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It is important that you consider a range of issues and do a number of checks before you buy a vehicle. Buying a car is a big investment for most people. Make sure you do your homework before doing the deal, regardless of whether it is through a private seller or with a car yard.
It is also worth your while to read the information in the publication "Buying a Car - a buyer's checklist". It gives you a comprehensive overview of what to look out for when buying a vehicle, whether new or used.
Legal Aid WA has produced resources for buying a car with essential information regarding your legal rights and responsibilities..
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.
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 Personal Property Securities Register (PPSR))
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.
Remember there is no cooling off period for buying vehicles in Western Australia.
Make sure the seller/dealer gives you:
Don't forget to arrange insurance before you drive out of the car yard.
Revenue WA levies transfer duty when a vehicle is licensed or its licence is transferred to a new name.
The Department of Transport, Licensing Services collects the transfer duty on Revenue WA’s behalf. You will pay transfer duty on the market value of the vehicle or on the price you paid for the vehicle, whichever is higher.
Check the following key steps when buying a car:
The Australian Securities & Investment Commission's MoneySmart team have developed an app to help car buyers become more aware of the real costs of buying a car while giving tips on common traps.
The app helps you:
Visit the MoneySmart Cars App page for links to download your app today.