Handing over car keys to the buyer, with the car in the background

When you’re looking to buy a second-hand car, there are some things you can do to reduce the risk of anything going wrong.

Watch our short videos to help you know your rights and avoid problems, like hidden damage or the car being repossessed because someone else owes money on it.

Video: Buying a used car? Know your rights

Visual:

A hand is scrolling through cars for a sale on a mobile phone and stops on a red car.

Car buyer:

This car looks great!

Visual:

The red car the buyer is interested in then appears on the road.

Narrator:

Are you sure? What if there’s hidden damage, like flood damage?

Visual:

The red car starts filling up with water.

Narrator:

The repairs could be costly.

Visual:

The car’s bonnet is up with steam coming out from the engine.

Narrator:

Reduce that risk by test driving the car and having a mechanic inspect it. When buying privately check the government’s Personal Property Securities Register.

Visual:

Icons with ticks appear on the screen and text that says ‘Test drive’, ‘Mechanic inspection’ and ‘Check ppsr.gov.au’.

Narrator:

When you buy from a licensed dealer any defects must be disclosed.

Visual:

Several cars for sale in a licensed dealer’s business.

Icons with ticks appear on the screen and text that says ‘Defects disclosed’, ‘Warranty in most cases’ and ‘Consumer guarantees’.

Narrator:

You’ll get a warranty in most cases and consumer guarantees.

Visual:

Cars driving along a road.

Narrator:

Know your rights when buying a used car.

Visual:

The Consumer and Business Services logo and Motor Trade Association logo appear on the screen and text that says ‘Find out more at cbs.sa.gov.au/cars’

Video: Buying a used car?  Avoid hidden damage

Visual:

A car with a ‘for sale’ sign on its windscreen is parked by the side of the road.

Car buyer:

Great wheels. Great price. I’ll buy it!

Narrator:

Is this really the best option?

What if there’s hidden damage, like flood damage? Those repairs could be costly.

Visual:

The car’s bonnet is up with smoke coming out from the engine.

Narrator:

If money is owed on the car, it could be repossessed.

Visual:

The car vanishes.

Narrator:

Reduce the risk by test driving the car and having a mechanic inspect it. Check the government’s Personal Property Securities Register.

Visual:

Icons with ticks appear on the screen and text that says ‘Test drive’, ‘Mechanic inspection’ and ‘Check ppsr.gov.au’.

Narrator:

If you buy from a licensed dealer any defects must be disclosed.

Visual:

Licensed car dealer’s hand giving car keys to the buyer, with a car in the background.

Icons with ticks appear on the screen and text that says ‘Defects disclosed’, ‘Warranty in most cases’ and ‘Consumer guarantees’.

Narrator:

You’ll get a warranty in most cases and consumer guarantees.

Visual:

Cars driving along a road.

Narrator:

Know your rights when buying a used car.

Visual:

The Consumer and Business Services logo and Motor Trade Association logo appear on the screen and text that says ‘Find out more at cbs.sa.gov.au/cars’

Faults and hidden damage

Second-hand cars aren’t always perfect. Some have major defects which can be costly to repair. Some cars have problems that don’t affect the running of the car but are still faults – e.g. problems with the GPS, sunroof or sound system.

You’ll want to know about any defects though, so you can decide whether you still wish to purchase the vehicle. Not every defect or fault is covered by a warranty and you should always check the contract to see what items are included.

Licensed dealers should only sell vehicles that are roadworthy, and they should disclose any known defects. But if you buy privately, there’s a risk the seller might not disclose any known defects.

If a car has been flood damaged interstate it could be offered for sale to unsuspecting buyers in South Australia. The extent of the damage might not show up until later, and it could be costly to repair or have a lower trade-in value.

  • If the damage is major, the car may have been ‘written off’. A licensed dealer must disclose if a car has been written off or is flood damaged, but a private seller is not legally required to disclose this.
  • If the damage is minor, the vehicle can be a ‘repairable write off’. This must be disclosed by a licensed dealer, but a private seller might choose not to disclose this.

If you buy privately, you can find out if a vehicle has been written-off by doing a Personal Property Securities Register (PPSR) check.

Tips - before you buy:

  • Set a price limit you can afford. Allow for stamp duty, transfer fees, registration and insurance.
  • Take your time. Don’t be rushed or pressured.
  • Shop around for the best deal.
  • Take the car for a test drive.
  • Have the car checked by a qualified independent mechanic.
  • Don’t sign anything until you’re sure the car is in good condition and you want to buy it.

If you buy from a car dealer:

  • Understand your rights and the dealer’s obligations
  • Check what’s covered by the warranty
  • Inspect the white display sheet on the car
  • Have everything you negotiate with the dealer in writing
  • Check the dealer’s licence is up to date.

Remember that if you buy from a licensed dealer, you get important consumer protections:

  • The car should be roadworthy, and defects should be disclosed
  • The car is automatically covered by consumer guarantees, so if there’s a problem you may be entitled to a remedy – e.g. having repairs done at no cost to you
  • You get a warranty in most cases
  • You’ll have certainty about the car’s ownership as dealers must check the Personal Property Securities Register.

If you buy privately:

  • Check that the seller is the registered owner. If not, is there a genuine reason?
  • Visit the Personal Property Securities Register to check that the car hasn’t been stolen, flood damaged or written off, and that no money is owed on the car. If someone else owes money on the car you’ve bought, it could be repossessed.
  • Never buy from a backyard seller – that's someone who really should have a dealer’s licence because of the number of vehicles they buy or sell each year, and yet they don’t have a licence.

For more information

  • Follow the checklist to help guide you through the car buying process.
  • See the Easy Read brochure for information in clear, simple language: Buying a used car - Easy Read.
  • If you already have an issue with a car purchased in South Australia, you can seek advice from Consumer and Business Services on 131 882.
  • Reports can be made about a business or product online at www.cbs.sa.gov.au/contact.

Helpful links