Paying for a Privately Sold Car

I will be buying a used car from a private seller. I have been wondering, what is the best way of going about the exchange of money & car.

I did read on a couple of web guides that meeting at a bank branch is generally considered to be safe.
- What should I ask of the bank teller? To generate a transfer from my account X, into an account Y as given by the seller, and give us both receipts?
- Also, how do I make sure the transfer of rego to me happens after the money exchange? Do I ask the seller to complete the form on the back the certificate of registration BEFORE the money exchange?

I am treading a new ground here, and would welcome any opinions.

UPDATE #1:
Funny story - car's rego is in person A's name, while person B is in touch with me about it. It also looks like person B is ready to meet me when ready with paperwork pre-signed by person A, but somehow person A is being kept out of the loop about it.
Does that sound funny, or am I paranoid?

Comments

  • +7

    Why is buying a used car so complex these days?

    • +7

      I think technology has made us more paranoid. Plus, abundance of information about cases of scamming buyers/sellers out of their money in online sale offers definitely didn`t help.

    • +13

      It hasnt been asked in 2 days… calm down :D

    • +1

      bcos, Gumtree.

      bcos, People sending $500 egift card without getting the $ first.

      bcos, People sending money twice because they were asked by seller…

  • yes do that at the bank and get all the documentation scanned and do the transfer on vicroads website

    • -1

      But OP is in NSW

      • ok.. I hope they have something similar.
        we I bought a car in sydney, we went to the bank first then to the RMS or something and did it on the spot. took around 1 hour.

  • +1

    when we bought our used cars privately the sellers wanted cash. Go to ATM withdraw cash, if not enough see the desk and they can get you cash. Fill out paperwork first and then hand over the cash after getting the keys and your copy of the paperwork. if thats too hard well maybe a car isnt for you.

    • +2

      Look. Even a Canadian can purchase a used car without issue.

      • +4

        Canadians are known to be friendly, maybe they don't have scammers?
        .

        • maybe they don't have scammers?

          They do have scammers, it's just that when they're caught they say "Sorry, eh." and make reparations.

  • +2

    Cash

  • +12

    Just send your agent like everyone else does… cos you are working on an offshore oil rig, right? (and the car is for your recently graduated nephew, right?)

    • -5

      If you are trying to be funny mate, it is not working.

      • +5

        It worked for me ….. ha ha

        • -3

          Then you might suffer from poor sense of humor mate ;)

          • @Greem85:

            mlbrooke

            Classic comedian and a great sense of humour. Thanks for the laugh.

  • Is the search function not working?

  • +11

    This is what I do when purchasing a used vehicle

    Before exchange
    - Run Rego and VIN check on the vehicle to match the number plate to Chasis and make sure its the same car
    - The checks will tell you that if the car has been in an accident or if it has money owing on it.
    - Test drive, check general condition of the car
    - Check that previous Owner has all the paper work (Receipts for services, rego, CTP etc) and Owner's log book filled out for services
    - Make sure you get all the spare keys
    - Send the car to a mechanic you trust for a pre-purchase check

    For the exchange
    - You can pay a $fee ($15 for me) and have the Bank generate a Bank Cheque for you or exchange Cash to the person
    - Take pictures or scan all his documents, I always get a picture of their drivers license
    - Have them submit the letter of disposal and provide you a copy
    - Draft up a contract of sale and have both parties sign it
    - Transfer Rego ASAP

    Preferably you want to keep in contact with the seller incase if there are any hidden damages.

    Make sure you insure the car before you drive off with it.

    Edit #1: Bringing a friend will help you with a second pair of eyes and extra safety, just make sure you notify the seller so they are not intimidated.

    If I missed anything or if anyone has stuff to add in pls reply to the commend and I will add, thanks.

    • Thank you mate, that is a very comprehensive reply.

      Can you tell me what use is there for the owner to give me receipts for past services? And the log book as well - it this is a 10 years old car, then surely by now the only reason for a log book is to look nice, in case I decide to sell it in the future?

      About scanning/taking a photo of seller's license - I was thinking of just using a receipt like this one:
      https://www.australiatrade.com.au/pdf/Bill%20of%20Sale%20for…
      Is there still any reason for me to take picture of his license, if I`ll add license no. section in that template, and confirm with his license at the time of sale?

      I cannot really make them submit letter of disposal straight away, unless we meet at Services NSW, right? It should be fine for us to just fill out the back side of the registration cert., and then do my bit (transfer rego online) while allowing him to do the disposal bit in his spare time? Or am I exposing myself to any problems here?

      • I keep all the documents related to the vehicle in a folder for a few reasons:
        1. Keeping the logbook with all the service details, especially done at a dealer, will prove good ownership and a selling point.
        2. Keeping all the receipts is just as important because again, just general good ownership and gives an insight to when things are replaced and what parts they used, for example if they provide you the receipts for the last 5 services and they use an oil that is not suitable for the car (putting wrong oil or substandard for a performance car for one at a dodgy mechanic) then it is a red flag.

        Its more of a personal preference thing for me, its one more thing that I can use to prove that this person met me in person and agreed to selling the car to me on top of the contract.

        For the letter of disposal, as far as I remember, as long as he fills out the section on the back of the Rego slip, it is an effective letter of disposal, you can walk into an RMS with that and transfer that to your name without his input.

        I would recommend doing more research on the letter of disposal bit.

        • One more question - how to behave in a situation, when a husband is selling the car in wife's name? Can this happen, if he hands me a pre-filled notice of disposal by (allegedly) her, or do I need to push for her to be present at the time of car/money exchange?

    • +8

      All sounds good except

      Preferably you want to keep in contact with the seller incase if there are any hidden damages.

      Seller has ZERO obligation to resolve any issues once you take possession of the car, no matter if the issues were "hidden" or not. Don't expect any seller to help you in any way after the sale.

      They may do it out of charity, but they are not required to.

      • I have sold a few Motorcycles before and I generally provide my contact details to the new owner incase if they run into any trouble or have any follow up questions.
        If they discover any negligence on my part I generally do my best to help out.

        But like you said, it is done out of my own will, there are no obligations to.

      • Not entirely true. If the seller fraudulently misrepresented something then you can sue em.

        But best to avoid being in this situation if possible, so do your due diligence.

        • The problem is it is almost impossible to prove that they misrepresented it, and almost any court or tribunal will throw the case out immediately.

          Any seller will say it's in good condition etc., but that is subjective. They can lie through their teeth and have no repercussions because it is purchased as is. Buyer beware. If they say something, it is up to you to check it properly.

          • @Gina Rinehart: Fraud is fraud. Cars are not some special case where anything goes.

            Don't go to court without proof obviously.

    • +1

      I would always pay via bank cheque, unless you talking <$2k for an old beater then maybe cash.

      Taking large amounts of cash in person will always be risky.

      • Just need make sure you fill out the details correctly, the fee at Commbank was $15
        Make sure you read the fine print too because some banks accept a photo of the cheque as long as you are the receiving party

    • +3

      Take pictures or scan all his documents, I always get a picture of their drivers license

      Yeah, I’m not handing that over. You can view my license and take the relevant details you require, but there is no way on gods green earth should anyone be giving any random stranger a photo of their drivers licence. That’s a sure fire way to get your identity stolen.

      • +1

        Me either. You aren’t getting a copy of my licence. For that matter there is very little reason to take copies of any documents.

        If you’ve done your revs check and the rego and vin match and you’ve seen the owners identification and it matches the rego paper, then all you need is the details filled out on the transfer form for both parties. That’s all you need for the rego transfer. A receipt might be useful, but not essential, especially if you have an electronic record of the transaction.

    • +1

      Preferably you want to keep in contact with the seller incase if there are any hidden damages

      Keeping in contact with the seller won't help you with that.

  • How much is the purchase price?

    If it is not excessive, meet in public, exchange money and signatures and car key.

  • +2

    I’m sure was a thread with this exact question about a week ago.

  • 15 years ago I bought a bomb from someone in NSW. On going to registration office to effect transfer f ownership, I had to pay the difference between pensioner-rate registration and non-pensioner. Beware…

  • Crypto is the way 😷

  • +1

    Funny story - car's rego is in person A's name, while person B is in touch with me about it. It also looks like person B is ready to meet me when ready with paperwork pre-signed by person A, but somehow person A is being kept out of the loop about it.
    Does that sound funny, or am I paranoid?

    Doesn't sound funny…sounds 100 percent dodgy.

  • If the rego is in the wifes name you will need to see her license and ensure that she has recorded her details on the disposal notice.

    It is in the sellers best interests to submit their portion of the rego disposal paperwork asap as the car will still be officially registered in their name, hence any speeding/parking fines that you may incur will be sent to the seller.

  • +1

    I just sold one of my cars on the weekend. Payid and online rego transfer, was no complexity to it at all…

  • WARNING WARNING
    Yes it does sound STRANGE…. time to ask them what is going on.
    Hove you conducted a rego, and FINANCE check?
    You need to ensure the "owner" is the "real" owner.
    You need to ensure that "NO FINANCES" is owing upon the vehicle.

    YOU NEED to do this!

  • -3

    Down payment of a few 1000 to secure the car. The balance when you collect it on supply of roadworthy and completed transfer papers. It’s really not complicated. Most you can lose is the few thousand deposit so give as little as possible - 5-10% of car value. Also get their bank details and a copy of their drivers licence / ID before making first deposit. You need to make sure the licence and registration details match the vin and licence details of the person selling the car. Also in Vic you can look up online who is the registered owner of the car based on the number plate. It’s public information

    • +1

      Also in Vic you can look up online who is the registered owner of the car based on the number plate. It’s public information

      This is BS

      Happy to be proven wrong though

  • +1

    in Vic you can look up online who is the registered owner of the car based on the number plate. It’s public information

    Where do you look that up? The online check I’ve seen only gives you rego status, expiry. Doesn’t even give you the model of the vehicle, just make, body shape and colour.

    I don’t think the registered owner is public information, nor should it be.

    • No owners details. Only rego VIN rego expiry date

  • OP, regarding your update #1, I had experienced that before, the guy's selling me 'his' car, wants me to pay him but get the papers from a cousin somewhere, car price was cheap too, I asked why not deal with him, why do I have to deal with two people? His answer: he'll be away out of town for the whole week, so I moved on.

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