Buying a Used Car in Australia: Questions to Prepare Before You Inspect
Buying a used car in Australia is a significant financial decision and carries real risk if you are not well prepared. The used-car market in Australia is fairly rich — from dealers to private sales through Gumtree or Facebook Marketplace — and each channel has different characteristics.
Buying through a dealer or privately
Buying through a dealer
Buying a car through a dealer costs more but usually comes with some buyer protections under consumer protection law (Australian Consumer Law). Dealers often provide a short-term warranty and may help with finance. The cars have usually had a basic inspection.
Buying privately
Buying from a private owner is usually cheaper but offers less legal protection. Private sellers are not bound by a dealer’s obligations. However, the private market is larger and has many good-value options if you know how to inspect a car.
Questions to ask the seller
About the car’s history
- How many owners has the car had?
- Is there a service history kept? Where was it done?
- Has the car ever been in an accident? Is there an accident report?
- Why is it being sold?
- Is the car under finance, or is there any outstanding debt on it?
About its current condition
- When does the registration (rego) run out?
- Are any warning lights on?
- Do the air conditioning, the electrical system, and the windows work?
- Are there any known issues that need fixing?
Checks before you pay
Check the PPSR (Personal Property Securities Register)
The PPSR is a national database that lets you check whether a car has finance owing on it (an encumbrance), has been reported stolen, or has a write-off history. This is the most important step when buying a car privately — search at ppsr.gov.au for a small fee per search.
Do not skip this step. Buying a car with unpaid finance owing can lead to you losing the car with no compensation.
Physical checks when inspecting
- View the car in daylight, in good light
- Check the paint: uneven paint between panels can be a sign of respraying after an accident
- Check under the car: oil leaks and rust
- Take a test drive on streets and on the highway if possible
- Listen for unusual noises while driving, braking, and turning
Hire an independent inspector (pre-purchase inspection)
If you are not confident about a car’s mechanics, hiring an independent mechanic to inspect it before you buy is a smart choice. The NRMA, RAA, RACQ, RAC, and their equivalents in each state offer pre-purchase inspection services. The fee for this service is small compared with the risk of buying a car with hidden problems.
Warning signs
- The seller refuses a PPSR check or will not let you take a test drive
- An unusually low price compared with the market
- The seller pressures you to decide on the spot, giving you no time to think
- An unusual meeting location (not a home or a fixed business address)
- Documents that don’t match (the name on the paperwork differs from the seller’s name)
- No service history, or a service history with gaps
Documents needed for the sale
When buying a car privately, you will need:
- Transfer of registration (transferring ownership of the registration) — this is done through your state registration authority (VicRoads, Service NSW, TMR, and so on)
- Rego papers (the current registration documents)
- A bill of sale or receipt
The specific procedures and fees vary between states — check the website of the registration authority for the state where you live.
Next steps
Once you have decided to buy, work out the real running costs — see the related guide on the cost of owning a car in Australia.
If you are weighing up a car versus public transport, see the related overview of public transport in Australia.