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Used car buyer’s checklist

The ultimate guide to buying a used car

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ContentsBuying a pre-owned car: Introduction 4

Research 5

Avenues to buying a used car 6

Know which Qs to ask 7

Negotiating price 7

Before you test drive 8

During your test drive 9

Documentation (what you’ll need) 10

Documentation (ownership transfer) 11

Insurance Options 12

Used car buyer’s checklist 13

Free vehicle check 14

Social links 15

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This eBook contains information on the used car buying process. The information provided is intended as a guide only. It should not be treated as financial advice and does not take into account your personal circumstances. If you have any specific questions about individual financial matters or government legislation, you should consult an appropriately qualified professional or government department.

Get Approved has endeavoured to ensure all information is accurate at time of publication (1 December 2013); but does not guarantee the ongoing accuracy this information.

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Introduction

Buying a pre-owned car

Most of us will purchase a pre-owned vehicle at least once in our lifetime.

Whether you’re looking to get behind the wheel of your own car for the first time, or just want to save some cash – a pre-owned vehicle can be the perfect option, given you tick a few boxes in terms of security and safety along the way.

Follow the steps outlined in this guide to make sure you’ll live happily ever after with your new pre-owned car.

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Research

Things to consider

• Your budget.• Desired make and model.• Essential features.

Research tools• Word of mouth.• Newspaper classifieds. Car sales websites:• Reviews.• Blogs.• Private listings.

It’s important to exercise caution when shopping online. Never hand over money or personal information without inspecting a vehicle in person.

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Licensed dealer

Auction

Private sale

Car sales tend to cost more but come with the peace of mind of:

• A simplified process and much less legwork for you.• Car warranty.• A cooling-off period.• You can be sure the car you purchase is debt free.

Cars can be purchased at auction for a fraction of the price but the process isn’t without its risks, including:

• An element of the unknown in competing bids.• Often no opportunity to test drive.• No roadworthy certificate.• No warranty.

Online car sales platforms have encouraged many buyers and sellers to cut out the middle man. While savings are a major benefit, risks include:

• No warranty• No cooling off period.• Reputation of seller unknown.• PPRS check required.

Avenues to buying a used car

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Know which Qs to ask

Has the car had multiple owners?

How many km’s have been clocked up?

Has the vehicle ever been involved in an accident?

Where is the vehicle typically stored? (e.g. garage, no cover)

Is there any finance owing on the car?

Why is the vehicle being sold?

Is there a logbook history?

Extra costsWhen working out your initial budget, it pays to factor in:

• Stamp duty.

• Registration transfer fees.

• Ongoing maintenance costs.Negotiating price

Price haggling is part-and-parcel of a private sale. In fact, sellers will often cater for this by inflating their original price.

It doesn’t hurt to try your luck and bring the price down. Aim for 10% of the asking price as a general rule.

Bonus: 7 quick tips to help master car sale negotiations

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General wear and tear may be an indication of heavier use than the seller has indicated.

Check audio, lights, power windows, mirrors, wipers and air conditioning are all functioning as they should. Match the speedometer with advertised kilometre usage. Request to see the owner’s logbook to confirm.

Test driveBefore you test drive

With smartphone or camera in-hand, take a good look at, and capture the vehicle from all angles for:

Exterior

Dents and rust on the body of the vehicle, a cracked or chipped windscreen, windows or lights.

Disparity in paint colours or panel alignment.

Worn tyres, wheel alignment, shock absorbers, suspension and tyre pressure.

Engine

Fluid levels in car’s radiator, power steering and oil gage. Check the quality of radiator coolant and oil currently running through the engine.

Ask the seller to run the car for a few minutes and to rev the engine. Check the colour of the exhaust smoke. When the car is turned off, check under the hood for fluid leakage.

Interior

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During your test drive

It’s a good idea to pre-arrange temporary cover with the owner’s insurer in the event of an accident during your test drive.

Ideally, you will get to test the vehicle on your own or with a friend or family member, however it is more likely that the owner will accompany you to prevent having their vehicle stolen, so don’t be put off by their presence during the drive.

Aim for a 15-20min drive on a variety of roads at various speeds. Try a few exercises such as parking, U-turns and reversing to gage the car’s manoeuvrability.

Look and listen out for:

A smooth and quick transition of gears (auto & manual).

Engine power appropriate to the car’s size.

Ensure the car tracks and brakes steadily in a straight line.

Check all electrics and dials to confirm they’re operational.

Check temperature dials for any signs of overheating.

Test drive

Note the VIN number of the vehicle to submit for your free vehicle check.

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DocumentationPaperwork required for chance in vehicle ownership

You can’t afford to make assumptions during the private sales process. Double-check all documentation provided by the seller and obtain a guarantee from a licensed dealer that the car is not de-registered and there is no money owing.

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Roadworthy certificate

Should be no more than 30 days old at

time of sale.

Logbook

Compare and confirm maintenance history.

Seller I.D.

Confirm purchase address matches seller’s

I.D. and registration.

Registration

Cross-match license papers and registration plates.

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Documentation

Click on your state below, to download the required paperwork and notify you local transport authority of

your vehicle’s change in ownership.

Vehicle ownership transfer

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Insurance options

Get Approved offers a host of insurance options to secure your investment for the long term, including:

Once you’ve signed the paperwork and are handed the keys, the vehicle is your responsibility. That means taking the appropriate steps to get suitable insurance cover.

See the Get Approved website for more on your insurance options.

Gap/Shortfall InsuranceGap insurance pays the outstanding loan balance if your vehicle is stolen and written off or declared a total loss by your insurance provider.

Popular cover for Individuals, self-employed and small – large business, where the insured sum is less than the amount of finance owing on the vehicle, or to cover costs associated with a new vehicle (i.e. stamp duty, dealer delivery, insurance excesses).

Tyre and Rim plus Roadside AssistYour tyres and rims are the only thing between your car and the road 100% of the time.

Popular cover for individuals, self-employed and small – large business, whose tyres or rims aren’t covered by your motor vehicle policy, or in the even that they suffer damage from pot-holes, curbs etc.

Consumer Credit InsuranceCover when you need it most. Peace of mind that your repayments are covered in the event of illness, involuntary unemployment or injury.

Popular cover for individuals with an irregular income.

Motor Vehicle Insurance (MVI)New for old replacement in the event of damage or theft if your vehicle is less than 36 months old, has travelled less than 100,000km and is still under new car warranty.

Popular cover for individuals, self-employed and small – large business, that are keen to bun-dle their finance and insurance under the one roof.

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Body

No accident or rust damage

No hail damage

No panel irregularities

Door and boot seals in tact

No paint chips or variations

No upholstery wear and tear

Note engine VIN and body no’s

Note year and month of manufacture

Note state of engine exterior

Check engine oil

check radiator coolant

No corrosion of tubes and brackets

PPSR certificate

Transfer of ownership docs

Registration papers

Steering tracks in a straight line

Check brakes

Check exhaust

Note any irregular engine noise

Check suspension

Check transmission

No seat-belt wear and tear

Lights functioning

Electronics (A/C, audio, windows) working

Jack and tool-kit in good condition

Speedometre functioning/accurate

Interior

Road test

Paperwork

Engine

Used car buyer’s checklist

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Free PPSR certificateVisit FreeVehicleCheck.com.au to claim!

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getapproved.com.au

Sources: Keys2Drive, NRMA.

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