Before you embark on a process that can be stressful consider whether you want to sell your car privately or trade it in.
The key to keeping your car in tiptop shape is regular maintenance from the day you drive it home for the first time.
Maintenance isn’t just about having your oil changed every 15,000 km or so, it’s about small, but important checks that will help to keep your car running smoothly and reliably, and safely.
GET TO KNOW YOUR CAR
WEEKLY CHECKS
MONTHLY CHECKS
ANNUAL CHECKS
SERVICING
PRE-HOLIDAY CHECKS
With such long periods of dry between the rain, it would be timely to brush up on some basic wet-weather driving tips.
Not only are we not used to wet roads, they have been unwashed for so long that a heap of oil and other slippery muck leaches from the bitumen when it does rain.
So, with the help of the NRMA, here’s a handful of tips to help bring back to memory what adjustments are needed for a safe trip in the wet.
Slow down: Grip is reduced greatly in the rain, particularly if it hasn’t rained for a while. Everything you do should be slowed down, especially cornering and accelerating.
Brake early: It takes a lot longer to slow down on a wet and slippery road. Don’t brake harder in the wet — just brake earlier.
Increase the gap: In dry weather, maintain a two- or three-second gap between you and the car in front. In rain, double it so the gap is between four and six seconds.
Don’t believe your eyes: Approach puddles with great caution. They may look shallow, but hollows can be deceptively deep when covered with water across the road.
After going through a deep patch of water, lightly touch the brake pedal while driving to help dry out the brakes in case you need them quickly.
Steady as she goes: Generally speaking, a smooth driver is a good driver — doubly so in the rain. So, try not to make sudden moves, be they braking, accelerating, cornering or steering.
Light up: It may sound obvious to switch on the headlights in the rain, but you need only look around you next time it’s falling from the sky to see how many unlit cars you see murkily through the haze.
Gadgets: Safety devices are great but are no substitute for good driving. ABS, for example, may help prevent a skid when braking, but it’s no use to anybody who takes a slippery corner too fast.
SCHOOL’S finished. Top of the must-have list is a set of wheels. cars4news explores the pitfalls confronting first car buyers.
School’s out for summer. School’s out for ever!
And now it’s time to get a job, go to university and, most importantly, get your first car.
High school leavers are now facing one of the most important, daunting, yet exciting decisions of their life in buying their first car.
There are so many factors to think about: price, safety, economy, running costs, vehicle age, insurance; all on limited funds and with limited knowledge about cars, and finance.
To most young people, the most important thing is probably looks.
After all, you don’t want to be spotted by all your mates in a white Camry in the drive-through at Maccas.
And who can blame you?
That’s why so many young people buy old grey-import Sylvias instead of Camrys. It’s because they are red, they look fast and they were featured in one of the Fast and Furious movies.
However, often the car ends up spending most of its time being repaired, waiting on a part to come from Japan or simply getting it to start, steer and stop.
But is used the way to go?
There are many small new cars on the market from as low as $13,990 which have the latest modern safety features, plus advantages of new car warranties.
My first car in 1975 was a 1957 Morris Major Elite in army green with occasional windscreen wipers, stockings instead of a fan belt, a hole in the passenger seat, dubious mechanicals and copious amounts of rust.
But it cost only $400 and didn’t need insuring.
You probably also have your stories of first-car lemons.
We asked around the industry for advice about buying a first car, new and used.
The best three tips were research, research and more research.
AAMI state corporate affairs manager Mike Sopinski said the first port of call should be the Office of Fair Trading website.
“Before you hit the street to look for a new or used car I’d recommend you take the time to check out the Office of Fair Trading website,” he said.
“In fact, I’d say it should be compulsory for all first-time buyers as this government site provides a host of useful and easy to read information about buying a car.”
Other research young buyers can use is classified ads in newspapers and on the internet.
Comparisons will give the buyer a good feel for the true price of a car.
The RACQ advises young buyers to work out what they need in a car even before they start looking for one.
Whether they ask for it or not, young buyers will certainly get a lot of advice; from friends, relatives and car salespeople.
Two Brisbane school leavers on the hunt for their first car both claim a big influence from their family, particularly their fathers.
Justine Townsend, 16, of Forest Lake, is looking at a 2000 or 2001 Honda Civic “because they are supposed to be the safest car on the road so my dad tells me”.
Her father, Peter, drives a Honda Euro, which has “always been reliable”.
Michael Freeleagus, 17, also of Forest Lake, goes car-shopping with his father, Leon, “because he knows a bit about cars”.
“He will support my decision on a car so long as it doesn’t have a big motor like a V8 or a turbo,” he said.
“He also cares about the looks of the car so it doesn’t attract the cops.”
NRMA Insurance Queensland state manager Brett Robinson said young drivers should think about more than just look and feel.
“While many factors need to be considered when shopping around for a new car, safety and security should be the number one priority for all drivers,” he said.
Townsend agrees.
There are choices people can make when buying a new vehicle that may significantly reduce their risk of injury and theft and can even result in savings when it comes to car insurance, he said.
“The most important thing is safety and that it won’t break down on me because I am a girl,” she said.
It seems she is not alone. A Just Car Insurance survey has found 93 per cent of young people rated value for money as an important factor when buying a car, followed by safety and security on 85 per cent.
Case study No 1, Justine Townsend
Age: 16
Shopping list: considering a late-model Honda Civic or Mitsubishi Mirage
Budget: $5000-$6000
Dream car: BMW 5 Series or Nissan Skyline
“THE most important thing for me is safety and that it won’t break down on me because I am a girl.
“Safety is important because the thought of being in an accident is pretty scary. Fuel economy is also important.”
Justine has narrowed down her car choices to the two Japanese models and will buy through a broker “who is a friend of my dad”.
She has had her learner’s license for six months and has been working at a Coffee Club outlet for 2 1/2 years to save up for a car.
“I’ve nearly got all the money, but the formal put a few dents in the savings account.
“I need a lot more work to pay for the car. I’ll probably start full time work when I finish school.”
Her budget is between $5000 and $6000 and she is aware that insurance will put a big hole in her running costs.
“I got a quote for comprehensive insurance and it is nearly $2300 a year from RACQ.
“I rang them about deals where I get on my parents’ policy but because I am the main driver I have to start my own policy.
“I’ll probably just get third-party property and theft.”
Justine needs a car for work and uni. She is hoping to go to The University of Queensland to study international hotel and tourism management.
And when she gets her car, she will keep it fairly standard.
“I wouldn’t get it done up, I’d keep it clean and perhaps put a sound system in it.”
Case study No. 2, Michael Freeleagus
Age: 17
Shopping list: Mitsubishi Lancer
Budget: about $7500
Dream car: HQ Monaro
“I love Holdens. I like the HQ because it’s old school. Anyway, it’s a Monaro which speaks for itself.”
Back to reality and he is in the market for Mitsubishi Lancers.
“I have had my eye on a 1994 Lancer but it didn’t pass the RACQ check. lt was fully done up.
“I’m now looking at a 2001 model that is standard for $7500.â€
He chose the Lancer “because I always liked Mitsubishi” and because his father, Leon, has a Triton which has never given any trouble.
“The two door gives it a sporty appearance and the 1.5litre motor makes it cheap to run.
“I just want something that is reliable and cheap to run.
“When you are going to uni and have a part-time job you need to keep costs down.”
Michael, who wants to be a PE teacher, said he got a $1400 quote from Just Car Insurance for comprehensive cover.
“They look after young people and it is insured in my parents’ names, nominating me as one of the drivers.”
After buying and insuring the car, Michael wants to do some modifications.
“I’d probably change the exhaust. I’d like to make it sound more like a four-stroke motorbike.
“I’d probably do the rims, a sound system, custom pedals, steering wheel and gear knob.
Michael has been researching used cars on the internet and in the paper.
Michael has had a learner’s license since January and has been practicing in his mum’s automatic car.
“I want to get a manual and practice in that before I go for my test.”
FIRST time buyers are not as gullible as some people may believe.
According to research and statistics, it seems they are making pretty sensible buying decisions.
In a national survey of young drivers, 93 percent rated value for money as an important factor when buying a car, followed by safety and security (85 %).
More than half (52 %) of the 1053 drivers aged 18-25 years polled in the Just Car Insurance survey rated environmental friendliness as a key factor.
Items such as brand, color and how the vehicle looks to others rated lower on the scale.
It comes as no surprise that the most popular car for young drivers is the Holden Commodore.
Except for a couple of months this year and last year during high petrol prices, the Commodore has also been the biggest-selling car over the past 10 years.
That very fact means there are a lot out there and that reduces second-hand prices, making them more affordable and attractive to first-car buyers.
Commodores make up about 8 % of the 32,000 vehicles registered for road service under the RACQ’s free2go youth membership program.
Second favorite is also no surprise. The Toyota Corolla, which was the car that pipped the Commodore for sales and is consistently the second-highest seller, accounts for 6.25 % for free2go members.
Next were the Ford Laser at 5 % and Hyundai Excel at 4.75 %.
The financial realities of first car ownership is reflected in the average ages of those vehicles: an average 12.1 years old for the Commodore, 14.8 years for the Corolla, 15.7 for the Laser and 9.2 for the Excel.
The average age of the top 40 models driven by free2go members is 12.4 years, with the Toyota Corona — number 20 on the list — soldiering on at an average 21.4 years.
The free2go program offers free RACQ membership for three years to all Queensland residents from the age of 17 or school year 12.
Roadside assistance on any vehicle being driven by a free2go member is included in the first year. In the second and third years, members can opt to nominate a vehicle for road service at half the full RACQ membership fee; or simply maintain access to all other standard RACQ services at no charge.
While sensible factors are top-rating among young people in the Just Car Insurance survey, car image still plays a major role with 27 % believing you can tell what somebody is like by the car they drive.
The poll also found 30 % saying they are more likely to take notice of somebody who has an expensive car.
However, 38 % claim the look of the car doesn’t matter — it only needs to get them from A to B.
Sex appeal is also important with 18 % more attracted to someone who drives a nice car and 40 % claiming a nice car helps attract the opposite sex.
Some of the results differed between the sexes and overall the guys were more interested in vehicle style and the impression it gives: 57 % rated how it looks to others as important versus 40 % young women; 91 % of women were more interested in safety and security compared with 79 % of men.
Contrary to the perception that youth drive modified vehicles, 72 % drive standard vehicles without modifications.
Almost two-thirds (62 %) believe young drivers are unfairly criticized for their driving.
Beach towel, beer and bathers aren’t the only things to worry about before heading off on your summer holiday. Your car will need some attention first.
RACQ, Holden and road safety and driver education organization Murcotts Driving Excellence have contributed some tips for making the driving holiday a little safer and cheaper.
From wiper blades to fuel savings, they have covered all the bases.
RACQ technical research officer Russell Manning said motorists needed to remember that a lot of mechanics took long breaks over the Christmas/New Year period, so finding a workshop that could carry out unforeseen breakdown repairs could be a problem.
“By having faults rectified, you’ll be able to set off on holidays knowing you have a much better chance of avoiding a breakdown a long way from home,” he said.
“But don’t leave having your car checked and repaired until the last minute, as workshops generally get busier at this time of year.”
RACQ vehicle inspectors examine a car’s mechanicals thoroughly and provide a written report on faults and developing faults, he said.
After Queensland’s dry winter the intense heat and possible rains of summer could expose deterioration at various points on a vehicle, which could lead to malfunctions.
Manning said even small things such as the wiper blades could need attention.
“If a vehicle’s wipers are not wiping cleanly, the blades may need to be replaced,” Manning said.
Changing your wiper blades is one of the services Super cheap Auto is providing for customers until the end of January, so you have no excuses.
“It’s also a good idea to check the operation and aim of the tiny windscreen water jets. Have your mechanic re-aim them if necessary.”
TYRES
TYRES, especially the front ones, need to be checked for uneven wear. Uneven wear could indicate the wheel alignment needs adjustment or that the steering or suspension is worn or damaged, Manning said.
They should have at least two millimeters of tread; about the thickness of a match. Damaged or excessively worn tyres should be replaced.
Holden and Murcotts claim proper tyre inflation can also help fuel economy.
Under-inflated tyres create rolling resistance and can cause road cars to use more fuel. Under-inflation is also a leading cause of tyre failures and blowouts. Checking the air pressure of your tyres (including the spare) reduces fuel consumption, increases the tyre life and improves safety.
Tyre pressure should be checked when tyres are cold, having been stationary for more than three hours.
Always use a tyre pressure gauge to check the tyres; simply looking at them is not sufficient.
Holden also suggests getting a wheel alignment. Incorrect alignment makes the wheels drag, which increases fuel consumption and causes uneven and premature tyre wear.
EXHAUST
MANNING said one of the most forgotten items in a safety check was the exhaust system.
“The system should be checked from the manifold (engine outlet) to the tail pipe for leaks. In most cases leaks will be audible but, if in doubt, have the system checked by a competent mechanic,” he said.
“Leaks can lead to lethal carbon monoxide seeping into the passenger compartment, and even a small amount could cause drowsiness and lead to an accident.”
BRAKES
MOTORISTS should check brake fluid levels regularly and keep a close watch for tell-tale fluid leaks from brake cylinders, lines and hoses on such places as the inside walls of tyres or on the garage floor. “Drivers should take particular note of sponginess, excessive free travel or abnormal noises or shuddering when braking, and seek a professional assessment where necessary,” he said.
OVERHEATING
ENGINE overheating was another summer motoring hassle that could be avoided with proper maintenance.
“Around town on short trips the radiator may appear to be working just fine. But once out on the highway, low coolant levels or other cooling system problems could soon expose a car’s engine to operating temperatures it just can’t handle,” Manning said.
“It’s important you check the cooling system regularly. But it’s not just a simple matter of adding water to the radiator. Motorists in doubt about how to assess and maintain their car’s cooling system should have the experts check it over before they set off on a motoring trip.”
Having air conditioning systems checked and serviced if necessary after their limited winter use could help ensure motorists and their passengers traveled more comfortably.
FRESH AIR
A DIRTY air filter can decrease fuel economy. Check your owner’s manual for information about when to change your filter. In addition, the air filter helps protect the inside of the engine from impurities.
ECONOMY
ACCELERATE gently and avoid rapid starts. Sudden bursts of speed, full throttle acceleration and hard braking are certain fuel wasters. Drive the vehicle at a steady speed.
If driving a manual transmission vehicle, it is desirable to reach top gear as soon as possible, but under no circumstances should you force the engine to labor in top gear.
The engine runs most efficiently between around 1500 and 2500rpm and even lower in diesels. To maintain these low revs you should change up through the gears as soon as practical and before the revs reach 2500rpm.
Automatic transmissions will shift up faster if you ease back slightly on the accelerator once the car gathers momentum.
PACKING
PACKING the vehicle sensibly and not carrying excessive gear on roof-racks will significantly reduce fuel consumption, particularly at high speed on freeways/highways.
Loading the vehicle changes the mass distribution and therefore the handling of the vehicle. After loading, be sure to take time to become familiar with the feel of the vehicle.
Restrain loose items. Whenever possible, stow articles in the luggage compartment.
Perhaps consider, if driving a wagon, fitting a cargo barrier to avoid loose objects entering the cabin. Don’t overload the vehicle. Check load capacity of car.
LIGHTS
ENSURE there are no vehicle warning and reminder indicator lights on. Properly aimed headlamps are a must for optimal visibility.
BATTERIES
WEAK batteries can lead to breakdowns, possibly at the worst time and place. Have it tested by an expert.
FLUIDS
CHANGE the oil and filter at recommended intervals to minimize engine wear and reduce the possibility of internal damage. Check coolant, oil, power steering, transmission, brake fluid, even washer solvent.
For young people, buying a first car can be daunting. Looks, safety features, engine sizes, a small or large car, insurance, new or used? The list seems never-ending. But purchasing your first car doesn’t have to
be a scary experience.
NRMA motoring services has a program, Free2go, dedicated to young people. The three-year program offers free advice to young people and free roadside assistance for 17- and 18-year-olds.
NRMA Insurance head of industry research, Robert McDonald, says young people shouldn’t rush their purchase and should compare what’s on offer after a good look at websites, newspapers and magazines.
“Buy as new a car as you can, avoid buying an older car to save money,” he says.
And McDonald urges young people to consider safety as one of the top priorities, claiming new cars are the best way to go.
“There are some small cars, like the Toyota Yaris, with excellent safety equipment for a low price,” he says. “Side curtain airbags are dramatically effective in reducing head injuries, and you have ABS and stability control in many small cars, an added advantage.”
McDonald says people should also look out for stability control, which prevents the car getting out of control and sliding, particularly when going faster than expected.
But if buyers can’t afford a new or nearly new car, McDonald says there are some things to look out for in older models.
“If you are stuck with an older car, medium or larger cars would be a little better, safer than an old small car,” he says.
“Make sure safety equipment is up to date, especially seat belts. There are a lot of cars from the late 1980s and early ’90s that have airbags, you should be looking for at least driver and passenger airbags.”
Plenty of cars from the mid-1990s also feature ABS, McDonald says.
And while image may play an important part in the final decision, a recent survey by the youth insurer branch of AAMI, Just Car Insurance, shows young people are more car savvy when it comes to purchasing than they’re often given credit for. The national survey of 1053 young people, aged between 18 and 24, shows the look and appearance of a car is not necessarily a top priority. A total of 93 per cent rate value for money as an important factor when purchasing a car.
Young people are also aware of the importance of safety and security, with 85 per cent of respondents ranking these as significant factors. More than half say environmental friendliness is also a key factor.
Sheree Masters, 17, bought her first car in October last year, five months before she had her provisional licence. She bought a 2000 model Toyota RAV4, a car she’s always had her heart set on. Masters purchased her vehicle from a dealership for just over $20,000.
“I saved up half of it, I have been working since I was 14, and I got a loan for the other half,” she says.
And while looks and appearance topped her list, she wasn’t about to sacrifice safety.
“I wanted something I would be safe getting around in,” she says. “I have to admit, the appearance did come first. But safety features like ABS, electric windows and central locking so I feel safe, and airbags were important.”
Masters turned to her father for advice when shopping for her first car. “My dad knows a lot about cars so he told me what I should be looking for, but besides that, I pretty much made the decision myself,” she says.
“I always wanted to have my own car, that way I could call it my own, it’s something I have earned myself. I’m never out of my car, I’m in it every day,” she says. “Friends’ places, to work, everywhere.” Masters is hoping to slightly modify her vehicle with mag wheels and darker window tinting.
McDonald reminds young people to be cautious if purchasing a modified vehicle, as they are often harder to insure.
“Make sure you check with the insurer that the modification is acceptable to them,” he says. “Lower suspension, wide wheels or elaborate paint work can dramatically effect the cost of insurance.”
He says owners should especially check that engine modifications don’t affect its ability to be insured.
How to get a good deal
NRMA motoring expert, Tim Pomroy, says buying your first car requires researching what to look out for, the bargains and the rip-offs. He’s given the CARSguide a few key elements to be on the lookout for.
Under $5000
Don’t be fooled into buying something if it “looks good”. It may have mechanical problems, which will cost you more than the initial price to keep it on the road. Make sure the car has a recent or long registration. This indicates that it has at least had a registration inspection and the fundamentals should be okay. Also, if you’re unsure, you probably need to spend a couple of hundred dollars for a vehicle inspection.
While private sales are popular in this category, Pomroy says that as used car prices have recently decreased, you could also potentially get something from a car yard.
“It might be cheap for a reason: high miles, or a car that doesn’t have a good reputation for reliability.”
Under $10,000
There are some good bargains to be had, Pomroy says. “Some Commodores and Falcons from the 1990s are available for a couple of thousand of dollars upwards.” But he warns there are issues with bigger cars, especially the running costs, and people should consider if they really need a large car.
“Identify what the use of the car will be. If it’s for uni or to leave at the station and mainly suburban, short trips, a small four-cylinder car with an engine capacity of 1.6-litre would be ideal,” he says.
“If you’re doing a lot of country driving or commuting long distances, a larger car with a slightly bigger capacity engine might be a better choice.”
European models also come into play in this category as well as prestige cars.
Pomroy warns European cars can be quite expensive to service and maintain, but he says if you know what you’re looking for, there are some bargains to be had in some older prestige cars. Key safety features to be on the lookout for are ABS and airbags.
“In and around the $5000 mark will have driver airbags and perhaps passenger airbags,” Pomroy says.
Above $10,000
You’re nearly in the territory of buying a new small car. There are many small cars at affordable prices, such as the Kia Rio, Hyundai Getz, with nearly half a dozen models offering a good warranty and new features, according to Pomroy.
The disadvantage is that you’re buying a car that may be a little more basic than a bigger second-hand model from three or four years ago.
Larger second-hand cars also come into play here, with petrol prices contributing to lower price tags.
YOUNG buyers are usually on a fairly limited budget, which reduces the number of cars available.
However, the offers detailed searches for cars in a range of price brackets.
RACQ technical officer Russell Manning advises what you can expect for your money on used cars.
$3000 to $5000
Few dealers operate in this segment, so look to private sales, and all the potential problems that come with them.
There are no stand-outs in this segment.
Buy the best you can find for the money.
Steer clear of unusual, unpopular and modified vehicles, as they’re more likely to cost more to keep on the road. Expect to be mainly looking at vehicles from the mid ’80s.
$5000 to $7500
Many dealers specialize in this bracket.
Look for cars that are popular and have a good reputation, for example early 1990s Corolla, Pulsar, Lancer for small cars, and Commodore, Falcon, Camry for large cars.
Anything in this bracket is likely to have traveled big distances, so look carefully.
Bigger, less fuel-efficient cars are less popular these days and, depending on your circumstances, may be a good buy.
Larger cars are often more durable.
$7500 to $10,000
There’ll be no shortage of cars in this bracket.
Expect to see cars from the mid to late ’90s.
Again, large cars should be attractively priced due to fuel prices, but you’ll also find a range of quality Japanese small vehicles and plenty from Korean makers.
Take your time selecting and pick the best your money will buy.
$10,000 to $12,000
There should be no difficulty finding a quality used car in this range. There will be plenty of Commodores, Falcons, Camrys and Magnas, as well as the full range of mid and small-sized cars from the late ’90s.
Consider putting in a few thousand dollars more and moving into an attractively priced new small car.
New cars to $15,000
All these are in the light car category. Hyundai’s Getz is a great little car for $13,990 in the 1.4-litre and $14,990 in the 1.6-litre.
The Getz Protectz pack costs an extra $1290 but includes electronic stability program, traction control system and front seat side thorax airbags, for $1290.
Toyota’s Yaris 1.3-litre starts at $14,990 and for $750 you can get seven air bags.
Holden Barina 1.6-litre three-door hatch costs $13,490 and the five-door hatch and four-door sedan are $14,990.
USED-car prices are plumbing record lows because of an oversupply caused by booming new vehicle sales.
Nick Adamidis, national sales and marketing manager for automotive research company Glass’s Information Service, says people are being forced to sell their cars cheaply.
“The new-car market has been booming for the past few years and as a result there’s an oversupply in the market place, which means that used cars are not necessarily bringing the prices people believe they are worth,” he said.
“The price of fuel has had a big effect on cars with V8 engines, for example, which are depreciating faster than other vehicles as people try to get rid of them.
“People now expect a discount if they are buying a V8, because of their petrol usage.”
In 2000, a three-year-old V6-engined Holden Commodore Executive sedan could be bought for just over 50 per cent of its original purchase price, but today buyers have to pay only 44 per cent of the original price.
Mr Adamidis said drops in tariffs on imported vehicles were also driving prices down.
“It affects the whole market, because if the makers of imported vehicles drop their price by $2500 then the local makers have to drop their prices as well to stay competitive,” he said.
“It’s a great time to be buying a used car — it’s a buyers’ market.
“But we’ve still got a fair way to go. In the US and the UK, where the markets are more free, the average car, after three years, is worth 30 per cent of the original purchase price.
“In Australia, the average is 45 per cent, but we’re heading in that direction and we’ll get there in the next five to seven years.”
The drop in used-car prices has also been noted by the NSW Department of Commerce, which manages the Government’s fleet.
A department spokeswoman said State Fleet had tracked a downward trend in the prices it was getting for its used vehicles.
Large, locally manufactured cars have had the biggest drop with much less in the small car segment. The drop in prices was spurring sales, however, with clearance rates at government auctions over the past two weeks of 99 per cent and 94 per cent, respectively.
David Smith, senior manager of divisional services for the Motor Traders’ Association of NSW, said prices would continue to fall.
“Some of the less fuel-efficient cars are definitely feeling it, but small cars are holding their value fairly well,” he said.
“That’s a reflection of the new-car market, because a lot of people are buying smaller cars and a lot of them are being traded in.”
He said that used-car dealers were the ones being squeezed by the price falls.
“There are a lot of dealers out there who are doing it tough,” Mr Smith added.
BEST VALUE RETAINED*
Small
Subaru Impreza …………. 62%
Mini Cooper ……………… 61%
Mitsubishi Lancer ………. 59%
Medium
Subaru Liberty ………….. 58%
Mazda 6 ………………….. 55%
Honda Accord …………… 53%
Large
Toyota Camry(4cyl) ……. 45%
Toyota Aurion …………… 42%
Ford Falcon LPG ……….. 42%
4WD
Nissan X-Trail ……………. 64%
Subaru Forester ………… 63%
BMW X3 ………………….. 61%
WORST VALUE RETAINED
Small
Kia Rio ……………………. 38%
Suzuki Swift …………….. 38%
Proton Savvy …………….. 38%
Medium
Kia Optima ………………. 37%
Kia Magentis ……………. 37%
Hyundai Grandeur ……… 37%
Large
Nissan Maxima …………. 37%
Ford Fairmont …………… 34%
Ford Falcon ……………… 32%
4WD
Land Rover Freelander … 42%
Land Rover Discovery …. 40%
Ssangyong Musso …….. 40%
* Based on wholesale prices of three-year-old vehicles in average condition.
THERE is more to motoring than simply getting your driver’s license.
Young drivers have been warned that they need the correct insurance policy otherwise they could be up for crippling bills in the event of an accident.
Industry expert John Saunders, who has 30 years’ experience in the insurance business, has warned of the potentially devastating impact of cutting corners with car insurance.
“Parents can be unaware that there is often little point in having a young driver’s policy in their name to save money as young drivers need to start earning their no claim bonus at some stage,” Saunders, managing director of Insure Simply, said.
“A smart driver understands what he or she is covered for before an accident occurs rather than learning the hard way.”
Insure Simply is claimed to be Australia’s first online service enabling users to compare competitive policies in an objective and easily identifiable way.
Among the companies Insure Simply list for comparisons are Allianz, QBE and Suncorp.
There are some useful tips on what new or young drivers need to know, some are blindingly obvious others need a little more thought.
Here are some tips regarding car insurance:
* Policies usually exclude cover when a car is notroadworthy. eg: If an accident is caused by bad brakes and their poor condition was obvious beforehand, this could cause a claim to be denied.
* If you have a nominated driver policy, cover is normally only extended if driven by others in an emergency.
* Policies exclude cover for damage (and liability to others) when the driver is drunk. (The driver’s car may not be worth much but cars or property they damage could be worth considerably more.
* Policies exclude cover while racing.
* Agreed value is not necessarily superior to market value as the market values are the basis of agreed values anyway.
* Check policy to see what accessories are covered.
* Make sure the insurer is informed about performance enhancing extras.
* But totally truthful in any insurance application. It would save your money in the premium but it may result in no cover when it’s needed.
* Any fraudulent claims are normally pursued by insurers.