Used cars cost less than new cars but may have defects the seller hasn’t told you about or doesn’t know. Follow our step-by-step guide to avoid a bad buy.
If you can’t decide which make to buy or how much to spend, call NRMA Motoring Advice for help in choosing a vehicle that meets your needs.
You’ve decided what you want and how much you want to spend, so where do you get your dream car? There are several options, all with pros and cons depending on your priorities.
You can negotiate a lower price than the seller is asking depending on how keen you are to buy and they are to sell.
Used car prices vary widely, depending on the condition of the car, fitted options, kilometres travelled, even the colour. Estimate a realistic price, then offer slightly less. If the vehicle you have your eye on isn’t there call NRMA Technical Advice.) If the seller meets or gets close to your price, do the deal. If they don’t, walk away and look elsewhere.
The golden rule is to keep the seller uncertain as to whether you’re interested in buying that car or another one from someone else. Until the deal is done, the price can always go a little lower. And shop around. After one seller quotes you a price, ask other sellers/dealers if they can do better for a similar car.
Make the seller nominate the first figure, then mention any lower offers made by other sellers to force the price down.
If you want to do a trade-in, ask dealer for the changeover price as that removes the risk of hidden costs.
Don’t worry if you don’t get the once-in-a-lifetime bargain you had your eyes on. Another car is sure to come along soon.
The general rule about borrowing money is: the longer you take to pay it off, the more you pay. Only borrow as much as you need, and don’t over commit.
Leaving a deposit: Generally, if you’re buying privately, any agreement you make is verbal. But to avoid any confusion later on, download a copy of a vehicle checklist and a buyer agreement form/receipt from NRMA’s website.
If the seller asks for a deposit, there is no set amount to leave, so pay as little as possible. Make sure that one of your conditions of purchase is that your money is refunded if the car fails an inspection.
If you commit to buying the vehicle, make it clear that you don’t want the car to be damaged or key options removed in the time it takes you to come back to pay the balance. Note the speedo reading and specify the car may not be used until you return to pay the balance.
If you’re buying from a dealer, they are not responsible for any faults an inspection finds unless they contravene any roadworthy requirements. Don’t commit to a purchase until the checks are completed and you have negotiated the repair of any faults. It’s difficult to renegotiate a deal if you have already agreed to a price and signed a contract.
When you buy a used car the seller must allow you to keep the pink slip they showed you earlier.
Then the registration has to be transferred from the seller to the buyer. It’s your responsibility as the buyer to make sure the rego is transferred according to the law. Make sure the seller completes the disposal notice and then submit it to the RTA as soon as possible.
Instructions on what you need to do are printed on the back of the registration papers, but if you have any questions call the RTA.
False advertising is illegal, but you need to be wary of vague or exaggerated claims. Do your research before you enter a car yard, or call NRMA Technical Advice for a price estimate on the car you want to buy and use this as your guide.
Thieves can steal cars that match the specifications of similar cars they bought at auction. The identity of the wreck is transferred to the stolen car, re-registered as if it has been repaired and put back on the road. You can cross-reference the car’s details with the RTA Written-off vehicle register (WOVR). But as this is not yet a national system it’s fallible.
When you do a rego check, be wary if a vehicle has a gap in its rego history (note, it may have been registered in another State). Also, if there’s a gap in the vehicle’s service history that can’t be explained it may mean it has been stolen or off the road for a major repair. If it’s a late model car and missing the owners manual and service histories, be cautious.
If your purchase is suspected of being stolen or badly repaired, it may be impounded or put off the road while the matter is investigated. Insurance policies don’t cover you if the car has been stolen prior to you purchasing it. For free legal advice on your rights as a used car buyer call NRMA’s Legal Advice line.
Trading in your car for another is often easier than selling and buying privately, but it does have its drawbacks.
The main one is that you probably won’t get as much for it. After all, the dealer has to re-sell your car for a profit – and that’s after fixing any faults.
Trade-ins can also be confusing. For example, the amount offered for your old car could include a discount on the car you’re buying. Ask the dealer to give you the total changeover price – the cost to leave your old car and drive away in a new one. That’s the only figure that really matters.
Ignore dealers’ negative comments, such as “nobody wants to buy that model anymore” or “your car isn’t in very good condition”. This is often just sales talk to get you to accept a lower offer.
If you have time, try and get a trade-in price from a dealer, then try to sell it privately for a higher price. It might mean waiting longer to buy your new car but you’ll keep the dealer’s profit margin for yourself.
Pros
 If a dealer sells you a car that turns out to be stolen or has finance still owing, you can make a claim against the dealer. Call NRMA Legal Advice for more information. |
| You can get a trade-in on your old car. |
| You get a warranty in NSW and ACT on any defects which occur within three months or 5000km (whichever occurs first) if the car is less than 10 years old or done under 160,000km. |
| Dealers face tougher laws than private sellers so you have more legal rights such as a ‘cooling-off’ period. Note, a dealer is only required to offer a ‘cooling-off’ period if you are obtaining finance from a credit provider linked with the dealer. |
| Loyal car owners often have their cars serviced at the same place they bought them, then trade them in there. So you may get the best quality used car if you go to a dealership that specialises in the makes you like and that also sells new cars. In addition, they may also have vehicles from internal factory auctions for near new vehicles, such as executive cars from company fleets. |
| The car is more likely to be properly prepared for sale and in roadworthy condition, and you have more time to inspect and test drive the car. |
Cons
 Dealers are often more expensive. |
| A trade-in may not get you the best price for your old car. |
PRIVATELY
Pros
| Often cheaper as the seller doesn’t need to cover preparation and statutory requirements. |
| You can meet and question the owner. |
Cons
| No warranty. |
| No security of title. |
| Buying privately means you are buying outside the consumer protection laws, which means you have no legal comeback if you get a lemon. |
| When you buy privately, you’re taking a bigger risk. A cheaper car does not insure you against unwittingly buying a rebirthed stolen car (where you’re not guaranteed a clear title), or an insurance write-off that has had dodgy, well-concealed repairs. Even worse, you’ve got no legal backup. |
HOT TIP: Reduce your risk of a bad buy by checking with the RTA and REVS.
Pros
| May be cheaper. |
| Guarantee of title. |
Cons
| May not be as cheap if the vehicle is subject to auctioneer’s fees so check the terms and conditions before you bid. You may also need to re-register the car and get a roadworthy certificate. |
| Generally, there is no warranty. |
| Can’t test drive (cars marked ‘Sold as Seen’ may have failed an extended road test). |
| No legal comeback if you get a lemon. |
| Not much time to check car’s history. |
Specialist fleet companies look after the company car requirements of other organisations.
Pros
| By selling ex-company cars direct to the public, fleet cars can be an improvement on auction prices while still selling under dealer retail. |
| Good source of near new cars, particularly if the car is still under a new car warranty. |
Cons
| Company cars are turned over very quickly because of the amount of use, and the better vehicles may have been ‘picked over’ by trade and other internal buyers. |
Pros
| You don’t have to traipse around town going to dealerships and private homes. |
| You’ll find plenty of research material. |
| You don't have to negotiate face to face. |
Cons
| As with purchasing any item over the internet and not from a reputable company, the risk of getting a dodgy deal is much higher as you may not be able to see or test drive the vehicle, particularly if you are buying from interstate. |
Car reviews
