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Buyer beware

It is important that you consider a range of issues and do a number of checks before you buy a vehicle.

Getting the best price

Do as much research and inspect as many vehicles as you can. You can research prices in the local newspaper or on the internet. This will give you valuable information to negotiate the best price.

If an inspection reveals that certain repairs are required, you may be able to negotiate a reduction in the price.

If you need to obtain a loan to buy the vehicle, again it would be a good idea to shop around. Many motor vehicle dealers offer finance, but you may get a better deal from your own bank or credit provider.

Buying a vehicle privately

Check the entire vehicle. Make sure that:

  • you check with PPS (1300 007 777) to see if the seller owes money on the vehicle;
  • date and year of manufacture is the same as the date on the vehicle identification plate;
  • the number plate matches that stated on the licence papers;
  • the vehicle identification number or chassis number in the engine bay matches that stated on the vehicle licence papers;
  • the vehicle is licensed, and that you are aware of when the licence expires;
  • proof that the person selling the car is the owner, i.e. they have the vehicle licence papers, a sales receipt or driver's licence to help identify who they are.

You and the seller need to agree upon a price and a means of payment. Only proceed if you are completely happy with the purchase.

Contact the Department of Transport, Licensing Services for information about how to transfer the vehicle licence to your name.

Buying from a licensed dealer

If you buy a vehicle from a licensed dealer, the vehicle is guaranteed to be "encumbrance free", ie. there is no money owing on it. (see PPS )

Before you sign the contract

A contract is a legally-binding promise or agreement that is made between two or more people.

Licensed motor vehicle dealers are required by law to enter into written contracts when they sell vehicles. The contract contains prescribed terms and conditions.

Before signing a contract you should:

  • Read the whole contract very carefully, including the fine print;
  • Not rush into signing anything on the spot.
  • Seek legal or other advice if you don't understand any part of it;
  • Check that all figures and any other information inserted into the contract are correct;
  • Check that all verbal promises or claims made by the salesperson are written into the contract.
  • If you want to have the vehicle inspected, write on the contract "Purchase is subject to an inspection by (your nominated inspector) and purchaser’s satisfaction with the inspection report".

Remember there is no cooling off period for buying vehicles in Western Australia.

Before you drive away

Make sure the seller/dealer gives you:

  • all keys including those for the ignition, glove box, boot and alarm;
  • the service books, owner’s manual and log book;
  • instructions for working and de-activating any alarm;
  • radio security number (if it has one).

Don't forget to arrange insurance before you drive out of the car yard.

Stamp duty

The Office of State Revenue levies stamp duty when a vehicle is licensed or its licence is transferred to a new name.

The Department of Transport, Licensing Services collects the stamp duty on the Office of State Revenue's behalf. You will pay stamp duty on the market value of the vehicle or on the price you paid for the vehicle, whichever is higher.

Checklist

Check the following key steps when buying a car:

  • Your budget
  • Have a vehicle inspection done
  • Do a PPS check
  • Negotiate the price
  • Check vehicle licence papers
  • Arrange vehicle licensing
  • Pay the stamp duty
  • Arrange insurance
  • Organise finance
  • Check the contract before signing.