If you’re searching for an affordable car, or a model not available in modern showrooms, you might be considering buying second-hand. However, when buying a pre-owned vehicle, there are several steps you need to take to ensure you’re getting the best value for your money.
For your second-hand car, you have the option to purchase from a dealership or directly from the previous owner. Each choice comes with its own set of benefits and challenges. In this guide, we’ll focus on providing our top tips for buying a used car privately.
Methods of Payment
Buying a second-hand car is an exciting time for both the buyer and the seller. So, It’s easy to get carried away. But the awkward question of payment is an inevitable part of the process.
With the prevalence of scammers on second-hand sites like Gumtree, eBay, and Facebook Marketplace, it’s important to know the safest payment method to ensure your hard earned dollars aren’t going to waste. To ensure you’re paying securely, consider paying via an in-person bank transfer or in cash at a secure location like a bank. Electronic transfers through mobile or online banking services are not the best option as funds can often take 1-2 days to clear.
What to avoid
When inspecting a used car, have a thorough look and take it for a good test drive. Poorly maintained vehicles or ones with serious accident damage should be avoided at all costs. Poor maintenance can be evident in engine oil, transmission fluid, and coolant leaks. Poorly fitted panels or mismatched paint can indicate that the car has been in a major crash, and by checking the Personal Properties Securities Register (PPSR) you’ll be able to confirm this.
PPSR → Buying a used car comes with risk. Doing a car search on the Personal Properties Securities Register can help you check if the car you’re buying is recorded as debt free, stolen, or written off.
Buying out of state
Australia is a big country. Which means buying a car interstate presents a lot of road between you and the vehicle you want to test-drive. So, what are the benefits and key considerations of buying a car from interstate? In a nutshell, buying your vehicle out of state is a good option when you want a cheap vehicle, and a wide variety of options. However, there are some complexities to be aware of.
- Inspecting the vehicle
Inspecting the used car you are buying is a crucial first step. By conducting a pre-purchase inspection you will be able to determine if the car passes your state’s inspection and emissions testing requirements. The inspection will also reveal whether the vehicle has any issues. If you are unable to do the inspection, you can pay a local mechanic to do a professional inspection on your behalf. - Vehicle background checks
A vehicle background check will generally reveal everything you should know about your upcoming purchase, including its history. They also offer you access to hidden or missing information, such as whether it is clocked or stolen. - Registration plates
Complete the registration process which includes paying the registration fee, submitting the roadworthy certificate, and providing proof of insurance. The rules surrounding registration differ in each Australian state. - Insurance
You’ll need to notify your insurer of your new purchase to include it in your existing policy. If you don’t have a policy, you’ll need to arrange for car insurance before driving the vehicle, and even before you take possession of the car.
Transfer of ownership
In addition to registering your new pre-owned vehicle, you’ll also need to legally transfer the ownership of it. Each Australian state has slightly different rules when it comes to transferring vehicle ownership, so it’s important to know their requirements.
New South Wales (NSW): You will need to complete an Application for Transfer of Registration and submit it to Service NSW with proof of purchase and identity.
Victoria (VIC): You will need to complete a Vehicle Registration Transfer form and provide a roadworthy certificate to VicRoads.
Queensland (QLD): You will need to submit a Transfer of Vehicle Registration Application to the Department of Transport and Main Roads, along with a safety certificate.
South Australia (SA): You will need to complete an Application for Transfer of Registration and submit it to Service SA with proof of purchase.
Western Australia (WA): You will need to complete a Notification of Change of Ownership form and submit it to the Department of Transport, along with proof of identity.
Tasmania (TAS): You will need to complete a Transfer of Registration form and submit it to the Department of State Growth with proof of purchase.
Northern Territory (NT):You will need to complete a Vehicle Registration Transfer Application and submit it to the Motor Vehicle Registry with proof of purchase.
Australian Capital Territory (ACT): You will need to submit a completed Transfer of Registration form to Access Canberra with proof of purchase and identity.
Keep in mind that registration is legally required to transfer ownership of a vehicle.
Wrapping up
Purchasing a used car privately can be a cost-effective way to find a vehicle perfect for you. However, by informing yourself of the various considerations associated with a second-hand vehicle purchase, you can ensure a smooth and secure transaction.
Thinking of Financing Your Second-hand Car? Talk to Jade Finance.
If you want to feel confident in your decision to finance your car, the only business that should come to mind is Jade Car Loans. An enviable reputation in the motor vehicle finance sector, cheap interest rates, and a service tailored to your needs are just a few of the benefits you will receive through our personal and professional finance brokers.
We have a large source of options available to ensure you are getting the right loan for you and your car. If respect and attention to detail is the kind of service you want, request a quote with Jade Car Loans today.
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