Checklist for buying a car
When buying a car, there are a number of factors you should take into account before handing over your hard earned money!
How much should I spend?
Where can I apply for finance?
What type of car is right for me?
Where/who should I buy from?
Kicking the tyres.
Is the vehicle encumbered?
Does the vehicle come with any warranty?
Transferring the registration.
How much should I spend?
Think about how much you can afford to spend.
Don't forget to take into consideration any other costs involved
when buying a car. Registration, Transfer fee, Stamp Duty and
Comprehensive Insurance. Running
costs should also form part of your decision when deciding on the
car that's right for you.
If you will be borrowing money to buy a car, it's best to obtain a
pre-approval from a lender.
Find car loans here.
The amount you can afford to borrow can also determine
your price limit and allow you to adjust your budget for loan
repayments Having said that, a pre-approved loan may also put you in
a better bargaining position when buying a car. You may be able to
arrange a discount because you are ready to pay for the car almost
immediately.
What type of car is right for me?
This depends on a few factors - such as the number
of people who will normally travel in the vehicle, whether you need
to tow anything and what location you will normally be driving in.
For example, if you will be towing a caravan, a 6 cylinder would be
best. If you live and work in the local metropolitan area for
example, you may only require a 4 cylinder vehicle.
Buying a 4 cylinder car will always be cheaper than a 6 or 8
cylinder car. Registration is cheaper on a 4 cylinder car as is
fuel
efficiency. Given the price of petrol these days, more and more
people are opting for smaller cars to save money from the more fuel
efficient 4 cylinder vehicles.
Where/who should I buy from?
There are really only 3 options here -
A private
seller, an auction house or a car dealership.
The differences are that you can generally get a better deal from a
private seller or auction house than a car dealership. The upside to
buying from a dealership is that you have the ability to trade in
your old car and generally you will receive a warranty on the car
you are buying for a set period of time. A dealership vehicle will
also be unencumbered at time of sale.
Unless you have a good knowledge of cars, it is also wise to have a
vehicle inspection conducted prior to buying the car.
The local automotive club in your state can assist with this.
SA - RAA |
VIC - RACV |
NSW - NRMA |
QLD - RACQ
WA - RACWA |
TAS - RACT |
NT - AANT
Kicking the tyres.
1. Always take your time when you are looking at purchasing a car. It's a big purchase and financial decision to make so don't be pressured into a sale
2. Always inspect a car during the day in natural light and not when it's raining and look for rust spots - check in the boot, around the window seals, doors and floor wells for red or dark
stains or bubbled paint. Minor rust spots can become quite serious and quite expensive
3. Ask to see the service records to show that servicing has been kept up to date
4. Before test driving, check with the seller what your legal liability is
whilst driving the car.
5. When test driving, try the brakes. You should stop in a straight line with no 'pull' on the steering
6. Where the tyres are unevenly worn, this can indicate faulty brakes, steering or suspension issues
7. Always match the Vehicle Identification Number (VIN), Engine Number and Registration Plate Number to the registration papers
8. If you're not to sure about these items. it is wise to have a vehicle inspection conducted prior to buying the car.
9. Search The Red Book to find out more about the vehicle. The Red Book provides you with all the information you need to know about the vehicle and the recommended private sale price and dealer trade in price.
10. If you buy the car, make sure you obtain all of the keys, the service records, any instruction manuals for accessories and details of how to use/switch off alarms or
ignition switches.
Is the vehicle encumbered?
A risk you take when buying from a private seller
is that may still have finance on the vehicle and they don't advise
you of this. If the sell the vehicle and do not pay out the finance,
it can be repossessed from you at your expense.
Always ask the seller if the vehicle is under finance. Then,
organise a check on the vehicle anyway, just to make sure! Depending
on which state you live in, will determine who to contact and if
obtaining a copy of the encumbrance, what it will cost. If finance
does still exist on the vehicle and you want to buy the car, protect
yourself by either paying the finance company direct or having a
bank cheque made out to the finance company and giving this to the
seller.
Note that the NSW REVS handles NSW, ACT and NT.
Does the vehicle come with any warranty?
A vehicle purchased from a private seller does not
come with any warranty, unless the vehicle itself still has any
unexpired manufacturers warranty. Check with the manufacturer for
transfer rights of this warranty.
A vehicle from a dealership or auction house comes
with some warranty for cars that have been first registered less
than 15 years prior and have travelled less than 200,000 kilometres.
For a vehicle with unexpired manufacturers warranty, check with the
manufacturer for transfer rights.
If a used vehicle is being purchased from $3,001 -
$6,000, a warranty must be provided covering the first 3,000
kilometres travelled or two months - whichever occurs first.
If a used vehicle is being purchased from $6,001
or more, a warranty must be provided for the first 5,000 kilometres
or 3 months.
Transferring the registration.
Vehicle registrations and transfer costs are
different in each state, Please visit the following websites relevant
for your state for more information.
We wish you safe motoring!
This content is of a
general nature only and should not be relied upon completely for the
sole basis of purchasing a car. JPAP Pty Ltd accepts no liability
for any issues, disputes or legal ramifications arising from
purchasing a vehicle relying on this content.
Contact your local automotive club in your state for additional
details.
SA - RAA |
VIC - RACV |
NSW - NRMA |
QLD - RACQ
WA - RACWA |
TAS - RACT |
NT - AANT