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The following advice will help make buying a car simpler and safer.
Before you start looking
Decide on the type of car that best suits your needs - 4 or 6 cylinder, wagon or sedan, manual or automatic.
Decide how much you can afford to pay - consider running costs including petrol, insurance, servicing and registration.
Set yourself a price limit.
Check advertisements to get an idea of what you can expect to pay, and if you have a vehicle to trade-in, what you can expect to get for it.
Have a look at the Redbook website for information on new and used car values. The Redbook site also has other information that may be relevant, such as new models and reviews, vehicle comparisons, and motorcycle values.
Consider the availability of spare parts - especially for imported or older vehicles.
If you need a loan, shop around for the best deal and have it approved before you start looking.
Finding your car
Visit as many car yards as possible so you can compare deals.
Check the warranty conditions.
Check as many details as you can yourself. Make sure items such as seat belts, headlights, brakelights, indicators, tyres, spare tyre and accessories - including radio/cassette/cd player, air conditioning, clock, cigarette lighter, etc. are in serviceable order, and that items such as jack and tools are present.
Check to see if there is any rust visible in the body. Look not only for obvious holes, but also for brown stains or bubbles under the paintwork.
Take the car for a test drive over a range of conditions, for example, holding a straight line, performance up hills, braking, stop/start performance etc.
Have a complete mechanical inspection by a qualified mechanic or your auto association before you agree to buy.
The Code of Practice for Motor Vehicle Traders covers a range of issues surrounding the sale of a motor vehicle and by law imposes certain obligations on Motor Vehicle traders. These include:
Even if the car you are buying is not required by law to have a warranty, you can still negotiate with the dealer to provide one. Make sure you understand what the warranty covers.
If during the warranty period a defect occurs which is covered by the warranty, the trader must repair the defect at no cost to the owner.
Private sales of motor vehicles are not covered by the Code.
If you decide that you like a vehicle, and you are asked to pay a deposit, clarify first whether you are paying a holding deposit or a purchase deposit.
A holding deposit does not oblige you to proceed with the purchase - it is simply to ensure that the vehicle is not sold to somebody else while you are considering it.
If you decide to buy the car, the holding deposit may go towards the purchase price. However, if you decide not to go ahead with the purchase, the deposit may be forfeited.
Not all holding deposits are non-refundable - this is a matter for negotiation between yourself and the trader, but make sure you clarify this before paying the deposit.
There is a time limit on the holding deposit and this should be negotiated with the trader also.
A purchase deposit will involve signing a contract to purchase the vehicle (see Signing the Contract below).
If you pay a deposit of any kind, make sure that you are given a proper receipt which details all of the terms and conditions under which the deposit was paid.
There is no set amount for these deposits. Again, it is a matter of negotiation between yourself and the trader as to how much you should pay to secure your interest.
Unless you decide to buy the car, do not sign anything.
Don't accept verbal promises for work to be carried out on a car. All conditions regarding the sale must be recorded in writing. However, it is wiser to have work carried out before you agree to buy.
Check that all blank spaces have been crossed out and initialled by you. All special conditions must be fully detailed.
Examine all documentation carefully and don't be pressured into signing anything you don't fully understand or are not entirely happy with.
Make sure you are given a definite delivery date. 'As soon as possible' could mean you have to wait longer than expected.
Check for clauses in the contract which allow for price rises while you are waiting for delivery.
Check the price for factory fitted extras. You may be able to do a better deal yourself.
Check that the paint and interior colours are what you ordered.
If you are buying privately, check that the registration plate matches the number on the registration sticker. Also check the details on the compliance plate - make, model, month and year of manufacture, engine number etc. (the compliance plate is a small metal plate which signifies that the vehicle met with the appropriate Australian design rules, and is usually located on the firewall at the rear of the engine compartment).
Have the car examined by a qualified mechanic. Vehicles sold privately do not have a warranty.
Check if there is any money owing on the car by phoning the Vehicle Securities Register on 1300 851 225, or visiting their web site. You can also check with the local Securities Register for advice on how to check on interstate registered cars.
Check with police that the car has not been stolen.
A new or used motor vehicle trader may offer you an extended warranty.
Unlike compulsory warranties provided by the Code of Practice, or a limited warranty provided by a trader, an extended warranty offers a longer period of coverage - sometimes up to 5 years. However, it will cost you extra money - and this should be clearly shown in any contract. It is a form of warranty insurance and covers the cost of repairs.
However, before accepting an extended warranty, check whether it represents good value for money, what is covered, and the conditions which apply. For example:
What to do if you have a problem
If you have a problem, first check to see whether it is covered by the Code of Practice for Motor Vehicle Traders.
If it is, seek the advice of the trader in the first instance. If you don't, you may void your warranty.
If the problem is mechanical, check to see if it is covered by your warranty.
If it is, approach the trader to have the problem rectified. The trader is obliged to do so under the Code of Practice.
If the problem is one which is not covered by the warranty, but is a major one, you may be able to negotiate some reasonable solution with the trader.
If you are not able to resolve your problem, contact Consumer Affairs and Fair Trading or the Motor Traders Association for advice.
New car prices are not the same at every trader. You can save by shopping around.
Don't compare prices and trade-in offers separately. The only guide to a good deal is the final cost to you.
You may be able to buy cheaper privately, but there is no warranty.
If you sign your name to anything, it is probably a contract. You may not be able to change your mind without losing money.
If you buy a vehicle, arrange for an insurance cover note before driving it away.
