How to Buy a Car on a Budget in 2024

Owning and running a car is a costly business in 2024. How costly? According to the Australian Automobile Association's (AAA) Transport Affordability Index, the average Aussie household spent $432.49 per week on car-running costs during the March quarter – a number that has been rising sharply as cost-of-living pressures bite. But your car doesn't have to be a financial trap. Look beyond the new-car market – where prices have jumped markedly since 2020's COVID shock – and you'll find a used-car market awash with affordable cars.

Here are five things to live by as you start your search.

Know what you need

You can't always get what you want, and that's particularly so if you're buying a used car on a tight budget. There are all kinds of things to steal your heart in the car world – size, occupant capacity, performance, and off-road ability to name just a few – but the reality of low-cost cars is it's going to cost you if you want to super-size any of them.

The first rule of budget-car motoring, then, is shaving things down to a style of car that satisfies your needs and nothing more – zero-fat motoring.

Yes, that big SUV, 4WD, luxury badge or performance model will be tempting, but aiming high with cheap cars will tie you to an inferior quality example than something smaller, more modest and more mainstream with the same price tag, as well locking you into higher fuel and maintenance costs.

Know the market

Once you know what style of car you need, you have to get a handle on the possibilities in your budget range. There's no quick way – you need to research, research, research – but the legwork isn't difficult. Time-scrolling car-sales websites will tell you what models are available in your budget range and what buys what in terms of condition, kilometres, etc. You want to get enough of a feel for things so when you do find the right car, you know exactly what it's worth and won't pay a cent more than you have to for it.

Know the cars to avoid

You're not quite ready to hit the used-car lots just yet – first, you need to eliminate models with a dubious reputation for reliability, poor fuel economy or cost a lot to service. A quick Google sweep of model names in your budget range with 'reliability', 'fuel economy' and 'service costs' will tell you plenty. Checking out comparisons of your relevant model category in the automotive media can help fill in the gaps.

Be a patient buyer

You've got a shortlist and you're ready to start checking out some budget-friendly cars in the real world. And, understandably, you're probably a bit excited. A rushed purchase, however, can end badly, so slow down. Don't buy the first example you try no matter how good it seems – test drive a healthy number so you really can tell the good from the bad because the best budget car to buy is the one in the best condition.

Get it checked and inspected

You've found the right car and are ready to make an offer. First, though, make sure it's not stolen, or encumbered by an outstanding loan or an insurance write-off, which is a simple matter of noting down the vehicle identification number (VIN) and checking it with your state's relevant authority (Google for more info).

Finally, book the car in for a thorough pre-sale inspection. These are offered by mechanics, private companies and motoring organisations such as NRMA and the RACV and are your best insurance against mechanical or other potentially costly issues biting you down the track.

^Disclaimer

^{Viva Energy Australia Pty Ltd (“Viva Energy”) has compiled the above article for your general information and to use as a general reference. Whilst all reasonable care has been taken by Viva Energy in compiling this article, Viva Energy does not warrant or represent that the information in the article is free from errors or omissions or is suitable for your intended use.}