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How to buy a used car: 10 tips

  • By Karla Pincott
  • Carsguide
  • image

    Work out how much you can afford to spend, and don't forget to include registration, insurance and regular maintenance and running costs.

Buying a used car can be a minefield. But Carsguide can help you through it.

There are a few simple things to remember and steps to take, that will make the experience easier and assist you in avoiding being ripped-off.

1. Set your budget

Work out how much you can afford to spend, and don’t forget to include registration, insurance and regular maintenance and running costs. Both for insurance, and if you’re going to get a loan, shop around to get the best rate.

2. Do your research

It's important to have a thorough look at what’s out there before buying a used car. To get an idea of a model’s current market price, spend some time searching our used car ads online or in your local newspaper. Also check out our price guide to help you avoid paying too much.

Be wary if you find a used car where the price is much lower than the market suggests it should be. If you’re determined to take it further, have the car checked thoroughly. If something seems too good to be true, it probably is.

3. Find the right car

Browse cars by body type, make or price  to find out which make and model might suit you
Go window shopping by make and model, age, location… and all kinds of other helpful details
Read our expert reviews of the car you’re looking for
Check the latest car news to see if a new model is coming -- which can reduce the price of previous models when it arrives.

4. Contact the seller

And when you do, don’t be afraid to ask lots of questions…

- how long have they had the car
- why are they selling it
- has it ever been damaged
- what condition is it in
- will it meet a RWC
- does it have any `bad habits’

5. Looking at the car

If the seller is a private party rather than a dealer, always go to their home address. Don’t arrange to meet them somewhere. Check that the home address is the same as the one on the registration certificate. Take a printout or copy of the seller’s advertisement with you to check that details like the odometer numbers are accurate.

6. Check the car’s history

No matter how genuine the seller seems, you should check the history of the car to make sure it’s not stolen, encumbered by an outstanding loan, or even a previous write-off. Get the car’s VIN number and check against the databases in the state in which it’s registered. For a small fee (free in some states), this simple step could save you a lot of money and problems.

New South Wales, ACT and Northern Territory

Victoria and Tasmania

Queensland

South Australia

Western Australia

7. Checking the car

Make sure you have a thorough look over the car yourself, and best of all, have an independent mechanic or automotive centre check it out properly on a hoist. It could save you thousands by revealing mechanical problems and previous damage.

- always look at the car in full daylight, never in the dark or in rain that could conceal body marks, dents, rust and other defects
- check under the car, the bonnet and the interior carpet for rust and signs – such as welding marks -- which may show the car has been in a crash
- under the bonnet, look for signs of oil leaks on top of the engine, and underneath. Use the dipstick to check the amount of oil. If the level is low, the owner hasn’t been looking after the car properly
- look around the oil filler cap for a white mayonnaise-like substance - this is an indication of a damaged head gasket which can be very expensive to put right
- take a look at the tyres to make sure they’re in good condition with plenty of tread
- get down in front of each front wheel and look along the length of the car. Both front wheels should be directly in front of the rear ones – if they're not, it could mean the car has been in a crash and ended up with a slightly twisted or `crabbed’ chassis
- check the gaps between the body panels are equal – if they're not, the car could have been refitted badly, or may have been in a crash
- inside the car, make sure the seatbelts work correctly, the steering wheel and dashboard are bolted on correctly, the front seats move properly and all switches work
- start the car with a cold engine, which will make is easier to reveal problems like poor starting or too much smoke

8. Test drive the car

- before you set off, turn the steering wheel from one lock to the other to make sure there is no screeching, banging, or knocking
- to test the handbrake, pull it on and then try to drive off very gently. It should hold the car back
- listen for strange noises from the engine, and don’t let the seller distract you by talking or turning up the radio
- drive on as many different roads surfaces as possible
- use all the gears, and check the gear change is slick and smooth
- make sure the clutch pedal 'bites' between the top and middle of the pedal's travel


9. Negotiating the price

The price is the price, but there’s often leeway for bargaining.

- Make a list of any faults you found with the car, or any work that might need doing, and calculate how much this could add to the price.
- From this position, negotiate the price with the seller.
- Ask the seller what their best price is, make a lower offer and then say nothing. They can only either turn you down, accept your offer or name another price closer to yours.


10. Paperwork and payment

- Make sure all the paperwork is in order, and that you have original versions (never photocopies) everything … registration papers, service history and logbook
- If you’re making a payment or even just a deposit, get a receipt and make sure the seller’s full details are on it

Never ... and we mean never ... give or send a seller money without seeing the car, or without getting a receipt with all the details. 

Scammers may ask you to send money by Western Union, Moneygram or other risky methods, or even through an address pretending to be Carsguide. Do not send them the money, and contact Carsguide immediately to report any seller you feel is a fraud. Carsguide does not act as an agent in handling buyer and sellers money, so any request to do this should be treated suspiciously.

Call our Customer Service 1800 026 705 (Mon-Fri 8.30am-5.30pm) if you have doubts or are suspicious about any communication from a seller or another buyer.

 

 

 

Comments on this story

Displaying 3 of 19 comments

  • Also you run a story on how to purchase a car from a used or even brand new dealer, they lie and try to force you to sign a contract.

    gareth marsh of whyalla, south australia Posted on 03 November 2011 6:36pm
  • Interesting, I’m trying to sell my car and I’m getting alot of responses from people overseas saying they will send me money through Paypal and organise someone to come and collect - how do you know if these people are the real deal , is it worth the risk?
    Ed - No! They are most likely NOT the ‘real deal’ and it is definitely not worth the risk. Stick to people who can provide you with a phone number whom you can actually talk to. Visit our Safety Centre for more information.

    Kristy Thomas of Perth WA Posted on 06 September 2011 11:22am
  • I have a SAAB 9000 and a VT Commodore. In the 5 years I have had the Commodore (Now on 290,000kms), 0 breakdowns and 30 bucks to service. The SAAB has broken down 5 times in 10,000kms (Car only has 96,000kms on it). My Friends all drive mercedes because thier rich parents pay to repair them. I will take aussie any day.

    OZZZZZIE of VIC Posted on 09 June 2011 10:36am
  • Some thing I’m going to add
    When looking at buying a new car check the cost of servicing, as a lot of new cars with diesel engines are using oil that costs around $20per litre so even know you may save on fuel your servicing is going to cost more.
    I?m a mechanic 15 years in the trade and I would not even buy a new car. The more electronic garbage that is in a car the more its going to cost you, if you think new cars are better than old ones your wrong. If you buy new cars sell them as soon as the warranty is up and buy another new one. If you can not afford to do this buy a car that?s pre 2003 as most cars of this age parts are available through aftermarket. As a mechanic I see things most people don?t. Don?t buy any car from Europe as there is no parts here and not enough info to repair these cars same goes for American cars.
    Buy an Aussie car or Jap car as they tend to be cheaper to repair and parts are in Australia. Be carful.  E.g. Holden Astra is European. Same as the ford ka,  a lot of new cars now run all blue wiring behind the dash every wire is blue, so 7 years down the track when you have a problem its going to be costly to fix as its going to take hrs to find a simple cut wire

    CHARGEROZ of queensland Posted on 09 April 2011 5:48pm
  • Just had a scammer attempt to have me send $1250 to them via Western Union to the UK. Be very wary of any correspondence that attempts to have you pay any money as a seller. Simply do not let yourself be conned. If they are genuine buyers they will want to see/test drive/mechanically inspect your vehicle, anybody else is just not the real thing.

    Paul Trinder of Brisbane Posted on 17 March 2011 9:05pm
  • Bought Australian for our last car - replacing a 10 year old Volvo with a 3 year old Commodore. Really feel that we traded down - less features, less safety, worse fuel economy. Only upside is we could buy it outright (new model came out) and repairs/servicing can be done by any bloke called Gazza or Merv in their backyard. If you can afford it, buy European or Japanese (make sure actually built there though - VW make a lot in Mexico, Mazda and Honda make a lot in Thailand), but expect more for insurance, more for servicing, more for everything. But get a lot more (and better quality) car. Please, Australian government, reduce the import duties and the ridiculous taxes on quality overseas products that make us buy a locally inferior product.

    Mark Johnson of Adelaide Posted on 15 March 2011 10:58pm
  • A shopping trolley from Coles is pretty cheap to maintain and handles well.

    Terence of Melbourne Posted on 07 December 2010 3:56pm
  • Buy japanese for a first car, more reliable, cheaper to ensure, safer, and cheaper to run.
    The only real Australian made car is a Commodore, yes parts may be cheap but try comparing insurance, rego ad weekly fuel prices to a decent jap 4 cyl.
    This is just what I have found after my research

    Justin of Sydney Posted on 01 December 2010 4:41pm
  • Paul of Sydney- Thats because it is made in Thailand, not in Australia. Only the Holden Commodore is made here (and soon to be a new smaller car)

    Dale of Central Vic Posted on 14 September 2010 2:51pm
  • About Australian cars parts are cheaper… not true… I think more expensive! I’ve got a Holden Rodeo and parts are more expensive than my wife’s Japanese Corolla. Why?

    Paul of Sydney Posted on 06 August 2010 4:34am
  • What 2 to 3 year old used Australia Made small to medium car can I buy? Preferably with a 2.0L engine or smaller.

    Tommy of Melbourne Posted on 18 February 2010 12:59pm
  • Australian cars are much cheaper to buy, get parts for and service, also they are built for our roads and climate, ie suspension, air con, headlights etc.
    Any one who says you wont need parts for a Japanese car has no idea what they are talking about,

    Aaron, employee of unnamed Toyota dealership Posted on 18 January 2010 6:58pm
  • I wanna know how true it is to say that Australian made cars are cheaper to maintain. It sounds like common sence but are there any exeptions to the rule with certain makes or models.

    Ashton Grist Posted on 09 January 2010 8:31pm
  • Any franchise dealer like us at Hunter Holden Ryde will always value its reputation far more then a quick buck..Thats why We and just about all other Franchise dealer’s guarantee Free title, That the vehicle has never been in any major accident’s etc etc.Most of the time its not so much what you buy its who your buying it from. Dealers are and always will be your safest bet.We love our customers arranging mechanical inspection’s they love it when they hear how good our car’s are from an independant inspector.

    Hunter Holden of Ryde Posted on 21 September 2009 3:05pm
  • Why do people get so upset, soon as you suggest buying australian and supporting our local motor industry? What ever car people get, it will need servicing. Most people will be buying an older (10 years old maybe?) car as their first. My point is only that, the locally made cars after 10 years or so will be much easier to get spares and consumable parts for than the imports. Cheaper parts which are more available, must mean lower premiums too.
    Happy motoring.

    Dave Posted on 27 March 2009 9:46am
  • when looking for finance don’t compare rates, compare repayments! often someone will offer a low rate but with fees and charges you can pay more!

    ben o'toole Posted on 26 March 2009 3:30pm
  • Dave, you yokel - the point is that if you buy Australian you will NEED the parts.

    Holden Caulfield Posted on 26 March 2009 2:27pm
  • 2 suggestions:
    1. NEVER BUY AUSTRALIAN, BUY JAPANESE. Much more reliable with less repair problems.
    2. Always check the service history.

    Gary of Sydney Posted on 25 March 2009 11:33am
  • Only have 2 suggestions:
    1 Buy Australian, it will be easier to get parts for.
    2. contact your insurance company with details of the car. Find out what they will insure it for. Make that your strating point for working out a price. dont pay more for a car than you can get it insured for.

    Dave Posted on 23 March 2009 12:29pm
Read all 19 comments

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