We’re pleased to launch the ‘Buying a Used Car’ Campaign, in partnership with Consumer and Business Services South Australia. This campaign aims to educate buyers on the risks of purchasing used cars from online sources or private sellers as well as the benefits and consumer protections when buying from a licensed vehicle dealer.
When you’re looking to buy a second-hand car, there are some things you can do to reduce the risk of anything going wrong.
Watch the following short videos to help you know your rights and avoid problems, like hidden damage or the car being repossessed because someone else owes money on it.
Video 1: Buying a used car? Know your rights
Video 2: Buying a used car? Avoid hidden damage
Faults and hidden damage
Second-hand cars aren’t always perfect. Some have major defects which can be costly to repair. Some cars have problems that don’t affect the running of the car but are still faults – e.g. problems with the GPS, sunroof or sound system.
You’ll want to know about any defects though, so you can decide whether you still wish to purchase the vehicle. Not every defect or fault is covered by a warranty and you should always check the contract to see what items are included.
Licensed dealers should only sell vehicles that are roadworthy, and they should disclose any known defects. But if you buy privately, there’s a risk the seller might not disclose any known defects.
If a car has been flood damaged interstate it could be offered for sale to unsuspecting buyers in South Australia. The extent of the damage might not show up until later, and it could be costly to repair or have a lower trade-in value.
- If the damage is major, the car may have been ‘written off’. A licensed dealer must disclose if a car has been written off or is flood damaged, but a private seller is not legally required to disclose this.
- If the damage is minor, the vehicle can be a ‘repairable write off’. This must be disclosed by a licensed dealer, but a private seller might choose not to disclose this.
If you buy privately, you can find out if a vehicle has been written-off by doing a Personal Property Securities Register (PPSR) check.
Tips – before you buy:
- Set a price limit you can afford. Allow for stamp duty, transfer fees, registration and insurance.
- Take your time. Don’t be rushed or pressured.
- Shop around for the best deal.
- Take the car for a test drive.
- Have the car checked by a qualified independent mechanic.
- Don’t sign anything until you’re sure the car is in good condition and you want to buy it.
If you buy from a car dealer:
- Understand your rights and the dealer’s obligations
- Check what’s covered by the warranty
- Inspect the white display sheet on the car
- Have everything you negotiate with the dealer in writing
- Check the dealer’s licence is up to date.
Remember that if you buy from a licensed dealer, you get important consumer protections:
- The car should be roadworthy, and defects should be disclosed
- The car is automatically covered by consumer guarantees, so if there’s a problem you may be entitled to a remedy – e.g. having repairs done at no cost to you
- You get a warranty in most cases
- You’ll have certainty about the car’s ownership as dealers must check the Personal Property Securities Register.
If you buy privately:
- Check that the seller is the registered owner. If not, is there a genuine reason?
- Visit the Personal Property Securities Register to check that the car hasn’t been stolen, flood damaged or written off, and that no money is owed on the car. If someone else owes money on the car you’ve bought, it could be repossessed.
- Never buy from a backyard seller – that’s someone who really should have a dealer’s licence because of the number of vehicles they buy or sell each year, and yet they don’t have a licence.
For more information
- Follow the checklist to help guide you through the car buying process.
- See the Easy Read brochure for information in clear, simple language: Buying a used car – Easy Read.
Helpful links
- Check if a dealer is licensed – Licensing Public Register
- Check that the vehicle hasn’t been stolen and there is no money owed – Personal Property Securities Register
- Visit the MoneySmart website to work out the real cost of buying and running a car
- See the Australian Government’s Green Vehicle Guide to compare the environmental performance and fuel consumption of vehicles.
You can share the campaign on any of the following social media platforms by clicking the links below:
