So you’ve just passed your learners test and have successfully attained your probationary or provisional licence (your ‘Ps’). Well first, congratulations are in order!
After you celebrate, however, it’s important to keep in mind that probationary licence holders are actually most at risk of being involved in a motor collision. In fact, in Australia, studies have shown that the most dangerous year on the road for any driver is the first year of driving with their probationary licence. This is why so many driving instructors recommend that young drivers wait a few years before buying their first new car vs borrowing a parent’s car or buying a secondhand car.
It’s only natural that young drivers want to invest in their own vehicle rather than borrowing their parent’s car whenever they want to go for a drive. But regardless of what your dream ride may be, there’s nothing wrong with driving a used model for a few years while you build up your confidence on the road.
Driving a secondhand vehicle can also help young drivers better engage with the maintenance responsibilities that accompany owning a car – without having to sacrifice the higher resale value of a brand-new vehicle in order to learn these vital life lessons.
To provide more context, today we’ll be outlining all the due diligence that younger drivers must do before they even consider buying their first brand-new car. Stick with us as we outline all the core responsibilities and top methods for buying your first brand-new car sensibly and securely.
Can you afford comprehensive car insurance?
It’s wise to remember that every time you’re out on the road, you are effectively at risk of experiencing a motor collision. That’s why it’s imperative to have the right type of car insurance well before you leave the garage.
For newer vehicles, it’s highly recommended that you secure a comprehensive car insurance policy, as these policies are designed to cover damage to your vehicle in the event of a collision – not just damage to third-party vehicles and property. Brand new cars typically have higher repair costs, thanks to their more technical components and perhaps even the higher cost of spare parts. If you are involved in a collision, the last thing you need is to be out of pocket for these higher repair expenses.
Naturally, the additional value of comprehensive car insurance over third-party car insurance doesn’t come without an additional cost. Comprehensive policies can cost upwards of $1000-$2000 annually. Contrastingly, third-party insurance is more likely to cost under $1000, albeit with a higher policy excess that must be paid in the event that you do make a claim.
If you’re a safe and sensible driver, however, you can reduce your risks of ever having to make a claim on your insurance policy. If the thought of having to make a claim and pay your excess is a bit confronting, however, then you’re better off buying a secondhand vehicle that can be adequately covered with a simple third-party insurance policy. We strongly recommend that young drivers compare these policy types as well as the policies available to them whenever they consider buying their own vehicle.
Have you researched the vehicles you’re interested in?
Buying a new car isn’t as simple as selecting a model and finding one at a reasonable sale price. Diligent car owners also consider factors like fuel efficiency, parts availability, and known operational faults of that car model or its manufacturer when determining whether or not to buy a car.
The sheer number of variables that need to be considered is why so many driving instructors recommend that their students do plenty of research before they even think about going for any kind of test drives. In fact, most seasoned instructors agree that the biggest mistake young drivers can make when buying a new car is failing to read up on the models they’re interested in.
Doing your research also involves understanding the methods that car sellers use to get more out of every sale. It’s always wise to equip yourself with a strong understanding of your model’s average sale price to make sure you don’t get taken for a ride by an opportunistic dealer or even a private seller. This way, you’ll not only know what to look out for and what questions to ask, but you’ll also know whether you’re getting a good deal and are paying what the vehicle is actually worth.
Does your licence permit you to drive that vehicle?
Class C licence holders can drive cars, utes, vans, and trucks with a Gross Vehicle Mass (GVM) that’s less than 4.5 tonnes. However, probationary licence holders have a few more limitations in place in that they’re not permitted to drive any vehicles with engines that have been modified by third parties (i.e. not by the manufacturer). Probationary licence holders also aren’t permitted to drive any vehicles with a power-to-tare mass ratio of greater than 130kW per tonne; this is also called power-to-weight. So sadly, you can’t buy a high-performance sports car like a Ferrari SF90 Spider as your first vehicle.
It’s also important to note that if you don’t do your learners test in a manual transmission vehicle, your licence doesn’t actually permit you to drive a manual car either. If you did do your test in a manual car, then you could potentially buy either a manual or automatic transmission vehicle.
However, even though you can buy a manual car brand new if you wanted to, it doesn’t necessarily mean that you should. If you’re not totally confident, it can be wise to buy secondhand when getting used to a manual licence. That way, you can better familiarise yourself with operating a manual transmission independently without having to sacrifice the clutch of a brand-new manual car.
Do you ‘need’ or ‘want’ that car model?
Finally, when buying your first car, it’s always sensible to determine your buying budget well in advance. Doing so can help you ascertain whether or not you’re stretching your budget to cover a car model that you may not necessarily need, but rather one that you want.
Having a “need vs. want” mentality can help you maintain a pragmatic approach to buying your first car, thereby ensuring that you purchase a vehicle that will actually meet your needs without unnecessarily burning a hole in your pocket. By setting yourself a cutoff price and making sure that you consider all ongoing and extra costs, there is no reason why you can’t get a decent secondhand vehicle that falls within your budget. And remember – practicing a little strategic buying here can help you save for that dream ride further down the line.
Conclusion
Whether you’re buying your dream car secondhand or a starter car that’ll help you gain confidence on the road, just make sure that:
- You have the right car insurance policy
- You do proper research (i.e. looking at average sale prices, fuel efficiency, operational faults, etc.)
- You set a firm buying budget
- You consider the vehicles you’re permitted to drive under your licence
With these considerations made and questions answered, you should be able to buy a car that ticks all your safety and spend-savvy boxes as a young driver.
Darren is an expert on driving and transport, and is a member of the Institute of Advanced Motorists
