Tips for Buying a Car Privately

Essential reading to avoid buying a "lemon" privately

Buying a used car privately can be riskier than buying  it from a licensed dealer as the onus is on the buyer to check that the car stacks up. Issues which people face when buying a used car privately may include the seller not being the rightful owner, the vehicle having money owed on it, the vehicle may have been registered as a write off by an insurance company or it may have been in a serious accident and have major faults that may not be visible to the eye. The following are some tips when buying a used car privately to help you to avoid some of these pitfalls.

1. Legitimate Car and Seller. Ensure that the registration papers are available and the VIN (Vehicle Identification Number) and engine numbers on the registration paper, registration sticker and compliance plate (located in the engine bay) are all the same. If the compliance plate has been tampered with in any way, the car may be stolen. Check that the name on the registration paper is the same as the name on the owner’s driver’s licence or passport whose picture matches the person you are dealing with.

2. Run Checks. NRMA CarWise provides you with valuable information including if the car has finance owing on it, whether it has been written of or whether it has been reported stolen. Its costs about $30 for a member and is a must when buying privately. You will need to provide them with:

a. Vehicle registration
b. VIN number
c. Chassis number
d. Odometer reading

For more information go to www.nrmacarwise.com.au

3. Service books. Inspect the service books to ensure that the car has been serviced regularly by a qualified technician.

4. Inspect the vehicle. Always conduct an inspection during a sunny day. Rain and poor light may hide some imperfections. Areas to check include:

1. Bodywork. Carefully look around the vehicle for uneven panels or paint that may differ from the rest of the car. These imperfections may indicate that the vehicle has been in an accident.

2. Windows and doors. Have a close look at the bottom of the doors for any rust. Check that the door panels close properly and are aligned to the rest of the car body.

3. Electrics. Check that all of the electrics work including lights, window wipers, stereo, power windows/door mirrors (if applicable).

4. Internals. Look at the condition of the seat trim, knobs, handles, boot area etc. If there is carpet across the dash, have a look underneath. This may be there covering up an imperfection.

5. Mechanical. Check condition of battery, spark plugs, engine

6. Suspension.

7. Tyres. Check the condition of the tyres. Have a look at the tread of each tyre to see how worn it is. Some tyres may be unroadworthy which means that you will need to replace them immediately. So consider this in your negotiation.

Tip: It is always good to get a qualified technician to appraise the condition of the car. Some motoring organisations will conduct a vehicle inspection. For example, the RACV will inspect and provide a report with prices starting for $134 for members and $175 for non members. For more information go to www.racv.com.au

5. Warranty. Unless you are buying a car which has the remainder of the factory warranty, there is no warranty on the car. If you have been advised that there is warranty on it, check with the manufacturer that it is still eligible.

6. Test Drive. Drive the car for at least 20 minutes or 10 kms. This will give the car enough time to warm up.

a. Mechanical Items to Look For

Listen for any unusual sounds and look for any smoke that may come from the exhaust. Apply the brakes and feel for any scratching sounds. This may indicate that the brake pads are worn. Drive in a straight line and loosely hold the steering wheel. If the car vies to one side, this may indicate that the car needs a wheel alignment.

Tip. If you are unsure about the mechanical side, take a friend with you who is otherwise a vehicle inspection will pick up on these items.

b. Driver Comfort Items to Look For

i. Driver visibility. Can you see out of the front, side and rear windows?
ii. Driving position. Is this comfortable?
iii. Do the stereo, power windows/mirrors, cruise control etc work?
iv. Is there enough storage space in the car and boot?

7. How much should you pay? Used car prices vary enormously depending on supply, what extra features the car may have and how many kilometres it has travelled. Redbook will provide you with a range of prices that the car may be worth. Negotiate what you are prepared to pay as most sellers are open to this. If you are not comfortable with this, bring someone with you who is. You can save from a couple of hundred to a couple of thousand dollars!

8. Deposit. Once you’ve agreed on a price, it is good to leave a deposit. Get a signed receipt for the deposit and agree on a time/date when you will pay the remaining amount and collect the car. Make 2 copies, one for the buyer and seller.

9. Pick Up Day. You will need to pay with a bank cheque or cash. Have the seller sign the registration paper and provide this to you along with the service book, car manual and any spare keys or remote alarm devices if applicable. You only have a limited time period to send the registration paper to your state motoring authority (such as VicRoads, RTA) notifying them of the change in ownership.

Tip: Both sign an agreement of the time the vehicle is driven away so that that any parking, speeding or other traffic fines and assigned to the rightful owner.

Enjoy your new car!

Please note the information above is provided as a guide only to help you better understand the buying process of a used car privately. It will not ensure in any way that you will buy a car free from any mechanical defects, have no money owing on it or be a stolen vehicle.