If you’re one of the millions of Australians looking to buy a used car from a private seller this year, you probably know that buying privately is usually significantly cheaper than doing so from a dealer. But how can you be sure that the car you’re buying from ‘Richard’ in Glen Waverley or ‘Callum’ in Mitcham is all it’s cracked up to be?! Today we’re exploring the key questions you need to ask – and the answers you want to hear – if you’re buying a used car.
Buying a used car from a private seller
There are many benefits to buying a used car in the private market, not least of which is the lower price tag and convenience of browsing listings online. But with lower prices come some trade-offs, including no cooling-off period and no statutory warranty. As a private buyer in Victoria, in addition to making sure the vehicle you’re inspecting matches your requirements, it is your responsibility to check that the used car you are buying:
- Belongs to the person you’re buying it from
- Has no money owing on it
- Is not on the written-off vehicles register; and
- Is registered
So how do you do your due diligence before you buy? First, by doing your homework (check out our handy ‘Buying a Used Car Checklist’). Then; by asking the right questions!
Questions to ask when buying a used car
Why are you selling the car?
Always begin by asking ‘why?’. Are they upgrading to a larger family vehicle? Are they moving overseas? Is there something wrong with the car? Maybe the car just doesn’t suit their lifestyle anymore. Listen out for any ‘red flags’ that might indicate a performance issue, or suggest that the seller is hiding something from you. Be extra cautious if the seller tells you that they need to make a quick sale before their next defence force deployment – this is an indicator of a common scam!
How long have you owned the car?
If the seller indicates that they have only recently purchased the car, this might suggest that there are some issues with the vehicle itself. Be skeptical of ‘quick turnover’ sales in the absence of a compelling reason.
Who did you buy the vehicle from?
Having an idea of the car’s previous owners can help you understand how the car has been driven and what might have happened to it across its lifespan. While the ‘one lady owner’ idea of a driver who uses her vehicle once a week for a careful, leisurely drive to church on a Sunday may be well outdated, you can draw some important conclusions from who the vehicle has previously been owned by. For example, was the previous owner a salesperson who used it for frequent and long roadtrips? Has the SUV you’re inspecting been thrashed and bashed off-road by a camping enthusiast?
What’s on the odometer?
Or as my grandad used to say “what’s the mileage?”! ‘How many miles should a used car have’ is a common – and important – question. As a rule of thumb, the road less travelled is a better one. While you can certainly have a car with more than 200,000 kilometres on it that runs like a dream, mileage is a great indicator of the extent of wear of vehicle components. The fewer kilometres on the odometer; the less wear and tear. A happy balance of wear-and-tear tends to sit at around 15,000 kilometres per year, so if the mileage you’re looking at tips over that for the vehicle’s age, we’d suggest moving on to the next cab on the rank. The Australian Bureau of Statistics notes that the average Australian vehicle’s age is 10 years, so use this as a guide for an ‘upper’ limit when buying a used car. Odometer fraud is a thing to be wary of too, so trust your instincts if something doesn’t add up.
What condition is the car in?
While you’ve probably studied photos in an online listing pretty carefully before inspecting a vehicle – and you’ll no doubt be inspecting it carefully yourself – asking a direct question like this is a great way to suss out if the seller is holding anything back. Private sellers are obliged to describe their vehicle truthfully, so this question gives them a great opportunity to disclose anything about the condition of the car that isn’t yet apparent.
Has the car ever been involved in an accident?
If the seller avoids or delays answering this one…run for the hills! Again, this question is all about understanding the history of the vehicle, and the potential for future repairs. Disclosure of minor incidents (e.g. small bodywork repairs after an incident in the supermarket car park) shouldn’t necessarily be a deal-breaker, but it’s important to know what you’re getting into, so don’t shy away from this important question. Major accident repairs should be cause for concern, but may also give you room to negotiate a significantly reduced sale-price. That said, be careful if the seller offers you a price that is significantly below market-value – this could be an indicator that you’re looking at a stolen vehicle.
Has anything on the car ever been replaced or updated?
This is a great way to understand the current and future value of the car. Upgrades or accessories could be of great benefit for future resale value; while some upgrades might have an impact on running costs.
What is the car’s service history?
This is a great way to find out if the car has been cared for in the past. Has the seller (and previous owners) kept up the logbook history? Is the car due for a major (and expensive) service in the near future? Asking about service history will help you understand your future maintenance costs.
Are there any mechanical problems I need to know about?
It’s important to give the seller every opportunity to disclose any issues with the car you’re inspecting. Ask about any previous issues and make sure you’ve done your homework on the make and model so you can ask specific questions about common mechanical issues or recalls.
Is there any outstanding finance on the vehicle?
As the buyer, it’s your responsibility to ensure that there is no money owing on the car before you make a purchase. If there is an outstanding loan, ask how the seller will settle this prior to purchase. The Personal Properties Security Register is a helpful tool here, too.
Once your due diligence is done and you’ve made your decision to buy a particular used car, then it’s time to consider what paperwork you’ll need to complete the purchase. VicRoads have clear guidelines on what is required when buying a second hand car, including obtaining a certificate of roadworthiness, transfer forms and receipts.
Contact Cox Auto today for more advice on buying a used car
Drop in or give us a call if you need any advice when it comes to questions to ask when buying a used car – we’re always happy to talk you through the process and help where we can. Cox Auto is here to provide you with complete confidence for buying your new second hand car, and we’ll be here for the lifetime of your vehicle, too.
