How to buy a car privately

What To Do When Buying A Car Privately

People are buying cars privately because it saves them from the headache of going through car dealers. If you are looking for a car and considering buying privately, this article is for you.

It highlights critical information and steps that will help you to successfully navigate the regulations for buying a car privately and tips for getting the best deal possible.

Essential Tips When Buying A Car Privately

Know the regulations

While buying a car privately is convenient and has many benefits, you can easily find yourself in trouble if you do not understand the laws and regulations that come into play when you are buying privately in Australia.

Before you sign a purchase agreement and transfer the registration to you, make sure you know all the applicable laws. There are several rules and regulations in each Australian state for buying a car privately, so it's essential to do your research before purchasing.

You might be asking yourself, where and how you can find regulations for your state. Well, every state or territory government in Australia provides comprehensive information on laws and regulations that apply when you are buying a car privately. It is vital for you to know what the law says, and when you are in doubt, call your state's motoring organisation, fair trading, or consumer affairs department for clarification.

Find the right car

There are many different makes and models to consider when purchasing a car. Take your time and do some research on each one of them before making a decision.

To be able to find and settle on the right car for you, you must:

• Know your needs and budget

• Know where and how to find a car that suits those needs as well as your budget

• Negotiate for the best deal

Knowing your needs and budget

Some of the questions to ask here include:

• What will you use the car for? You should consider the actual use for which the car will be put and the terrain/nature of roads where it will be driven.

• What budget do you have for monthly payments, insurance costs, and general car maintenance?

• What car brands and models suit the needs you have identified as well as your budget?

• How much will such a car cost?

Use RedBook as a guide to know the value of the car you are considering buying and compare it against your budget.

When you have answered these questions, it is the right time to start looking around for cars and comparing prices.

Where and how to find a car that suits your needs and budget

Here are the steps to follow to look for, find, and evaluate a vehicle that will suit your needs and budget:

• Check car listings by private sellers on car sale websites‍

• Compare available car models against your needs and budget

• Narrow down your options to sellers with the best terms and conditions

• Contact the owners and agree on the time you will view the car

• Organise an independent vehicle inspection

Test drive the car to make sure it has the best features, drives well, and has no issues with the engine that may be expensive to fix in the future. It is crucial that you evaluate cars from multiple sellers as this allows you the opportunity to have the best among the rest.

The following are important things you should note and compare while evaluating cars from multiple sellers:

• The vehicle paperwork and ownership

• Odometer reading

• Safety and security of the car model such as Electronic Stability Control (ESC) and safety/security ratings

• History report on repairs and servicing from a reputable mechanic. You could also get the vehicle identification number or chassis number so you can run an auto history report.

• The seller’s terms and conditions

• Availability of extended car warranty. This is good for peace of mind.

• Certificate of roadworthiness

• Check if there is money owing on the car

The seller may have financed the car with a third-party financing company. If this is the case, it's possible they haven't paid off their loan yet and are hiding inefficiencies from you. You can find information on personal property by checking the national Personal Property Securities Register (PPSR) using the VIN or chassis number at a small fee.

Negotiating for the best deal

Once you have searched, found, evaluated, and narrowed down the sellers with the cars that suit your needs and budget, compare their quotes and negotiate for the best deal.

You can pay the asking price or a little less depending on how satisfied you are with the condition of the car. You should negotiate to pay less than the asking price if significant damage will need fixing.

Confirm vehicle paperwork and ownership

It is important to ensure the private seller you are in contact with is the legal owner of the car you wish to buy.

Here is how to make sure the seller is the owner:

• Compare the details in their driver’s license with those on the registration papers

• Check the compliance plate of the car

• Look for any discrepancies in VIN (Vehicle Identification Number), date of manufacture, engine number, and number plates with the details on the registration papers

Completing The Deal And Payment

Once you are pleased with the car and the cost, it is time to seal the deal. Pay the agreed amount using the payment option that is convenient to both of you and complete the paperwork. Be prepared to pay cash, as many private sellers prefer this method.

The most important document is the vehicle title when completing the paperwork because it signifies an official transfer of the car’s ownership from the seller to you. Both yourself and the seller must sign the title and indicate the dates, as this will allow you to register the license plate. Also, remember to record the odometer reading on the title at the time of buying.

Transfer the registration to your name

Once you have paid for the car and signed the purchase agreement form, you need to complete the following processes.

Get an auto insurance policy

Before you drive away, make sure you protect yourself with auto insurance. Compare comprehensive car insurance to find the best cover for your car. Make sure you choose a cover that takes into consideration your insurance needs and budget.

Transfer of title and registration

You are required by law to notify relevant government authorities of the vehicle transfer within a specified period of purchasing it. Your state may require you to put forward a roadworthy certificate as well as pay the transfer fee and motor vehicle duty to complete this process.

Check with relevant state agencies to know your obligation as a buyer during the transfer of registration. Remember that transfer of title is the final step in establishing car ownership.

Interstate vehicle transfer

The law states that if you buy a car registered in another state, you must register it in your state within a specified time.

Failure to comply with this requirement may lead to suspension of the vehicle registration by the authorities. It can attract a heavy penalty on you before being allowed to use Australian roads again.

Staying Safe When Buying A Car Privately

While buying a car privately may have some benefits, there are also some risks involved.

Here are some of the risks associated with buying privately and how you can stay safe while undertaking the process.

Risks associated with private buying

• Title washing

• Fake escrow scam

• Guarantee scam

• Curb stoning

• Kidnapping

• Lemon car

• Lack of consumer protection

• No statutory warranties‍

• No cooling-off period

How to stay safe from these risks

• Do not meet the seller at their home or yours

• Do not share login details of your online accounts

• Meet the seller at a busy public place with plenty of surveillance cameras

• Trust your instincts and tag a friend during test driving

• Do not send money online

• Do not allow a private seller to deliver your car

• Match the vehicle registration number (VIN) and chassis number with the vehicle paperwork

• Consider buying from trusted car dealers

The Pros And Cons Of Buying A Car Privately

Buying a car privately can be an exciting and rewarding process, but it's also filled with pitfalls. Here is a highlight of some of the pros and cons associated with buying a car privately.

Pros of buying a car privately

• You can find a vehicle that is not available at dealerships from a private seller.

• You can get more information about the car including the repair and service history.

Cons of buying a car privately

• You pay more than you would if you buy from a dealer because private sellers do not enjoy incentives from the manufacturer.

• Private sales are final, so if there are problems with your new purchase after driving away from the deal, you are unlikely going get help from anyone other than yourself.

• Buying privately denies you the opportunity to visit showrooms with a variety of models under one roof.

• It is difficult to finance a car when you are buying privately.

• There are risks of possible swindling.

• You spend so much time and energy contacting and meeting multiple private sellers.

• There is no customer protection like statutory warranties.

When To Seek Out Professionals

Buying a car privately is an option for people who do not want to go through the hassle of going to a dealership in Australia. While it is convenient to buy a car privately, you can easily find yourself in trouble with the law if you infringe the set rules and regulations.

This article highlights essential information and provides a step-by-step guide that should help you avoid any pitfalls when buying a car privately. However, if it all seems far too confusing, risky, or too much of a hassle, then you would be better off seeking the help of professionals.