Buying a motor vehicle

A vehicle is an expensive investment.

To get the most out of it,  research before you buy and know what to do if something does go wrong.

You should also check information provided by your local consumer protection agency or vehicle registration authority on buying a car, as laws vary between the states and territories.

Before you  buy

There are lots of things you should do before buying a car.

Do your homework

Research the car you are considering buying. For new or recent models, look out for car reviews and information in motoring magazines, newspapers and motor clubs. Learn about the car’s performance, what you can expect to pay and common problems associated with the model.

You should also research the car’s safety features - a good place to start is the Australasian New Car Assessment Program, which provides comparable safety ratings between cars.

Take it for a test drive

Check the car’s condition and how it performs – take it for a test drive.  Arrange for an inspection by an independent mechanic.  Ask to see the service history— a well-kept logbook may be a good sign that the car has been looked after.

Know the price

Make sure you understand the total cost of the vehicle. Also bear in mind that a vehicle's price is only one part of what you have to pay - other costs include:

• on-road costs such as registration, compulsory third-party insurance and stamp duty
• running costs such as fuel
• operating costs such as insurance, servicing, maintenance and spare parts.

After-sales support

You should also find out any support service that the trader or manufacturer provides, including any manufacturer’s warranties that may apply.

Your rights when buying a car

You have consumer rights when purchasing a car.  It is unlawful for a seller to mislead you about a car’s make, price, quality or performance in advertising or promotions.

The law also provides certain guarantees when you purchase a car. The guarantees that apply will depend on the method of sale and whether the car is new or used.

If these guarantees are not met, you maybe entitled to a remedy such as a refund, repair or replacement.

If you are not confident, seek advice, before going any further with the sale.

Consumer guarantees

When you buy a car the seller and manufacturer provide a range on guarantees including:

• the car will be of acceptable quality - safe, durable and free from defects, acceptable in appearance and finish and perform as expected 
• the car will be fit for the purpose you made known to the seller
• the car will match the demonstration model and sample
• the car will match the description 
• any express warranties will be honoured
• spare parts and repair facilities will be generally available for a reasonable time.
  

It is important to remember that when you buy a used car there are particular guarantees that apply to ensure that

• you have title to the goods
• you have undisturbed possession of the goods
• there are no undisclosed securities on the goods.

When am I entitled to a remedy?

If your car fails to meet a consumer guarantee, you may be entitled to a replacement, repair, or refund.

You may not be entitled to a remedy if you:

• simply change your mind or decide you do not like the car
• damage or use your car in an unreasonable or unintended manner
• discover you can get a better deal elsewhere (unless the seller guarantees that the goods cannot be purchased more cheaply elsewhere)
• did not rely upon the seller’s advice that the car was not suitable for your requirements
  

You do not have go to the manufacturer for a remedy unless you purchased the goods directly from them.

Can I choose the remedy I want?

The law makes an important distinction between minor failures to comply with the consumer guarantees and major failures.

Your remedy options depend on whether the problem with your good is:

• a major failure, or
• a minor failure.

For minor problems
Minor failures to comply with a consumer guarantee can normally be fixed or resolved in a reasonable amount of time.

In this case, the seller can choose to offer you a refund, replacement or repair. This must be provided free of charge and within a reasonable time depending on the circumstances.

If the seller refuses to fix the problem or takes too long, you may be able to get it fixed by someone else and recover the costs from the seller.

You cannot immediately reject the car and demand a refund - you must give the supplier a chance to fix the problem.

For major problems
Depending on the method of purchasing the car if there is a major failure with the, you can where possible:

• reject it and get a refund
• reject it and get an identical replacement, or one of similar value if reasonably available, or
• keep the car and get compensation for the drop in value caused by the problem.
  

You get to choose, not the seller or manufacturer.

How long do my rights last?

Your consumer rights are not limited to a set time period. Instead, they apply for the amount of time that is reasonable to expect given the cost and quality of the item.

Is there a debt on the vehicle? Do not buy without checking the Register of Encumbered Vehicles

Before you purchase a used car, you should always check the Register of Encumbered Vehicles (REVs) in the state or territory where the vehicle is registered to confirm whether there is an outstanding debt on the vehicle.

By doing a REVs check, you can confirm whether the vehicle is clear of any encumbrances (i.e. unpaid debts). A clear REVs certificate on the day that you are purchasing a used vehicle protects you from repossession due to a previous owner's unpaid debt.

To do a REV check, you may need to supply the following vehicle identifiers:

• registration number  
• registration state  
• engine number  
• VIN/chassis numbers.
  

Your local consumer protection agency can help you organise a REVs check in your state or territory. (If you a purchasing a car which is registered interstate, contact the agency in that state, not your own.)

Need help?

If you have problems with your purchase – see the ACCC’s making a complaint page for guidance.

If you are unable to resolve your complaint directly, you can contact the ACCC or your local consumer protection agency for more information on your consumer rights and options. Your local office may also be able to conciliate.