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Buying a new set of wheels ranks as one of the bigger decisions you will make in your life. Because of the size of the investment and the significance of the purchase it is the kind of thing that has the ability to wreak havoc with your financial life and to cause far more problems than it solves. Of course if you get it right then you are sorted, with freedom to move where you like when you like in a hassle free manner. So naturally there are a lot of considerations which have to be taken into account when making the purchase. Here are a few key things that you should be thinking about.

Is new better?

The downside of new cars is that they are more expensive than second-hand ones. They also depreciate faster which means that the second you drive them away from the dealer they have already gone and lost a huge amount of value. But having said that they are brand new! So while a second hand car is cheaper you don’t necessarily know who has driven it previously. A new car will have virtually zero mileage on the clock. When it leaves the factory it will be taken via car transport Sydney to Brisbane, or a similar destination, so that when you get it nobody else has put it through its paces. It is a tough one to decide on and there are pros and cons both ways, but the best solution would probably be a second hand car in condition that comes with a full service history and which has previously been driven by a known quantity. In other words, buy a car where you know the previous driver and more importantly, how they drive.

Style points cost money

The fancier the car and the bigger the engine the more it is going to cost you. So beware of vanity and vanity purchases because as cool as you look rolling down the beach front with top down and the music pumping, it doesn’t make up for having the car repossessed or having to sleep in the car because you can’t afford the repayments and the rent. A car is a necessity to get you from one point to another, so get something sensible that does the job. Nothing more is required.

Think about your life goals

Context is important when buying a car. In other words it is important to know who you are and where you are going – and by that we don’t mean in the car, we mean where are you going in life? If you want to do a lot of city driving, get something small and compact that offers good fuel economy in car traffic. If you want to travel cross-country get something with a bit of space that goes well at the top end. If you want a family then a compact is not the way forward. These are all critical things to consider beyond things like the colour, the mileage and the price.