Warning for second-hand car buyers

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Second-hand car buyers are reminded of steps they can take to help prevent getting ripped off.
Man checks under the bonnet of a car.

RACQ is urging second-hand car buyers to make sure they do their research after police uncovered a major vehicle fraud operation in south east Queensland.

Police allege the criminal syndicate was buying cheap written-off vehicles in poor condition and then carrying out sub-standard repairs and modifications before selling them at inflated prices with fake safety certificates.

RACQ Principal Technical Researcher John Ewing said private sales were largely unregulated and presented huge risks for buyers.

“This latest example really highlights the dangers of shopping in the used car market,” Mr Ewing said.

“We highly recommend only purchasing second-hand cars from a licensed dealer – it is a much safer option than purchasing on the private market.

“In addition to only shopping at licensed dealers, there are three things that are vital when purchasing a second-hand car – booking a professional pre-purchase inspection, checking the Personal Property Securities Register and never buying a car that you haven’t seen first.”

1. Professional pre-purchase inspection

RACQ says motorists should never rely on safety certificates to verify the condition and safety of the car.

“Those safety certificates are very basic and don’t tell you the vehicle’s condition or suitability for purchase,” Mr Ewing said.

“The inspection will tell you the exact condition of the vehicle.

“If the wear and tear on the car is bad, then there’s a good chance the car could be in even worse condition when a professional inspects it and looks under the skin.

“Never buy a car then organise the inspection, get an inspection before you commit to the sale or else it’s simply too late.”

2. Personal Property Securities Register

Mr Ewing said the Personal Property Securities Register  will tell potential buyers if there’s any security risk registered to the car they’re interested in buying.

The register will reveal whether money is owed on the vehicle, whether it’s has been listed as stolen or if it is a write-off.

“It’s vital to do one of these very simple checks and it protects you as a buyer,” Mr Ewing said.

“If you don’t do one and the car is registered as stolen or money is owing on it, there’s a real risk it could be repossessed from you.

“A licensed second-hand car dealer has to guarantee a clear title, where there is no such guarantees with a private seller.”

3. Never buy sight unseen

“Buying a car sight unseen is also a very dangerous way to do business,” Mr Ewing said.

“You can’t road test it and you have no way of knowing if what you’re being shown in a photo is truly representative.

“Always remember, if something doesn’t feel right, walk away. If it’s too good to be true – it probably is too good to be true.”

Read more about buying a car

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Things to note

The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.