Finalising a private deal

When you’ve found a privately advertised car, knowing how to finalise the deal can be tricky.

The most important thing is to ensure that you are completely happy with the purchase and that there are no last minute surprises from the seller. Remember the seller’s primary responsibility is to guarantee that they are selling under no false pretences and have been completely truthful when describing the car. But if you do discover later that you have been ‘duped’, receiving compensation can prove to be complicated. To avoid this scenario, make sure that you have received an accurate address for the seller and ascertain the permanency of the residence. It is also advisable to try to procure some license details and proof of ownership as, were something to go wrong, you need to be able to contact the seller or possess the relevant information for reporting foul play.

Most importantly, if anything doesn’t appear to check out or if it causes you discomfort, walk away and remember there are plenty more cars in the sea (or junkyard).

Now sit back, take a breath and think seriously: do you really want this car? It always a good idea, after taking it for a test drive and making a comprehensive examination, to take a 5 minute break away from the seller, so you can properly reflect on your position and if necessary re-evaluate your stance.

When negotiating on price, decide your best offer and adhere to it, and make sure that unless their price matches yours, you don’t show any intention to buy. You are not committed to anything unless you’re completely happy with the purchase.

It is absolutely imperative when considering the sale that you determine ownership of the car. Is the person the owner? Or do they have the authority from the owner to negotiate a sale? It’s worth noting that, if the car turns out to be stolen or sold without the proprietor’s permission, then you retain no title on the vehicle.

It is also advisable to organise the payment for repairs before the deal is finalised. In particular, who, if any faults or problems are found, will pay for repairs? Also, it can be sensible to get some general estimates for the cost of basic repairs for the car, as in the future this can add a substantial financial burden to your purchase.

If you’re arranging a professional inspection there are a few rules that need to be followed. Firstly, organise a way to suspend sale of the vehicle until the examination results are complete. If making an offer, make sure that you spell out that the price only pertains if everything measures up, and that attached to it is a specific time limit (this prevents your offer being used to inflate those of other people). Also include a clause detailing the re-negotiation if any faults are discovered. Most importantly, make sure every agreement is recorded on paper, in particular the arrangements for any deposits put down or refunds if necessary.

In regards to RWCs (roadworthy certificate), do not rely upon them as a substitute for inspection, although you do have the right to insist that any vehicles sanctioned with a RWC will meet required standards. If the car does not have an RWC it is important to note that in the majority of states this requires the handing back of registration plates before they transfer the car to you.

You should be realistic about the time between the payment of a deposit and picking up the car, as this is a period when things can go completely wrong. The best way to prevent a problem is to have a sweep around the car with a video camera, noting down any important information such as vehicle and repair history. This avoids the issue of vendors changing parts (tyres, wheels, batteries etc.) after a price has been agreed upon and later arguing that they were never there to begin with.

It is also a good idea to note the mileage, and request that the set price is based on that number remaining until you return, or organise terms for if they wish to further use the car.

Make sure you never firmly shut any doors until you’ve fully exhausted all avenues for negotiation, so if the dealer is being unreasonable, politely leave the transaction, allowing the vendor to reconsider if possible. And always bear in mind that the retailer may be a past master of used car sales.

When organising payment conditions, remember to include an arrangement for retrieving your deposit if things go wrong, and take into account any financial agreements the car might be tied up with, and how this will be paid until you hand over the money. And remember, always make sure you have the insurance figured out before you pay up.