7 Ways to buy a Used Car with Confidence
1. Set a budget you can afford
Firstly, setting a budget is crucial based on what you can afford. It’s also a good idea to remember that the purchase price doesn’t include running costs such as insurance, fuel, maintenance or the cost of the finance payments (if you require finance).
2. Do your research
The best way to get a great deal on a used car is to do your research. There are many websites that have thousands of vehicles for sale. carsales.com.au carsguide.com.au & gumtree.com.au are the major online website for cars. Be mindful if the asking price sound too cheap. Generally speaking, it’s best to stick to reputable websites and dealers as they will provide you with a 3 month warranty or 5000 kms if the vehicle is not under manufacturer warranty (contingent up the vehicle been under 10 years old and has done less than 160,000kms)
3. Contact the seller
Now you have a budget and selected the car you want, make a list of questions to ask before you arrange an inspection. Below are some sample questions:
– Has the vehicle ever been in an accident or had any other damage (ie hail etc)?
– What condition is the car in?
– Has the car had regular servicing and if so, do you have the complete service history?
– Will the car pass a roadworthy inspection?
4. Check the car’s history
Once you have identified the car you want, it’s best to check the car is not stolen or encumbered (meaning money owing on an outstanding loan). Simply check the car’s VIN (Vehicle Identification Number) against the relevant state’s database. A small fee will need to be paid to access the database but it could save you a lot of money in the long run. We recommend you go direct to the Australian Financial Security Authority to conduct the PPSR search – cost when we checked was just $2.00
5. Car inspection
Once you have had a look at the vehicle yourself, it’s a good idea to organise a mechanic to have a look at the car and carry out a full inspection.
If you want to do inspection yourself, below are some tips:
– Always inspect a vehicle in the daylight – never at night or in dull or rainy weather as it may conceal any damage to the car
– Check under the bonnet and in the boot for any signs of rust, spray painting or welding which may indicate the car has been in an accident
– Check the oil – if very dark it might be a sign of servicing not being completed or performed regularly
– Check the tyres (including the spare) to ensure they are wearing evenly and there is plenty of tread
– Check the car internally, again to ensure all features are working, including seat belts, seats and switches
– Turn on the car when the engine is cold as this will indicate if there are issues with the car like stalled starting or smoke coming from the exhaust
Lastly, take the car for a test drive which will help detect any problems with the steering, handbrake, transmission shifts and gears.
6. Negotiating the best price
Once you have inspected the vehicle, make a list of any problems discovered during your (or the mechanic’s) inspection. This will enable you to negotiate a price based on the cost of fixing the existing problems.
If there are no problems with the car, suggest a fair price under the asking price.
For guidance on pricing review the asking prices online at carsales.com.au and also refer to Redbook.com.au
7. Payment
If you make full payment (or even deposit) get a receipt, ensuring the seller provides full details.
Finally, make sure all registration and service history paperwork is done and all details are correct. Also ensure you have original paperwork – not photocopies.
