Buying a Used Car in WA: Four Checks to Do Before You Hand Over Money

The useful part

Buying a Used Car in WA: 4 Checks Before You Buy A used car is the better financial decision for most buyers, and it's also the one with more ways to go wrong. Used cars come with whatever the previous owner did to them, and a price that's negotiable precisely because nobody's certain what it's worth. Rates on used vehicles generally sit above new car rates, lender policy is stricter, and the age of the car at the end of the loan term matters more than most buyers realise.

How it works

• A search takes a couple of minutes and costs a few dollars, and it tells you whether a security interest is registered against the vehicle identification number.
• A seller who hesitates when you mention a PPSR search has told you something useful.
• Finding out afterwards means either starting the finance search again or paying cash you hadn't planned to.
• Work out the term you need before you fall in love with a car that can't support it.
• The saving on the purchase price needs to be large enough to cover that risk, and a pre-purchase inspection is how you shrink the risk to something you can price.

What to take from it

On a used car this matters more than on a new one, because you're more likely to be underwater on the loan for a stretch of it. It's worth understanding what a civil misrepresentation claim involves before you rely on it, because it's a slower and more expensive path than the inspection you could have booked for a few hundred dollars. Finance Availability Differs Too Dealer purchases are simpler to finance because settlement is straightforward and the vehicle's provenance is documented.

Example or evidence

• Whether There's Money Owing On It This is the one that turns a good buy into a disaster.
• It will also flag whether the car has been recorded as written off or stolen.
• If you're set on a private purchase, confirm your lender handles them before you start negotiating.
• Firms arranging used car loans in Perth know which lenders on their panel fund private sales and which won't touch them, which saves you finding out by being declined.

Details worth keeping

New cars come with a warranty, a known history and a fixed price. It's a reason to do four specific checks before you hand over any money. Do this before you transfer any money, including a deposit.

Related coverage

• Automotiveblog: Buying a used car can turn into an expensive mistake if you skip the wrong steps.
• Automotiveblog: Anyone who tests cars for a living learns quickly that two apparently similar vehicles can behave very differently once you look under the bonnet.
• Wcpo: Used electric vehicles may look like a bargain, but you should be doing your homework before you buy.
• Successfulblackparenting: Find a reliable used car for your family. Compare safety, space, and ownership costs, test the family used car, and book a used car inspection before buying.