Things to Consider When Buying a Second Hand Car?

LFormula7 on 07/09/2021 - 13:36
Last edited 07/09/2021 - 14:48 by 1 other user

Hi, I would like to get some advice on buying a second hand car from a friend.

Car is less that a year old and only driven 4000km. Friend is selling as he had to move overseas for the foreseeable future. I am getting a really good price on the car.

Things to keep in mind

1 . Get PPRS certificate ( already done vis free budget direct check ).
2. Ask for a sale contract and receipt with amount and GST.
3. Planning on doing bank transfer to my friend for the car
4. How to I find if there is any financing on the car? Can’t see anything on PPRS certificate.
5. Once I take possession notify Vic roads and pay stamp duty and transfer fees.
6. Is there a need to get it checked via RACV as the car is almost new.

My friend left couple months back and the car is currently parked at his friend.
Anything else I need to consider. Your help and advice is greatly appreciated.

Regards

Automotive

Comments

  • Bafranz on 07/09/2021 - 13:37

    Yes, consider make/model and price which is?…

    • Formula7 on 07/09/2021 - 13:38

      It’s 2020 Mazda CX-5 Maxx Sport. Will buy it for $28000.

      • Bafranz on 07/09/2021 - 13:40

        3 or 5 years warranty?

        • Formula7 on 07/09/2021 - 13:42
          +1

          Will have ask him about warranty details. Thanks for the advice.

        • blwnhr on 08/09/2021 - 09:33
          +2

          All Mazda's sold after August 2018 have 5 year warranty.

      • spackbace on 07/09/2021 - 14:07
        +4

        Damn, would put it as the cheapest one in the country.

        As said, factor in the service cost but otherwise everything seems to point to it being a good deal :)

      • nomoneynoproblems on 07/09/2021 - 17:24

        Wow bargain. You could flip it if you change your mind.

        • Formula7 on 07/09/2021 - 17:54

          I would still have to pay stamp duty and transfer fees of $1300 on top of that price. Also rego left for couple months as well

  • brendanm on 07/09/2021 - 13:38
    +4

    The PPSR tell you if there is a "security interest" registered. If there is, then a financial institution has an interest in the vehicle.

    • Formula7 on 07/09/2021 - 13:41

      Under PPRS Registration details it’s says: there is no security interest or other registration kind registered on the PPRS against the serial number.

      • brendanm on 07/09/2021 - 13:42
        +2

        Then it doesn't have a loan against it 👍

        • Formula7 on 07/09/2021 - 13:42

          Thanks you Sir

  • barge-in hunter on 07/09/2021 - 13:52
    +3

    I believe you'll need the current owner to sign the registration transfer papers. I would make sure you have this in your hand before the money is transferred, but that's just me being sceptical.

    You'll also need a road worthy certificate as you're in Victoria… Unless they have some weird rule for cars Under 12 months

    • Formula7 on 07/09/2021 - 15:36

      Thanks, will do

      • crentist on 07/09/2021 - 16:14
        +1

        In NSW you can do the entire sale online, no paperwork needed.

        Vic is probably different, but the NSW procedure is basically:
        -Current owner submits a notice of disposal (online or in person)
        -New owner submits a registration transfer into their name within 14 days (online or in person)

        From memory, both steps are completely independent, and don't require anything from the other person. Even their name.
        Just one person saying they've dumped a car, another person saying they've picked up a car.

  • redvaldez on 07/09/2021 - 13:56
    +5
    1. Ask for a sale contract and receipt with amount and GST.

    GST is only applicable if your friend is, or is meant to be, registered for GST.

    1. Is there a need to get it checked via RACV as the car is almost new.

    On a 1 year old, 4,000 km old Mazda - highly unlikely. About the only thing I'd be worried about would be if it had been in an accident and poorly repaired.

    Just as an aside, servicing goes off time or kms (whichever occurs first). I assume it has 12 monthly service intervals, so I'd be looking to get it serviced soon, particularly to maintain your warranty.

    • Formula7 on 07/09/2021 - 15:40

      I have seen the car in person. It looks like new. No damage visible at all.

  • Caped Baldy on 07/09/2021 - 14:08
    +3

    You haven't included any type of inspection for the car. Normally it's highly recommended but if you trust your friend enough… Just don't want another post similar to loaning $10k.

    Make sure to get adequate levels of insurance!!!

    • Formula7 on 07/09/2021 - 15:42
      +1

      True, insurance is a must

      • Caped Baldy on 07/09/2021 - 15:48
        +1

        10/10 OP.

        Btw, make sure to get a dashcam. I've got the front and back Viofo A129 Duo and it's alright. I think image quality could be better. Basically need one with a built in capacitor rather than a battery due to the Aussie heat.

        If you want to go fancy BlackVue is highly recommended. My partner has one and it includes speed camera and red light warnings too. You can hardwire it (also possibly via ODB) so it records for impacts when you're away from the vehicle.

      • crentist on 07/09/2021 - 16:18
        +1

        In a pinch, you can call up a large insurance company and ask for a "Cover Note". When you do this over the phone, some (not all) insurers will provide insurance immediately, but send an invoice in the mail with 2 weeks to pay.

        This gives you 2 weeks of free insurance while you shop around for the best deal. If you find something else, you simply don't pay the invoice.

  • Muzeeb on 07/09/2021 - 14:12
    +4

    Good buying and good strategies. Well done op.

  • kolorijo on 07/09/2021 - 14:18
    +5

    Get a comprehensive insurance to start the day when you pick up your car

    • portard on 07/09/2021 - 14:26
      +3

      Agree. I always thought my parents were being paranoid when they said this but they recently bought a second hand car. I purchased insurance for the car that same morning before they went to pick it up from the seller. Had a minor accident on their way home and had to file a claim, insurance launched a whole investigation because the claim happened the same day as insurance purchase lol

    • Formula7 on 07/09/2021 - 15:41
      +1

      Yes, that’s the plan. Vehicle will be insured before I drive it.

  • Mechz on 07/09/2021 - 14:33
    +1

    GST isn't relevant for second hand private car sales.

    • Formula7 on 07/09/2021 - 15:42

      Noted, thanks

  • Euphemistic on 07/09/2021 - 15:46
    -3

    All this is easily searchable for on the internet.

    It is not a complex transaction. Follow the guide on the VicRoads information.

  • Orico on 07/09/2021 - 18:12

    Does it have a Toyota badge? If not, pass.

    Car is less that a year old and only driven 4000km.

    Nothing to worry about unless he drives like a maniac. Check the brakes. You can do a mobile inspection too for less than $100 I think.

  • bradl822 on 07/09/2021 - 18:15
    +1

    The only additional thing I would do is plug an obd tool in to ensure no error codes are switched off. I'm amazed how many cars I have gone to purchase that have the codes switched off.

  • RM on 07/09/2021 - 18:34
    +1

    OP… If you don't plan to… I will buy it

  • Myone888 on 08/09/2021 - 08:00
    +1

    Check if Mazda warranty is transferable as they are very sticky about it.

  • OzHunterNSW on 09/09/2021 - 16:53

    After all your preliminary checks, is the car stolen, a write off, etc… look for panel bolts that do not match, indicating the panel has been damaged.

    Look in under the engine oil cap for milky residue.

    Look around engine for oil leaks.

    Check all brakes. Make sure the dashboard is not a Christmas tree of flashing lights.

    Make sure the vehicle drives the way it should. Bakes good, corners good, etc.

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