Dealer? Auction? Private sale?

It is true we are spoilt for choice when looking for a vehicle. Where can one go for the best advice on finance for a used car?

In general, it is more expensive to buy a car from a dealer than to do it privately, but there are definite benefits in dealing with a dealer. In fact, most used cars in Australia are sold at dealerships, and righlty so - its the most efficient and cost effective way to purchase a car. Dealerships provide a one stop shop with finance, ability to look after your trade in, and guaranteed clear title - something you cant easily find in the private sellor market. Additionally, there is fantastic range, warranties on the vehicles, and savings for you in terms of driving around as all the cars are in the one location. Additionally, dealers are realistic about what a cars value is worth, and they dont mind selling a car at a loss from time to time to help with cash flow, they understand that if they look after you with the sale of the car, you are more likely to come back for servicing, which is where they make alot of their money.

If you plan on going the auction route, you want to be pretty confident about your car knowledge and your ability to decide what they're worth. Because you can't usually arrange a test drive or inspection, you will have to rely on visuals alone. The auction house will advise you about warranty and any money owing upon your inquiry. Additionally, many buyers from a auction get caught up in the heat of the moment and end up paying too much. I've seen with my own eyes two eager buyers paying well above a fair price just because ego sets in an a determination to own something. It sounds crazy but this is a very common situation for most people to get into, no matter how sensible you thing you are. Additionally, there are what is known as 'dummy bidders' - bidders who bid up the price who arent there to buy, just to help the seller. Although illegal now in most states, its virtually impossible to police or detect.

Although it's canbe cheaper to buy privately than from a dealer, you are relying far more on your own judgement in the absence of any buyer protection like a statutory warranty. If you buy a car privately and it falls apart the next day - youre responsible, even though its highly likely the problem was there when you bought it. Think about it, dealers have been around since the beginning of the motor car, and they cant exist if their cars were unreasonably overpriced. Imagine buying a second hand book, its far easier to go the second hand bookstore then
looking through classified for second hand books if such a section in the saturday paper existed!

Regulations

The regulations governing the sale of used cars differ from state (and territory) to state, so we've included an overview below. We've also included the contact details for the consumer affairs departments in each state in case you need further information, or wish to clarify something.

In most cases, licensed dealers must provide basic information (such as year of manufacture, warranty details) about the vehicle on a form displayed on the dashboard of each car. As mentioned above, they must also guarantee that the car carries no outstanding debts on it.

Most states and territories require dealers to provide statutory warranties on certain vehicles, depending on conditions. However, this is rarely all-inclusive, so make sure that you understand which parts are covered and which aren't.

ACT

When purchasing a vehicle from a registered dealer, a three-month/5000km statutory warranty applies to any car which has less than 160,000 km on the clock and is less than 10 years old.
From a dealer, there is a mandatory three day 'cooling-off' period from when you sign the agreement. Should you wish to cancel the deal within this time, you must make this clear to the dealer in writing. The dealer is entitled to charge you 1% of the purchase price of the vehicle, or $100, whichever is greater.

Title register and debt check: REVS, 13 32 20.
Motoring organisation: NRMA, 13 11 22
Department of Fair Trading: (02) 6207 0400

Northern Territory

When purchasing a vehicle from a registered dealer, a three-month/5000km statutory warranty applies to any car which has less than 160,000 km on the clock and is less than 10 years old.

Title register and debt check: REVS, 1800 424 988
Motoring organisation: AANT, (08) 8981 3837
Office of Consumer and Business Affairs: (08) 8999 1999

NSW

When purchasing a vehicle from a registered dealer, a three-month/5000km statutory warranty applies to any car which has less than 160,000 km on the clock and is less than 10 years old. Commercial vehicles are exempted.
From a dealer, there is a mandatory one day 'cooling-off' period from when you sign the agreement, as long as you also arrange credit with the dealer. Should you wish to cancel the deal within this time, the dealer is entitled to charge you 2% of the purchase price of the vehicle, or $250, whichever is less.
Private sellers must provide the buyer with a certificate of roadworthiness ('pink slip') that is less than six weeks old.

Title register and debt check: REVS, 13 32 20.
Motoring organisation: NRMA, 13 11 22
Department of Fair Trading: 13 32 20

Queensland

When purchasing a vehicle from a registered dealer, a three-month/5000km statutory warranty applies to any car which has less than 160,000 km on the clock and is less than 10 years old. For a car older than 10 years, or one which has travelled more than 160,000 km, a one-month/1000km warranty applies.
From a dealer, there is a mandatory one day 'cooling-off' period from when you sign the agreement. Should you wish to cancel the deal within this time, you must do so in writing, and the dealer is entitled to charge you $100.
Private sellers and dealers must provide the buyer with a safety certificate.

Title register and debt check: REVS, 13 13 04.
Motoring organisation: RACQ, 13 19 05.
Office of Consumer Affairs: 13 13 04.

South Australia

When purchasing a vehicle from a registered dealer, a three-month/5000km statutory warranty applies to any car which costs more than $6000. The warranty is two months/3000km for cars costing between $3000 and $6000. There is no statutory warranty for cars that cost less than $3000, are more than 15 years old, or those that have travelled more than 200,000km.
There is no 'cooling-off' period in South Australia.

Title register and debt check: Vehicles Securities Register, 13 10 84.
Motoring organisation: RAA, (08) 8202 4600 (general); (08) 8202 4688 (inspections).
Office of Consumer and Business Affairs: (08) 8204 9777.

Tasmania

When purchasing a vehicle from a registered dealer, a three-month/3000km statutory warranty applies to any car which has less than 120,000 km on the clock and is less than 7 years old. Commercial and four-wheel-drive vehicles are exempted.
There is no 'cooling-off' period in Tasmania.

Title register and debt check: Vehicles Securities Register, 1300 851 225.
Motoring organisation: RACT, 13 27 22 (general); (03) 6232 6300 (inspections, in Hobart; different elsewhere).
Office of Consumer Affairs and Fair Trading: 1300 654 499.

Victoria

When purchasing a vehicle from a registered dealer, a three-month/5000km statutory warranty applies to any car which has less than 160,000 km on the clock and is less than 10 years old.
From a dealer, there is a mandatory one day 'cooling-off' period from when you sign the agreement.
Private sellers and dealers must provide the buyer with a safety certificate.

Title register and debt check: Vehicles Securities Register, 13 11 71.
Motoring organisation: RACV, 13 72 28.
Office of Consumer Affairs: 1300 558 181.

Western Australia

When purchasing a vehicle from a registered dealer, a three-month/5000km statutory warranty applies to any car which has less than 150,000 km on the clock, costs more than $4000, and is less than 10 years old. A one-month/1500km statutory warranty applies to cars that cost more than $4000, have travelled between 150,000km and 180,000km, and are less than 12 years old.
There is no 'cooling-off' period in Western Australia. Certain dealers, such as the John Hughes Automotive Group, one of Western Australia’s largest car dealers, has a fixed price car lot with a 7 day money back guarantee

Title register and debt check: REVS, 1300 304 024
Motoring organisation: RAC of WA, 13 17 03.
Consumer and Employment Protection: 1300 304 054.