Buying a used car
Fact Sheet
Indigenous Consumers Unit
Buying and owning a car is a major expense and a big risk if the car turns out to have major problems.
Before you buy a car you should talk to people you know who have cars, to get an idea of whether you can afford to own and run a car. When you decide to buy a car, look in newspapers to compare prices and do the rounds of car yards to see what’s out there. You may decide to take out a loan to buy your car. Loans vary a lot, so spend some time finding the best deal to suit you. Most car traders offer to arrange finance but it is often cheaper to get your own finance. Before you agree on a loan make sure you understand the type of loan, all fees and interest rates, the monthly repayments and the total amount you’ll have paid at the end of the loan. Insurance is another cost to keep in mind. Motor car insurance protects you against costs if you are in a car accident or your car is stolen depending of the type of insurance cover you take out. Like a loan, you should shop around and compare prices.
Need more information?
Call the Indigenous Consumers Unit on 1300 66 15 11.
Important
Buying from a licensed trader is safer than buying from a private seller as you have more rights.
www.consumer.vic.gov.au 1300 66 15 11
Fact Sheet
Indigenous Consumers Unit
Buying a Used Car
Licensed Motor Car Traders Buying from a licensed trader gives you protection, including: • a cooling-off period of three clear business days in case you change your mind (if you have not taken possession of the car and signed a “Loss of Cooling Off Rights” form) • a Statutory Warranty of 3 months or 5,000 km, whichever comes first, covers the car if it is less than 10 years old and has travelled less than 160,000 km. This means the trader must repair any faults covered by the warranty. Make sure you contact the dealership before you authorise any repairs • a clear title, that ensures the car is not a stolen vehicle and protects you if anyone owes money on the car When you buy a car from a licensed trader, they should provide you with: • a copy of the contract • a Roadworthy Certificate • a Notice of Particulars, giving you all the car’s details, including the previous owner’s name (you can contact them before you buy the car and ask about its condition and their reason for selling)
• a Defect Notice listing the defective items that the trader will not repair, as well as an estimate of repair costs. It is up to you to pay for these repairs. Don’t forget to sign the notice and keep a copy. If these things aren’t displayed on the car, ask the trader to provide them. You should also: • go for a test drive. This is important! Take your time and go for a good drive. • get someone else to inspect the car to get a second opinion During the cooling-off period, you may decide not to buy the car. If so, put your decision to cancel the contract in writing. The trader can keep some of your deposit -$100 or 1% of the price, whichever is greater.
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www.consumer.vic.gov.au 1300 66 15 11
Fact Sheet
Indigenous Consumers Unit
Private Sellers
It may be cheaper to buy privately but you have less protection. • There is no cooling-off period • The car is not covered by the Statutory Warranty. • It’s up to you to check the car has a clear title and there is no money owing on the car. Check the car has a clear title to make sure it is not a stolen vehicle and that there is no money owing on it. You can check by contacting the Vehicles Securities Register on 131 171.
Repairing your car
Sooner or later, most cars need to go to a mechanic. Here are some tips to help you get the work done. • Ask for a written quote from the mechanic. The quote should clearly outline the repairs necessary and the cost of the work, including the cost of parts and labour and any agreements or promises given • By law the mechanic must keep a record of each vehicle worked on, so before leaving the vehicle you should be asked to sign a job card or repair order • It may be cheaper to repair your used car with second hand parts, so ask the mechanic if a used part is a safe option for the repair • Beware of mechanics who ask for up-front payments, either before the work is begun, before it is completed or as payment for a quote • Ask how long the repairs will take and make sure the mechanic has your contact details so you can authorise any extra repairs • Make it very clear to the mechanic that you must be contacted before any repair work outside the quote is started. Discuss the extra costs and how you will pay for them • By law, you are entitled to a warranty on the parts used and labour, so remember to ask about the manufacturer’s warranty on the parts and the repairer’s warranty on work done. www.consumer.vic.gov.au 1300 66 15 11
Quick Tip
Check the car has a clear title to make sure it is not a stolen vehicle and that there is no money owing on it. You can check by contacting the Vehicles Securities Register on 131 171.
Things to do when buying from a private seller
• Make sure the person selling the car is the owner and ensure the owner’s name, licence plate number, the Vehicle Identification Number, the engine number and other details match the information on the Registration Certificate • Go for a test drive. • Get a second opinion. • Get a receipt. • Send VicRoads the Notice of Acquisition, Roadworthy Certificate, Registration Certificate, transfer fee and stamp duty. Also buying a car at auction can be a risky option. There is no cooling-off period, the car does not need to have a Roadworthy Certificate and it is not covered by a statutory warranty. Page 3 of 4
Fact Sheet
Indigenous Consumers Unit
Date of issue September 2003 • Make sure any warranty details are noted on the invoice After the repairs are done ask for an itemised account listing what repairs were done and how the costs were calculated Get a receipt and keep it safe, in case of any future problems with the repair. A clear record of regular service and repairs may add to the resale value of your car If you are unable to pay for the repair and you haven’t come to any financial arrangement, the repairer has the legal right to keep your car until you can pay. This is called a ‘Possessory Lien’. Your best option may be to try negotiating payment by regular installments until you have paid off the repairs If you are unhappy with the repairs you should try to discuss your concerns with the mechanic.
The ICU can help
Call the Indigenous Consumers Unit at Consumer Affairs Victoria
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1300 66 15 11
for further advice or information.
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The information contained in this fact sheet is of a general nature only and should not be regarded as a substitute for a reference to the legislation or professional advice.
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