Tips For Buying A Used Car

If you’re buying a used car, there’s no shortage of advice from friends and family, much of which could lead you down the garden path.

We’ve put together some tips from the experts so you can ask all the right questions when it comes to buying a used car.

What is your budget for buying a used car?

Most used car buyers are looking for a car that won’t cost too much, but will still give them enough practical benefits for their price point.

So ask yourself, ‘What will I need the car for?’

This works out the basic vehicle models you will be looking for.

Once you’ve figured out your needs, decide your budget. This includes how much you can afford to spend on the car each month – monthly repayments for finance (see Savvy’s car loan calculator to work out your repayments), insurance, registration, fuel, and servicing.

Knowing your needs and budget, the next step is to do your homework by looking up cars that fit your criteria in RedBook or a trade magazine.

Where to purchase a used car

The two common avenues towards owning a used car are buying from a private seller or purchasing through a dealer.

A private seller has one aim in mind, and that’s selling the car for a good price. This means you will snap up a bargain if you work a little harder.

Dealers sell used cars at a premium price however, you gain a guarantee that the cars they sell are roadworthy, un-financed, and street legal.

Some less scrupulous private sellers might sell you a stolen car or a write-off. If purchasing from a private seller, make sure you check the vehicle on the Personal Property Security Register before you buy.

Questions to ask when buying a used car

Whether you’re buying privately or through a dealer, you need to ask a variety of questions. It’s best if you can organise an independent evaluator or knowledgeable friend on-site to help. But in case you can't here are some questions you can ask:

Do you know if this car has had any major repairs?

If the seller doesn’t know, check the log books. A logbook is an essential document that maintains an effective record of proof for any services done on the car.

How many kilometres has the car done?

The lower the better – low km's may attract a higher price. But this means that the car hasn’t been used as much in comparison to a car that has accumulated a lot of km's.

Does the car have any problems?

An important question to always ask. This allows the seller to be upfront about if the car may need additional fixing. For example the wiring or fuses - It may cost more to replace if you inherit faulty electronics, which you can check during a test drive.

Is the car still registered?

It does cost more to re-register a car, so that is something to consider as this will add to the total cost of purchasing the car.

Why are you selling this car?

If the answer is, “because it doesn’t work” you know what to do!

How many owners has the vehicle had?

Generally, the fewer the owners, the better. This allows you to get a complete history of the car you are about to buy.

Can I take a test drive?

If they say no, walk away. That will be a huge red flag as a buyer. A test drive will reveal more than your questions will. 

Can I see the roadworthy certificate, log books and registration papers?

If they don’t have these, again this will be another huge red flag. Not worth the trouble. Walk away.

Take the car for a test drive

You should always test drive the car before making a decision. That way you can get a feel for how the car handles various speeds, check the electronics and air conditioning, see if the brakes are working or worn and if the steering is aligned. It will save you a lot of frustration later on.

If you haven’t got a mechanically minded friend or family member to look at your potential car purchase, it’s advised that you have a mechanic perform a pre-purchase car inspection before spending your hard-earned cash.

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