Ensuring Proper Documentation When Purchasing a Vehicle from a Private Seller

When you’re looking to buy a used car through a private sale, ensuring you have all the proper documentation is crucial. Not only does this protect your investment, but it also ensures you can legally drive the vehicle and avoid unexpected complications down the line. 

Here’s an in-depth guide on the documents you need and steps to take when purchasing a vehicle privately, packed with tips and advice to make the process smoother.

Why Documentation is Important When You Buy a Car Privately

Buying a car privately can save you thousands of dollars compared to a dealership, but it also comes with risks. Without the correct paperwork, you might face issues such as difficulty registering the car in your name, hidden debts or loans attached to the vehicle, or potentially buying a car that has been written off or stolen. 

Additionally, understanding How to Spot a Good Deal from a Private Seller can help you avoid overpriced or faulty vehicles. It’s important to verify every aspect of the transaction and documentation to ensure the car is legally yours and safe to drive.

Key Documents You’ll Need When Buying a Car Privately

Vehicle Registration Certificate

The registration certificate, also known as the "rego papers," proves the car is registered and includes essential details: the vehicle identification number (VIN) and engine number, the car’s make, model, year, and colour, the registration expiry date, and the owner’s name and address.

What to Check: Compare the VIN and engine number on the car to those on the certificate. Any mismatch could indicate tampering. Verify the name and address on the certificate matches the seller’s identification. In some states, such as NSW and Victoria, the registration certificate is also required for transferring ownership.

Roadworthy Certificate (RWC)

A roadworthy certificate is a key requirement in many Australian states for transferring the car to a new owner. It certifies the car meets basic safety standards, including brakes, steering, and suspension, lights, including taillights, tyres ensuring even tread, and vehicle structure ensuring no significant rust or damage.

State Requirements: In NSW, an eSafety check (formerly known as a pink slip) is required if the registration is being renewed during the transfer process. In Victoria, the seller must provide a valid RWC at the time of sale. If the car lacks a valid RWC, you may need to arrange and pay for the inspection yourself, which could reveal costly issues.

Proof of Ownership

To avoid buying a car that has been stolen or misrepresented, ask the seller to provide proof of ownership, such as a previous receipt from when they purchased the car or older registration papers showing their name as the owner. If the seller cannot provide proof, it’s important to be cautious and conduct further checks.

PPSR Certificate

A Personal Property Securities Register (PPSR) certificate is essential for verifying that the car is unencumbered (no outstanding debts or loans), not stolen or written off, and legally owned by the seller. The PPSR search is quick and affordable, costing as little as $2 online. You’ll receive a report that includes the VIN and any encumbrances on the vehicle.

Bill of Sale or Receipt

The bill of sale is a formal record of the transaction and serves as a legal proof of purchase. Ensure it includes the buyer and seller’s name and address, vehicle details including make, model, VIN, and registration number, the selling price and date of purchase, and both parties’ signatures. Why It’s Valuable: This document can prevent disputes and is often required for registration or insurance purposes.

Steps to Take Before Finalising the Purchase

Inspect the Vehicle Thoroughly

Before completing the transaction, perform a comprehensive inspection to avoid costly surprises.

What to Check: Tyres: Ensure even tread and no visible damage. Rust: Look for signs of corrosion, especially under the car and around the wheel arches. Motor and Components: Check for leaks, unusual noises, or any faults. Lights: Confirm all lights, including taillights, are functional. If you’re unsure about the car’s condition, consider hiring a professional mechanic for a pre-purchase inspection. 

Spending a small fee upfront could save you thousands of dollars in potential repairs. This inspection is also a great time to double-check How to Spot a Good Deal from a Private Seller by looking for signs the car has been well-maintained.

Test Drive the Car

A test drive is an essential step in evaluating whether the car suits your needs and is in good condition.

What to Observe:

• Acceleration and braking: Smooth, without pulling to one side.
• Handling: Proper alignment and no unusual vibrations.
• Engine: No excessive noise or smoke. This also gives you a chance to verify any claims made by the seller, such as recent repairs or upgrades.

Check out our guide on How to Properly Test Drive a Car to make sure you cover everything during your test drive!

Verify the Seller’s Identity

To ensure you’re dealing with the rightful owner, ask for their driver’s licence or other identification. This should match the details on the registration certificate and other documents. Red Flag: If the seller’s name doesn’t match the registration, it could indicate a fraudulent sale or a car that hasn’t been properly transferred.

Avoiding Common Pitfalls When Buying a Used Car Privately

Look for Hidden Faults

Cars are often sold privately due to underlying issues. Be cautious of uneven tyre wear indicating alignment problems, poor brake performance, and faulty or mismatched parts.

Beware of Suspicious Pricing

If the selling price is significantly lower than market value, you’ll want to investigate why. This could indicate the car has been written off, poorly maintained, or even stolen. Knowing How to Spot a Good Deal from a Private Seller can help you identify red flags, such as overly cheap pricing that may hide significant problems.

Final Steps After the Purchase

Once the sale is finalised, here’s what you’ll need to do: Register the car in your name with the appropriate state authority, pay any applicable transfer fees or car tax, and update your insurance policy to reflect your ownership. Tip: Keep all receipts and paperwork in case they’re required for warranty or dispute resolution.

Conclusion

When it comes to buying a car privately, being diligent about the necessary paperwork is key. By thoroughly inspecting the car, verifying the seller’s documents, and conducting checks like a PPSR, you can get a better deal while avoiding costly mistakes. 

If you’re looking to buy a new car for the best price available, contact us through our New Car Buying page for more advice and a wide range of vehicles.