Best A to B Car under $4,000 and Best Insurance Option

thriftysach on 16/04/2020 - 23:24
Last edited 16/04/2020 - 23:27

Hi All.

I know next to nothing about cars. 18, Green P. Car should be automatic and newer than 2008. I do not really care about looks, so I welcome the Camrys, Corolla, etc. with open arms. I know they are the most reliable but want to know other cars of the same or similar caliber. Located in Sydney, so the market is pretty good.

As for insurance policy, is it worth getting one and what are the different types?

The $4,000 Price is just a rough guide. Obviously I will be haggling 5-6k prices on gumtree/carsales to get down to this, so keep this in mind if someone wants to link ads from facebook and gumtree.

Thanks.

Automotive

Comments

  • hmac on 16/04/2020 - 23:48
    +1

    Insurance is a definite YES. Ideally get Comprehensive, but you at the bare minimum need Third-Party. Might be cheaper to add under your parents policy and add you as a nominated driver
    Do not forget Stamp Duty, Rego and all the other costs too

    • thriftysach on 17/04/2020 - 00:03

      When getting insurance, does it matter if the car is in my name or parent's name?

      If it is cheaper, I can just get it under my parent's name and add myself as a driver.

      I have also heard aboout policies that make it so drivers under 25 are covered but do not have to be stated. Would you have any knowledge about this?

      • enigma48 on 17/04/2020 - 10:29

        If your parents own the car, they need to arrange the rego. If the rego is in their name, they generally need to arrange insurance (it's their asset to insure) and add you. It's better to be upfront with insurance companies as if you get caught in a lie, they could decide not to cover your insurance.

        edit: with comprehensive, it's probably not worth it for you. My guess is you'll have an excess near $800 and you'll pay significantly more.

        Case #1 (with comprehensive) - your car is written off in year 2. You've paid $1000 extra for comprehensive insurance already ($500 extra insurance x2 years) plus a $800 excess means insurance means you're down $1800 ($4000 payout, -$800 excess, -$1000 insurance). Case #2 (no comprehensive) - your car is written off in year 2, so you buy another $4000 car (you're down $4000).

        Basically if you can genuinely afford to be without insurance (e.g. you don't need the insurance payout to get a new car, in the above example it only covered half anyway) then you're usually a little bit better off without. If you can't afford to replace it, then get the insurance.

        You absolutely should get Third party though: it's cheap and one bad accident could mean $100,000 in damage.

  • Zuba on 16/04/2020 - 23:53
    +7

    Hyundai Getz - plenty of parts around and easy to service.

    • brendanm on 17/04/2020 - 06:18
      +3

      Bulletproof

    • thegamerulez on 17/04/2020 - 18:45

      Same motive as OP. Got Getz 2009 edition. Perfect car for my needs.

  • Caped Baldy on 16/04/2020 - 23:54
    +1

    https://www.ozbargain.com.au/search/node/used%20car have a look at the countless other posts.

    Can't go wrong with a Toyota but make sure you get it inspected and a ppsr report and if possible bring someone with a bit of experience.

    For insurance, try adding an older person (40s +) as an additional driver. This often reduces the cost.
    You can probably get away with just third party rather than comprehensive but you need to weigh up the risk/reward (if you're involved in a crash by your fault or the other driver doesn't have insurance or runs off you're screwed).

    • thriftysach on 17/04/2020 - 00:08

      The Risk/Reward with crashing into someone is the reason why I haven't bought my own car yet and use public transport. ATM, I barely go out because of the restrictions and am using the time to just look into the market and get a sense of what works best for me.

      Thanks for the advice.

  • FreddyMerc on 17/04/2020 - 00:39
    +7

    Don't get comp insurance on a cheap car - third party will be ok. If you don't enjoy driving and want reliability go Japanese

    • Euphemistic on 17/04/2020 - 07:53
      +2

      BUT if not going comprehensive you need to be able to cope without a car or replace it from your own funds if you crash it, or someone crashes into you and won’t pay up.

      • thriftysach on 17/04/2020 - 15:25

        With 3rd Party, what happens if I crash into an expensive car and cause expensive damage?

        • Euphemistic on 17/04/2020 - 17:20
          +2

          Third party covers you for damages to the other party’s property, but not your own when you are at fault. Ie their stuff will be repaired (car, fence, wall etc) but not yours. It will not cover you for anything caused by someone else - except if the policy has a clause for some damages caused by someone else IF they are uninsured.

          • tastycheeks on 19/04/2020 - 21:02

            @Euphemistic: If you have comprehensive does that mean you get covered by your own insurance as well as the insurance of the person who caused it? And basically get more money back if you had only third party?

            • Euphemistic on 19/04/2020 - 21:35

              @tastycheeks: No. That would be fraud.

              • tastycheeks on 19/04/2020 - 21:48

                @Euphemistic: so say I've got comprehensive and someone damaged my car and has third party? does my comprehensive pay for damages or does their third party?

                • Euphemistic on 20/04/2020 - 05:24

                  @tastycheeks: The company you claim through pays you. If you claim your comprehensive they pay, then recover from the other persons third party property. You can also claim directly against their third party, but it’s a more hassle for you as you will need to negotiate the payment and chase them for it.

  • azndraon on 17/04/2020 - 01:19
    +1

    Typically the hatchbacks are the best option for your circumstances. Reliable, easy to service, and resale value is decent. Mazda 3's, corollas, swifts, etc. Obviously you can't test drive much at the moment, but when you can it's good to see them at car yards and see how they feel for you personally and find out which one you like best.

  • crentist on 17/04/2020 - 02:27
    +2

    Toyota Echo/Yaris. Decent cars, and very reliable.
    If you're looking around, keep in mind that some cars need a new timing belt after 10 years/100k km, and this is usually fairly expensive ($500 - $1k) so people will often sell cars when it's due.
    Echo/Yaris don't need this service, but if you check out anything else, look it up.
    Also a good idea to get a pre-sale mechanical check. There's companies that do this, basically a mechanic will tell you if it's about to fall apart and cost you heaps more.

    Definitely get insurance. As soon as you collect the car, call an insurance company and sign up to anything over the phone, and ask them to send you the contract with payment details. This will usually give you 2 weeks to pay. During this time you are covered for free, and you can look up a better policy. You should confirm all this over the phone to make sure how it works.
    Make this call even before you bring the car home or drive it at all.

  • kolorijo on 17/04/2020 - 07:32
    +1

    Get your insurance on the day you're getting your car. They generally have 2 weeks cooling off period so you can cancel (or not pay if they give you 2 weeks to pay) and you're driving your newly bought car insured.

    From my recent experience, budget direct will ask for photos of the car & I assumed not cover it straight away until this step has been completed, so I applied for AAMI as well just to be safe and not pay the amount as they give me 2 weeks to pay.

    • tastycheeks on 19/04/2020 - 21:04

      So if something happens in the 2 weeks, you’re insured for free?

      • Euphemistic on 19/04/2020 - 21:35

        No. You still need to pay the full ears premium to get covered.

  • shaybisc on 17/04/2020 - 08:32
    +1

    As soon as you put an 18yo into a comprehensive insurance quote the price soars. I would be interested to know what the cheapest price you can find is.

  • Oofy Doofy on 17/04/2020 - 10:55
    +1

    Mitsubishi lancer variant. More bulletproof than most IME.

    • thriftysach on 17/04/2020 - 13:52

      Really?

      I have heard lancer gets a bad wrap. Does it share the same engine as an outlander? My parents own an outlander and it has had no problems.

      • Euphemistic on 17/04/2020 - 14:05
        +1

        Some people seem to think that a car out of warranty will break down every second day and cost thousands to run. It’s not true. There are plenty of reliable (enough) cars in your price range.

        Yes, your budget isn’t very high, but you should get a decent car for the money. Do a search by price on your favourite site and see what is availabe. Narrow it down to smaller cars then check what you see most of on the roads. Toyota, Lancer, Pulsar, Getz as mentioned above are cheap and cheerful. Suzuki Saift will fit the mould too.

        Don’t let your head run away with Euro models or get anything from China. Make sure it has a ‘normal’ automatic and not anything like a DSG or dual clutch as they aren’t as reliable and expensive.

  • dasher86 on 17/04/2020 - 10:58
    +2

    Mitsubishi Lancer
    Nissan Pulsar

    Often overlooked but cheap parts and reliable.

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