27/07/2020
Purchasing a used car is a significant decision, often one of the most substantial financial commitments an individual will make. The allure of a pre-owned vehicle lies in its potential affordability compared to a brand-new model. However, the used car market can be a minefield of potential pitfalls if one isn't adequately prepared. This guide will equip you with the knowledge to navigate this landscape, highlighting how organisations like the NRMA can be invaluable allies in your quest for a reliable second-hand car. We'll delve into the different avenues of purchasing, the crucial checks to perform, and the comprehensive services available to ensure you drive away with confidence.
Deciding where to buy your next car is the first crucial step. You have several primary options: purchasing from a dealership, buying privately, or attending an auction. Each comes with its own set of advantages and disadvantages, and understanding these will help you make an informed choice.
Buying from a Dealership
Dealerships offer a curated selection of used vehicles, often undergoing some level of preparation before being put on sale. A significant benefit of buying from a licensed dealer is the guarantee of title, meaning they are legally obligated to ensure the vehicle you purchase is not subject to outstanding finance or has not been stolen. In New South Wales, for instance, cars under 10 years old and with less than 160,000km, below the Luxury Tax Threshold, typically come with a statutory used car warranty. This provides a crucial safety net, offering recourse should unforeseen mechanical issues arise shortly after purchase. While dealerships generally present a wider range of choices and offer the convenience of arranging finance, it's important to be aware that you will likely pay a premium for these benefits. Furthermore, while a trade-in option is convenient, you may not achieve the best possible price for your old vehicle through this method.
| Advantages of Buying from a Dealer | Disadvantages of Buying from a Dealer |
|---|---|
| Wide range of used vehicles to choose from | Generally higher prices than private sales |
| Statutory used car warranty (in applicable states) | Trade-in may not achieve the best price |
| Licence dealers guarantee title of the vehicle |
Buying Privately
Opting for a private sale often presents the opportunity to secure a better deal financially. You might also gain direct insights into the car's history from the previous owner. However, this route comes with fewer consumer protections. While you might receive logbooks, it's imperative to conduct your own due diligence, including checking the vehicle's history via the PPSR (Personal Property Securities Register). Always aim to inspect vehicles during daylight hours; this allows for a more thorough examination of the bodywork, where minor imperfections or evidence of previous repairs might be missed under poor lighting. A key risk with private sales is the absence of an additional warranty, unless the car is still covered by the manufacturer's original warranty. Crucially, you are not guaranteed a clear title, and there is no legal backup if faults are discovered later. Cross-referencing the registration certificate with the owner's driver's licence is a simple yet effective check.
| Advantages of Buying Privately | Disadvantages of Buying Privately |
|---|---|
| Generally cheaper prices | No additional warranty (unless factory warranty remains) |
| Potential for direct history from owner | No guarantee of title |
| Faults found are not covered by Fair Trading |
Buying at Auction
Car auctions can be a venue for significant savings, but they demand meticulous preparation and a strict adherence to your budget. Setting a firm price limit and resisting the urge to exceed it during the bidding process is paramount. Ex-government and fleet vehicles are often found at auctions and can represent good value, having typically undergone regular maintenance. However, these cars may have been driven more rigorously than privately owned vehicles. Auctions offer a guarantee of title, but you are generally unable to test drive the vehicle before bidding. You'll find a diverse array of makes and models in one location, but a deposit is usually required, and you may not be able to have the car independently inspected on the day of the auction. The excitement of bidding can also lead to paying more than intended.
| Advantages of Buying at Auction | Disadvantages of Buying at Auction |
|---|---|
| Potentially cheaper prices | May not have any warranty |
| Guarantee of title | Cannot test drive prior to purchase |
| Various makes and models in one location | Required to pay a deposit |
| Opportunity to buy close to reserve price (with low competition) | Risk of overpaying due to bidding |
| Can carry out independent inspection prior to auction | May not be able to inspect on auction day |
The NRMA Used Car Inspection Checklist
Regardless of where you buy, a thorough inspection is non-negotiable. The NRMA provides a comprehensive checklist covering key areas to scrutinise:
- Body and Paint: Look for dents, ripples, loose or misaligned panels, paint overspray, rust, signs of crash repairs, and hail damage. Ensure doors, boot, and tailgate close properly.
- Interior: Check seats, carpets, and plastics for stains, damage, cracks, or excessive wear and tear inconsistent with the car's age and mileage. A worn steering wheel or grubby instruments can indicate a lack of care.
- Vehicle Identification: Crucially, verify that the Vehicle Identification Number (VIN) on the car matches the VIN on the registration papers. The VIN is typically found on a build plate in the engine compartment or at the base of the windscreen. Also, confirm the build and compliance dates.
- Engine Oil: A stamped service book is a good indicator of regular servicing. The dipstick should show a full supply of clean, honey-coloured oil. Contacting the listed mechanic or dealer can help verify service records.
- Engine: The engine should run smoothly and quietly both at idle and when driving.
- Radiator Coolant: With the engine cold, the coolant should be clean and brightly coloured (e.g., green or red).
- Tyres: Inspect all tyres, including the spare, for damage, uneven wear, and adequate tread depth. Ideally, tyres should be of the same brand and pattern.
- Fluid Leaks: Check under the bonnet and beneath the car for any signs of oil, coolant, or other fluid leaks, which can indicate poor maintenance.
- Exhaust: Black, blue, or white smoke from the exhaust suggests an engine problem. Excessive noise or knocking can point to an exhaust system issue.
- Seat-belts: Ensure they extend, retract smoothly, and their locking mechanism works.
- Lights: Test all lights, including headlights, taillights, indicators, and brake lights.
- Warning Lights: With the engine running, confirm that no warning lights remain illuminated on the dashboard.
- Equipment: Test all accessories, such as air conditioning, power windows, audio systems, and any electronic aids.
- Jack and Tool Kit: Verify these essential items are present and in working order.
The Rise of Second-Hand Electric Vehicles (EVs)
With the growing interest in electric mobility, the second-hand EV market is expanding. When considering a used EV, particular attention must be paid to battery health, as this is a critical component affecting driving range and overall value. Understanding the charging infrastructure available to you, the remaining warranty coverage, and any potential software upgrades are also vital for a smooth ownership experience. Resources like NRMA's guides on buying second-hand EVs can provide essential insights.
Get a Mobile Vehicle Inspection
If the comprehensive checklist seems daunting, or you simply want peace of mind, booking a mobile vehicle inspection is highly recommended. The NRMA has partnered with RedBook Inspect, leaders in inspection services, to offer members and customers discounted pre-purchase inspections. These inspections are carried out by qualified technicians across most capital cities. For those in remote or regional areas, a Remote Video Assessment is available, providing an expert walkthrough with the seller. Upon completion, you receive a digital report and a CarFacts history report, empowering you with all the necessary information to make an informed decision.
Understanding Finance and History Checks
Before finalising any purchase, it's crucial to know if there's outstanding finance on the car or if it has been involved in an accident. The PPSR provides an online register that can reveal if a car is subject to security interests (money owing) or has been written off due to damage, or reported stolen. Obtaining a PPSR certificate can prevent future complications, such as repossession. Simple online checks can provide a complete picture of a car's ownership and accident history.
Why NRMA Members Need a Car Inspection Report
NRMA members benefit significantly from these inspection reports. Customer testimonials often highlight how RedBook Inspect has helped buyers avoid purchasing problematic vehicles ('lemons'). Reports have uncovered hidden issues, saving buyers from costly future repairs. For instance, a report identifying a faulty battery and worn tyres allowed a buyer to negotiate with the dealership for their replacement as part of the sale, demonstrating the tangible financial benefits of a pre-purchase inspection.
NRMA's Pre-Purchase Inspection Service
Buying a car is a major investment. A pre-purchase inspection, offered by qualified mechanics, allows you to make an informed decision based on a professional assessment. NRMA, in partnership with RedBook Inspect, offers comprehensive mobile pre-purchase inspections, including for electric, hybrid, and plug-in hybrid vehicles. These inspections are available in major metropolitan areas. The cost varies depending on the vehicle type and age, with member prices offering a discount.
What's included in an NRMA Pre-Purchase Inspection?* Interior: Comprehensive check of seatbelts, locks, horn, dashboard warning lights, heating/air conditioning, and more. * Exterior/Underbody: Inspection of panels, rust, wheels, suspension, previous repairs, and charging components for EVs. * Engine: Utilisation of diagnostic scan tools to identify fault codes in both conventional and electric vehicles. * Accident Damage: Visual assessment for paint chips, hail, and flood damage. * Road Test: Evaluation of engine performance, noise, exhaust smoke, steering, suspension, and brake operation. * CarFacts History Report: A detailed report covering stolen records, written-off history, odometer rollbacks, and more. Inspections conducted at NRMA service centres have the added advantage of a hoist, allowing for wheel removal and a thorough brake pad examination.
NRMA's Preferred Inspection Provider
RedBook Inspect is NRMA’s preferred inspection provider in New South Wales, offering exclusive discounts to NRMA members on various levels of pre-purchase vehicle inspections. These savings can be substantial, further enhancing the value proposition of securing a professional inspection.
In conclusion, buying a used car doesn't have to be a gamble. By understanding your options, conducting thorough checks, and leveraging the expertise of organisations like the NRMA, you can significantly increase your chances of purchasing a reliable and satisfactory vehicle. A well-inspected used car offers a smart and economical way to get behind the wheel, providing peace of mind and dependable transportation for you and your family.
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