time with fewer problems and repairs, making it a more worthwhile investment.
If you want to have greater peace of mind, you'll be better off getting a certified pre-owned vehicle.
Industry tips for buying a used car
Below is our top 5 tips for steps to take before buying a used car;
Used car buying tip #1 - Always ensure a mechanical inspection - Used cars that have damage is not always seen – ensure a mechanic inspects, instruct RACQ to inspect for a small fee or buy from a dealer who does mechanical inspections.
Used car buying tip #2 - Be sure to check if the car is encumbered if buying privately by completing a PPSR check (https://transact.ppsr.gov.au/ppsr/SearchLanding). You may buy a car that still has finance on it and be left to foot the bill.
Used car buying tip #3 - Buy a late-model used car - Buying a late-model used car avoids that initial steep depreciation.
Used car buying tip #4 - Buy a TCPO - Since you're starting at a higher value, you have a better shot at retaining a higher value with a CPO vehicle.
Used car buying tip #5 - Trade your current car to get the best value deal - including the sale of your current car in your deal adds value to the transaction – something you can’t do privately.
FIND OUT MORE ABOUT THESE TIPS IN OUR ARTICLE “5 Tips when buying used cars for sale” from Brisbane's Downtown Toyota.
Beginners Guide To Buying A Used Car:
Choosing The Right Car
First, determine the price range you can afford and the required features based on how the car will be used.
Use market research to ensure the asking price is fair and in line with market value.
Identify requirements based on how the car will be used, considering factors such as size, type, additional features, etc.
Research the brand and model reputation, including features, specifications, and owner reviews.
Watch Out For Scams
Be wary of common scams when dealing with private sellers.
Avoid sending money without seeing the car and verifying ownership.
Consider taking someone with you to vehicle inspections for safety.
What To Check When Buying A Used Car
Organize an in-person inspection and test drive.
Check the service history, including maintenance and repair records.
Inspect the car's body and interior for any damage, rust, or signs of wear and tear.
Test drive the car to check the performance and handling.
Check the car's history, including any accident damage and number of previous owners.
FIND OUT MORE ABOUT THESE TIPS IN “Beginners Guide To Buying A Used Car” from Brisbane's Downtown Toyota.
7 Great Benefits Of Buying A Used Car From A Dealer
Ready to begin your buying journey?
Downtown Toyota prides itself on being your local used car dealer in Brisbane and surrounds.
Find out our industry insider Top 5 Tips For Buying Used Cars For Sale In Brisbane or if you're considering a Toyota Certified Pre-Owned vehicle here's our Top 3 reasons to buy TCPO used cars.
To find out more about our pre-owned range please get in touch with our friendly team below and we’ll be happy to discuss your options with you!
Be sure to ask us about extended warranties on all TCPO used cars!