The 10-step process
Jump to any step.
Step 1: Set your real budget
Work out what you can truly afford, not just what a lender will offer.
Use the 20/4/10 rule
- ✓20% down payment
- ✓No more than a 4-year loan
- ✓Total car costs under 10% of gross income
Count every cost
- ✓Insurance and fuel
- ✓Maintenance and tyres
- ✓Registration, tax and parking
Step 2: Check and improve your credit
Your credit score drives the rate you are offered, so check it before you shop.
Check your score free
- ✓Get your report and look for errors
- ✓Dispute anything incorrect
- ✓Know your score range
Quick wins (30–90 days)
- ✓Pay down card balances
- ✓Pay everything on time
- ✓Avoid new credit applications
No credit history?
- ✓Start with a small credit product
- ✓Consider a co-signer
- ✓A larger deposit helps
Step 3: Get pre-approved for financing
Walk in knowing your rate and budget so you shop with confidence.
Why pre-approval matters
- ✓Know your budget before you shop
- ✓Compare against any dealer offer
- ✓Stronger position when negotiating
Where to apply
- ✓Your bank or credit union
- ✓Online lenders
- ✓Through us, on the car you pick
Step 4: Research and shortlist cars
Decide what you need first, then compare specific cars within your budget.
Used or certified pre-owned
- ✓Lower price and slower depreciation
- ✓Check history and service records
- ✓Look for 2–5 year old cars
New cars
- ✓Full warranty and latest features
- ✓Faster depreciation in year one
- ✓Higher price and insurance
Popular first-car picks
- ✓Budget-friendly: Toyota Corolla, Honda Civic, Kia Forte
- ✓Compact SUVs: Honda CR-V, Toyota RAV4, Kia Sportage
- ✓Efficient: Toyota Camry Hybrid, RAV4 Hybrid
Step 5: Get insurance quotes before you buy
The same budget can mean very different insurance costs, so check first.
Why it matters
- ✓Insurance can differ a lot by model
- ✓Some cars cost far more to insure
- ✓You need cover before you drive away
How to save
- ✓Compare several quotes
- ✓Raise your excess if you can afford it
- ✓Ask about discounts and safety features
Step 6: Test drive at least 3 cars
A short drive can reveal things a spec sheet never will.
Test drive checklist
- ✓Seating position and visibility
- ✓Braking, steering and acceleration
- ✓Noise on the road and at speed
- ✓Infotainment and controls
- ✓Parking and manoeuvring
Test drive tips
- ✓Drive on roads you use every day
- ✓Try motorway or highway speeds
- ✓Take your time, no pressure
- ✓Bring a friend for a second opinion
Step 7: Get a pre-purchase inspection (used cars)
An independent check is cheap insurance against an expensive mistake.
What it covers
- ✓Engine, gearbox and brakes
- ✓Suspension, tyres and steering
- ✓Signs of accident repair
- ✓Fluid leaks and warning lights
Also check
- ✓Full service history
- ✓Vehicle history report
- ✓Outstanding finance on the car
- ✓Matching VIN and paperwork
Step 8: Negotiate the price
Negotiate in the right order to keep the deal clear.
1. Negotiate the car price first
- ✓Agree the price of the car on its own
- ✓Compare with similar cars locally
2. Trade-in second
- ✓Know your car's value in advance
- ✓Keep it separate from the purchase price
3. Financing last
- ✓Compare with your pre-approval
- ✓Focus on total cost, not just the payment
Step 9: Survive the finance office
This is where extras get offered. Know what you actually need.
What they may try to sell you
- ✓Extended warranties
- ✓Paint and interior protection
- ✓Gap cover and service plans
Your survival checklist
- ✓Ask for every price in writing
- ✓Take time to read before you sign
- ✓Say no to anything you don't want
- ✓Never feel rushed
Step 10: Close the deal and drive home
A few last checks make for a smooth handover.
Before signing
- ✓Check every figure matches the deal
- ✓Confirm the car's condition
- ✓Read all documents in full
Documents to keep
- ✓Sales contract and finance agreement
- ✓Registration and title paperwork
- ✓Service history and manuals
Before driving off
- ✓Confirm insurance is active
- ✓Get all keys and spares
- ✓Check the car one last time
Why first-time buyers take a different approach
First-time buyers don't have a car to trade in or years of credit history, so the process feels harder. The upside is that you can set it up the right way from day one: a realistic budget, a pre-approval, a car you have inspected and a contract you understand.
If you want help at any stage, just ask. We would rather you take your time and buy right.
The 8 biggest first-time buyer mistakes
No pre-approval
Walking in without a rate in hand gives the seller all the power.
Buying on emotion
Fall in love with the deal, not the car. Be ready to walk away.
Focusing on the payment
A low payment can hide a long term and a high total cost.
Skipping inspection
A small fee can reveal expensive problems before you buy.
Buying too much car
Spend within your budget, including insurance and running costs.
Not reading the contract
What you sign is what you owe. Read every page.
Forgetting insurance costs
Quote the insurance before you commit.
Rushing the process
A good deal today is still a good deal tomorrow.
Key numbers for first-time buyers
- 20/4/10
- The affordability rule
- 3+
- Cars to test drive
- 48–60 mo
- Recommended loan term
- 10–20%
- Recommended down payment
Frequently asked questions
How much should I spend on my first car?
A common guide is to keep total vehicle costs, including payment, insurance and fuel, under about 10% of your gross income.
Do I need a down payment?
It isn't always required, but 10–20% helps keep payments and interest down and reduces the risk of owing more than the car is worth.
Is a used car a good first choice?
Often, yes. A well-maintained used car loses value more slowly than a new one and costs less to buy and insure.
What documents do I need?
Usually photo ID, proof of address, proof of income and insurance. Ask us for the list for your situation before you visit.
Can I buy a car with no credit history?
Yes, though you may be offered higher rates. A larger deposit or a co-signer can help.
How long should the loan be?
Aim for no more than 48–60 months. Longer loans cost more in interest and keep you in debt longer.
Ready to buy your first car?
Browse our inspected cars and talk to us about finance. We'll guide you through every step.