Sunday, January 14, 2007

Where to buy a car

There are a number of options available in terms of where you can buy a car. They each have their advantages and disadvantages.

Buying from a car dealership
Buying a car from a licensed motor vehicle dealership is the safest way to purchase a car and provides many advantages. Unlike buying privately, the dealer has an obligation to guarantee that there is no money owing on the car. In certain conditions the dealer is also obliged by law to provide a warranty, which gives you great peace of mind.
Also the dealer often provides the opportunity to trade in your old car. However, you may not get as much money trading-in your car as you would if selling it privately.
Unlike buying from an auction, you get to test drive the car and make sure it has the power and features you require. Finance can also be obtained through most licensed car dealers again saving time and headaches.

Buying a car from an auction
The benefit of buying a car at auction is that you could pick up a real bargain. The cars come from situations that include deceased estates and repossessed vehicles, and quite often are in satisfactory condition.
The risk with buying at auction is that the cars are not covered by a statutory warranty and generally the auction house will not allow a test drive. You can arrange an independent vehicle inspection at your own cost but not on the day of the auction.
Most auction houses will require a 10% deposit or $500 at the fall of the hammer.

Buying a car privately
Buying a car privately involves relying on your own judgement and knowledge. You can arrange for a vehicle inspection at your own cost but there are no statutory
warranties. Also, making sure that the vehicle is not encumbered, stolen or de-registered is the responsibility of the buyer.
Doing a REVS check will help you ascertain this. Always ask the seller for, and note down, the information listed below. Ensure the information shown in the paperwork matches what is on the actual car.
• The current certificate of registration.
• A pink slip which is no more than 42 days old (unless the car was registered in the last 42 days).
• Proof that the person selling the car is the owner eg. a sales receipt or driver’s licence to help identify the seller.
• The registration number.
• The engine number.
• The VIN (vehicle identification number) or chassis number.

Buying from a car market
Car markets bring buyers and sellers together in the one place without the need to drive all over town. However, you are still buying ‘privately’ and therefore need to rely on your own judgement and knowledge. There will be no guarantee of title or warranties supplied. They are often temporary situations and have become an outlet for backyard operators to dispose of substandard vehicles, or even possibly stolen
vehicles.

When do you need a pink slip?
If the vehicle has been registered in the last 42 days, you do not need a safety check report (ie. a pink slip). The pink slip shows if the car is fit for registration or not. A pink slip must not be more than 42 days old.
If the vehicle is not registered you need to take it to an Authorised Unregistered Vehicle Inspection Station (AUVIS). They will conduct a roadworthiness check and identify the vehicle for the purpose of registration for the Roads and Traffic Authority (RTA). To find your nearest AUVIS, contact the RTA on 13 22 13.

Something to avoid – roadside selling
There are no safeguards with this type of car sale. There are no guarantees of title and no warranties supplied. You could be stuck with a vehicle that has been poorly repaired or even written-off. No matter how good the bargain looks, steer well clear of this method of purchasing a car.
(Source: Office of Fair Trading)

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