If you’re looking for cheaper used car options, purchasing from a private seller may be the way to go. Unlike dealerships, private sellers don’t impose additional fees on their cars. This could save you hundreds of dollars on the total purchase price.
However, there are some risks with buying a second-hand car privately. Protect yourself from common pitfalls by doing your research. Here’s what you need to know when buying a car from a private seller in Australia:
Verify the seller’s credibility
Before kicking off the whole car buying process, ensure that the seller is legitimate. You need to be mindful about who you approach especially online. There are a lot of scammers out there posting fake advertisements so always be on alert. If you’re car shopping online, it’s best to go to reputable websites like OnlineAuto.
When you do contact a private seller, try to arrange a meeting and have them show you the car themselves. Or call them immediately to confirm key information about the vehicle. Sellers who are unwilling to meet in person or only correspond through text or email may not be trustworthy.
Get a full car inspection
Pictures can only tell you so much about the vehicle. You need to have the car inspected by a mechanic to understand what’s happening under the bonnet. A complete and thorough car inspection will tell you the actual condition of the car. These inspections assess every part of the car, from the engine to the tyres, to ensure everything is in good shape. The car inspection reports can also reveal issues with the vehicle that even the sellers don’t know about.
Aside from the mechanical aspects of car inspection, you should also have an identifying inspection of the vehicle. This is to make sure the engine, VIN, registration and odometer numbers are all correct and were not forged in any way.
Test drive the vehicle
See how the car handles firsthand. It may tick all the boxes on your checklist but if it doesn’t drive well, then it’s not the right car for you. When test driving the car, don’t just go around the block. Test it out on various roads and traffic conditions. Go on the routes you usually go to see if it can handle your daily commute.
During your test drive, check the steering, suspension, brakes, transmission, and the like. You should also listen for weird noises and watch out for blinking engine lights.
Do a PPSR search and secure a write-off report
Take your vehicle through the Personal Properties Security Register (PPSR) process to ensure the potential vehicle is not stolen or under finance. If you don’t do a PPSR search and the vehicle you purchased is found with security interest registered against it, the car could be repossessed from you.
Secure a write-off report
A vehicle is considered a write-off if it has damage so extensive that it’s no longer road safe. It could also be written-off if the cost of repairs exceeds its value. Either way, buying a car that’s been written-off isn’t something you want.
To avoid buying such a vehicle, you need to get a write-off report. This will give you the peace of mind knowing the vehicle hasn’t been written off by an insurance company and then repaired by someone else.
Find the right used car loan
Like with any car purchase, you need funds. Getting a good used car loan with low rates and flexible terms is vital for a successful car purchase. If you want to get a good deal on your car finance, but don’t know where to start— contact Aussie Car Loans!
Aussie Car Loans can help you get the best deal on your used car loan. Call our expert brokers today at 1300 889 669. Or you can get a quick quote and we’ll get back to you. Whether you’re buying through a private seller or a dealership, we can help you finance your used car purchase!
FAQ
Can you buy a car privately with a loan?
Yes, you can buy a car through a private seller using a used car loan. It works just like any other car loan, but the only difference is the funds for the car purchase go to the private seller. Once the sale is settled, you’ll start paying back the loan plus interest.
Is it safe to buy a car from a private seller?
There are legitimate private sellers out there, but it’s always a good idea to exercise caution. Understand that if you buy a car from a private seller, you don’t have guarantees or warranties. Before buying a car from a private seller, take the necessary precautions. Check the car’s paperwork, have the vehicle inspected, and do your due diligence.
How will I know if a private seller is legit?
It’s best to meet with a private seller in person to discuss the details of the car. Verify information about the car and the ownership. You should also look up the car’s VIN or check the PPSR (Personal Property Security Register) to make sure the car isn’t stolen or has security against it.
Does Australian Consumer Law apply to private car sales?
If you bought your car from a private seller, you may not be protected by Australian Consumer Law. Because these private sellers aren’t trades or businesses, they’re not subject to the same rules and guidelines as car dealerships.
Can you return a used car bought from a private seller if it has problems?
When buying a car from a private seller, there are typically no warranties or guarantees. Private sellers are not obligated to refund the purchase if there’s a problem with the used car. Private sales are also not subjected to cooling-off periods.
What to do when buying a used car privately?
First, you need to make sure the seller is legitimate. Talk to the seller beforehand, be it a phone call or in-person to discuss the car. Test drive the vehicle and have it fully inspected by a mechanic to ensure it’s in good condition. Check the car’s VIN or do a PPSR search to ensure there’s nothing shady about the vehicle.
Where to buy a used car from a private seller?
There are plenty of websites that make finding a used car easier like GumTree and CarSales.
What paperwork is needed to buy a car from a private seller?
Before finalising your car purchase from a private seller, make sure to look at the VIN number, registration number, and the car’s registration documents. You should also get a PPSR certificate.
Is it better to buy a used car from a dealership or a private seller?
It depends on what your priorities are. Buying a used car privately could be a cheaper alternative to buying from a dealership. However, dealerships offer buyers more consumer protections by having warranties, guarantees, and cool-off periods.
