Am I limited to buying a car in the ZH area or can I purchase from other cantons?
the only thing you have to consider: if you buy a used car from a dealer in some other canton, make sure the MFK isn't older than a year - otherwise you'll have to get the car checked the instant you register it in Zurich.
I bought a new car from Aathal (ZH) when I was on an L permit. I had no problems at all, just the hassle of driving from Attalens (Near Vevey) to the far side of Zürich to make the purchase and collect it.