Know your rights buying a car

A used-car buyer can save themselves a lot of upset by making sure they're getting what is on the label for their money. But if a buyer has neglected to have their purchase checked mechanically, or failed to note that the vehicle has been previously declared a total constructive loss, there are still avenues open to have any complaint heard and resolved.

Laws applying to dealers are quite comprehensive but differ in each state. Contact your local consumer authority, automotive chamber of commerce or motor trade licensing authority to clarify current requirements, which may have changed since you last purchased a car.

In most states, the dealer must guarantee title and faces penalties if the car is misrepresented. However, the onus of proof is on you if the vehicle is not what you were led to believe.

Checking the Written-off Vehicle Register in your state and verifying the car's previous history with the respective registration authority, then checking this against the dealer's story is essential when even dealers are getting caught out by the latest scams.

If you saw the car for sale on the internet, print out the ad before it is withdrawn and keep a file on anything that can verify what you believed to be true about the vehicle including roadworthy certificates and other descriptions.

Do not rely on a statutory roadworthy check as an indicator of the car's condition. It only applies to a limited list of safety checks. If a compulsory roadworthy check missed specified items, state laws normally allow some recourse, but this can be less than satisfactory.

If you pay for the car to be inspected, the dealer is not responsible for any faults that the inspection finds unless they contravene the applicable statutory roadworthy requirements.

Do not lock yourself into purchasing a car until the checks are completed and you have negotiated the rectification of any faults to your satisfaction.

If the car comes with a warranty, clarify the exemptions and your obligations. Some warranties are void if you do not follow the specified servicing requirements. Others cover very little once you eliminate the wear and tear items, so don't depend on them to fix a dodgy car.

Before you sign anything, read it carefully. Some states allow a cooling-off period after you have agreed to buy the car. Treat this facility as a last resort only. It is very difficult to renegotiate a deal if you have already agreed to a price and signed on the bottom line.

The fact of the matter is, you have far less legal comeback when buying privately. The only obligation on sellers is to describe the car truthfully, but even if they don't, obtaining compensation from them can be difficult, time consuming and costly. Even if there is clear legal comeback, private sellers may no longer be at the address where you last met them.

Keep records of the original ads including printing out the internet ad and a copy of the roadworthy certificate. If a car is supplied with a current Road Worthy Certificate (RWC) you have every right to expect it to meet the required standards. However, redress can be time-consuming when the standards in some states require little more than a visual inspection.

Make sure that the car is owned by the person who is selling it. If you later find out it has been stolen or sold without the owner's knowledge, you have no legal right to keep it.

Collate every document associated with the vehicle including past registration certificates, service books, receipts and what the vendor is telling you and see if they add up. Then run the same history by your state's registration authority to see if it's consistent with what they know and check if it's been on the Written-off Register.

Make sure that the conditions of purchase are covered in writing, including the terms surrounding the payment of a deposit and its refund if a pre-purchase inspection or background check proves to be unsatisfactory.

Clarify what happens if the car has been damaged or key features have been removed when you come back to pay the balance. If you have paid a deposit and made a commitment to purchase the car as first presented to you, it is not unreasonable to note the speedo reading and specify that the car must not be used until you return with the balance.

If a car is subject to a finance agreement, verify the exact amount owing and how this is going to be paid out before you hand over the money. In some cases, the purchase price may not be enough to cover the money still owing on the car and the vendor will need to top it up before it can be signed over to you.

Don't forget to arrange insurance cover as the car becomes your responsibility once you hand over the money.

Because used car problems can involve several bodies or government departments you will need to identify which area of the law applies or which body administers the relevant area. If a problem is the result of criminal behaviour, the police or an independent assessor may need to be involved.

If your purchase is suspected of being stolen or badly repaired, it may be impounded or put off the road for as long as it takes to complete an investigation. You may need legal advice under these circumstances.

Insurance policies do not cover you if the car is found to have been stolen prior to you purchasing it.

Despite the huge advances in consumer law, there are still rogue sellers (private and dealer) in all states who work on the principle that you won't have the resources or the will to hold them to account.

Be aware that getting resolving your complaint can take a long time, so avoiding the situation in the first place is a far better option. However, some deals are so crooked that everyone can get caught -- from the licensed tester, pre-purchase inspector down to you as a buyer. If you have done all the right things, dodgy deals can be fought and won.

There are several very different approaches to rectifying a used deal that has gone wrong.

The first is to establish with the help of experts whether you have grounds for action and what you want for the situation to be rectified. This needs to be clearly documented. If the issue concerns the history of a former wreck or grey import, there are now specialist inspectors in most states trained in these areas who can be engaged by private owners.

The easiest and most expensive move is to place the whole lot into the hands of a solicitor but this can force other parties into taking a stronger position than otherwise might be the case. However, running it past a solicitor may be more useful than, for example, running to the media, at this early stage.

The first step is to identify whether a licensed dealer deliberately told you lies to prevent you from finding out the truth about the vehicle or misrepresented its condition, history or repairs.

Or, did a dealer or salesperson deliberately conceal a major defect in such a way that the roadworthy inspector or your pre-purchase inspector was prevented from identifying a serious safety fault?

Bringing the matter to the attention of the dealer principal in a courteous, firm and business-like manner is an important first step when your complaint may have been totally initiated by a staff member who hasn't told anyone. If nothing else, it can allow a settlement on this basis before the matter escalates.

If this doesn't work, providing you can prove that there is a case, there is a requirement in most states that a used vehicle sold by a dealer must be of merchantable quality and live up to the description as provided by the dealer, including the certificate that says it was roadworthy.  Although state consumer authorities usually have officers who can investigate these issues, the state dealer authority might be worth trying first.

Resolving such an issue can be made more complex if an investigation or resolution opens the dealer to being charged. If a dealer is forced into defending such a position, it can delay any resolution and cause costs to soar. The state dealer authority can have more success when a less formal approach might make it easier for the dealer to come up with a satisfactory outcome. Most will quickly refer you to the next step if they can't help.

If this doesn't work, the state consumer authority is usually the next stop. If the case is clear cut, it can draw on some authority to broker a resolution or compromise. You will need to assess whether it's worth your time and money to pursue it any further. Beyond that, in some states you can request a tribunal hearing. Because the stakes are higher for all parties, your preparation and case need to be strong.

If the vehicle was given a roadworthy certificate when it clearly was not roadworthy, then you might also have some recourse through the state's vehicle testing authority. However, if someone has concealed a defect that prevented the tester from identifying a serious fault, then the onus could still go back to the vendor -- at least you might have picked-up the support of the tester or state authority along the way.

If a private vendor has engaged in similar behaviour, the protective mechanisms are not so well-defined. Again, it is a case of collecting all documents to support your case when a "you said, they said" exchange without proof is of little use.

Even with a dodgy private deal, it is still worth checking your rights with your state's consumer authority first.  Unless a licensed vehicle tester slipped-up, in most cases, it will be regarded as a civil matter which means you might need to engage a solicitor experienced in this field. In some cases, this might lead to a criminal investigation if you have stumbled across an organised ring and are not the first.

The following organisations are a good place to start before thinking of engaging a lawyer.

Legal advice
State motoring organisations
Automotive chambers of commerce
State consumer authorities and motor trade licensing authorities

State tribunals
Citizen's advice bureaus

Pre-purchase Inspections
Check the Yellow Pages under "Motor Vehicle Inspection and Testing", franchised dealers, one-make specialists or your local mechanic.

Technical Advice
State motoring organizations
Specialist Licensed Vehicle Inspectors
Licensed Automotive Engineers
Vehicle Manufacturers and Distributors
Specialist used car publications and websites

Insurance Problems
Insurance Council
State consumer authorities