Will you buy privately or from a licensed car dealer? Buying a used car from a licensed car dealer or motor car trader will be more expensive than buying privately but it offers the greatest protection. Licensed car dealers are regulated by the law and must give certain guarantees that do not apply to private sellers. One of these guarantees is clear title. This means that ownership of the car will be passed onto you in the sale and the car cannot be taken from you (repossessed) because of someone else's debt. Licensed car dealers must also provide a statutory warranty for cars that are less than 10 years old and have not travelled more than 160,000km. If the car is sold without a statutory warranty (it's over 10 years old or it has travelled more …show more content…
Ask the seller to show you: a current certificate of registration a safety check report (in NSW) or pink slip that is not more than 28 days old proof that the person selling the car is the owner. A sales receipt or a drivers licence can help you identify the seller. Check that all the details on the registration papers and pink slip match the car. If they don't match, it means there could be problems. Think again about buying the car but if you really want it, then do some checking with the Roads & Maritime Services if you live in NSW www.rms.nsw.gov.au You also need to check if there is any money owing on the car. If you buy a car from a private seller who has an outstanding loan attached to the car (this is called an encumbrance) then the car could be repossessed and you could lose your money. You can telephone the PPSR on 1300 007 777 or visit the website at www.ppsr.gov.au to check if a car has debts owing on it or to purchase a certificate. Buying from a licensed dealer or motor car trader Buying through licensed dealers/traders may be more expensive than from a private seller but offers you greater