Private Vs Dealer

If you've arranged your finance and determined which car is right for you, then it's time to go shopping.

Buying privately

Buying your car privately can be more risky than buying through a licensed dealer. The seller does not have a reputation to protect and the car could be stolen.

It is possible to save some money by going private, but there are precautions you should take to minimise the risks:

  • Ask to see the registration papers and check that the make, model and engine number on the certificate match those of the car you are looking at.
  • Check the manufacturing date on the compliance plate to verify the age of the vehicle.
  • Check that the VIN number on the compliance plate matches that on the registration papers. If it doesn't the vehicle may have been stolen.
  • Check that the name of the registered owner matches that of the seller.
  • Check that the registration has not expired (or is not about to do so).
  • Check that you have a full set of keys including the master key as key replacement can be expensive.
  • Contact the Register of Encumbered Vehicles (REVS) to find out if the vehicle has any finance owing or is encumbered in any way.

Ask if the vehicle has ever been involved in an accident.

  • Check the car's service history and verify the mileage recorded on the odometer.
  • Check the odometer for signs of tampering. If the numbers are misaligned, it may be an indication that it has been tampered with.

Buying through a licensed dealer

If you buy through a car yard, always remember not to be rushed into making a decision. Instead, take your time and have a good look around.

Before you take the vehicle for a road test, the dealer may ask for a deposit as a sign of good faith. This is fine so long as you are not required to sign anything.

Make sure that the dealer gives you a receipt for your deposit and a written confirmation that it will be refunded in full if you decide not to proceed with the purchase.

You may also require some time to think about a particular car. If you would like the dealer to hold the vehicle you may be asked to pay a "holding deposit". If so, pay a small deposit and get a receipt marked "holding deposit". The receipt should identify the car and indicate how long the dealer is prepared to hold it for you. You should not sign the contract to buy a motor vehicle. However, if the car is held for you and you don't buy it, you may lose your holding deposit.

Don't sign any contracts until you are fully satisfied with the vehicle. There is no cooling off period and you could end up owning a vehicle that you don't want. Thoroughly read the terms and conditions of the contract and if the dealer makes a verbal promise to do something before the vehicle is purchased, have it written in to the contract. Some dealers will require you to sign the contract to buy a motor vehicle before they will allow the vehicle to be inspected. If this is the case, insert a clause that states "subject to an RAC inspection to my entire satisfaction".

Also check that you have a full set of keys including the master key as key replacement can be expensive.

If you haven't pre-arranged your finance, you may need to insert a clause stating "Subject to finance approval from my preferred credit provider".

Note, not all vehicles are subject to a statutory warranty. For further information on used car warranties go to www.docep.wa.gov.au

Both new and used car dealers not only make their profits from car sales, they also sell finance, insurance, warranties, accessories and service contracts. You will be asked to purchase some or all of these 'extras'. The dealer will make it very easy for you by adding the cost of 'extras' on to the total finance package. It may only cost you an extra few dollars per week, but if you didn't intend buying these 'extras' in the first place, you will be paying for something that you didn't really want or need. Don't be pressurised into making hasty decisions about something that you hadn't planned to purchase. If necessary, walk away from the dealership and take some advice from a third party. RAC Technical Advice can help with this matter, please click here or call 08 9421 4260.

Buying at auction

Buying a vehicle from an auctioneer can be much the same as buying from a licensed dealer. There are two ways of buying from the auctioneer, one is to negotiate the sale as you would with a licensed dealer and if that is the case, take all the precautions mentioned in the "Buying through a licensed dealer" section of this article. The other way to buy is "on the fall of the hammer" at auction.

Vehicles can only be sold at auction on an "as is" basis, when the sale is on behalf of a private individual or in the case of a vehicle that has been repossessed under the Credit or Hire Purchase Acts.

If the sale is on behalf of a trade owner, then the statutory warranty applies if the sale price is over $2000.

A trade owner is: a licensed dealer; the auctioneer; car hire, leasing business or finance company (except in the case of a repossessed vehicle). Trade owned vehicles should have a pink form displayed on the dashboard.

Generally, vehicles offered at auction cannot be test driven, so have a good look over the car in the time available. Check the vehicle details against the licence papers; verify the year of manufacture and check that the vehicle is licensed.

Don't get carried away with the bidding, determine what you are willing to pay for the vehicle and stay within your budget

Buying a new car

Buying a new car is an exciting time and it is easy to be caught up in the thrill of it all. Take a little time to make sure that everything is in place:

  • If you have been given a delivery date, include it in the contract. ASAP could mean up to 3 months.
  • The standard contracts allow for price increases during the waiting period. If possible, have the contract price fixed. Legally the increase is limited to 5% of the Total Factory Price.
  • If the vehicle has to be ordered in, check that the contract states the correct year and model number. Remember models can be superseded at any time.
  • You may want to have extras fitted to the vehicle before delivery. Shop around for the best price. It may be convenient to have the dealer do the work, but you may be able to get a better price elsewhere.
  • Ensure that the correct vehicle details are on the contract including paint code, trim colour and specification, and that all the details match with those on the compliance plate.

Before taking delivery of your new car, read the handbook and familiarise yourself with the controls.