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Article #137: Buying Used Cars In Australia - 10 Steps To Avoid Buying A Lemon

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Buying a used car in Australia has a lot REVS call centre on (02) 9633 6333
of advantages over a new car, but it may (Sydney) or (1800) 424 988 (Country) 7
have defects the seller hasn't told you days a week. Call centre hours are,
about. Follow our quick ten point guide weekdays from 8:30am to 5:30pm and
to avoid buying a lemon. weekends from 9am to 5pm.
1. Buy the right used car for your needs The owner must provide you with a pink
Besides budget you also need to consider slip inspection report current for the
safety, security, makes and models you month.
like, fuel consumption versus 6. Take it for a test drive
performance, running/servicing costs, Take the car for a drive on a quiet road
travel distances, carrying passengers, and listen for engine noise. Does it
power for trailers or boats, parking, brake, steer and handle correctly? Is
space for work or sports gear. the suspension ok? Try a reverse park,
2. Consider other "fringe" costs hill start and a 3 point turn. Brake hard
Above the cost of the car bought from the once or twice on an isolated section of
seller, there is also stamp duty, the road at around 40 kph. Did it handle
registration, transfer fee, and correctly or veer to one side?
insurance. Factor these costs in before 7. Negotiate the best deal
you go shopping for a used car that you Remember that while you still have the
can afford. money in your pocket, you're the boss!
3. Do I buy it privately, from a dealer, Do your homework before you set out to
online or at an auction? purchase a used car and know what the
Private - Advantages are that it is average prices are. If they are in the
generally cheaper as there are no ball park, offer a price slightly lower
overheads and you can meet and discuss and mention that you have seen better
the history with the owner. deals elsewhere if this is correct. If
Disadvantages are that there is no they don't budge, mention the costs for
warranty, no security of title, no legal repair and wait for them to talk.
comeback if you buy a lemon, may have Depending on how much you want the car,
extensive concealed damage or repair make a slightly higher offer or ask if
work. they could throw in something like new
Dealer - Advantages are that if there is tyres for free. If they still won't
money owing or is stolen, you have budge, walk away. There are plenty of
recourse against the dealer, you get a other cars in the market and it is likely
warranty, you may be offered a trade in there are better deals nearby.
on you old car, you have a "cooling off" 8. Paying the money
period if you are obtaining finance to Taking cash is a great way to negotiate
buy a used car from a company linked to as the sight of a wad of notes may be an
the dealer and the car is more likely to incentive for a cash strapped seller. It
be in a road worthy condition before may also be a security risk, so if you
being offered for sale. are unsure, pay by a bank cheque. If you
Disadvantages are that dealers are often can't raise the money from your own
more expensive, you are likely to get a reserves, shop around for the best
poorer price as a trade in on your old finance deal online. A good resource for
car, and some dealers can be very pushy. borrowing money at the best rate is
Online - Advantages are that you don't Always get a receipt from the seller with
have to travel, plenty of information is a statement that the vehicle is
available on pricing, you sometimes get unencumbered by any loans or finance.
colour photos of the used car, you can Talk to your accountant about the best
buy in most areas of Australia, and you way to purchase the vehicle if it is to
don't have to negotiate face to face. be used for your business. They may
Disadvantages are you may not be able to advise you that a chattel mortgage is
see and test drive the vehicle, often the best way to borrow for this
particularly if you are buying purpose, depending on your circumstances.
interstate. 9. Transfer the registration
Auctions - Advantages are that they may Once the sale has been agreed on, the
be cheaper and have a guarantee of title registration must be transferred to the
Disadvantages are that it may be subject new owner. Make sure the seller gives
to an auction fee, may also have to you the pink slip and completes the
re-register the car and get a roadworthy disposal notice, then take them to the
certificate, there is no warranty, can't R.T.A. and pay for the transfer.
test drive, no legal comeback if you buy Instructions on how to do this are on the
a lemon. reverse of the registration papers.
4. Take someone with you and get an 10. Before you drive away
inspection. Make sure you get all the keys for the
Two pairs of eyes and ears are better car (ignition keys with transformers are
than one and it helps strengthen your expensive to duplicate). Get the service
negotiations if you have someone on your book, owner's manual and log book.
side, particularly if they know more If there's an alarm, find out how to
about cars than you do. Preferably take de-activate it. Is there a hidden
along a mechanic or pay for an ignition switch? Ask the owner or dealer
inspection. It usually saves you a lot if there is anything else to know about
of time and heartache and is well worth your new used car. You may be pleasantly
the money. A qualified person will or unpleasantly surprised at the
identify poor repairs and rust, faulty response!
electrical wiring, exhaust, engine Handy phone numbers and online details
noises, tyres wheel and brake faults, car NRMA Vehicle Inspections
interior linings, seat belts and window 13 11 22
operation. Get a thorough report on the car's
5. Check the ownership mechanics and condition from our experts
In NSW Australia call R.E.V.S. REVS at NRMA. Vehicle Inspection bookings can
stands for the Register of Encumbered be made seven days a week, between 7 am
Vehicles. It is a statutory public and 10 pm for Sydney, the Central Coast,
register which assists the general Newcastle, Wollongong and Canberra. In
public, the finance sector and the motor country areas, phone 13 11 22 for your
trade. REVS is a business service nearest NRMA inspection service.
provided by the NSW Office of Fair RTA
Trading which can tell you if a motor 132 213
vehicle or boat you are thinking of Check for stolen parts, that the
buying is carrying a debt. In order to do registration is current and that the
a REVS check you must supply : seller is the registered owner.
1. Registration Number if vehicle is Visit the RTA website or e-mail the RTA.
registered .gov.au
2. VIN or chassis number REVS
3. Engine number 1800 424 988 or (02) 9633 6333
To ensure the accuracy of the vehicle you Check no money is owed on the car. Have
should obtain the details from the the Certificate of Registration handy
vehicle and compare them with the details when you call.
on the registration papers. Visit the REVS website or e-mail REVS
For a fee of $12.00 a REVS Search merce.nsw.gov.au
Certificate, which gives you conditional NRMA Insurance
legal protection against repossession due 132 132
to the previous owner's unpaid debt, is Get insurance cover before you drive
available to you for purchase online. You away. Call NRMA Insurance 7am-10pm, seven
can also purchase a certificate from the days a week.






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