7 risks to avoid when buying a used car

Buying a used car privately can be fraught with many risks, from not buying what you think you’re buying, to personal safety. Here are the three main risks you’re taking when travelling down the used car buying road.

1. Financial Risks

Paying too much

Buyers will try and get as much as they can when they sell their car. If you don’t shop around you may pay too much. What makes it really difficult is that you’re not always comparing apples with apples.

The cost of a car that’s exactly same make and model and year of manufacture as another may differ considerably in price based on the number of kilometres or overall condition of the car.

Really get into the nitty gritty of the car details and don’t base your decision on face value. Make sure you are aware of the build year and not only the model year as this can have a significant effect on what you should be paying for a car.

Many cars advertised with a 2013 model year will actually have been manufactured in 2012.

Most cars have a compliance plate located in the driver’s side door frame that specifies the build year. 

Also read: The five tricks car dealers use and how to avoid them

Money owing on the car

If you buy a car and there is money owing on it, you could run the risk of it being repossessed, so always get a Car History Report with PPSR (Personal Property Security Register) – previously known as REVS.

These are available for less than $5 from ppsr.gov.au and are well worth the investment – just make sure it’s the official Australian Government website you’re using, as there are companies charging a lot more for the same public information you can access yourself. This report will also let you know if it’s been stolen or has had a previous insurance write-off.

2. Personal Risks

As you’re meeting with people who you don’t know, it’s always good to take someone with you. Suggest to meet at their house rather than a public place.

Before you take the car for a test drive, make sure that the seller holds a current driver’s license. Stick to streets close to where you get in, in case you want to get back quickly to the safety of your own car.

3. Vehicle Risks

Car damage

Always view the car in daylight so that you can see the condition of the car inside and out. If the car is dirty you will need to spend more time reviewing the condition as there may be a deep scratch hiding under some mud that could costs hundreds of dollars to fix.

Inspect every panel in a methodical way, as well as under the vehicle and inside the car and boot. Don’t forget to look at the roof both inside and out.

Hail damage and some dents and scratches can be very difficult to spot when the car is wet — people have been known to attempt to hide these by hosing the car down just before the inspection, so keep a keen eye out for this tactic.

Also read: Why a test drive is a waste of time when buying a car

Buying a lemon

One of the easiest ways to check that you’re not buying a lemon is to view the service history or log books.

A car with a lot of extra work done may indicate ongoing mechanical issues. It’s better to err on the side of caution if this information is not available.

If you are in doubt to the authenticity of a log book you may want to do a spot check on one of the entries by calling a garage where one of the services was conducted to verify that it took place.

Mechanical issues

It’s highly recommended to get a qualified mechanic to inspect the car - even if the seller says that they’re qualified or suggests that it’s not necessary because it’s under warranty.

If you’re buying privately, take the car for a test drive, just to make sure it runs properly. Remember there is very little recourse once you’ve handed over your money in a private sale.

Also read: Here's why all Aussies should buy an SUV

Stolen car

Check that the chassis and VIN (Vehicle Identification Number) on the compliance plates (located in the door sill or under the bonnet) match the details exactly on the registration papers and CTP Green Slip. If there is a discrepancy, don’t buy the car.

HelloCars takes all the hassle out of buying a used car – our industry-leading 230 point check ensures you know exactly what you’re buying and our seven-day money back guarantee means that if the car isn’t right for you, you can return it and we will refund your money.

Paul Higgins is the Director of HelloCars.