Buying a used car privately or from a dealer can save you thousands — but only if you check the right things before money changes hands. Skip a step and you can inherit someone else finance debt, a written-off vehicle, or a mechanical bill bigger than the discount you negotiated. Use this checklist to buy with confidence.
Before you go and see the car
Do your homework before you spend an afternoon on a test drive:
- Confirm a fair price. Know what the model is actually worth so you can spot an over-priced (or suspiciously cheap) listing. Our guide on how much a car is worth shows you how.
- Read the ad carefully. Note the exact VIN/rego, build date, odometer and any service claims — you will verify these in person.
- Ask the seller key questions. Why are they selling, how long they have owned it, service history, and whether there is any money owing.
The single most important check: history and PPSR
Before anything else, run a car history check. A PPSR (Personal Property Securities Register) check tells you whether the car:
- Has finance owing — if it does and the seller does not clear it, the financier can repossess the car after you have paid for it
- Has been written off or reported stolen
- Matches the seller description on build year and identifiers
This is the check that protects you from the most expensive mistakes, and it costs only a few dollars.
What to inspect on the car
Give the car a thorough once-over in daylight and never in the rain (water hides paint and panel issues). For the full walk-around, follow our used car inspection checklist. The essentials:
| Area | What you are looking for |
|---|---|
| Body & panels | Mismatched paint, uneven gaps, rust, ripples (signs of past crash repair) |
| Tyres | Even wear across all four; uneven wear hints at suspension or alignment issues |
| Under the bonnet | Oil leaks, corroded battery terminals, milky oil (head-gasket warning) |
| Interior | Wear that matches the odometer; working electronics, aircon and windows |
| Fluids & smoke | Clean fluids; no blue or white exhaust smoke on start-up |
The test drive
Drive it for at least 15 minutes, on a mix of roads:
- Cold start — listen for knocks and check for smoke
- Brakes — firm, straight, no pulling or shudder
- Steering — no vibration or pulling to one side
- Gearbox — smooth shifts, no slipping (auto) or crunching (manual)
- Warning lights — none should stay on after start-up
If you are not mechanically confident, a pre-purchase inspection by a mechanic is money well spent.
Paperwork and rego
Before you hand over any money, confirm:
- The seller ID matches the name on the registration papers
- The VIN and engine number on the car match the papers and the PPSR result
- Registration status and any safety-certificate requirements for your state
- You get a signed receipt and the transfer paperwork is completed
Then negotiate
Once you know the car condition and history, you are in a strong position to talk price. Our how to negotiate a car price playbook shows you how to use what you have found to get a better deal.
Need a hand?
Buying used does not have to be stressful. If you would like help sourcing, checking or financing your next car, get in touch and our team can guide you through it.
Frequently asked questions
What is the most important thing to check when buying a used car?
A PPSR/car history check. It reveals finance owing, write-off and stolen status — the issues that can cost you the entire value of the car if you miss them.
Can I get stuck with a car that still has finance owing?
Yes. If a car has money owing and the debt is not cleared, the financier can repossess it even after you have bought it. A PPSR check before you pay protects you, and a clear certificate gives you protection as a good-faith buyer.
Should I get a mechanical inspection on a used car?
If you are not confident assessing a car yourself, a pre-purchase inspection by a qualified mechanic is strongly recommended — it typically costs a couple of hundred dollars and can save you thousands.
What paperwork do I need when buying a used car privately?
Confirm the seller ID matches the registration, that the VIN and engine numbers match the papers and PPSR, the rego and safety-certificate status for your state, and get a signed receipt with the transfer completed.
How do I know if a used car is priced fairly?
Compare the listing against recent sales of the same make, model, year and condition. Our guide on what a car is worth walks you through valuing it before you negotiate.
Written by the team at Car Buyers Assist.
This article is general information only and does not take into account your personal circumstances. Always do your own checks and seek professional advice where needed. Car Buyers Assist helps Australians buy, sell, finance and protect their vehicles.