Buying a used car in 2021

By Tim Pomroy
Man and woman buying used car
Man and woman buying used car

Even in 2021, the old rules still apply for buying a used car

The landscape of used-car dealerships changed a long time before COVID, as a trip down Parramatta Road (or ‘Auto Alley’) in Sydney will reveal. Once a place where dozens of car yards competed for business, it’s now the dominion of high-rise apartments. A few small used-car dealerships remain, struggling for oxygen in the looming shadows of the towers, but their ageing patinas are hardly enticing.

Still, a licensed car dealer is the safest bet for buying used cars. They guarantee there’s no outstanding finance owing and, if the vehicle is less than 10 years old and has travelled fewer than 160,000km, a three-month/5000km warranty applies. You can also take a test drive to ensure a vehicle’s suitability and some car yards might even buy your old one.

Beware of salespeople offering extra aftermarket warranties or finance to sweeten or close a deal – and always read the fine print. These warranties can be so limited they’re of little value, and definitely don’t assume a dealer’s finance offer is the best option, as rates can vary considerably.

Related: Our top tips for buying a used car

Buying a second-hand car from an auction has some benefits for canny consumers. Usually there will be a lot of cars under one roof and government vehicle auctions will have many of similar make, year and specification. Prices can be cheaper, but you do trade away some rights, most notably being able to test drive the vehicles prior to bidding. Warranties differ depending on whether the vehicle is registered and if a Form 11 is attached. It can pay to do your research.

Buying privately in 2021 involves keen judgement and, ideally, a degree of mechanical nous. Don’t buy a vehicle that doesn’t have a logbook. Without one, you can’t check the service history or previous ownership details. A definite red flag is the seller’s name differing from the one on the registration papers. “I’m selling it for a mate,” is the classic line that denotes a potentially dodgy deal.

Some sellers may prefer to conduct inspections and transactions in car parks, so it’s a good idea to bring along a friend or relative. Walk away if the seller doesn’t want you to test drive the vehicle or refuses to provide licence details.

Research and compare like-for-like vehicles to determine an accurate market price. The old adage still applies today: ‘If the price seems too good to be true, it probably is.’

The NRMA can also help in number of ways. Though mobile vehicle inspections have been temporarily suspended, the NRMA Motorserves at Caringbah, Gosford, Kotara and Majura Park can carry out a vehicle inspection. And, if you’re time-poor, an NRMA car history report can provide important details such as valuation, registration information and whether a car has been written off or has money owing on it.

This story originally appeared in the March–April edition of the Open Road magazine.

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