Buying a Used Car Privately

A private sale of a pre-loved vehicle generally should be cheaper than buying from a licensed second-hand car dealer - private sellers don't have the dealers overheads. But of course it is also generally riskier - dealers are there for the long haul and have to consider their reputation... and they have stricter compliance regulation. The biggest problem you can have with a privately advertised car is that it may have been used as security for a loan or hire agreement (and actually belong to the finance company) or may have even been stolen.

Be aware you have fewer legal rights if you buy a car privately. The car must be as described by the private owner, but the other rules don't apply. If a private seller lies about the condition of a car, you can in theory sue for your losses - but you have to hire a lawyer, find the seller and get them to court.

Be aware that some dealers actually pretend to be private sellers to avoid their legal obligations and to get rid of faulty or over-priced cars. They may advertise in local newspapers and shop windows.

Warning signs to keep in mind include:

the same phone number appears in several ads
when you phone about a private car for sale, the seller asks "which one?"
the seller wants to bring the car to you, or meet you somewhere, rather than you meeting at the seller's home.

Questions you should ask?

Ask as many or as few questions as you like, but as a bare minimum ask the following questions:

• How long have you owned the car?
• How many owners has the car had?
• Does the seller actually own the car?
• Why are you selling it?
• How many kilometres has it done?
• Do you have a full service history for the car (log book)?
• Has it ever been in a crash?

• Is it garaged?

Avoid inspecting at cars on rainy days, because it can hide imperfections in the paint that could indicate previous panel damage.

Take a trusted friend with you, preferably one who knows more than you about cars, especially if you don't have any expertise with vehicles. If you are concerned about the condition of the car you're looking at, get an independent inspection; various state motoring clubs offer mobile inspections that could potentially save you thousands of dollars in repairs.

Any used vehicle you are considering for purchase must have a roadworthy certificate that is no more than 30 days old.

Vehicle checks

If a used car has been regularly serviced according to the manufacturers specifications, it should be in reasonable mechanical condition. All new cars come with a user handbook, with log pages that are filled in after each service.

Vehicle inspection reports mean give peace of mind when buying a car privately. However there are some things that you can look out for yourself.

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