Buying privately

Before you buy a car from a private owner, 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. a sales receipt and service records.
  

A Safety Inspection Report marked ‘passed safe’ means that the car is roadworthy and can be registered. If the Safety Inspection Report is marked ‘failed repairs needed’ this means the car is not roadworthy.

2. Check the car and make sure that the number plate, VIN (Vehicle Identification Number) and engine details are the same as those on the Certificate of Registration and the Safety Inspection Report. You need these details to do a REVS check.

3. Find out if there is money owing on the car or if it has been reported as lost or stolen or has been registered as a repairable write-off in NSW after July 2003 by visiting the REVS website or calling 13 32 20.

4. Insist on paying by bank cheque and never by cash, and make sure you get a receipt.

5. Beware of vehicles being sold well below the market price – they may have something wrong with them mechanically or may have been rebirthed.

Rebirthed cars

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

TIP - When buying a car privately there may be no warranty on it so check everything to make sure it’s roadworthy. You can arrange a vehicle inspection with a mechanic at your own cost.

Buying at auction

Cars bought at auction don’t have a statutory warranty. Usually you won’t be allowed to test drive them either but you can inspect them. At most auctions you will have to pay a deposit of around 10% or $500. If the car has registration plates, you must be given a Safety Inspection Report no older than 42 days. If it has been registered within the last month, you won’t need the report. If the car isn’t registered, you need to take it to an Authorised Unregistered Vehicle Inspection Station (AUVIS) to have its identity checked. Visit the RTA website to find out more about AUVIS or call 13 22 13 for your nearest AUVIS.

Buying from a licensed car dealer

Licensed car dealers must only sell cars that have no money owing. There is a car description form usually on the inside windscreen or sun visor of every used car for sale. This form will show the dealer’s name, the cash price, VIN and engine numbers, odometer reading and warranty details.

Used car warranties

When you buy a used car from a licensed dealer, it has a standard warranty of 3 months or 5,000km. Used cars (except luxury and commercial cars) will have a standard warranty if they are not more than 10 years old and have not travelled more than 160,000km. Make sure you understand exactly what your warranty will cover. 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

There is a one-day, waivable cooling-off period if you buy a car on linked credit (eg. where the dealer provides finance or is an agent of the finance provider). During this cooling-off period you can cancel the contract by giving a signed, written notice to the dealer. If you cancel the contract during this time, you will have to pay the dealer $250, or 2% of the purchase price, whichever is the lesser amount.

Signing a contract

Don’t let anyone force you into signing anything you don’t understand. Read the contract carefully and make sure you understand it because if you sign and then change your mind, it can still be enforced against you, as it is a legal document.

Finance

Many car dealers offer finance (provide a loan) to their customers through a credit provider. But it’s also good to shop 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 for help on 13 32 20.

Registration and insurance

To register your car with the RTA, you need to buy a Green Slip or Compulsory Third Party (CTP) personal injury insurance and provide proof of this to the RTA. You must also transfer the registration within 14 days. You should also think about getting extra insurance cover such as third party property or comprehensive insurance to protect yourself financially. For more information about registration requirements visit the RTA website or call 13 22 13.

Motor vehicle repairs

In NSW, anyone repairing a car must be licensed to do the work. If you have any problems with the cost or quality of repairs to your car visit the Motor vehicle repairs section of the website or call the Motor Vehicle Services Unit on 9895 0696.

The car buyers handbook

For more information on buying a car, get a copy of The car buyers handbook by following the link below or by calling 13 32 20. You should refer to this handbook before signing any contracts.

Where to get more information

REVS

8.30am to 5pm weekdays
9am to 2pm Saturdays
Tel: 13 32 20

Roads and Traffic Authority (RTA)

(Registration and safety inspection reports)
Tel: 13 22 13