Hand me down love - Aussies are buying second hand cars more than ever
According to Gumtree’s Second Hand Economy Report, we’re a nation of second-hand lovers, as 90% of Aussies have bought something second hand at one stage in their life.
The data revealed that almost 100 million second hand items were sold on Gumtree within the last 12 months, with 43% of buyers agreeing they saved almost half the cost of what they would’ve paid for a brand new item.
And cars are no different, with 29% of people preferring to buy their next set of wheels second hand.
“Buying a second hand car can be a great way to get the car of your dreams, without the big price tag,” said Mozo Director, Kirsty Lamont.
“It just goes to show that more and more Aussies are getting savvier about their choice of wheels.”
RELATED: Is your car costing you more than you think?
It’s not uncommon for many Aussies to opt for a used car loan in order to finance the second hand car of their dreams. And at the moment, there are currently 77 used car loans in the Mozo database.
To give you an idea of what a used car loan repayment might look like, say you borrowed $15,000 on the average used car fixed rate in the Mozo database of 7.52% for three years. According to our car loan repayment calculator, you’d have a monthly repayment of $467.
However, while the price could be right for many Aussies, Mozo’s Product Data Manager, Peter Marshall has issued a word of caution for those looking to use a car loan.
“With budgets getting tighter and tighter, it’s important for people to shop around and make sure they’re not paying more than they have to on necessities such as a car, and that means finding the right car loan.”
RELATED: How to get car loan ready for the EOFY
And if you are an Aussie thinking about picking up a second hand car, Gumtree have tracked down car expert, Chaz Mostert to offer up some pro tips for when you go car shopping.
- Check the car's history - Mostert says that just by paying $20 for a Car Record Report, you’ll be able to view a car’s valuation, odometer, engine info and safety ratings - all before you see it in person.
- Ensure reliability - Another important feature to keep an eye out for is a car’s reliability, so look for cars with under 60,000KM on the odometer and a good service record.
- Inspect the car - When you go for a test drive, take someone with you to listen out for odd sounds coming from the engine or underneath car. You should also check under the bonnet for the oil and lubricant levels as well as the tyres, lights and internal features.
And if you’d like to compare more used car loan options, you can check out our used car loan comparison tool!
* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
^See information about the Mozo Experts Choice Personal Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.