How to buy a used car in Australia safely

Most bad used-car buys go wrong in one of three ways: the car has a history the seller did not mention, it has a fault the buyer did not know to look for, or the money went to someone who was never entitled to sell it. Each of those has a simple check. This guide puts them in the order you should do them.

1. Set the whole budget, not just the price

The price on the ad is not what the car costs you. Add stamp duty on the transfer, which every state charges on a used car, the transfer fee, insurance, and any rego left to pay. Leave room for the first service and a set of tyres if the car needs them. A car that's a stretch on the day becomes a problem the first time it needs a repair.

2. Shortlist by what breaks, not by badge

Every model has faults it is known for, and they depend on the engine and year far more than the badge. A Toyota Hilux, a Ford Ranger and a Mitsubishi Triton each have their own, as do a Toyota Corolla and a Hyundai i30. Read the model page before you go and look, so you know which version to avoid and what to check on the one you see.

3. Dealer or private?

Buying from a licensed dealer usually costs more, but comes with protections a private sale does not: a statutory warranty on many cars, and if a lender had finance registered against the car you are generally protected from it being repossessed. Some states also give you a short cooling-off period on a dealer sale. Buy privately and none of that applies. A private sale is usually cheaper, and every check is your job. The rules differ by state, so read the guide for yours:

• Buying a used car in NSW
• Buying a used car in Victoria
• Buying a used car in Queensland
• Buying a used car in WA
• Buying a used car in SA

4. Check the records before you travel

Ask the seller for the plate and state. A genuine seller will give them. Then check money owing (with the lender named), written-off history, stolen status and registration status. Money owing is the one that can cost you the car itself; the money owing guide explains why. A write-off or a stolen report is a reason to stop, or at least to change the price; see stolen or written off.

5. Check the car is the car on the papers

• The VIN on the car (stamped in the engine bay, or on a plate or label in the door jamb) should match the rego papers exactly.
• The seller's name and address on their licence should match the rego papers. If they don't, ask why. "Selling it for a mate" is how stolen and financed cars get sold.
• Meet at the address on the papers, not in a car park.

6. Inspect it, and drive it

See it in daylight, with the engine cold. Check the body, tyres and underneath, every switch and warning light, and drive it for at least 15 minutes. Most of all, check the faults that model is known for. The used car inspection guide goes through it in order, including when it is worth paying a mechanic as well.

7. Negotiate on what you found

Anything the car needs is a reason to pay less, and a specific repair with a cost is far more persuasive than "it's a bit worn". Tyres, a service that's overdue, a known fault that hasn't been fixed: put a figure on each.

8. Pay safely

• Never pay a deposit on a car you have not seen in person, however good the price. Deposit scams on online listings are common.
• Run the records check again on the day if days have passed since the first one.
• Pay by bank transfer to an account in the name on the rego papers, and get a written receipt with the date, price, VIN, plate and both names and signatures.
• Don't hand over cash in a car park.

9. Transfer the rego

Until the transfer goes through, the car is still registered in the seller's name, and every state gives you a deadline to do it, after which you can be fined. Some states also need the seller to hand over a safety or roadworthy certificate. Your state guide above has the deadline, the certificate rule and how duty is worked out.

A KickTyres Vehicle Check reads the official records for one Australian plate: money owing (with the lender named), written-off history, stolen status and registration status, alongside the documented faults for that model and engine. A$17.90, or A$28.90 with the guided inspection.