Best Car Options for First-time Buyers on a Budget

By Angela Monroe - February 20, 2020

Buying your first car can be a really exciting milestone. Yet it can also be a little overwhelming; you may be worried about getting a car loan with no or bad credit, or you may simply be a little daunted by such a big purchase. Getting a good list of first-time buyer car options will be helpful.

Choosing the right car is really important if you’re looking to get a car loan with no or bad credit. You want to get a car that you can afford – using a loan that you won’t struggle to pay back. It’s so important that you always pay back your car loan on time and in full each month to help to improve your credit rating and avoid damaging it in any way.

Things to consider

As a first time buyer on a budget, there are a few things you’ll want to consider when it comes to your car options. These might include:

  • Engine power – if you’re just learning to drive, you’ll likely be prohibited from driving any high power vehicles so aim for a car with engine power below 130kW per tonne
  • Safety – this is obviously something you don’t want to cut corners with. Even on a budget, it’s important to get the safest car possible so check out safety ratings and ask for expert help if you’re buying a used car.
  • Size – as a first-time buyer on a budget, think about the size of the vehicle that you realistically need. Starting small could be the perfect solution.
  • Insurance and Repairs – make sure you consider the cost of these in your sums. Add them into your budgeting to make sure you aren’t left struggling to pay the bills.

Top 3 budget cars for a first-time car buyer

1. Volkswagen Up

Whether you decide to buy a new model or opt for a used car, you should seriously consider a Volkswagen Up. This is currently one of the most popular cars in Australia for first-time buyers and it’s had excellent reviews when it comes to value for money.

If you’re applying for a car loan with no or bad credit you won’t have to worry about extensive costs – you can expect to pay around $5500 for a used model of this compact car. There’s no scrimping on safety features, and the excellent fuel efficiency means you won’t be paying out unnecessary money for getting on the road.

2. Holden Spark

This is a great city car – ideal for first-time buyers who live in towns, cities or simply want something small and compact for day to day use. The Holden Spark is built in Korea but has been discontinued in Australia, meaning that it’s only available on the second-hand market.

New drivers will enjoy the 7-inch infotainment system to accompany their journeys and there’s a 5-star ANCAP rating to reassure and offer peace of mind. For 2016-2018 models, you can expect to pay around $8000 which is a fairly manageable price tag if you’re going for a car loan with no or bad credit.

3. Honda Jazz

Brilliantly combining style and comfort, this is a car that can suit first time buyers with a family or younger drivers wanting to zip around the city. Despite its compact size, it’s comfortable for 5 adults and is super family-friendly.

There are Android Auto and Apple Car Play with a great touch screen display and entertainment systems which almost seem too luxurious for a first time buyer on a budget. Buying a Honda Jazz new is around $17,000 but they hold their value and if you’re looking for a car loan with no or bad credit you could consider a used model.

Getting things moving

Being a first-time car buyer on a budget doesn’t mean you’re restricted to only a few unattractive car options. There are lots on offer – whether you’re looking for a car loan with no or bad credit.

One of the best things you can do is to ask for expert help when it comes to the car loan process. Why not contact Loans for People with Bad Credit to see how we use our years of experience working with people with bad credit, to help you? Being a first-time buyer can be overwhelming and we want to guide you through the process – making it as smooth and stress-free as possible.

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.


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