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Buying a Car
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Contracts, registry
and the complicated bits
Make sure the dealer gives you written notices about the car. These must contain the dealer’s name, the name and address of the old owner (if the car is second-hand), the accuracy of the car’s speedometer reading, warranty conditions and other details. You must make sure that the details on the display sheet on one of the car’s windows matches the car that you want to buy. If the dealer offers to arrange registration and insurance, you are responsible for making sure it is done.
If the car is second hand, is often a good idea to contact the previous owner. The previous owner will probably know more about the car than the dealer. When negotiating with a dealer, get every single promise and claim they make in writing. Make sure you check what’s included in the warranty and if you aren’t sure, ask the dealer. Remember: If the vehicle is second-hand, check that it is still registered. If not, get the car registered.
It is also a good idea to have the car checked by a qualified independent mechanic or specialist company service centre such as the NRMA. Sometimes you may have to pay a holding deposit while you are having the car checked. It is not usually refundable, but if you decide to buy the car it should be taken off the price. You must decide whether or not you are prepared to lose the deposit if you don’t end up buying the car.
When you take the car for a test drive, make sure that you won’t be liable for any claim if you have an accident. Never drive an unregistered car, not even just for a test drive, because you won’t have accident insurance cover.
You are free to negotiate conditions with the dealer. However, contracts are legally binding, so read and understand all the papers before signing them. Never sign any blank or incomplete papers, and don’t feel pressured to sign anything. There is no cooling-off period when buying used cars, so there is no way of cancelling the contract after you’ve signed. Once you have signed, you are legally bound to the contract, and there is no way of getting out of it.
If you buy a car through a dealer, you can still buy it through an auction if the dealer happens to be auctioning the car. If a dealer sells a car through an auction, the dealer must meet the same warranty requirements as if the car was being sold normally. Warranties do not apply to cars sold at an auction on behalf of a business or person who isn’t a dealer.
If you buy a car from a private seller as apposed to a dealer, the law does not protect you and statutory warranty doesn’t apply. Get the car checked by an NRMA or MTA service centre. If the seller seems reluctant to allow an independent inspection, go somewhere else.
Make sure you check that the car has no outstanding payments owed to a finance company. Go to www.revs.nsw.edu.au to do your free check. To gain legal protection, you can call the number on the website or order online to get a certificate of the Register entry for just $10 to prevent repossession by any credit provider. The Register provides information on stolen cars, but may not be entirely accurate.