Statistically, there is a one in five chance vehicles offered for private sale are carrying debt for which the new owner could become liable.

The Register of Encumbered Vehicles (REVS) is a service provided by the Office of Fair Trading that can tell you whether or not a vehicle is recorded as encumbered in NSW, ACT, NT, QLD, VIC and SA. Encumbered means that there could be money owing on the car or that the registered operator may not own the vehicle outright.

REVS can also inform you if the vehicle has been:

• reported to the police as stolen
• recorded as de-registered by the RTA due to outstanding fines
• recorded with the RTA by an insurer as a written-off vehicle
• recorded by the Commissioner for Fair Trading as having possible odometer interference.

Note: If you buy a late model second-hand car, check with the manufacturer that the balance of the new car warranty can be transferred to you and that it has not been cancelled particularly if the vehicle has been recorded as a repairable write-off. Some warranties have conditions that invalidate the warranty when there has been an accident.

Where the information provided by the seller does not match, the RTA can also give advice on what to do.

You can conduct your own REVS inquiry online at www.revs.nsw.gov.au  or call 13 32 20. The REVS call centre is open 6 days a week from 8.30am to 5.00pm on weekdays and 9.00am to 2.00pm on Saturdays.

Always purchase a REVS search certificate (for a small fee) when REVS tells you the vehicle is not encumbered. This will provide confirmation of your inquiry and offer legal protection against the vehicle being repossessed by a creditor due to a previous owner’s unpaid debt.

REVS does not guarantee the accuracy of stolen and written-off vehicle information. To check if the registration is still valid, call the RTA on 13 22 13 or contact your local motor registry. Where the information provided by the seller does not match up, the RTA can also provide advice on what to do. Registration requirements may differ between states and territories.  If you are thinking of buying an unregistered vehicle that has been significantly modified or is a specialised vehicle, such as a high performance vehicle, you should check with the RTA as to NSW registration requirements. The RTA can be contacted from 8.30am to 5.00pm Monday to Friday and 8.30am to 12.00pm Saturday.

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If REVS says the vehicle is recorded as being encumbered and you still wish to proceed with the purchase, call REVS on 13 32 20 and they can tell you what steps to take.

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There are plenty of sharp operators prepared to take private car buyers for a ride. Consumers should be aware that the legal safeguards for people who deal through licensed motor traders don’t cover private sales. For private sales, the old axiom – buyer beware – still applies.

Unlicensed backyard motor dealers – scoundrels who buy clapped out cars, perform a little cosmetic surgery and sell them through the classified sections of newspapers or on the side of the road - continue to operate despite widely publicised prosecutions by the Office of Fair Trading over recent years.

The repairs carried out by backyard operators are often slap-dash and sometimes dangerous. But their antics don’t stop at shoddy repairs. These shonks have few qualms about winding back the odometers on the cars they offer for sale.

A car with low kilometres is a far more attractive proposition. In one recent case Fair Trading found a backyard dealer had wound an odometer back 427,000 kilometres - more than the distance to the moon. The ex-taxi was later sold to an unsuspecting buyer for thousands of dollars above its market value.

‘Flicking the speedo’ is illegal. If found guilty sellers have to pay a hefty fine, compensate the buyer for the inflated value of the car and cover legal costs. In the case of the 427,000 kilometre wind back, the fine, compensation and costs amounted to almost $5,000.

Tips

• Compare the vehicle’s condition with the odometer reading
• Check the log book or service sticker
• Better still, get a pre-sale inspection, and
• Make sure you call REVS first!

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