Cheap Cars for Sale

By Luke Caesar - General Manager - July 20, 2017

Cheap Cars for Sale

When you’re looking for a used car, it’s because you know that buying a car that’s just one or 2 years old can save you a ton of money.

Being financially astute, you’ll also want to make sure that you’re buying a car that’s a true investment and adds real value to your life. This means getting a vehicle that’s truly reliable, and cheap to run.

Something you might not remember to factor in when you’re focused on the fuel efficiency and potential costs of future repairs is your comprehensive car insurance.

A cheap car suddenly isn’t cheap if you’re spending thousands each year to keep it on the road.

Sam from Get Rich Quick found this out real quick when he made an emotional purchase of a classic car without considering the future costs involved.

To avoid making the mistake of buying someone else’s problems but still get yourself a great deal, here’s some tips on finding the best cheap cars for sale.

Here’s some key costs to consider when you’re looking to find cheap cars for sale that represent a genuine great deal:

Cheap Cars For Sale: Your Comprehensive Costs Checklist:

Buying a cheap car means more than just getting the lowest price on the car, because the costs of owning a car really only just begin when you pay the ticket price and drive away.

Here's some of the things you'll want to weigh up when you're looking for a great deal at a cheap car sale.

1. Purchase costs: Is the sticker price and your car finance fair?

When you’re buying a car the first thing on your mind is the sticker price on the car. Can you afford it?

However, even if you’re buying a used car, most people don’t have all the cash handy, or they’d rather be able to keep the money for other purposes and pay off their car in weekly or fortnightly payments.

When you buy the car it is important to look at the sticker price, but it’s even more important to consider the total purchase price - the cost of the interest on the car loan over the loan term plus the sticker price on the car.

Total car Price = Sticker Price + Interest

So to know if the car you’re buying is really a genuine cheap car sale, you have to take your car finance into account.

Dealers often put a low price on a car, and then make their profits by charging you a higher interest rate on the finance that they provide.

This is one reason why you should get your finance pre-approval before you start to look at different models of car. This way you can be sure that the price of the car isn’t hidden in your finance rate.

At Used Cars Adelaide our staff will always check your budget and finance range first, before suggesting different car options for you to consider.

2. Know what important spare parts are going to cost you.

Research into the automotive industry reveals that building a complete car out of spare parts could cost more than 5 times of the original value of the car.

For example, it would cost more than $100, 000 to build the regular $20, 000 hatchback such as the Toyota Corolla, Ford Focus or Holden Cruze.

A large car could cost as much as $250, 000 to rebuild from spare parts.

Why this huge cost for parts? As cars become more and more affordable to buy, repairs become more expensive as manufacturers are looking for ways to make money.

Under Australian consumer law, you don’t necessarily have to use the manufacturer parts to be able to claim your warranty, although dealers will encourage you to do so to protect their profit margin.

When you’re buying a used car, look for one that shares spare parts across a number of models and brands.

Which car makes share parts?

Volkswagon, for example, can use common parts across cars built by Audi, Skoda, Seat, Porsche, Bentley and Lamborghini.

There’s also crossover between Toyota and Lexus, it’s luxury range. Hyandai and Kia also share common parts.

A little bit of knowledge is definitely power in this area. An oil filter that costs $21 for a V6 Toyota or Lexus is sold to Lotus owners for $35.

If you have the time to do the research, or you can find a mechanic who’ll use substitute cheaper parts, you’ll save yourself a lot of money on the repairs and maintenance of your next used car.

3. A small, economical car will be cheaper to insure.

Small, economical cars are usually also much cheaper insure.

Small cars can still be fun to drive too. If you’re looking for a learner model, the Nissan micra is a great place to start, and won’t cost much to run. The insurance is inexpensive too.

The Ford Fiesta has been around for 30 years, so you won’t struggle to find a second hand model for sale. Newer models have bluetooth and new-design alloys, but apart from this, the design hasn’t needed to be changed too much.

A Fiat Punto, Skoda Fabia, or Renault Clio are other great small car options that offer you a driving experience you can enjoy while keeping your costs low.

To give you a rough guide on what you can expect to pay in annual insurance, below is a table with an annual insurance quote for an 18 year-old male from reputable Australian insurer Allianz.

Of course, most of us will be eligible for a lower quote, as young males represent a high risk bracket.

Car Make & Model

Allianz Insurance Quote*

Excess

Ford Fiesta

$2390.17

$600

Nissan Micra

$1704.12

$600

Skoda Fabia

$2121.12

$600

Renault Clio

$3095.87

$600

Fiat Punto

$2163.78

$600


* annual comprehensive insurance quote based on male, aged 18 yrs, no accident history, one year comprehensive cover, beginning 31 January 2016 for the 2014 manual transmission model of stated vehicle.

Now you have this information, you’re ready to take the next step and start browsing for your next car.

Find out more about car finance and how it works, or find out how our General Manager sets the prices of our vehicles at Used Cars Adelaide.

If you’re ready to start browsing, check out our current stock, or join us on Facebook to find out as new models come in.