Buying a car or van in Australia

Never buy without testing!

Never buy a vehicle without seeing or testing it yourself. Never send money to anyone for a vehicle that you haven’t seen and tested personally to “reserve” it, even if it seems like your dream car. If you are being asked to do this, there is a good chance that it is a scam. Past working holiday makers have been scammed in this way, where the vehicle they pay for either doesn’t drive properly or doesn’t even exist!

After inspecting the vehicle closely with your eyes (and in good lighting), you should also take photos and videos from all angles as proof of its state prior to your purchase. This way, if you buy it and something goes wrong, you have photographic evidence.

Inspection of the vehicle

First, here are some useful resources that can help you pick the right car and check relevant safety features:

• The Australasian New Car Assessment Program (ANCAP)
• Buying a safe car

The inspection of a car or van before purchase is important. You should be checking the state of the mirrors, seatbelts, lights, tyres, brakes, engine, windshield, etc. Also, test that the key turns smoothly, the windows roll up and down properly, and the charging ports all work.

If the car has traces of impact such as a damaged door, it may not look like it poses an internal risk to the functioning of the vehicle, but it can still lead to mechanical issues later down the line. Unless the seller can prove to you with a mechanic’s report that there are no safety problems, avoid buying such vehicles.

It is a plus if the vehicle is equipped with a spare wheel and a jack, but not a must.

Things to look for when inspecting your vehicle include:

Mileage

Logically, cars with higher mileage have higher chances of having issues. Vans in Australia often have at least 300,000 to 400,000 km on the odometer.

While rare, you may come across an odometer that has been tampered with to show a lower number. Obviously, this is dishonest and illegal. You can check the pedals for signs of tampering: if the pedals (and the car in general) are very old but the odometer shows a suspiciously low number, there may be a problem. It’s far from an exact science, but it might help you detect egregious cases.

There’s no concrete number with regards to an acceptable mileage. It’s up to you to decide what you are comfortable with. Note, however, that some models have a reputation for being more indestructible than others, such as a Toyota Prado or a Landcruiser.

Damaged or worn paint

Australian vehicles are exposed year-round to harsh sunlight. As a result, the paint on the hood and roof may show wear and tear after just a few years. There’s no need to let this be the sole reason to walk away from a car.

However, if the paint is really in a horrible state or peeling everywhere, you should check other elements that could have experienced severe sun damage, such as the rubber lining around the windows and doors. Poor rubber lining will compromise insulation.

Rust and corrosion

In addition to the sun, cars in Australia are also exposed to ocean winds. Salt is one of the biggest enemies of vehicle chassis. Under the sun, paint tends to absorb even more salt. The combination of salt and sun can lead to visible rusting. Rust is very damaging to the integrity of a vehicle, so you should stay away from cars that show extensive rusting.

Some people may try to hide rust with a fresh coat of paint. To detect if this is the case, take a magnet and pass it over the body of the car. If it sticks, that’s a good sign. If it doesn’t, that suggests there is a layer of rust under the paint.

If you see little white traces of crystallisation on and around the engine, this could be because the car was in contact with salt water.

Vehicle records

When considering a vehicle, you have the option of obtaining its historical records of the vehicle, which includes info such as past owners and mileage. This step generally costs under AU$100 and is recommended as another way of confirming everything looks legit.

Proof of past repairs

Some sellers might keep a record of all past repairs and maintenance done on their vehicle. We recommend that you ask your seller for a copy. This could be helpful once you eventually want to sell, too.

Sellers might also have a maintenance record that is transferred from owner to owner and you should ask to see it during your inspection. Oil changes, for example, should be done every 10,000 km or every six months.

Any legal issues

It is important to confirm that the vehicle you plan to buy is free from debt and that it is properly registered in the state (check the expiration date of the registration, too).

Check if car is free from debt, stolen or written off

If the car is recorded as collateral for existing debt, or is still under financing, that is a problem. If you buy it, it could be repossessed by the bank or another lender at any moment for debt unpaid by the previous owner. This risk is especially pertinent when buying from an individual instead of a dealership.

To check if a car is free from debt, stolen or written off, you can use the search service offered by the Australian Financial Security Authority for just AU$2. You will need the vehicle identification number (VIN) from the chassis; the licence plate number and engine number will not work.

The registration (or “rego”)

The rego is a process done with the state government. It is important to know the registration status of your vehicle, when the registration expires, and when it must be renewed. You can get the rego either from the seller, or from the state for free. All you need is the licence place number.

If you are living in a state that is different from the one to which the car is registered, you may have additional steps to complete during the transfer of ownership.

Important: The name on the registration should be the seller’s name (photo ID). If this is not the case, ask for proof that the seller has complete authorisation to sell the vehicle.

The difference between technical and mechanical inspections

Technical inspection

Each state has a different policy regarding technical inspections. These are different from mechanical inspections. Technical inspections serve to ensure the safety of the vehicle. A vehicle may pass a technical inspection, but that doesn’t mean it has been cleared of mechanical problems.

During a technical inspection, the following items will be assessed:

• Quality of the tyres and tread depth
• The body of the vehicle
• Seatbelts
• Engine, transmission, exhaust
• Leaks in engine fluid or transmission fluid
• Brakes
• Equipment such as lights and indicators
• Annual technical inspection (eSafety check)

In some states, vehicles that have been around for a few years (common for vehicles purchased by working holiday makers) must undergo an annual technical inspection. If you are buying in one of these states, you are likely to come across such inspected vehicles. The owner is obligated to make necessary repairs following these annual checks.

For other states, the technical inspection must occur upon transfer of ownership (usually during the sale). Ask to see the technical inspection report before finalising the purchase to make sure that it is still valid.

In some states, police officers can also order an inspection if they suspect the vehicle poses a danger. This order is called a defect notice or a call-in notice. If this happens to you, keep the report, as you will need it for future resales.

As the buyer, you should be extra vigilant if the vehicle has not undergone a technical inspection in the months recently preceding the sale.

As the seller (remember, you might eventually find yourself in this role), you incur less costs if your state does not require you to perform annual inspections.

Mechanical inspection

The technical inspection is just to ensure that the vehicle won’t pose a danger on the road. It doesn’t guarantee that everything is working perfectly mechanically.

You will, therefore, also want to perform a mechanical inspection of the car or van before purchasing it. If you can, find someone who is knowledgeable about cars to accompany you. Two sets of eyes are always better than one.

Check the ground under the vehicle, especially if it has been parked there for a long time. If there are stains, that could be a sign of a leak!

Start the engine and drive the vehicle for at least a few minutes. Does it handle and brake well? Are gear changes smooth? Is the acceleration normal? Are there strange noises coming out of the car? Do you smell smoke or a burning odour?

You can also ask for the vehicle to be brought to a garage for a professional mechanical inspection. For a few hundred dollars, a mechanic will do a pre-purchase inspection for you and detect any serious problems. Don’t ask the seller for a mechanic recommendation; pick one yourself with good reviews.

There’s no need to perform this expensive check on multiple cars. Only do the mechanical inspection for one that you really like and are serious about buying.