Finding a used car at what you think is a great price and making a hasty decision, so you don’t lose what you perceive is a great deal can be an expensive mistake.

There are many instances where stopping and thinking about the situation and purchase through thoroughly could result in a decision that is much better for you in terms of time and money. Careful car finance can often result in a better deal (better car, less money) that you had originally hoped.

In Australia, $4,750 is spent on an average overseas holiday. Compare that to the experience of over one million Australians, where the average purchase price paid for a used auto is $11,0000, more than double the cost of a holiday. This average price tag does not include estimated repair bills for a used car that often exceeds $2,000. The Australian Bureau of Statistics has estimated that three-quarters of Australians own a car, and of these, close to 60% have ended up purchasing a vehicle that has turned out to be a lemon.

While these statistics are scary, most of these poor decisions could have been avoided. Almost one-third of those buyers spent less than 2 hours making a purchase decision. Over half of these decisions were made on how trusty worthy the seller appeared to be. Knowing the seller, or having a positive enthusiastic seller, was something the buyers relied on to make their purchasing decision.

Since buying is a major financial decision, the asking price plays an important and often decisive role. Try car finance calculator to figure out what you need to borrow and the interest payable over time.  If the test drive of the car is positive and goes well, the tendency is to buy. At this point in the process, it is important to keep calm, not let excitement about the car rule any rational thought or judgment about it. This can be difficult if the car in question is just what you wanted, is your favourited style or colour and is priced within your budget.

What are the priorities of Australian purchases? 60% are judging solely on price. 46% are using fuel economy as a guide and slightly smaller groups are making judgments based on fuel economy or size and type of car. Less than 40% are concerned about safety.

Are there any negative points to take into consideration? First is a possible lack of maintenance records. Next is the lack of current safety features. Often there is no idea of current upkeep needs and costs. An older car could be harder to work with because of difficulty in finding repair parts. An older car can prove to be a gas guzzler with higher operating costs.

Don’t take used cars off your shopping list. Take time to research the used car and the market. If possible, take a potential purchase to a mechanic to have the car evaluated or bring someone familiar with car maintenance with you. Don’t let someone pressure you into a quick decision. Not sitting down and having a conversation with a trusted friend or advisor over a cup of coffee can cost you more than you planned to spend.

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