Things to look for when buying a used car

Buying a used car can be a daunting process.

Dealing with a relative stranger, negotiating a fair price and taking their word on a vehicle’s maintenance and condition is a disarming prospect for many – especially with cars becoming so digital and advanced in the past 20 years.

Then there’s the dealer level, which tends to add another degree of pressure to purchase – though the development of online car destinations such as Carma (preferred used car dealership of the NRMA) is working hard to smoothen the experience.

In any case, buyers can remove some of the stress by arming themselves with some key knowledge before they turn up to inspect a prospective used car. A little research in the lead-up, and an idea of what to keep an eye out for on inspection day, can make the purchasing decision much easier.

Here’s the NRMA’s guide to buying a used vehicle.

Seven top tips when buying a used car

• Buying a well maintained used car can save you a lot compared with buying new.
• Buying privately can also deliver savings compared with buying from a dealer.
• Buying from a dealer means you get a dealer warranty in many cases, though these provisions generally aren’t as extensive in coverage as a factory warranty.
• Follow the used car inspection checklist from the NRMA to help avoid buying a lemon. For extra peace of mind, consider booking a mobile vehicle inspection.
• Check the Personal Property Securities Register (PPSR) to see if the vehicle has been stolen, written off or still has money owing on it.
• When buying a used car, whether from a dealer, privately or at auction, it’s important to conduct a thorough mechanical inspection and do checks to ascertain whether the car has money owing on it, or has been involved in a major accident.
• If possible, always undertake that inspection in daylight hours, where visible damage is easier to identify.

Buying a used car from a dealer

Buying a used car from a dealership gives you guaranteed title and a statutory warranty on cars under 10 years old and 160,000km (and below the NSW luxury car tax threshold.) This warranty is valid for three months or 5,000km from date of purchase and covers items relating to safety, reliability and roadworthiness. 

Carma is the preferred used car dealership of the NRMA and one of Australia’s leading online car destinations, making it easy to buy or sell pre-owned cars. Every car they sell goes through a rigorous inspection, reconditioning and quality assurance process that we’ve certified, giving you the peace of mind that you’re in good hands. There are also benefits for My NRMA members. 

Additionally, a dealer will usually be able to arrange finance for your purchase, although it’s worth shopping around. 

 

Buying a used car privately

Choosing to buy privately usually means you will generally get a better deal compared with shopping at a dealership and you may also get an idea of the car’s history directly from the owner. Even if you get the car’s log books, make sure you check its history with the PPSR.  

Speaking of checking, always try and conduct any inspections of a vehicle during daylight hours, when visible damage might be easily identifiable. You’d be surprised how many blemishes might be missed during dusk of after hours. 

*As the title of the vehicle is not guaranteed, any faults found are not covered by Fair Trading. You'll probably get a cheaper car, but you're not guaranteed a clear title, and you've got no legal backup. A worthwhile check is to cross reference the registration certificate with the owner’s driver’s licence.

Buying a used car at an auction

You may save money at an auction, but you must do your homework. Set a price and don't go over it. Ex-government and fleet cars are often good value and have usually been regularly maintained but they might not have been driven as carefully as privately owned cars.

 

NRMA used car inspection checklist

• Body and paint – Inspect the body for dents, ripples or creases, loose, misaligned or mismatched panels, paint overspray, evidence of rust or crash repairs, and hail damage. Check that the doors, boot or tailgate close easily and latch firmly.
• Interior – Check the seats, carpet and interior plastics for stains, damage, cracks or wear and tear that’s not consistent with the age and kilometres of the car.
• Vehicle identification – Check that the car’s VIN – vehicle identification number – matches the VIN on the registration papers. You’ll find the VIN on a small silver build plate that’s usually in one of the rear corners of the engine compartment, or at the base of the windscreen. While you’re there, also confirm the car’s build and compliance dates.
• Engine oil – A stamped service book will tell you if a car has been serviced at regular intervals. Checking that the dipstick shows a full supply of clean, honey coloured (not black) oil will provide extra confirmation. It can also pay to phone the mechanic or dealer listed in log book to ensure the records align. 
• Engine – Ensure the engine runs smoothly and quietly at idle and while driving.
• Radiator coolant – Only remove the radiator coolant cap when the engine is cold; the coolant should be clean and brightly coloured, typically green or red.
• Tyres – Ensure all the tyres (including the spare) are in good visual condition without signs of damage or uneven wear, and with tread depth above the minimum wear indicators. Ideally, the tyres should be of the same brand and pattern.
• Fluid leaks – Look around the engine compartment and underneath the car for signs of oil, coolant or other leaks that might indicate poor maintenance and potential repairs.
• Exhaust – Black, blue or white smoke from the exhaust indicates an engine problem. Excessive exhaust noise or a knocking sound from under the car can indicate an exhaust system problem.
• Seat-belts – Ensure the seat belts extend and retract smoothly, that the locking mechanism works, and that the belts are in good condition.
• Lights – Test the operation of head- and taillights, indicators, park lights, reverse and number plate lights.
• Warning lights – With the engine running, make sure there are no warning lights illuminated on the instrument panel.
• Equipment – Check that all the accessories work, including the air-conditioning and fan, power windows and mirrors, audio system, satellite navigation, parking sensors and reversing camera.
• Jack and tool kit – Make sure these important items are in place and in working condition.
• Interior – The interior of a car is generally a good guide for how it has been looked after during its lifetime. Collapsed seat bolstering, a worn steering wheel rim, grubby instruments or dirty roof-lining are usually good tell-tales that a car hasn’t been as well cared for as you’d ideally like. 

What about buying a second-hand electric vehicle?

It's clear more individuals are exploring the option of purchasing an electric vehicle (EV).  

With this growth comes an increase in second-hand EVs entering the market, presenting an opportunity for those looking to make the switch to electric.  

However, before diving in, there are crucial factors to consider. Firstly, assessing the condition of the EV, including battery health, is essential to ensure you're getting the best value for your money and an adequate driving range. Additionally, understanding the charging infrastructure, warranty coverage, and potential software upgrades is vital for a seamless ownership experience. 

Read more: Buying a second-hand EV in Australia: what you need to know

Get a mobile vehicle inspection

Armed with our list and a systematic approach, it helps to make sure the used car you’re considering buying is mechanically sound. However, if you’re daunted by the above list make sure you book a mobile vehicle inspection by the NRMA and leave it to the experts.

A mobile vehicle inspection is a comprehensive inspection that will identify issues to be rectified by the manufacturer on a used car that’s still under warranty, and can potentially save you thousands of dollars when negotiating a private sale by arming you with a list of bargaining points. 

The NRMA has teamed up with RedBook Inspect, the leaders in innovative safety and inspection services to provide members and customers with a discount on their comprehensive pre-purchase vehicle inspections. Even if you’re pretty good with cars, it can be hard to know what you’re really getting. With mobile inspectors located across most capital cities, they can take the guesswork out of buying a used car or caravan with a comprehensive pre-purchase vehicle inspection. 

For cars in remote or regional areas, they can also offer a Remote Video Assessment which includes an expert walkthrough with the seller so you can make an informed buying decision. 

It’s easy to book online, and as soon as the inspection is complete you’ll be sent a digital report and CarFacts history report from RedBook Inspect’s qualified technicians. Get the full story today so you can buy a used car or caravan with confidence. 

Find out more: Vehicle Inspections

How do I know if a used car has money owing on it, or if it’s been in an accident?

Simple checks online can tell you whether a used car you’re considering is subject to a financial liability – that is, it has money owing on it – and give you a complete and accurate picture of its ownership and accident history.

The PPSR is an online register of all personal property that has security interests registered against it. Here, as well as finding out if the car you're considering has money owing on it, you can establish whether the car has been written-off as a result of a collision or other damage, or if it has been reported as stolen. For a small fee PPRS will provide a certificate stating the car is unencumbered, which can prevent repossession by a credit provider.

 

More resources

• Car reviews: The NRMA provides a vast catalogue of Open Road car reviews of current and superseded models, which are invaluable in helping you choose the right used car.
• NRMA Motoring advice: Buying a used car always carries some risks. If you're concerned you can always reach out to our motoring advice team on 13 11 22.
• ANCAP: Used-car crash safety information, including car safety ratings, is available on the Australian New Car Assessment Program website.
• Vehicle Emissions Star Ratings (VESR): The VESR website tool allows you to compare the environmental impact and running costs of new or used vehicles by rating tailpipe greenhouse gas emissions on a 6-star scale, customisable with your fuel or electricity prices and annual travel distance, and offers information on reducing emissions and running costs.
• Prohibited vehicles: Verify online if the vehicle is prohibited for provisional P1 and P2 drivers (if applicable) to ensure you’re permitted to drive the car you wish to purchase.
• Motor dealer licence: Check online to ensure the motor dealer has a valid license if you’re purchasing from a dealership.
• Carma cars: Carma is our preferred used car dealership, giving members a safer, simpler way to buy or sell. With exclusive benefits for My NRMA Rewards members.