There is lots to consider when buying a used car, and it can quickly become an overwhelming experience. It’s important that you cover everything, as missing one element has the potential to cost you thousands of dollars. That’s why we’ve put together a comprehensive list of the process for buying a used car.
Follow these steps to ensure that you get a great deal and are safe when your new car gets on the road.
Before
The first step when looking to buy a new car is research. Some things to consider are the make, model and price you’re interested in. You might also consider if you want to buy the used car privately or from a car dealer.
Luckily there are tools online, such as Prices People Pay, that help you navigate this process by providing you with data on used car sales prices.
Once you have found a car you’re interested in, there are also organisations that allow you to purchase a vehicles’ history certificate, so you can understand any faults or issues a car may have had throughout its lifetime.
Before making a final decision, it’s important to inspect the car you’re interested in buying. This allows you to discover any faults or damage, anything you may have missed in photos.
If you’re unsure what to look for when inspecting the car, you can ask a mechanic to accompany you to the inspection.
During your inspection it’s also important you test drive the vehicle. This will allow you to pick up on any engine faults, as well as get a feel for the car.
Whether you’re buying from a private seller or a dealer, you will also have the opportunity to negotiate the price of the car. Make sure you know what you can afford, and then make an offer to the seller which they can either accept or decline. If you’ve done your research with Prices People Pay you should know what a good offer is.
The Sale
So you’ve decided on the car you want to purchase, inspected the car and negotiated the price. Now it’s time to purchase the car. Depending on which state you reside in, you’ll also need to fill out a notice of disposal and transfer of registration form. Make sure you do this at the time of the sale, as both parties will need to complete the form.
You’ll then need to transfer payment through the agreed upon method. While lots of people accept cash, cheque is still a common form of payment when purchasing a used car.
After
There are some important things to consider before you can even drive the vehicle.
If you’re buying privately, there’s a good chance the vehicle is already registered but if not, you’ll need to register it. You can check a car’s registration online in NSW, ACT, VIC, QLD, WA, NT, SA and TAS.
If your car is over five years old, you will also need to purchase a roadworthy certificate. These usually cost less than $50 and are certified by an authorised mechanic, to ensure the car is safe to drive and has no major mechanical issues. Whether you’re buying a new or used car, you’ll need to pay stamp duty. This is a government tax issued on all motor vehicles. While the cost differs between states you can find an overview here.
You’ll also need to insure the car before you drive it. It’s important to ensure you choose a policy and level of cover that suits you. You can use websites such as Finder and Canstar to compare different providers and policies.
Buying a car doesn’t have to be complicated. Use Prices People Pay to help with your research and make finding your new car easy.
