Business Loans Australia :: Articles
SHARE

Share this article with your friends!

5 top tips when buying a used car in Australia

5 top tips when buying a used car in Australia

Buying the right second-hand car can be a bit of a minefield – from finding a model that fits your needs and budget - to negotiating the best deal with the seller, but with a few tips and tricks, it can be made a lot easier and less stressful.

Here are 5 tips to buying a second hand car in Australia

1. Do your research

Before you start looking at used cars, it's important to do your research and figure out what kind of car you want to own.

You should also have a budget in mind so that you don't overspend.

If you plan on borrow money to finance your purchase, you should start with a car loan repayment calculator to work out how the loan repayments would be for various loan amounts over different repayment periods.

Car Loans - Quick & Easy
If you are in the market for a new or used car, then we're in the market to help you arrange the money. Our car loan & leasing finance service is backed by a national panel of car loan specialists who will establish your eligibility, find lender/s offering the best deals for your situation - and help you through the approval and settlement process. No charge to you - and no obligation to proceed with any recommendations offered.

There's also a great deal of merit in getting a loan pre-approval before shopping for a car. A pre-approved car loan means that you have a much better idea of how much you can afford to spend, and it will put you in a stronger negotiating position with the seller. 

Once you know what kind of car you're looking for, you can start searching for dealerships or private sellers.

2. Get the vehicle history

If you're buying from a dealership, they should provide you with the vehicle log book and vehicle history report if they are available. If not, you can request this from the seller. This information will tell you more about the car, including the diligence of the previous owner in vehicle care and maintenance.

It is also important to find out whether the car has had any major repaired damage or has been submerged in floodwaters. 

Knowing this information will help you make an informed decision about whether or not to buy the car.

3. Take it for a test drive

Once you've found a few potential cars, it's time to take them for a test drive! This is the best way to see how each car feels and if it suits your needs.

Pay attention to how the car handles and if there are any strange noises coming from it.

Also pay close attention to the car's tires during the test drive. Wear and tear on tires can be indicative of other problems with the vehicle, so it's best to err on the side of caution if they don't look 100%.

If everything looks and feels good, then take note of which car YOU like the best!

4. Have an inspection done by a professional mechanic

Even if the seller tells you that the car is in good condition, it's always best to get an inspection done by a professional mechanic before making your final decision. Auto Associations in each State, such as NRMA, RACV, RACQ, etc, provide vehicle inspections at a very good price to members.

They will be able to spot any issues that may not be apparent to the naked eye and let YOU know if it's worth purchasing or not.

Before buying a car privately, check that the person selling it is the registered owner. Check that the certificate of registration and safety check report for the vehicle are up to date (the last issued no more than 1 month ago). The details on all documents should match those of the vehicle.

5 negotiating with the seller

When negotiating with the seller, always keep your budget in mind so that you don't overspend on the car itself or on repairs that need to be made after purchase.

And take your time! This is a significant purchase, so don't feel pressured into buying a car that you're not completely sure about - you'll likely regret it later down the road.

When purchasing a used car privately, on the Internet, or by bidding at an auction, make sure that the seller is legally entitled to sell it. If the car was stolen, or if it is being financed through a loan and registered under someone else's name, then that person may not be able to sell it.

Before buying a used car privately, the buyer should check the vehicle security register to confirm ownership and learn if the car is being used as collateral.

Ownership checks are carried out by supplying the vehicle registration number, engine number and chassis number.

To find out if a vehicle is held as security for a loan, you can check the Personal Property Securities Register.

Finally, in order for you to transfer ownership of the vehicle, the seller will need to inform the state road authority and you will need to accept this transfer. This can usually be done online via your state motor authority.

By following these tips, you'll be well on your way to finding the perfect used car for you!

Share this article:

Car Loans - Quick & Easy
If you are in the market for a new or used car, then we'd like to help you arrange the money. Our car loan & leasing service is backed by a national panel of car loan specialists who will establish your eligibility, find lender/s offering the best deals for your situation - and help you through the approval and settlement process. No charge to you - and no obligation to proceed with any recommendations offered.


Finance Articles

Why Payday Lending Enhances Consumer Welfare Why Payday Lending Enhances Consumer Welfare
Today, We’ll defy the critics and demonstrate why consumer welfare is enhanced within a competitive payday-lending environment. - read more
7 things you need to know about a Hire Purchase loan 7 things you need to know about a Hire Purchase loan
There are seven things you should know before you ever think of getting a Hire Purchase loan. Knowing these things will give you control and power in the loan process. Power and control will will save you money - read more
Default and Reposession Default and Reposession
Most people would assume that a default under a loan contract means that payments haven't been made but, as you are about to learn, there are other reasons why a lender may have the right to repossession. - read more
Balloon Payment Loans: 6 steps to make the loan profitable Balloon Payment Loans: 6 steps to make the loan profitable
Did you know that you can reduce the monthly payments on a loan to half of what they should be by using a balloon payment? Handled correctly, structuring your loan to include a Balloon Payment will increase your bottom line. Mishandled, a Balloon Payment can cause real headaches. Here are 6 steps to keep it smart. - read more
Utilising A Chattel Mortgage for Business Finance Utilising A Chattel Mortgage for Business Finance
A Chattel Mortgage loan is a simple yet effective finance option designed for business plant and equipment purchases. Here are six rules to consider when arranging finance for your business that will ensure that you retain full control over the loan process and save money in the process. - read more
Why did my Credit Score drop - and how can I fix it? Why did my Credit Score drop - and how can I fix it?
Your Credit Rating (or Credit Score) plays a very important role in determining your eligibility to get a loan. Here we look at the reasons why your credit score may drop and some handy tips to avoid this problem. - read more
Managing Credit Card Debt Managing Credit Card Debt
If your credit card debt is starting to get out of control - or you simply want to know how to avoid potential credit card pitfalls, you are not alone. Managing credit cards is a problem faced by many who are now drowning in an ocean of debt. Here are some simple strategies that may be of help. - read more

Finance News

Business loans on the rise while mortgage growth remains flat Business loans on the rise while mortgage growth remains flat
02 Jun 2022: .

Australian business loans growth accelerated in April as mortgage growth stayed consistent, with major banks growing at less than the system average according to latest RBA data. - read more
Homebuyers up in the air despite new  government home loan support Homebuyers up in the air despite new government home loan support
29 May 2022: .

The government’s promise of an equity contribution will help the most disadvantaged Australians to get a home loan, but they still won't be able to afford one. - read more
RBA lifts official interest rate RBA lifts official interest rate
03 May 2022: .financialservicesonline.com.au

The Reserve Bank of Australia lifted the official cash rate by 25 basis points at its meeting Today. - read more

Need Help Finding a Loan?
Loan Amount:
Postcode:

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Debt Consolidation:
A means empoyed to renegotiate debt. By combining loans and outstanding bills, a person can consolidate debt with a single financial institution resulting in a single monthly repayment.