Help Buying a new car

Hello everyone,

Just looking for advices. I wanna buy my first car but I know nothing about them so I decided to buy a new cheap car. I know I should be looking at second hand cars (read all the forum posts) but I have decided that I prefer having the warranty/cheap service/realibity of a new car.

I don’t have a budget but I wanted to spend as little as possible so I come here to ask: what’s the best new cheap car in 2018? I have saved enough to pay cash and I would probably want to sell it in a couple of years and get something better when I’m more confident with my driving skills.

Thank you all :)


  • +5

    RACV just announcd their cars of the year.

    Assuming you’re after a city runabout, you can’t go past the Kia Picanto with a 7 year warranty.

    • -1

      Do these rankings - which are almost always for new cars released that year - take into account long-term reliability? (and if so, how?)

  • +7

    You do not have to buy new to get all the advantages & protections you are looking for.

    Try to find a 2017 model on sale before June 30th (salesmen & dealers have financial year targets to meet and will offer the biggest discounts).

    Buying a 1 year old demo or second hand model from a dealer will entitle you to the remainder of the vehicles warranty, for many brands a good 4 or so more years. This gives you virtually the same protections as a brand new vehicle but with a 25~30% saving on sticker price of a 2018/new plated model.

    If you must buy new, small hatchbacks depreciate the least and cost the least upfront. I won't buy anything that has less than 9~12 month service intervals to avoid cost & hassles..

    ..I'd be thinking Mazda 2 or 3, Kia Rio or Hyundai i30 & spending less than $20,000.

    There are very cheap deals going about on Holden Astra too but some questions about what its quality is like & Holden's future.

    • +1

      +1 to the 2017 or demo models.

      I got an exceptional discount and a disproportionately high trade in on my old (near worthless) 17yo car because it was a demo they no longer needed and just wanted it gone. Sure - I didn't get to pick my colour, but for the saving, I was very happy.

      Thing about your normal running costs too - warranty doesn't cover everything. Agree with the above recommendation on the Mazda 2 or 3. Was exceptionally happy with my Mazda and it cost next to nothing to run. Toyota Corolla would be my second choice for cheap ongoing maintenance and solid resale in the future.

      • just curious , can you trade in 20yo shitbox to dealer

        will they accept anything as trade in ?

        • Its up to the dealer whether they think it will improve the deal or not. You might get a shock at what they value an old car at compared to what you could sell it for privately.

  • Kia Rio 7 year warranty. Really need a budget even though you say no budget you have the cash to pay for new. Rio is say 20k and a Corrolla say 25k.
    Just test drive a few cars and best to get a demo model. 100% sure that you could get a great deal on new or demo this Sat as end of EOFY.

  • +3


    These 2 cars have the best resale that I've seen on anything in the smaller cars. You'll be wanting something bigger in a little while so resale is important. Plus resale is a sign of reliability, a car has strong resale because people trust it and want it.

    Avoid the micro class (Spark, Celerio etc) as they're just that bit too small and cheap

    Though tbh I'd suggest something 1-2yo with 50,000kms on the clock for a first car.

  • Thank you very much everyone. If I had a bit of knowledge I would go for a second hand car but I don’t and I am also so unlucky with second hand stuff that I’m scared I would end up spending more if I have any issues in the future and get ripped off by mechanics.
    Quick question about ex-demo: don’t people tend to go a bit tough on them? They were used for test drives right?

    • +1

      Demo cars don't cop a thrashing by customers, but they are salesperson drive cars.

      That said it's pretty difficult to really thrash a car in your price range, and most will just be driven normally.

      There's also some demo's with none or very little kms. They've purely been licensed to get a bonus from the manufacturer. This is common practise.

    • Not for long enough to cause any damage and not always.
      Dont forget there is a policeman around every corner.
      You still need to drive a test car legally

    • +3

      You been in a coma for 10 years or something?

    • +3

      Did you check out the RACV 2018 car of the year winners? Kia had just won 3 categories!

  • 1st step is to decide what you want to use it for, how much you want to spend and how long you might keep it for. No point asking what to buy unless you can help those that provide advice provide good advice.

    • Basically going to work/gym which is about 10 min drive and weekends - all around the city. Around 15k is what I’m ready to spend - could do 20k. I’m planning to keep it for about 2 years until I can buy a new better car.

      • If you are upgrading in a couple of years, aim for what you want then. It'll cost you less in depreciation.

        If you do insist on getting a new car now and then upgrading buy the cheapest Suzuki Swift you can find.

      • +1

        Amend the OP to include this information.

  • +2

    First car get something under $10k, especially if you're planning to upgrade in 2 years

  • +1

    You can buy a brand new base model Kia Cerato for $20k or so, much less for a demo.

    7 year warranty, fixed price servicing. They've lifted their game the last couple of years and are now producing reasonably cheap and cheerful cars.

  • Mazda or Toyota. Seriously though, why would you upgrade in two years? What's the point? That is an incredible waste of money for no benefit! Buy a 2013 Toyota Corolla now, keep it for 5 years, then buy something alot better rather than just marginally better and taking a huge depreciation hit on a new car you'll have for two years. You'll be a hell of a lot better off, or hell just get a two year lease.

  • bought Kia cerato S AV sedan demo model for 17k…there is good opportunity during EOFY deal…

  • Mitsubishi Mirage are super cheap to buy and run and very easy to drive with capped servicing at only $250.
    Problem with your plan is selling after 2 years as you will cop significant depreciation on most cars - even this cheapie.
    Since the Mitsubishi Mirage come with 6 years warranty and $250 capped servicing why not buy a used 2014 or 15 model for around $8-$10K with very low kms and save yourself a heap whilst still reaping the benefits of a new car?
    You also minimise the loss incurred from depreciation

    • This!!! Capped price servicing is a big plus I think!

  • +1

    We have a Kia Rio 8 years old and a Kia Cerato 3 years old ( both bought from new). They get the logbook service every 12 months, and have never had a problem with either. New tyres for the Rio last year but thats it. Even the brakes or batteries havn't had to be touched! Never used the warranty (5 yrs.)on the Rio and have 4 yrs. warranty left on the Cerato Can't get any better value than that.

    • Pretty good going for Kias
      Their quality control must have improved out of sight.

      Neighbour had a 5 year old Kia Carnival with only 50,000km that was blowing clouds of smoke.
      They said they had missed a service or two so I figure it only got the first service.

      What a difference a service makes

  • Whatever you buy(anything Toyota would be my preference due to resale) go talk to John Cadogan at he'll save you thousands(his words, not mine!) he is heavily biased towards Kia & Hyundai so make sure you know what you want!

    • He wont save you thousands over what you can haggle with a dealer. Might save you something, but it wont be significant if you drive a hard bargain yourself.

      He is full of self inflated opinion.

      • Read, his words, not mine. Nothing lost by simply 'talking' to someone & if they can do all the 'hard' negotiating for you, I'm pretty sure some people would find it preferable over dealing with car salesmen!

        • At this end of the market, dealers don't have margins, the cars are purely for numbers

          Certainly won't be thousands to play with on a $15-20k car

        • @Spackbace: seems you know it all then!

        • -1


          I know the $$s involved in a few of the new car brands yes

    • Thank you! I checked his website and it gives some good advices.

  • @ Euphemistic on 26/06/2018 - 07:51

    You can save $1,000s. When the new short wheel base Pajero came out in 2007 I was in the market for one. Best price I received from a dealer was $54,6000. Went through a car broker, paid him $100. Paid $44,597.60 drive away for the exact same model, colour and features.

    • -1

      as Spackbace says though, at the bottom end of the market there isn't a lot of wriggle room. Ten years ago you bought a premium product and got a good discount.

      • So how did I get 3k off a BARINA then? No broker, no sale, just me! You guys believe what you want!

        • -1

          Because it's a Barina.

          Why'd you buy a Barina amongst the competition?

  • -1

    The Holden Astra good value when You get the ex-executive cars not many left and only in the big city yards, as most have very low Km on them. They are classed as and sold as demo cars NEW.
    You can get as much as $10000 off the RS-V $36.990 retail price. Mind you some are plated over 12 to 18 months old with full new car warranty from day one. My son got one 2 months ago with the works. top of the line with leather heated front seats and heated steering wheel and sunroof, though you could still option it up even further beyond the safety pack it comes with that stops you from running up the back of the car in front of you, stops you from wandering out of your lane and full Auto parking assist, Integrated Satellite Navigation. Auto 6 speed etc….
    They will find it very hard to knock anyone back on finance. In fact, he came up $1000 short in his budget and they did a further discount $$$$

    Read all of the fine print though as he is pushing for the 7year capped servicing that is in the specs that they seem not to want to honour!!!!

    How is this for a GOOD discount…
    Drive away the RS-V Manual or Auto with 5yr warranty for $29,990 new with no kms.

    Very good car and very eco so far

  • Actually closer to $6000 off.

  • Just an update guys… I bought a Mazda cx-3 new. Got an average - good deal directly from the dealership. Broker didn’t help too much with the price, but I would highly recommend them if they are free. Thank you for the all the help.

    • +1

      Cheers for the update. Always like to hear how things work out from these threads. So many of them die a slow death, never to be heard from again.

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