Buying a used car privately is usually a smooth and easy experience. You hand over the money, get the keys, and drive off in your “new” ride. Most transactions go as planned, but when things go wrong, they can turn into a nightmare. That’s why it’s important to know the steps to take to protect yourself.
I’m not a legal expert, but after years in the motor industry, I’ve gained valuable insight into the car buying process. Having worked on everything from private sales to dealer transactions and even auctions, I can tell you that knowledge is power when it comes to buying a car.
In Australia, unlike real estate, there’s no official record proving who owns a car. Many people think the registration papers are a guarantee of ownership, but that’s far from the truth. Registration shows who’s operating the vehicle, not necessarily who owns it. So how can you be sure?
Key Steps When Buying From a Private Seller:
What Happens if There’s Finance Owing?
If you find out there’s finance owing on the car, never pay the seller directly. You need to settle the debt directly with the finance company. The seller must provide you with a payout letter from the bank to confirm the remaining amount owed. While this process is legal, it can be prone to scams, so be cautious.
What If You Discover Finance Owing After the Purchase?
This can be a tricky situation. If the car has outstanding finance, the lender can repossess it since the loan is tied to the car. Unfortunately, you won’t have much recourse through the police, and you might need to take legal action against the seller to recover your funds.
What if the Car Is Stolen?
If the car turns out to be stolen, your PPSR check should have caught it. But if you missed it, your Private Sale Agreement and PPSR report will help show that you were unaware of the car’s stolen status. In many cases, the car will be returned to you, and the seller will be held responsible.
How Financing Can Protect You
Financing a used car can offer extra protection. With financing, the finance company manages much of the paperwork, and if anything goes wrong, they’re responsible for resolving it. For cars worth over $20k, financing can simplify the process and provide peace of mind.
Final Thoughts
While most used car purchases go off without a hitch, it’s essential to remain vigilant. With scams becoming more common, especially on platforms like Facebook Marketplace, taking the proper precautions is key. In Australia, the lack of an official ownership record makes car transactions tricky, but with a few steps, you can ensure that everything is in order. Make sure to get the right documents in place, like the Private Sale Agreement, to protect yourself.
By following these steps, you’ll make an informed, secure decision and avoid any unpleasant surprises along the way.
We went down the lane, by the body of the man in black, sodden now from the overnight hail, and broke into the woods..
