Buying a used car well comes down to preparation. Take it a step at a time, do the boring checks before you fall in love with a car, and you'll avoid almost every expensive mistake.
Set a realistic budget
Work out what you can spend all-in, not just the sticker price. On top of the purchase price, budget for stamp duty, transfer and registration fees, compulsory third-party and comprehensive insurance, and a first service or any repairs the car needs. If you're financing, get pre-approval first so you know your real limit and aren't negotiating against yourself.
Decide what to buy
Make a short list of two or three models that fit your needs — size, fuel type, running costs and what you'll actually use the car for. Look up common faults for each model and year, typical service costs, and what similar cars are selling for. Knowing the fair market range is your single biggest advantage when it's time to negotiate.
Search smart
Compare listings across a few sources rather than the first one you find. Filter hard on the things that matter — kilometres, service history, one owner, and a price that sits in your researched range. Be wary of anything priced well under market: it's usually a sign of a problem, a scam, or a dealer posing as a private seller.
Check the car's history first
Before you spend time or money inspecting, run a PPSR (Personal Property Securities Register) check at ppsr.gov.au using the car's VIN. For a couple of dollars it tells you whether there's money owing on the car, and whether it's been recorded as a write-off or stolen. If there's finance owing and it isn't cleared before you pay, the financier can repossess the car — even after you've bought it in good faith.
Never skip the PPSR check on a private sale. It's the cheapest insurance you'll ever buy.
Inspect and test drive
Inspect in daylight and never in the rain, which hides paint and panel problems. Check the body for mismatched paint or panel gaps, look under the bonnet and under the car, and go through the interior and electronics. On the test drive, listen for noises, feel for the brakes pulling or the steering wandering, and make sure it changes gears and holds temperature. If you're not confident, pay for an independent pre-purchase inspection — a mobile mechanic will assess the car for far less than a bad buy will cost you.
See our used car inspection checklist for exactly what to look at.
Negotiate
Lead with what you've learned. If comparable cars are cheaper, or the inspection turned up tyres or brakes that need doing soon, use that to agree a fair price — calmly and with evidence. Be ready to walk away; there's always another car, and a seller who won't move on an obviously overpriced car is telling you something.
Pay safely and do the paperwork
Pay in a way that's traceable — a bank transfer done in person, or at a bank — rather than large amounts of cash, and never pay a deposit for a car you haven't seen. Get a signed receipt with both parties' details, the price, the date, the VIN and the odometer reading.
Then transfer the registration. In most states you have a limited window (often 14 days) to lodge the transfer with your state or territory transport authority, and some states require a current safety or roadworthy certificate before the car can be sold or the rego transferred. Rules differ by state, so check your local transport authority's website for the exact steps and fees.
Quick checklist
- Set an all-in budget and get finance pre-approval if needed.
- Shortlist models and learn their fair price and common faults.
- Run a PPSR check before inspecting.
- Inspect in daylight and test drive — or pay for a pre-purchase inspection.
- Negotiate with evidence and be willing to walk away.
- Pay traceably, get a receipt, and transfer the rego within your state's deadline.