Safety Checklist when Buying a Used Car with Finance

When buying a used car, buyers can seek help with the necessary ownership and other checks, and with their finance needs, through Jade Car Loans brokers. With current cost of living pressures, many buyers in need of a new vehicle may look to the second-hand market for a cheaper option to a new vehicle. Many drivers simply prefer to purchase second-hand. The market is usually extensive and while good value buys are available, buyers need to be diligent, especially if buying privately.

Unfortunately, there can be fraudulent activity in the market with buyers selling vehicles which have been stolen, not officially registered or registerable, and vehicles which still have money owed on the financing. As is widely reported, the private online marketplace can have fake sellers which can leave buyers out-of-pocket and without a vehicle.

Purchasing from a licensed second-hand motor dealer can be safer than buying privately. But regardless of the selected seller, buyers should carry out a range of checks before committing to the purchase, to be fully assured that the sale is right for them. While it may all sound complicated and time-consuming, when sourcing finance for a second-hand vehicle, we can assist with some of the checks. Information is also available at state Government websites, including around consumer rights. Review the guidelines we have provided and speak with us for assistance.

Buying a Used Car Recommended Checks

Recommended by authorities is to check the vehicle’s registration and VIN before committing to the purchase. Free rego checks can be sourced through your state motoring department. The rego details should match the owner/seller, VIN number and can provide a guide to checking the odometer reading. Tampering with an odometer is illegal. Buyers purchasing privately can compare the rego details and any service books provided as a guide. Ensure the logbook or service book has not been tampered with. Ensure VIN and engine numbers match the details A vehicle history report may also be available to purchase through your state government authorities.

Doing a quick online search of the vehicle may bring up results of previous sales of the vehicle. This may provide further information on the vehicle’s history and mileage. Getting a vehicle inspection from an independent body can also be advisable.

If buying online, ensure it is a trusted marketplace. Scams are sadly prevalent online. Check that the seller is verified and check if the site offers any buyer guarantees and protections. Using trusted vehicle sales sites is highly recommended.

When purchasing an EV, it can be a good idea to check if the battery is still under warranty. The cost of a replacement battery may be a large expense.

One of the most important checks is if the vehicle is under finance or not. That is, if the owner/seller still owes money on a loan. If a buyer purchases a vehicle where money is owed and the seller does not finalise the debt prior to settling the sale, the buyer could end up with having their new purchase repossessed. Checks can be done on the Personal Property Securities Register.

When arranging your financing through us, your Jade broker will assist you by carrying out many of these checks and sharing our valuable insights on buying a used car.

Consumer Rights

Buyers of second-hand vehicles from dealers do have consumer rights and guarantees under the Australian Consumer Law. Buyers purchasing through licensed dealers may be entitled to guarantees under the Motor Dealers and Repairers Act. For example, in NSW the law includes that the vehicle must be free of encumbrances and provides other guarantees. These guarantees may not cover all vehicles, for example models over 10 years old and that have covered over 160,000klms.

Loans for Used Cars

The same credit products are available for new and second-hand vehicles. That includes a Secured Car Loan for private buyers and Lease, Chattel Mortgage and CHP for business buyers. Business buyers can realise all relevant tax benefits for their choice of credit facilities on second-hand vehicle finance. These credit products are all secured format credit facilities where the lender accepts the vehicle as suitable collateral for the loan.

With second-hand vehicles, lenders will assess the age and condition of the vehicle when accepted it as suitable collateral. Where not accepted, we have unsecured loan products available. Most late model second-hand vehicles can meet lender collateral criteria.

Lenders will also assess the loan amount requested against the value of a second-hand vehicle when approved the loan total. This assessment may impact deposit requirements as well as the interest rate and terms offered. We will be handling all lender negotiations for you and working towards the most acceptable and affordable loan offer.

If browsing vehicles online or in a dealership, buyers can request quick loan quotes or even apply for financing prior to committing to the sale.

When buying a used car, contact Jade Car Loans 1300 000 003 for assistance with pre-purchase checks and to obtain affordable financing.

DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.