Yahoo Finance Car expert's major warning to second-hand buyers: 'Absolutely paramount'
Carma's Peter Willis said it's "highly important" to get a pre-purchase inspection to avoid any nasty surprises.
A car expert has warned Aussies to never shy away from getting a pre-purchase inspection as it's a "highly important" part of the car-buying experience. It might seem like an unnecessary extra step, especially if a seller provides a detailed service history, but the small price can save you major headaches down the track.
Peter Willis, director of buying at Carma, said a service history gives you a good understanding of how well your potential next car has been looked after, but it won't paint the full story. He told Yahoo Finance that getting a professional to properly look over the car can give you peace of mind that you're not buying a lemon.
"If you are buying a car and you feel like you've got a really good deal, getting an inspection is absolutely paramount," he said.
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"We spend a bulk of our time trying to find great cars and a high-quality car is hard to find, they're always in high demand.
"It's almost never that you see a high-quality car at a cheap price."
Getting an inspection is especially important if you're buying a car from sites like Facebook Marketplace or Gumtree as you're not going through a registered dealer. A mechanic will be able to take the car for a proper road test, as well as check the engine, the exterior and interior for any damage or issues.
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Pre-purchase inspections can cost a few hundred dollars depending on who you go to and the type of car you're looking to buy.
But Willis said it's worth every cent if you're forking out tens of thousands of dollars for a car that might have a serious mechanical issue that only an expert will be able to spot.
The Carma expert added that a Personal Property Securities Register (PPSR) search is also a must when looking to get a car because that helps customers know if there is any finance left to pay from the previous owner, which could become your responsibility if you go through with the sale.
The PPSR check can also help you establish if the car has been stolen, written off, or used to secure a loan or debt.
A quick search saved one Aussie a nightmare of a car
Jeff Zarif was stopped from shelling out $45,000 on a Tesla that he found on Facebook Marketplace.
He told Yahoo Finance he was about to pull the trigger on the secondhand electric vehicle after getting the seller to knock $11,000 off the price tag. The seller agreed to the new price but told Zarif he needed to make a move ASAP.
The Wollongong resident decided to quickly text his mechanic, Mitchel Pedavoli, to see if he could do a pre-purchase inspection on the car before he dropped the cash. Luckily for him, Mitchel quickly spotted a massive issue with the car.
“I got the VIN (Vehicle Identification Number) and sent it to Mitch. He said, ‘Don’t touch it with a 10-foot pole, mate, because it’s been written off’,” Zarif said.
“Thank god for Mitch because it wasn’t going to have a warranty or anything. I would have been stung because those Teslas are only as good as their warranty really,” Zarif said.
Zarif ended up not proceeding with the purchase and said the seller later took down the advertisement for the vehicle.
Car scams are a big industry in Australia
According to the Australian Competition & Consumer Commission (ACCC), there were more than 760 reports of second-hand vehicle scams in the first six months of 2023.
Those reports saw a combined $1.1 million fleeced from unsuspecting Aussies. In 2022, car buyers and sellers lost a whopping $2.8 million in car scams.
The ACCC said buyers should be particularly wary of sellers who don't want to meet in person.
“If the seller claims to be unavailable and insists on payment before meeting the buyer or allowing them to pick up their new car, this should raise suspicions,” ACCC Deputy Chair Catriona Lowe said.
“It is relatively common for scammers to claim that they are travelling or moving away to avoid meeting buyers before payment. Always try to inspect the vehicle before purchase and avoid unusual payment methods. If you have any doubts, do not go ahead with the deal."
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