Top tips for buying a used car

For some, negotiating the purchase of any car can be a bruising encounter between the buyer and the vendor -- either a private owner or a dealer or salesperson. But some simple tips can help change what to some is a daunting task, into cause for celebration.

Above all, pre-warned is pre-armed… Indeed, it's best to be prepared when buying a used vehicle.

Perhaps you've been driving Mum's car for the past few years, but now feel it's time to move up to something better. For you we have some advice as a first-car buyer.

Alternatively, you may be an experienced negotiator, but you'd never considered buying a used car during the end-of-year trading period. Dealers may be just as anxious to clear the decks of used stock as new cars, so don't hold back from putting the squeeze on dealer sales staff in the lead-up to December 31 or even the end of the financial year.

There's a school of thought that you're best advised to buy a used vehicle from a dealer. One reason is (some conditions applying), the car is sold with a warranty and the title must be unencumbered.

But perhaps you prefer to buy privately when you see exactly what you want listed in a carsales private ad .

Depending on your choice, the car may not have sold in the thousands when new or, in fact, it may be a grey import, in which case you should definitely read Phil Lord's story about orphan cars before you leap.

If you're brave enough, perhaps you would consider importing a car yourself?

And so to our checklist for buying a used car… Much of it is common sense – but as the adage goes – common sense is not so common these days…

Checklist for buying a used car
• Work out what you need in a vehicle (specifications, packaging, price),
• Establish a budget and do not go beyond that,
• Carry out research at carsales.com.au to narrow the field of prospects,
• Work out in advance what you think is fair to pay for each car before you inspect it,
• Be prepared to adjust your estimate downwards or walk away if the car doesn't meet your expectations,
• Don't look at more than three cars a day, you'll quickly grow confused,
• Take along someone to be your supporter or expert guide,
• Check for obvious mechanical problems during the test drive,
• Peruse the owner's manual for regular servicing (check for gaps in the history),
• If buying from a private owner, question anything that doesn't ‘smell’ right,
• If you’re serious, arrange with RedBook Inspect to give the vehicle a once-over before committing to purchase,
• Haggle like you're playing poker – no 'tells' that could lead the seller to think you've already bought the vehicle,
• But don't offer a ridiculously low figure first up,
• Again, be prepared to walk away, even though you may love the car,
• Walk also, if the purchase price is beyond your budget, if the seller seems dodgy, or if your expert is concerned by the car (mechanically or its service history),
• When the negotiation is concluded, arrange the transfer of funds through a safe electronic facility,
• Fill in the registration transfer documents in the presence of the seller and ask for photo identification with a valid address for this purpose,
• Don't forget to arrange insurance cover before you drive away in your newly-acquired used vehicle.

Have you decided what sort of car you want? If not, here's a list of cars we recommend to suit the needs of different buyers.

Although this story is aimed more at someone selling a vehicle, it is also of value to someone buying one, to research what is a fair and reasonable price.

Maybe the vehicle you want should offer certain specific properties, such as comfort, affordability, reliability, safety, or appeal to collectors.

The points to check during a test drive are covered in this story and there are further tips in this story for the assistance of novice buyers.

Check the 'bona fides' of the vehicle. The owner should be able to produce a roadworthy certificate for it.

Take care not to buy a car that's still under finance or may have been written off and 'rebirthed', and make sure a professional checks out the vehicle for sound mechanicals before you hand over any cash.

Negotiating a fair purchase price is probably the aspect of buying a used vehicle that car buyers find most confronting.

Don't feel like you have to be that great negotiator Donald Trump from your very first purchase. Ask someone with experience to help.

If you've worked out that you want to pay no more than 'X' – 'Y' for the car ('X' being the advertised price and 'Y' being the difference to the price you are willing to pay), offer the owner of the vehicle 'X' – '2Y'.

Does the owner come back at you with a counter offer close to what you want to pay? Great.

Perhaps if it's still too high you can offer a compromise figure. If the negotiation doesn't bring you close to your desired figure, thank the owner for his or her time and tell them you'll look elsewhere.

That may be the point where the owner offers a lower figure to keep you on the hook.

Don't be put off if the owner rolls his or her eyes and seems contemptuous of your efforts to negotiate a fair price. It's a game. They are trying to psyche you out.

Alternatively, the owner may appeal to your sense of fair play with some sob story to the effect that the car belonged to his or her late grandmother.

If there's something about the car that provides leverage (and wasn't mentioned in the advertisement – spotty service history, for instance, or a mechanical problem that has arisen since the advertisement was published), by all means use that as a bargaining chip.

Leave a small deposit to hold the car while you arrange the balance of payment, but don't pay in full until the owner is ready to hand over the keys. Use a safe funds transfer mechanism, but only when you're ready to take delivery of the car.

Be fastidious when it comes to completing the paperwork. Ask the owner to see his or her licence (and check the residential address on the back) for the completion of the registration transfer.

And if all that pans out for you, congratulations; you are now the proud owner of your 'new' car.