Buying a used car privately?

You may want to consider these tips before you buy:


Buying a car from a private seller may be cheaper than buying from a licensed dealer, but it offers much less legal protection and much greater uncertainty.  The Team at Approved Car Loans have compiled a list of 10 Helpful tips that may keep you out of hot water when buying your next car.


1) Arrange your finance first


Arrange your finance before you start shopping. A pre-approved loan increases your negotiating power and is like buying with cash - money talks! Once you find the car you want, it is more likely that you can secure the best price. For fast, affordable finance call Approved on 1300 273 348 or Apply now


2) Get a PPSR check


Before you hand over your hard earned cash, make sure you organise a Personal Property Securities Register (PPSR) check.  A PPSR check will reveal whether your vehicle is currently under finance and safe from repossession.  While Licensed Motor Dealers (LMT) must guarantee clear title of a vehicle in their car yard, it is not a requirement of private sellers. So the implications of not getting a full background check before you purchase privately could leave you feeling ripped off and even sometimes without a car. 

As a valued Approved Car Loans customer, we will conduct a complimentary PPSR and vehicle history check (valued at $36.95) for you to help ensure your next purchase is the right one!


3) Second opinion


If you don't know much about cars bring along someone who knows what they're doing. This could be a trusted friend or family member or even your trusted mechanic. You could also get an RACQ vehicle inspection that will provide a comprehensive report on the condition of the car, as well as any repairs that may be required in the near future. Approved Car Loans customer's benefit from a complimentary finance inspection. This verification process captures important details such as Make, Model, kms, VIN & Serial Numbers as well as digital photographs to provide further verification. 


4) The test drive


Make sure you take the car for a decent test drive over a range of different speed and road conditions to ensure it drives and feels right. It's also good to test drive a few of the same vehicles so you know how they are supposed to drive.   Before test-driving any car, know who is liable if any accident or incident were to occur during the test drive. If you have to take financial responsibility you will need to decide if you're prepared to accept the risk. If a private seller refuses a test drive a car, walk away. There are plenty of cars on the market and it simply isn't worth the risk.


5) Service history


Ask for the vehicles log books or receipts to see the vehicles service history.  This will provide a better idea what the car has been through and what work has been completed.   But regardless of the service history getting a full vehicle inspection before purchasing will help identify any underlying issues or potential expenses that might be waiting just around the corner.


6) Are there any illegal modifications?


It can be extremely difficult to identify illegal modifications so the best bet is to ensure you have a Vehicle Inspection done on any vehicle you are Interested in purchasing. You could be fined if your car has illegal modifications, the car could be impounded, and it could affect your ability to insure the car.


7) Consider insurance costs and arrange insurance.


Do some research and ensure you know how much your insurance is going to cost. Sometimes that sports car you thought you always wanted comes with a costly insurance premium!

Before you drive away in your new set of wheels, make sure you're insured. Approved Car Loans has partnered with some of Australia's best insurers to offer an extensive selection of Insurance Products to give you peace of mind in the case of an unexpected event. Contact us for an obligation free finance quote


8) Consider purchasing a warranty


If you buy a car privately, it is most likely you will not get a warranty. A warranty will protect you from losing money if the vehicle is faulty. Approved Car Loans is an approved Selling Agent for the leading providers of extended warranties throughout Australia. We can assist in providing you a quality extended vehicle warranty product to suit your coverage requirements and budget, allowing you to choose the level of protection that best protects you against costly repairs.


9) Negotiate


It is most likely that you have chosen to buy privately to try and get more for your money. Once you have checked the vehicle out and taken it for a test drive, consider how much more you need to spend on it (e.g. window tints, minor repairs, servicing etc.). Take this off the purchase price and compare it to what else is out there on the market. We also recommend customers to check out Redbook or other online sales as a pricing guide. Even consider involving a third party like Approved Car Loans with your purchase. We are here to help every step of the way to make your car buying experience an enjoyable one.


10) Do your paperwork


If you have purchased a car privately, you'll need to submit the following documents to the necessary Department of Transport and Main Roads in your state within 14 days of purchase:

  • Vehicle Registration Transfer Form
  • Safety Certificate
  • Vehicle registration duty and transfer fee (determined by your car's fuel type and number of cylinders)

At Approved Car Loans we would like you to feel like we are your partner in the car buying process.   Should you have any Questions along the way, simply pick up the phone to one of our friendly team or email us. We will make the process of arrange finance for your next purchase this easy!


Call us today on 07 3340 6700 or visit us online

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