There’s a lot of information online about purchasing a car second-hand. If you're new to buying cars, it's a good idea to get help from someone with good knowledge of the car market and the ability to judge a car's mechanical condition - such as a trusted mechanic.
Buying a car to share
Here are some channels to consider if you’re looking to purchase a car for sharing or to start your car share business:
- Carsales and Autotrader are platforms with a wide range of cars from dealers and private sellers
- Facebook Marketplace
- Car Broker - offers a car buying service
- Online Auctions such as Manheim, Grays Online or Pickles Auctions
Getting finance to grow your share car fleet
If you have an existing business, you may be able to get finance to purchase your share car as a business asset. This can be a good way to manage cash flow, as you won’t have to outlay the purchase price upfront and your monthly earnings can pay for the loan.
As with any enterprise, it’s important not to take on more debt than you are comfortable with. Your earnings from sharing your car can be highly variable.
If you’re getting finance, check that the loan doesn’t restrict renting your car out. Be aware that when you share your car with Car Next Door it is covered for its market value, not the loan repayment value. If your car is written off and the independent assessor values it at a lower price than your loan repayment, you may have a gap to cover.
Leasing a car to share
As lease costs tend to be higher than owning a car outright or buying on finance, this option may not offer a high return on your investment.
If you plan to lease cars for sharing, ensure the lease agreement allows it.
Pro Owner experience
Vince and his wife made the decision to take a small amount of capital from their business and invest it into a van to list on the Car Next Door platform.
They bought their first van from a private wholesaler a few suburbs away. When they wanted to buy a second van to grow their business, the wholesaler wasn’t able to source another one, so they used an online auction company as an alternative.