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Buying a car - what to ask before you buy

If you're about to buy a new car, make sure you know what to ask before you buy. The questions listed below will give you some ideas about what to check before purchasing a new or second hand car.

Click on a question below for more information.

1. Cost: What does the car really cost?
2. Fuel: Is the car fuel efficient?
3. Running costs: What will it cost to keep the car on the road?
4. Warranty: What's the warranty on the vehicle?
5. Vehicle: What do I know about the vehicle?
6. Inspection: Who can do the vehicle inspection?
7. Pre-purchase: What do I have to do if I buy the vehicle?
8. REVS check: Do I need a REVS check on the vehicle?
9. Unregistered: What if the car is not registered?
10. Private sale: What if I'm buying the car privately?
11. Car dealer: What if I'm buying the car from a car dealer?
12. Auction: What if I'm buying the car at auction?
13. Market: What if I'm buying the car at a car market?
14. Roadside sale: What about cars sold at the roadside?
15. Help: Where can I get more help about buying a car?
16. Problems: What happens if there's a problem after purchase?
17. Useful contacts

1. What does the car really cost?

Determine what the total cost of the car will be including:

• registration (and any transfer fees)
• stamp duty
• green slip
• insurance
• metallic finish
• extras (e.g. upgrades to brakes, airbags, audio system etc.)
• any other fees or charges

2. Is the car fuel efficient?

Petrol isn't getting any cheaper. Allow for continuing increases in petrol prices over time. Hybrid vehicles (which use both electric and petrol power) save on fuel but cost more to buy. See the Australian Government's Fuel Consumption Guide Database which provides fuel consumption figures for cars produced 1986-2003, and 'green vehicle guide' for cars produced from 2003 onwards.

3. What will it cost to keep the car on the road?

Work out how much it will cost to keep on the road, including:

• lease or loan repayments
• registration
• petrol
• green slip
• insurance
• maintenance and repairs (especially those that must be done immediately)
• interest on money borrowed to buy the motorcycle
• motoring association membership (e.g. RACV, NRMA)

4. What's the warranty on the vehicle?

Know exactly what warranty is provided and what it covers - it could range from three months to 5 years and generally won't cover things like tyres.

If you're asked to purchase additional warranty, make sure you read the fine print - you may find there are unexpected exclusions.

Note: There is no statutory warranty on privately sold vehicles (including those bought at car markets) or those bought at auction. You should inspect the car carefully, or pay for a vehicle inspection by a qualified mechanic or through your motoring association.

5. What do you know about the vehicle?

Some vehicles are prone to specific types of problems. If you're buying a second hand car, it pays to do a bit of research - for example, some cars are more likely to have rust in certain areas, while others may have a reputation for steering or other issues. Has the vehicle been garaged, or parked outside near the ocean? If the body has been neglected, maybe the mechanical side has been ignored too. Check if there is a service history with the vehicle.

• What year model is it?
• How far has it been driven?
• How much registration is left?
• Do the brakes and steering work effectively?
• What about the tread on the tyres?
• Has it been involved in a serious accident?

6. Who can do the vehicle inspection?

If you do not have the required skills (or a reliable mechanic) to inspect the car yourself, motoring associations (such as the NRMA) provide vehicle inspection services. Contact your local motoring association for more information.

7. What do I have to do if I buy the vehicle?

• Check the registration and CTP insurance details of the vehicle with the relevant authority (for example, in NSW, it's the Roads and Traffic Authority).
• Transfer the registration into your name within 14 days of the vehicle coming into your possession or management.
• In Victoria, you'll ned a transfer of ownership when you buy vehicle.
• Find out if you need a roadworthiness certificate (for example, this is compulsory when selling a vehicle in Victoria).

8. Do I need a REVS check on the vehicle?

If a car is 'encumbered' it means that there is money owing on the car, or the person selling the car does not own it outright - meaning that the car could be repossessed even if the debt is not yours!

If you buy from a car dealer, they must guarantee that the car is not encumbered.

If you are buying privately (including at a car market), contact REVS to check the status of the vehicle. To do this you will need:

• current registration certificate (with the rego number, engine number and VIN or chassis number)
• a pink slip not older than 42 days
• proof of identify of seller (e.g. driver's licence) to ensure they are the legal owner
• to check that the information shown on the paperwork matches that on the actual car.

9. What if the car is not registered?

Do not drive an unregistered vehicle - you may incur a heavy fine, and if you have an accident, you may be personally liable for all costs associated with damage to people or property.

This means you cannot test drive the vehicle. If you buy it, you'll have to get it towed home.

To register the vehicle, you must obtain a 'blue slip' from an Authorised Unregistered Vehicle Inspection Station (AUVIS) before the car can be registered. To find the closest AUVIS, phone 1300 137 302.

You will then need to take the necessary information to a motor registry (in person). This is likely to include proof of your identity, receipt of purchase of the car, current Green Slip, Blue Slip, payment for registration/stamp duty, and proof of registration if previously registered in another state. Contact your local motor registry for more information.

10. What if I'm buying the car privately?

• Check the compliance plate to see if it matches what the seller is saying.
• Contact REVS to make sure the vehicle is unencumbered. Make sure the seller is the owner, or has legal authority to sell the car.
• Check for a service history. This could indicate if the odometer reading is believable.
• Has it been in an accident? If so, was it repaired by a licensed repairer? Is the work guaranteed?
• Is it registered? Is it roadworthy? If not, it is likely to mean extra costs for you to get the vehicle to a standard where it is both.
• When did the seller purchase the vehicle? If they've only recently bought the vehicle, maybe they are selling because they want to make a fast profit, or because there's something seriously wrong with the vehicle. Of course, they won't say that but keep in mind that they may not tell you everything. Buyer beware!
  

11. What if I am buying the car from a car dealer?

When you buy from a car dealer,

• the dealer must guarantee there is no money owing on the car
• in some circumstances, they must provide a statutory warranty
• they will allow you to test drive the vehicle
• they may accept your old vehicle as a trade-in (although you may not get as much as you would selling it privately)
• they may offer you finance (but check out other finance options first - you don't have to accept the dealer finance if you can do better elsewhere through banks, building societies, other financial lenders)

12. What if I am buying the car at auction?

When you buy at auction,

• you can get a bargain
• the auctioneer must guarantee there is no money owing on the car
• there is no statutory warranty, so you may want to arrange to inspect the vehicle, or pay for an inspection, but this must be done prior to the day of the auction
• you will generally not be allowed to test drive the car
• you'll need to provide 10% or $500 deposit as soon as your bid is accepted as the successful bid.

13. What if I am buying the car at a car market?

When you buy at a car market, you could get a bargain, however:

• there is no statutory warranty, so you may want to arrange to inspect the vehicle, or pay for an inspection, but this must be done prior to the day of the auction
• there is no guarantee about the condition of the vehicle
• there is no guarantee that it is not a stolen vehicle
• contact REVS to check if the vehicle is encumbered. To do this you will need the current registration certificate (with the rego number, engine number and VIN or chassis number); a pink slip not older than 42 days; proof of identify of seller (e.g. driver's licence) to ensure they are the legal owner, and you will need to check that the information shown on the paperwork matches that on the actual car.

14. What about cars sold at the roadside?

This is possibly the least safe way to buy a car. There are no guarantees that the car is roadworthy or unencumbered. Repairs may be shoddy. The car may be stolen

15. Where can I get more help about buying a car?

Motoring associations provide detailed help for car buyers. The NSW Office of Fair Trading has a booklet called 'The car buyers handbook' which can be obtained by phoning 133 220 or via their website.

16. What happens if there's a problem with the car after purchase?

Find out specifically what would happen if there is a problem once you have bought the car. If you buy the car privately, you're probably on your own. Buying from a car dealer means you will at least have the statutory warranty.

17. Useful contacts

• Fuel Consumption Guide Database
• NSW Office of Fair Trading for the 'Car Buyers Handbook'
• Register of Encumbered Vehicles (REVS)
• RACQ Queensland Car Buyer's Guide
• Australian Automobile Association (AAA) for a list of all Australian state motoring associations.

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