Do your research

Before you buy a car, take the time to research different models, to find one that best fits your budget and needs¹. Consider the following:

• Space: How much room do you need in your car?
• Safety: How safe are the options you’re considering? Check the ANCAP ratings to understand how good different models are at keeping you safe on the road.
• Fuel economy and the environment: Is the model you’re looking at fuel efficient, or a fuel guzzler?

Always test drive

Test drive a car before you buy it, especially if it has been used. Try to choose your own route, and drive in a variety of conditions¹. You can even take a friend and share your thoughts.

If you’re driving a used car, look for mechanical issues by²:

• Using the full steering wheel range
• Testing the handbrake on a steep hill
• Listening for irregular noises, especially from the engine
• Checking the transmission shifts and handling in a variety of conditions.

Visit an independent mechanic when buying used

If possible, have the car inspected by a qualified and independent mechanic before you buy it. Don’t accept the car if you’re not satisfied with the results. Don’t agree to take a safety certificate or warranty instead of an inspection, and make sure you see the outcome personally.

Negotiate terms and check your contract

Read the terms of the sale thoroughly. Make sure that none of the fields have been left blank, including the delivery date. Don’t sign the contract until everything has been negotiated, as you are unable to make adjustments once it has been executed¹.

If you’re buying a used car, make sure the registration and service history paperwork is correct, and matches the seller’s details. Also, it is important to check the history of the car and if it has been reported as a write off or has hail damage. Always ask for originals, not copies².

Insure your car before you drive away

Hitting the road without the right insurance is a risk, so it’s important to protect your car before you drive it³. When registering a car you will need to purchase compulsory third party (CTP) which covers liability you incur for injuries you cause to others on the road. You may also want to get car insurance, and Allianz has two options to choose from:

• Comprehensive: Covers accidental loss or damage to your car and to other people’s cars or property
• Third party property damage: Covers accidental damage you cause to other people’s cars or property.
• To find out how much your car insurance will cost, get a car insurance quote online.
  

Prepare your car and make sure it’s at its best

When selling your car, make it as appealing for buyers as possible⁴. Clean your car thoroughly, both inside and out. If it’s been a while since the last clean, consider having it detailed and polished by a professional. Inflate your tyres to the recommended air pressure, complete a wheel alignment and get the wheels balanced, so your car performs at its best during any test drives⁴.

If you’re selling a car and keeping the number plates, contact your state road authority to cancel the registration of those number plates, and register new number plates to attach to the car you are selling⁵.

Create a great ad

Putting in the time to create a great ad will help your car stand out from others on the market⁴. Include a precise description of your car, with details of important information such as model, year, and any extras or modifications. Invest the time to take high quality photos, to show off your car in the best light.

Set the right price, but be prepared to haggle

Do your research, and set an appropriate market price for your car⁶. The higher your price, the more time it is likely to take to sell. Beware, many car buyers will expect to haggle, so you may have to settle for a little less than you advertised⁶.

Get your paperwork in order

Different states and territories require different paperwork for selling a car, so check what is required in your location. Common documents include service log books, current registrations, and warranty information⁵. Some states and territories also require a safety inspection by a mechanic, such as a roadworthy certificate in VIC, QLD and ACT⁶.

Ensure you advise your car insurance provider that you have sold your vehicle.

Do your due diligence on the buyer

When arranging an inspection, ask for the buyer’s contact details such as name, phone number, and if possible, address and driver’s licence number⁴. Before finalising the sale ask for a second form of identification and always obtain payment in full before you hand over the keys⁴.

Prepare for a test drive

One of our top tips for buyers is to always test drive the car – as a seller, you will need to accommodate test drives in a way that is safe for you and your car.

If a potential buyer wants to test drive your car, make sure to record their licence details before you start. You should also contact your insurer or check your car insurance Product Disclosure Statement to make sure your car is covered if a potential buyer takes it for a spin. Always accompany the buyer on the test drive⁸. Going along for the ride is also a great way to explain your car’s features and answer the buyer’s questions.

Lastly, help look after your own safety by starting and ending the test drive in a public location during daylight hours.