Top Tips for Buying a Used Car: What to Look Out For

Private car purchases can be a smart way to snag a bargain, but it has risks. Unlike buying from a dealership, where consumer protection laws offer you a safety net, a private sale exposes you to potential pitfalls. If things go south, there’s little legal recourse, and worst-case scenarios include ending up with a stolen vehicle or a car that’s a money pit. Moreover, the process demands more effort and can be a major time drain.

Selling a Car
12. Aug 2024
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Top Tips for Buying a Used Car: What to Look Out For

When you buy from a dealership, the hassle of paperwork and vehicle checks is handled for you. But if you opt to go the private route, there are several crucial steps to take before sealing the deal. Here are some key considerations and tips to guide you through the process:

Before you even consider viewing the car, gather as much information as possible from the seller. Ask pointed questions: Are they the owner? How long have they owned the vehicle? Is there a service history? Is the car still under finance? Has it been in an accident? What’s the mileage and overall condition? When you finally inspect the car, ensure the seller's claims align with reality. If there’s a mismatch between the description and the car’s actual condition, it’s a red flag.

A roadworthy certificate indicates that the vehicle meets basic safety standards, but it’s not a guarantee of the car's condition. This certificate can be obtained from a testing station, provided you have the vehicle’s registration certificate, your ID, and a completed application form.

For extra peace of mind, request a police clearance certificate from the seller. Additionally, take note of the vehicle’s number plate, chassis number (VIN), and engine number. Run these details through a police check to ensure you’re not purchasing a stolen car. Confirm that these numbers match the registration papers.

Payment options vary, especially if the car is still under finance. Typically, the remaining balance should be paid directly to the bank, with proof sent to the seller. Once the bank releases the registration papers, the remaining amount can be paid to the seller.

After the deal is finalized, the car needs to be registered in the new owner’s name. Both buyer and seller must be involved in this process, which requires several documents, including:

  • Identification document
  • Seller's vehicle registration certificate
  • Roadworthy certificate
  • Proof of purchase or sales agreement
  • Valid motor vehicle license
  • Completed registration application form

 

A sales agreement is essential for transferring ownership. It should include the names, addresses, ID numbers, and contact details of both parties, as well as the vehicle's details, including make, model, VIN, registration number, color, odometer reading, and the sale's time, date, and location, along with the purchase amount.

Buying or selling a car privately is a complex process, but by proceeding cautiously and seeking advice when necessary, you can secure a great deal and drive away with a car that will serve you well for years to come.

SUMMARY

When buying a car privately, unlike through a dealership, you must handle paperwork and vehicle checks yourself. Here’s a summary of the key steps:

  1. Information Gathering: Before viewing the car, ask the seller detailed questions about ownership, service history, finance status, accidents, mileage, and condition. Verify that the car matches the description provided.
  2. Roadworthy Certificate: This ensures the vehicle meets basic safety standards but doesn’t guarantee overall condition. Obtain it from a testing station with the necessary documents.
  3. Police Clearance: Request a police clearance certificate and check the vehicle's number plate, chassis (VIN), and engine number against police records to confirm it’s not stolen.
  4. Payment: If the car is under finance, pay the remaining balance directly to the bank and obtain proof. Once the bank releases the registration papers, pay the seller.
  5. Registration: After purchase, both buyer and seller must complete the registration process with the necessary documents, including ID, registration certificate, roadworthy certificate, proof of purchase, and completed application form.
  6. Sales Agreement: Draft a sales agreement including both parties' details, the vehicle's specifics, and the sale’s time, date, and location.

 

Carefully following these steps ensures a smoother transaction and helps you avoid potential pitfalls.

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