Why it matters more on a private sale
In NSW, buying from a private seller means you're not covered by the Motor Dealers and Repairers Act or the Australian Consumer Law. If the gearbox lets go a week after you drive away, that's yours to sort out. An inspection before you pay is how you find out first.
A licensed dealer is different. Used cars under 10 years old and under 160,000 km come with a dealer guarantee of 3 months or 5000 km, whichever comes first. It has gaps: a car sold unregistered and needing substantial repair is left out, and so is an auction car sold with a dealer's notice saying the guarantee doesn't apply. And an inspection still tells you what's coming once the guarantee runs out.
Private seller or licensed dealer in NSW?
| Private seller | Licensed dealer | |
|---|---|---|
| Dealer guarantee | None | 3 months or 5000 km, on cars under 10 years old and under 160,000 km |
| Australian Consumer Law | Doesn't cover you | Consumer guarantees apply |
| Cooling-off | No (it comes with dealer-arranged finance) | Until 5pm the next business day, only when the dealer arranges the loan |
| Pre-purchase inspection | Your only real check | Still worth it, for what the guarantee won't cover |
Buying a used car around Sydney
A pink slip isn't an inspection for you
Plenty of Sydney sellers point to a current pink slip. That's the yearly safety check an AIS station does so the owner can renew the rego, valid for 6 months. It's done for the rego, and it isn't meant to tell a buyer what the engine, gearbox or suspension will need next.
Hail and flood
Sydney is prone to severe hailstorms and flash flooding. The NSW checklist says to run your eye along the bonnet, roof and boot lid for hail dents, and grey or milky engine oil can point to water getting in. Ask the mechanic to look for both.
Cars from near the beach
A car that's lived by the sea has spent years in salt air. Ask for a proper look underneath for rust, not just a glance at the paintwork.
Seeing the car where it sits
With sellers spread across 658 suburbs, a mobile inspection at the seller's place saves you a drive, and lets the mechanic hear the engine start from cold. Use the postcode where the car is, and say it's at a seller's place in the note.
How to set it up in Sydney
Run a PPSR search
The Personal Property Securities Register shows whether money is owed on the car. Buy one with a debt on it and it can be repossessed, even though the debt was never yours.
Check the rego online
The NSW registration check shows the expiry date and whether the rego is suspended or cancelled. NSW suggests using it to make sure the odometer hasn't been wound back.
Send the job before any deposit
Tell us the car and where it's parked. The mechanic who calls can sort out a time with the seller.
Read the report, then decide
Use what it finds to walk away, ask the seller to fix things first, or change your offer.
What you can check on the day, and what to leave
You can
- Read the VIN: it's 17 digits, and it and the engine number should match the Certificate of Registration.
- Look for at least 5mm of tread on every tyre, the spare included, and for uneven wear.
- Ask whether the seller has insurance before you take it for a test drive.
- On the drive, check the odometer works and the car stops smoothly and in a straight line.
Leave to the mechanic
- Brakes, steering and suspension, underneath and on the road.
- Reading the engine computer for stored faults.
- The engine, cooling system and gearbox, including leaks and exhaust smoke.
- Rust in the car's structure and signs of past accident repairs.
If it were our money
We'd run the PPSR search the night before, then have a licensed mechanic look the car over where it's parked, before any deposit changes hands. On a private sale we'd never skip it, because in NSW there's nobody to go back to once you've paid.