Closing the Deal - What to Expect When Finalising Your Used Car Purchase
Congratulations! You've found the car of your dreams - it runs well, has a clean car history and REVs check - and best of all it comes at a great price! If you're one of those lucky few to have found the perfect vehicle, you'll be keen to close the deal quickly and get your hands on the keys.
Here's what to expect in the final stages of buying a used car: Buying from a dealer: Once you've agreed upon the price for your used car purchase, the dealer will draw up the paperwork for the sale.
Always make sure you read the fine print before you sign.
Ask all the questions you have about warranty - dealer warranty is usually much more complex than a manufacturer's warranty and you want to be sure you understand the terms.
In Australia, most used cars purchased from a licensed dealer should come with a 3 month or 5,000 km statutory warranty - you'll know because they come with a Form 4.
You should also keep in mind and understand the following:
Ensure that the seller has presented you with all of the necessary documentation, including a pink slip and all registration information - it is highly recommended you get a car check on the vehicle's history before you decide to purchase from a private seller.
You will have to negotiate with the seller individually and ensure that the vehicle is clear of any outstanding debt.
As with a dealer sale, ensure you get a REVs certificate 24 hours before the Title is transferred and the sale is completed.
Don't forget insurance - make sure you're covered when you're handed the keys! Third Party Motor Insurance is required by law for all vehicle owners and you're responsible from the moment the Title is transferred to your name.
Here's what to expect in the final stages of buying a used car: Buying from a dealer: Once you've agreed upon the price for your used car purchase, the dealer will draw up the paperwork for the sale.
Always make sure you read the fine print before you sign.
Ask all the questions you have about warranty - dealer warranty is usually much more complex than a manufacturer's warranty and you want to be sure you understand the terms.
In Australia, most used cars purchased from a licensed dealer should come with a 3 month or 5,000 km statutory warranty - you'll know because they come with a Form 4.
You should also keep in mind and understand the following:
- Confirm your delivery date in writing - a used vehicle should be ready for pick up relatively quickly.
Agree to a time within 2 weeks and get it in writing. - Paying your deposit - if you're asked to pay a deposit for the car, make sure you receive a proper receipt for that amount.
Only pay the balance when you go to pick up the vehicle and are handed over the keys.
It might be worthwhile to clarify when you pay the deposit whether you're laying down a holding a deposit or a purchasing deposit.
With a holding deposit you are not obligated to complete the purchase but you will have to forfeit the holding amount if you decide not to go ahead.
A purchase deposit involves signing the official purchasing contract which will be legally binding. - REVs - a REVs certificate will protect your purchase from repossession and guarantees that the vehicle is clear of debt at the time of sale, provided that you finalise your purchase before midnight of the next day from the date of issue of the certificate.
This means that the Title to the car should be transferred to your name and the keys are handed over the day after you apply for your REVs.
Ensure that the seller has presented you with all of the necessary documentation, including a pink slip and all registration information - it is highly recommended you get a car check on the vehicle's history before you decide to purchase from a private seller.
You will have to negotiate with the seller individually and ensure that the vehicle is clear of any outstanding debt.
As with a dealer sale, ensure you get a REVs certificate 24 hours before the Title is transferred and the sale is completed.
Don't forget insurance - make sure you're covered when you're handed the keys! Third Party Motor Insurance is required by law for all vehicle owners and you're responsible from the moment the Title is transferred to your name.
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