September 21, 2021
Have you ever been to a car yard and felt uncomfortable or pressured into buying a car introduced to you by a dealer? A lot of people prefer dealing with Private Sellers for a range of reasons. Here is your guide to buying a car privately.
Using software like carsales.com.au is a great place to start. Gumtree and Facebook Marketplace are less attractive as scams are more common and you could be wasting your time.
Using these site’s will leave you spoilt for choice, which can be overwhelming. It is a good idea to start with the type of car you want. Whether it’s a station wagon, sedan or small hatchback, keeping your options open at the start of the search will make it easy to fine tune the search and find your hidden gem!
One way to streamline your search will be to filter out any car’s that have high kilometers travelled “on the clock”. The general rule of thumb is vehicles usually travel around 10,000km’s per year. So, if the car is 5 years old it should have done around 50,000km’s. If the car you’re looking at has more kilometers than this calculation it could negatively affect the overall value. On the other hand, if you find a car with less kilometers than the expected average the car could be hold its value better.
Once you’ve shortlisted a few vehicles, it’s time to lock in some time to test drive the car. This is critical as vehicles sold privately do not come with any extended warranties or insurance, meaning you would be buying the car “as is”. It is not uncommon for people to request a Roadworthy Certificate or Safety Inspection Report for peace of mind.
It is also important to complete a PPSR check before visiting. This will give you an indication if there is finance on the vehicle and could affect the sale. These checks usually cost about $15 and can be done through https://www.ppsr.gov.au
Now that you’ve test driven your car and are satisfied with the conditions it’s time to work out a price. Using free software like https://www.redbook.com.au to get a range of prices for your vehicle will help arm you with the tools to get the best deal. If a vendor is selling their car for well over the average price guide, they may have included extras which may need to be included in the cost.
Other costs involved may include Stamp Duty and Registration Transfer Fee’s. This is usually governed by each state so check with your local government site’s.
If, like thousands of Aussies, you are buying your car using finance there are a few more things to take into consideration.
Most people will only buy a few cars in their lifetime but that doesn’t mean it shouldn’t be as easy as buying a new pair of jeans. Using resources like Carsales and PPSR can help take the guesswork out of it.
If you don’t have the full amount you’re looking for and need finance, click here to apply for free quote to check your borrowing power.
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
The Australian Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.*This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.