Car Loans Australia :: Articles

5 top tips when buying a used car in Australia

5 top tips when buying a used car in Australia

5 top tips when buying a used car in Australia
Buying the right second-hand car can be a bit of a minefield – from finding a model that fits your needs and budget - to negotiating the best deal with the seller, but with a few tips and tricks, it can be made a lot easier and less stressful.

Here are 5 tips to buying a second hand car in Australia

1. Do your research

Before you start looking at used cars, it's important to do your research and figure out what kind of car you want to own.

You should also have a budget in mind so that you don't overspend.

If you plan on borrow money to finance your purchase, you should start with a car loan repayment calculator to work out how the loan repayments would be for various loan amounts over different repayment periods.

Car Finance- Quick & Easy
Image for Car Finance- Quick & EasyIf you are in the market for a new or used car, then we're in the market to help you arrange the money. Our car loan & leasing finance service is backed by a national panel of car loan specialists who will establish your eligibility, find lender/s offering the best deals for your situation - and help you through the approval and settlement process. No charge to you - and no obligation to proceed with any recommendations offered.

There's also a great deal of merit in getting a loan pre-approval before shopping for a car. A pre-approved car loan means that you have a much better idea of how much you can afford to spend, and it will put you in a stronger negotiating position with the seller. 

Once you know what kind of car you're looking for, you can start searching for dealerships or private sellers.

2. Get the vehicle history

If you're buying from a dealership, they should provide you with the vehicle log book and vehicle history report if they are available. If not, you can request this from the seller. This information will tell you more about the car, including the diligence of the previous owner in vehicle care and maintenance.

It is also important to find out whether the car has had any major repaired damage or has been submerged in floodwaters. 

Knowing this information will help you make an informed decision about whether or not to buy the car.

3. Take it for a test drive

Once you've found a few potential cars, it's time to take them for a test drive! This is the best way to see how each car feels and if it suits your needs.

Pay attention to how the car handles and if there are any strange noises coming from it.

Also pay close attention to the car's tires during the test drive. Wear and tear on tires can be indicative of other problems with the vehicle, so it's best to err on the side of caution if they don't look 100%.

If everything looks and feels good, then take note of which car YOU like the best!

4. Have an inspection done by a professional mechanic

Even if the seller tells you that the car is in good condition, it's always best to get an inspection done by a professional mechanic before making your final decision. Auto Associations in each State, such as NRMA, RACV, RACQ, etc, provide vehicle inspections at a very good price to members.

They will be able to spot any issues that may not be apparent to the naked eye and let YOU know if it's worth purchasing or not.

Before buying a car privately, check that the person selling it is the registered owner. Check that the certificate of registration and safety check report for the vehicle are up to date (the last issued no more than 1 month ago). The details on all documents should match those of the vehicle.

5 negotiating with the seller

When negotiating with the seller, always keep your budget in mind so that you don't overspend on the car itself or on repairs that need to be made after purchase.

And take your time! This is a significant purchase, so don't feel pressured into buying a car that you're not completely sure about - you'll likely regret it later down the road.

When purchasing a used car privately, on the Internet, or by bidding at an auction, make sure that the seller is legally entitled to sell it. If the car was stolen, or if it is being financed through a loan and registered under someone else's name, then that person may not be able to sell it.

Before buying a used car privately, the buyer should check the vehicle security register to confirm ownership and learn if the car is being used as collateral.

Ownership checks are carried out by supplying the vehicle registration number, engine number and chassis number.

To find out if a vehicle is held as security for a loan, you can check the Personal Property Securities Register.

Finally, in order for you to transfer ownership of the vehicle, the seller will need to inform the state road authority and you will need to accept this transfer. This can usually be done online via your state motor authority.

By following these tips, you'll be well on your way to finding the perfect used car for you!

Published: Friday, 20th May 2022
Author: Paige Estritori


Car Loans Articles

The Role of Loan Terms in Car Buying: Flexibility Explained The Role of Loan Terms in Car Buying: Flexibility Explained
When it comes to buying a car, understanding the loan terms is just as essential as choosing the right make and model. The terms of a loan can significantly affect your financial journey beyond just the asking price. In a marketplace brimming with attractive deals, comprehending these terms can be your greatest asset, ensuring you drive away with a well-suited financing plan. - read more
Avoiding Financial Pitfalls: Tips for First-Time Car Buyers in Australia Avoiding Financial Pitfalls: Tips for First-Time Car Buyers in Australia
Before taking the plunge into car ownership, it's crucial to have a clear view of your current financial health. Start by evaluating your income, monthly expenses, and any savings you may have set aside. This assessment will give you a realistic picture of how much you can allocate towards buying a car without straining your finances. - read more
Car Loans: Secured vs Unsecured Car Loans: Secured vs Unsecured
Car loans play a pivotal role in empowering individuals to afford their own vehicle, which can be a significant purchase. These loans, structured to fit within one's financial situation, can ease the burden of acquiring a car and assist in achieving personal convenience and mobility. - read more
Avoid the Pitfalls: Common Mistakes to Avoid When Seeking Car Finance Avoid the Pitfalls: Common Mistakes to Avoid When Seeking Car Finance
Entering the world of car finance can be both an exciting and daunting venture. With a plethora of options for car loans in Australia, it is essential for potential buyers to arm themselves with knowledge to make the best financial decision. A well-informed choice can be the difference between a loan that propels your personal mobility, and one that hinders your financial stability. - read more
Your Car Loan Journey: From Application to Approval Your Car Loan Journey: From Application to Approval
In this article, we are embarking on a guided journey that we believe will help immensely in navigating the intricacies of the car loan process. - read more
5 Critical Steps to Take Before Applying for a Car Loan in Australia 5 Critical Steps to Take Before Applying for a Car Loan in Australia
Stepping into the world of auto financing can be as daunting as it is exciting. The commitment of a new car loan demands more than just desiring your dream car; it necessitates a balanced budget and a solid financial plan. Understanding how to prepare before signing on that dotted line is not only wise, it’s imperative for your financial health. - read more
The Role of Loan Terms in Car Buying: Flexibility Explained The Role of Loan Terms in Car Buying: Flexibility Explained
When it comes to buying a car, understanding the loan terms is just as essential as choosing the right make and model. The terms of a loan can significantly affect your financial journey beyond just the asking price. In a marketplace brimming with attractive deals, comprehending these terms can be your greatest asset, ensuring you drive away with a well-suited financing plan. - read more
The Essential Guide to Securing Affordable Car Finance in Australia The Essential Guide to Securing Affordable Car Finance in Australia
Finding an affordable car finance option can make the dream of owning a vehicle a tangible reality for many Australians. It’s about understanding the intricacies of the loan market, interest rates, and finding a plan that aligns with your financial prospects and constraints. In a society built on the convenience of mobility, securing a car that meets both your needs and your budget is essential. - read more
Top Tips for Australians Navigating the Online Car Market Top Tips for Australians Navigating the Online Car Market
The Australian automotive landscape has witnessed a significant transformation with the rise of online car sales. The concept of browsing, selecting, and purchasing a vehicle through digital platforms has gained immense popularity, offering consumers a vast array of choices at their fingertips. - read more
The Pros and Cons of Car Loans for Used Vehicles in Australia The Pros and Cons of Car Loans for Used Vehicles in Australia
With the rising cost of living, many Australians are opting for used vehicles as a cost-effective alternative to brand-new cars. Buying a used car can offer significant savings, reducing the initial financial burden while still providing reliable transportation. - read more

Finance News

Auditor Deregistered After Brite Advisers Collapse Auditor Deregistered After Brite Advisers Collapse
30 Jun 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has deregistered auditor David Makowa, previously of DM Advisory Services, due to his role in the downfall of financial advice firm Brite Advisers. This decision follows Makowa's acceptance of a court-enforceable undertaking in which he agreed to surrender his auditor registration permanently, pledging never to re-apply. - read more
US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns
23 Jun 2025: Paige Estritori

The escalating likelihood of the United States engaging militarily in the Israel-Iran conflict has raised alarm among investors, potentially leading to significant market volatility. This concern was highlighted by the global financial advisory firm, deVere Group, as tensions heighten in the Middle East. - read more
Global Markets Brace for Oil Price Surge Following US Strike on Iran Global Markets Brace for Oil Price Surge Following US Strike on Iran
23 Jun 2025: Paige Estritori

The recent US military attack on Iranian nuclear facilities has raised expectations of a significant oil price spike as global markets prepare to resume trading. Announced by former President Donald Trump, the attack marks an increased US involvement in the Middle East, which analysts believe could lead to heightened volatility across financial markets. - read more
Trump Mulls Change of Heart on Firing Fed Chair Powell Trump Mulls Change of Heart on Firing Fed Chair Powell
21 Jun 2025: Paige Estritori

US President Donald Trump is once again contemplating the dismissal of Federal Reserve Chair Jerome Powell, whom he has criticized for not lowering interest rates. Trump expressed his dissatisfaction with Powell's decisions in a Truth Social post, suggesting he might change his mind about firing him. Despite acknowledging that his strong criticisms make Powell's task challenging, Trump remains focused on his agenda for reduced rates, especially with Powell's term set to end in May 2026. - read more
APRA Clarifies HELP Debt Considerations in Home Loan Assessments APRA Clarifies HELP Debt Considerations in Home Loan Assessments
20 Jun 2025: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has released pivotal updates to the Prudential Practice Guide APG 223 and Reporting Standard ARS 223.0, focusing on how Authorised Deposit-taking Institutions (ADIs) should integrate Higher Education Loan Program (HELP) debt into home loan evaluations. The changes are aimed at enhancing regulatory clarity and acknowledging the individual circumstances of borrowers, including the nuances of their HELP debts, without compromising prudent lending practices. - read more

Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored specifically to your circumstances.
Loan Amount:
Postcode:
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Tax Deferral:
A situation where a taxpayer is allowed to delay paying taxes on income until a future date, commonly seen in retirement accounts.