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Selling Your Car In Queensland
Selling your vehicle can be tricky. However, the easiest way to sell it is through a licensed motor vehicle dealer.
If you are thinking of selling a vehicle privately, knowing the steps to take before and after you find a buyer can make the sale quicker, easier and lawful.
You need to understand that each state and territory in Australia has its own rules and regulations for selling a car. It is crucial to familiarise yourself with them before putting your car up for sale.
Getting A Safety Certificate For The Car
When selling a car in QLD (or selling in Brisbane), it is the seller's responsibility to obtain a current safety certificate. The safety certificate is not given for a comprehensive mechanical check but is a check of the mere basics, such as tires, brakes, steering, suspension, rust, body damage, windscreen, and lights to ensure a car is roadworthy.
This certificate must be attached to a part of the vehicle where the information is visible from the outside. A standard car certificate cost is approximately $85 and is valid for two months or 2,000km traveled.
The only situations where a seller doesn't need to have a less than three-month-old safety certificate are:
• Unregistered vehicle
• Is traded-in for another
• Sold outright to a dealer
In order to obtain a safety certificate, the seller must submit the car to an inspection at an approved inspection station. Without it, the transfer of registration to the buyer cannot take place. One can be fined if caught without one.
The Do's And Don'ts Of Selling A Car
Selling a car can be safe if you follow the proper process. Here are some simple tips you need to consider:
• Have a set price for your car, an asking price. Also, have a number in your head for the lowest amount you will take for your vehicle. Do not advertise that amount, and don't sell the car below it.
• Have a bill of sale ready to go. Have the buyer fill out what they need to under your supervision. Double-check it after.
• Never take gift cards as payment. Cash is the best form of payment; e-transfer also works. If it is any digital payment, ensure you get the money before signing the car over to new possession.
• You can meet the buyer in a very public place, preferably by security cameras, such as a large parking lot or a police station. Just make sure you have a ride if you end up selling the car.
Steps For Selling A Vehicle Privately
If you are selling your vehicle, you do not need to have the vehicle inspected unless the car is already unregistered. However, if you plan to move it, you will need an unregistered vehicle permit. Here are some of the steps you need to take when selling your vehicle privately:
Step One: Go for a Safety Inspection
Book the car in to get a safety inspection if you don't already have a current certificate of inspection. For most light vehicles, this is a safety certificate from an Approved Inspection Station (AIS).
Step Two: Ensure the Vehicle is Roadworthy
Your vehicle must be safe/roadworthy. Suppose the vehicle is in an unsafe condition or otherwise defective. In that case, you have the option to repair all defects, sell to an auto dealer, sell it to an auto parts dismantler, or sell it unregistered.
Step Three: Display Safety Certificate on Car
If you have a physical copy of the safety certificate, display it on your vehicle—it must be attached to the vehicle before you put it up for sale. E-certificates don't need to be displayed; however, you must be able to produce them if requested by a buyer or transport inspector.
Step Four: Produce an Electronically Issued Permit
If you have an electronically issued permit, you do not need to display it, but you must be able to produce it for the police, buyer, buyer's agent, or any transport inspector.
All these are your responsibility, and you will not be able to transfer registration to the buyer without them. How the car looks, its advertisement, and how you respond to buyers are all factors in achieving a successful sale.
Creating A Vehicle Sale Advertisement
When writing an ad for your car, consider where the ad will appear, either via newspaper or online. Newspapers and other hardcopy publications usually charge per word, so giving a clear picture in as few words as possible is essential.
If you plan to put it up online, you can be generous with the number of words, as there is more room for that. However, keep in mind that people scan when they read online, so too much information can work against you.
There are websites available to post all your details and those of the vehicle on sale. As much as they market it well, you will have to pay them for using their service.
A good advert should have all the information a potential buyer would like to know about the vehicle. Details to include in your ad include:
• Make, model, and body style
• Condition
• The build date (stamped on your car's ID plate)
• Distance travelled
• Engine size
• Transmission type
• Accessories, optional equipment and special features
• Air conditioning, CD, power steering, one owner, always-garaged, etc.
• Expiration of registration
• Asking price
• Contact information
Don't forget to add a photo of the vehicle to the advert. You can take pictures of both interior and exterior parts of the car. Ensure that they are clear and that they show all the right parts of the car.
How To Handle Negotiations
Having a good idea of what your car is worth makes for a sound bargaining chip when dealing with the buyer. Regardless, you must be prepared to bargain. So, set the lowest price you are willing to accept. Stick to it, and don't be bullied into giving the vehicle away cheaply.
Sometimes potential buyers will come with a list of things they feel are wrong with the car. This will all be in an attempt to make you reduce the price. Listen to what they have to say - some of it may be valid, and there could be things you can fix to make the car a more attractive proposition to the next person if the two of you disagree.
If the buyer has requested an inspection, there may be things that come out of it that can be used as a bargaining tool, but be sure you check how much the repairs cost before committing to having them done as part of the sale. This helps you make a more informed decision pricewise.
What To Do After Accepting An Offer
Found someone willing to buy the car? Put the deal in writing and make it official. It will have to include such details as:
• The name and address of both the buyer and the seller
• Price accepted
• A brief vehicle description and its registration number
• Deposit amount (if any was agreed)
• Payment method
• Date of agreement and transaction
How To Receive Payment
You can take payment for the car in Queensland in several ways:
• Electronic transfer via internet banking
• In-branch bank transfer
• Cash
Some methods like the banker's cheque or personal cheques can be risky as they can be cancelled easily. There is no way of knowing if the cheque will be honoured.
If the car has an interest still being paid against it, such as through a loan or lease agreement, you should have a strategy in place for removing it by the time of the sale. This may involve getting the payout number at the date of sale and having some of the proceeds directed to the financial institution to settle the pending dues.
What To Provide When Handing Over The Vehicle
Once payment is received, you ought to deliver the car. At this time, ensure you give the buyer all relevant paperwork and all accessories agreed upon, including:
• A current safety certificate (less than three months old)
• A completed transfer form by yourself and the buyer
• The vehicle's handbook and service books
• A signed receipt detailing both the purchase price and vehicle details
• Any service records for the car
What To Do During The Cooling-Off Period
Provisions of Section 99 of the Queensland Motor Dealers Act include the law's exact time required for the buyer to cancel a contract without reason and without breaching Section 110 of the Act which states, "The buyer of a used motor vehicle may avoid the contract to purchase the vehicle during the cooling-off period."
According to Section 113, which talks about considerations for used vehicles during the cooling-off period, the law states that, "A motor dealer may accept a trade-in or other consideration from a buyer of a used motor vehicle before the end of the cooling-off period. However, the motor dealer must not deal in the trade-in or other considerations during the cooling-off period. The motor dealer must return the trade-in or other consideration immediately, at no cost to the buyer, if the buyer avoids the contract under Section 111."
How To Transfer Vehicle Registration
After selling your car, it is the buyer's responsibility to transfer the registration, though the seller can also do the transfer online.
If your buyer is doing the transfer, they'll need to take the safety certificate and a receipt from you (ensure you keep your copies) as well as a vehicle registration transfer form completed by you both to the Queensland Department of Transport and Main Roads.
If you transfer your registration online, you'll need to have gotten an electronic safety certificate. You can complete the transfer of the vehicle on the Queensland Government website.
If you currently pay by automatic payment, make sure you cancel it so that you're not charged after you've sold the car. You will also want to cancel any insurance after.
You Might Need An Expert
Professional car dealers always know what is needed when you want to sell your car in QLD. You can use them to avoid falling onto the wrong side of the law, risking your life by meeting strangers, or having to wait longer before the vehicle finds a buyer. Sometimes, it is better to spend money on such people than to lose it all to cons or fail to sell the car altogether.