New or used car?

Buying a car is a major purchase for most people. Should you buy a new, or a used car?

A new car will come with a warranty and service plan – and there will be no existing problems that may surprise you. If something does go wrong – your warranty will cover repair/replacement of the faulty part. The downside of a new car purchase is depreciation of the value of the vehicle. The value of your car reduces the moment that you drive it out of the showroom. The average new car in Australia loses 15% per year in the first 3 years – that’s a whopping 40% in the first 3 years. Thereafter, the rate of depreciation slows to around 10% per annum – assuming that you don’t drive more than 15000 km per year. Think about it this way – if you spend $100 000 of a new car, in 3 years it will be worth only $ 60 000.

A used car will be a lot cheaper than the price of a new model, and if the car is more than a year old, the biggest hit from depreciation will already have been made. Mileage is a big issue when it comes to depreciation of a vehicle – low-mileage vehicles will tend to look and feel better, and be more reliable. If you want to minimise the loss of value of your vehicle due to depreciation, buy a car that is more than a year old and one that has a low mileage relative to the age of the vehicle.

There may be existing problems with the vehicle – but if you do your due diligence thoroughly, checking out the service history and getting the vehicle checked by a mechanic – you can do a lot to mitigate this risk. You can also look for a brand that has a long, comprehensive warranty, and select a used car that is still within the warranty period.

Buying a used car at auction may be more risky as you may not be able to test drive the vehicle, or get it inspected before you buy.

One option to look for when buying a used car, is to buy a car that is being sold off a novated lease. A novated lease is an option whereby a brand new car is run and maintained by its purchaser, and then sold privately at the end of a three-year ownership period. Novated lease cars are usually maintained and serviced as part of their contracts, and when the lease period ends the new owner should have the option to extend the factory warranty – providing some of the peace of mind associated with purchasing a new car.

Contact Carbiz today to secure your new car. Let us take the hassle out of buying or selling your car – Carbiz, a better way to buy and sell your car.

When comparing vehicles, read our guide to ANCAP safety ratings. If you also need to sell your existing car, explore Carbiz car-selling options.

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What To Do If Someone Hits Your Parked Car

Coming back to find your parked car damaged is never fun, but knowing how to respond correctly can save you time, money and stress.

Firstly, understand that getting upset is natural, but taking a deep breath will help you make better decisions. Examine your car thoroughly and document any visible damage, taking multiple photos from different angles, including close-ups of dents, scratches or broken parts, and capturing the surrounding area, such as road signs and markings, for context.

Next, see if you can locate the driver responsible. Sometimes, people leave a note with their contact information and insurance details. If there’s no note, look for witnesses nearby who may have seen what happened. You can also check for CCTV from nearby businesses, homes or on the street, as some areas have coverage. If you’re unsure, consider contacting the local council to find out whether cameras are in place that might have captured the accident.

If the driver didn’t leave a note, or if they did but are unresponsive or the information they provided seems incorrect, contact the police to report the accident and provide all the information you have, including photos, footage and witness statements. Be sure to request a copy of the police report, as it can be useful when dealing with insurance.

If you’re still having a hard time getting a hold of the at-fault driver and therefore cannot claim directly through their car insurer, it’s time to lodge a claim with your own insurance provider, if you have one. Provide them with as much information as possible, including the police report. From there, your insurer can determine whether your coverage, along with the information you have, will cover the damage to your car.

If your car insurer happens to find information about the at-fault driver and is able to have them lodge a claim so the costs of the damage are recoverable, you can contact Carbiz for a replacement car while your car is being repaired or until it’s been deemed a total loss. This ensures you’re not left without a car during this time, giving you peace of mind and the ability to keep your life moving.

For help organising your next steps, read our car accident insurance claim checklist and explore accident replacement vehicle options.

What It Means When Your Car Is Declared A Write-Off After An Accident

Updated 6 October 2026.

When an insurer declares a car a write-off, it has assessed the vehicle as a total loss under the policy. The damage may make repairs unsafe, or the cost of repairing the car may make a repair uneconomical. A write-off does not always mean the car is visibly destroyed.

How is a write-off decision made?

The assessment can take account of the vehicle's value, repair costs, salvage value and the policy terms. There is no single repair-cost percentage that determines every write-off across Australia. Ask the insurer for its assessment and the basis for its decision.

A total-loss insurance decision and a vehicle's written-off registration category are related but different matters. Whether a car can return to the road depends on the damage classification and the rules of the relevant state or territory.

Statutory and repairable write-offs

Statutory write-off: the vehicle meets specified damage criteria and cannot be re-registered for road use.
Repairable write-off: repairs may be technically possible, but the vehicle has been assessed as uneconomical to repair. This label does not itself authorise repairs or guarantee re-registration.

Requirements vary across Australia. In NSW, an eligible written-off light vehicle needs an Authorisation to Repair from Transport for NSW before work begins. Only limited applications are considered, and vehicles with statutory write-off damage are excluded. Approval, compliant repairs and the required inspections are separate steps.

What happens to your insurance payout?

The settlement depends on your cover and circumstances. It may be based on an agreed value, a market value or a replacement-vehicle benefit if your policy provides one. An excess, outstanding premium or finance arrangements may affect the amount you receive. Ask for a written breakdown before accepting the settlement.

Keep the assessment, photographs, policy documents and correspondence together. If you disagree with the valuation, provide relevant evidence and use the insurer's complaints process. See AAMI's explanation of total-loss claims for an insurer's example; your own policy determines your cover.

Getting around after a not-at-fault accident

If you need a replacement vehicle, tell Carbiz that your car has been declared a write-off. Eligibility, vehicle availability, the hire period and the terms of the agreement need to be confirmed for your circumstances. A write-off does not automatically entitle everyone to unlimited hire.

Contact Carbiz to discuss your accident replacement vehicle options. For a practical checklist, read what to do after receiving a write-off decision.

29 October 2017