Buying a car

If you’re buying a new car, your choice is limited to dealers registered to sell that make and model. For a used car, you can see a dealer, buy privately or go through an auction house.

Your research will help identify the makes and models that suit and eventually narrow down the search to the individual cars. Some of the more popular sites include:

• www.carpoint.com.au
• www.drive.com.au
• www.carsguide.com.au
• www.tradingpost.com.au

Before going to the expense of a professional inspection, do your own homework to rule out any duds.

Under the bonnet

• The engine number and VIN (Vehicle Identification Number) should match those on the certificate of registration
• The compliance plate should show the year and month of manufacture. It’s usually attached to a panel in the engine bay
• The engine should look fairly clean, with no build-up of oil and dirt
• Listen to the engine at idle for any irregular knocking or rattling noises
• The radiator coolant should be clean and brightly coloured
• Check the battery for acid corrosion.

Underneath

• Check the tyres, including the spare
• Check for oil leaks
• Listen and look at the exhaust system for fumes or excessive noise - these may indicate holes or rust in the pipes and mufflers.

Inside

• Check that the lights work, the seat belts are not frayed and the equipment and accessories you want are included and work.

The road test

• Before the road test, it’s a good idea to check your legal liability should an accident occur
• Take note of the steering, brakes and exhaust - blue smoke means oil is burning
• Try to leave the salesperson or owner behind - you want to concentrate without any distracting sales pitch
• Check the sound system, but don't leave it on as you want to hear the engine
• The engine should run smoothly - gear changes should be smooth and you should take note of the suspension.

Professional Inspections

If the car passes your own informal inspection, it may then be worth investing in a professional inspection to be sure that it’s in a satisfactory condition. You can arrange this through the motoring body in your area:

• South Australia
• Queensland
• Victoria
• NSW & ACT
• Tasmania
• Western Australian
• Northern Territory

They'll inspect a car most days of the week, but you’ll have to book and pay a fee.

The more homework you do, the better your negotiating position is.

One helpful site for comparing the average price for various makes and models is Red Book.

Buying at a dealership

You may pay more buying through a dealer than at auction or through a private sale. After all, dealers sell cars to make a profit and they also have to comply with warranty regulations. However, there are advantages.

Dealer warranties

A new car warranty is set by the cars manufacturer, not the dealer. It can be up to five years, and some cars have longer warranties against rust. A used car warranty from a dealer is not usually as comprehensive as a manufacturers. Some dealers offer only the minimum statutory warranty on a used car; others give up to three years.

Check what your warranty covers. Does it include everything originally covered by the manufacturer?

Minimum warranties on used cars differ from state to state and in some cases the dealer will not have to offer a warranty. Check with the relevant government department in your state or territory.

• Consumer Affairs Victoria
• NSW Office of Fair Trading
• Queensland Office of Fair Trading
• The ACT Office of Fair Trading
• Consumer Affairs and Fair Trading Tasmania
• Consumer and Employment Protection Western Australia
• The Office of Consumer and Business Affairs South Australia
• The Northern Territory Government

Leaving a deposit

You’ll generally be required to leave a deposit with the used car dealer to hold the car while you arrange an inspection. Leave the smallest deposit possible and, if you’re yet to complete the inspection, make sure the money's refundable.

Signing an order form

The message here is read the fine print. Don't sign something you don't agree with or don't understand - get independent advice. If you’re signing subject to an inspection or finance, make sure this is in writing. Don't risk losing your deposit because you agreed to buy the car but couldn’t raise the funds.

Private sale

Buying privately is a step up the risk ladder. There are no warranties, no contracts, and your seller might be trying to offload a troublesome car. But you also may grab a great car at a good price.

If you leave a deposit to secure the car until inspection, get a written agreement that the money is refundable if the inspection is unsatisfactory.

Auction

Buying at auction can mean significant savings on the dealer price, but these vehicles don't generally carry a warranty. So if you aren’t saving a significant amount on the dealer price, you might as well buy from a dealer and get a warranty.

Before you start bidding at an auction, arrange any finance. Most auction houses require a deposit of $500 or 10% of the purchase price for successful bids. Within 24 hours the balance must be paid and the car removed from the premises.

Avoiding stolen property

Stolen cars or cars carrying outstanding debt can be repossessed without compensation. When buying a used car its very important to check that the seller is the genuine owner.

The answer is to do a REVS check.

At ANZ we have a range of finance options and insurance solutions, which may help you get out on the road and protect your new asset.

• Car finance: it can take a long time to find the right car. How much petrol it consumes, how well it handles and even how good it looks – there’s so much to weigh up. Once you have found ‘the one’ you’ll want to get the finances out of the way and get behind the wheel as soon as possible. That’s where ANZ comes in.

With a choice of secured and unsecured loans, we can tailor a package that suits your needs. Our approval process is fast and easy and that means you’ll be out on the road sooner.

• The ANZ Personal finance selector can help you find the right finance options for your new car.
• ANZ Car Insurance: be prepared for those surprises you meet on the road, whether you are on the highway or your own driveway¹.
• An A-Z Review^® with an ANZ Personal Banker: buying a car is a major purchase; it often also coincides with other major changes in your life such as having a baby or getting a new job. Now may be a great time to review your everyday banking to help ensure we are doing all we can to help you reach your goals. Request an A-Z Review^®.