When buying a car it is just as important to check that there is no money owing from a previous owner as it is to check out the body work and mechanical condition of the vehicle.

Buying privately

Before you buy a car from a private owner, it pays to do some checking. Here’s what you should do.

1. Ask the seller to show you:
   • a current certificate of registration
   • a Safety Inspection Report that is not more than 42 days old
   • proof that the person selling the car is the owner eg. sales receipt.
2. Keep a record and check that the number plate, VIN (Vehicle Identification Number) and engine number on the car match those on the certificate of registration and the Safety Inspection Report. The VIN and engine number are usually found under the bonnet of the car. If they don’t match, ask the seller why. You will need a record of all these details for a REVS check and an RTA check.
3. Call REVS on 13 32 20 or visit www.revs.nsw.gov.au to find out if any money is owing on the car or if the vehicle has been registered in NSW as a repairable write-off after July 2003. You will need the registration number (if the car is registered), VIN and engine number.
4. Purchase a REVS certificate and complete your vehicle purchase by the end of the next day. A clear REVS certificate will protect you against reposession for undisclosed debts on the car. Never rely on the seller's REVS certificate – always buy your own.
5. Insist on paying by bank cheque and never by cash.
6. Beware of vehicles offered for sale well below the market price – they may have something wrong with them mechanically or have been rebirthed.
7. Be suspicious if the seller wants to meet in a public place instead of their home.

You may also wish to arrange a vehicle inspection with a mechanic at your own cost as there may be no warranty with these types of sales.

Rebirthed vehicles

A rebirthed vehicle is a stolen vehicle given a new identity through a new VIN number and then registered. If you buy a rebirthed vehicle you risk losing your money as well as your car. If you suspect a vehicle is not legitimate, don’t buy it and contact the police.

Buying at auction

Vehicles bought at auction are not covered by a statutory warranty and generally, the auction house will not permit you to test drive them. However, they must allow a reasonable inspection. Most auction houses require a down payment of around 10% or $500 at the fall of the hammer.

If there are registration plates attached to the vehicle, you must be given a Safety Inspection Report  that is not more than 42 days old. If the vehicle has been registered within the last month, you do not need a Safety Inspection Report.

If the vehicle is not registered, you need to take it to an Authorised Unregistered Vehicle Inspection Station (AUVIS) to have an identification check conducted. Ring the RTA on 13 22 13 for your nearest AUVIS.

Buying from a licensed car dealer

Licensed car dealers must, by law, only sell cars that have no money owing. You should find the car description form on the inside windscreen or sun visor area of every used car for sale. This form will show the dealer’s name, the cash price, VIN and engine numbers, odometer (speedo) reading and warranty details.

Used car warranties

The standard warranty on used cars from a licensed dealer is 3 months or 5,000km. A used car (except luxury and commercial cars) will have a standard warranty if it’s not more than 10 years old and has not travelled more than 160,000km. Some used car dealers offer extended warranties at an extra cost. Don't sign for an extended warranty until you understand what it will cover, what is excluded and any special conditions that you need to follow for the cover to apply.

Cooling-off period

A 24 hour, waivable cooling-off period applies if you buy a car on linked credit (eg. where the dealer provides finance or is an agent of the finance provider). If you wish to cancel the contract during this cooling-off period, you must notify the dealer in writing and you will be liable to pay the dealer $250, or 2% of the purchase price, whichever is the lesser amount.

Signing a contract

A contract is a legally enforceable document. Read it carefully and be sure that you understand everything before you sign it. If you are uncertain about anything in the contract don’t sign it and seek legal advice if necessary.

Finance

Many car dealerships will offer finance (provide a loan) to their customers through a credit provider. However, it is also worthwhile shopping around to get the best deal. Banks, credit unions and other financial institutions all lend money and can work out to be cheaper and more flexible.

Disputes

If you can’t sort out a problem with a licensed dealer call Fair Trading as soon as possible for information about dealing with a dispute.

Registration and insurance

Undertake an RTA vehicle history check berfore finalising your purchase. This will tell you if the vehicle has previously been written off in NSW or interstate, the number of previous NSW owners, vehicle usage history and much more. Before you can register your car with the RTA, you must prove that you have purchased a Green Slip – otherwise known as Compulsory Third Party (CTP) personal injury insurance. You must also transfer the registration within 14 days. For RTA checks and more information about registration requirements visit www.rta.nsw.gov.au or call the RTA on 13 22 13. You should also consider additional cover such as third-party property or comprehensive insurance to protect yourself financially.

Maintenance

Your car should come with a logbook or owner’s handbook that sets out when the vehicle should be serviced and what maintenance needs to be done.  If the car is still under warranty and you don’t have it serviced to the manufacturer’s maintenance schedule, you may void the warranty. As long as the service is carried out in accordance with the manufacturer’s specifications, any licensed repairer can do it, not just the dealer from whom you purchased the car. If you don’t have a logbook, ask the repairer or manufacturer to explain what is involved with each type of service and its associated cost.

Motor vehicle repairers

In NSW, repairers must be licensed to work on your car. To hold a licence a repairer must meet criteria contained in the Motor Vehicle Repairs Act 1980. For more information visit www.fairtrading.nsw.gov.au