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buying a car, the process?


claudy mucker

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guys, we were very lucky when we moved in that we had a car thrown into out first rental as landlord travelled overseas. now in our place, again lucky as friends have lend us their second car, but we need a new car and now that our tax return through, looking at buying a second hand car in melbourne. what is the process? any tips, as heard rego and roadworthy being mentioned etc?

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Depending your funds, and the age of the car, purchasing a car from a dealer means that it comes with a warranty. (Old cars, no warranty). So you get some peace of mind. Some dealers don't include the cost of a roadworthy certificate in their price, so they then add in a chunk for them to arrange the rwc and to get to the full price, just be aware. If it's still got current rego, then you transfer the ownership into your name and pay the transfer fee and stamp duty at Vicroads. If it's not got any rego, then it's about $750 per year to add on. (Also pay that at Vicroads and a fee for the plates if it has none). If it's advertised as no more to pay, drive away, then that is the price to drive it out of the dealership.

 

Buying private means you have to trust the seller. Legally a seller must also provide a roadworthy certificate if the car is still registered. Some will sell it registered but with no rwc for various reasons (maybe they know it will fail rwc due to repairs required). It's then up to you to get it roadworthied at whatever cost. If you trust the seller that it will "sail through a roady" then maybe you got a bargain!

 

You can't register it in your name if it hasn't got a rwc. So if you buy it with no rwc, and then drive it and get caught by a camera speeding, the fine will still go to the old owner.

 

A rwc is valid for a month. So you have that long to register it in your name.

 

Be aware of the rego cost if it is due imminently. If you get a good deal on a car which has just been rego'd then you don't have to worry about that fee for another year.

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As you thinking of buying a new car in Victoria, you might want to know that RACV offer vehicle inspections (this is different from RWC and gives you an independent assessment of the vehicle's condition - excellent if you're not a mechanic yourself and have no idea what you're looking at when buying privately).

http://www.racv.com.au/wps/wcm/connect/racv/Internet/primary/my+car/vehicle+inspections. It's likely the breakdown clubs in other states offer the same sort of service.

 

A lot of people complain about the cost of used cars in Australia. They are more expensive that in the UK but that's because they don't depreciate as quickly. If you buy wisely you can get a car whose overall running costs is much cheaper than in the UK even if the initial sticker price looks higher.

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Don't buy privately unless you really know your stuff. Too many lemons out there with secret histories of accident damage and major mechanical problems. At the end of the day, people generally sell their cars when they start to go wrong, so you could be buying someone else's problems.

 

If you buy from a dealer, you are covered by law with a three month warranty for anything under 10 years old (plus the balance of any manufacturer's warranty or warranty provided by the dealership).

 

http://www.consumer.vic.gov.au/motor-cars/buying-a-used-car/warranties

 

 

One thing to bear in mind is if you have a UK licence the documents transfer will be slightly more complicated. When I bought my latest car I still had a UK licence, so it involved a trip to VicRoads and filling in various forms, whereas with a Victorian licence the dealer could have done this for me.

 

I'd also advise wherever possible to buy with a credit card for two reasons - 1. the extra level of insurance provided and 2. You can earn loads of points.

 

Finally, whatever bullshit the dealer comes up with, always knock a minimum of 10% of the sticker price and insist that this is the full on-road cost (i.e. don't agree a price then have them stick extra on top). Insist that they service it before collection and if the tyres are under 3mm I'd also insist that the dealer replaces them. I'd also push hard for things like a tank of fuel to be included. The main thing to remember is it's their job to sell the car, not yours to buy it. It's a buyers market so squeeze them until they bleed!

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