Motor Vehicle Transactions
Licensed Motor Dealer
If you choose to buy a used car from a licensed motor dealer you will have greater protection than if you buy a motor vehicle from a private seller. Not only do licensed dealers have insurance but they are usually businesses or companies with strict policies and procedures. Consumer guarantees exist within licensed businesses and businesses are more likely to comply with Australian Consumer Law guidelines.
If you have ever purchased a motor vehicle from a licensed establishment then you would be aware that there is a sales person who is required to adhere to fair trading laws. They must seek fair market price for the vehicle and there is consumer protection. They may offer a consumer guarantee or a manufacturer’s warranty (depending on the age of the vehicle) and there is a clear process for raising and handling of complaints.
Private Sale
It is common for people to buy second hand cars from private sellers through websites such a gumtree, Facebook, private advertisements, etc. Whilst Australian Consumer Law does still apply to these types of sales, the consumer guarantees apply differently.
A private transaction does not allow for the same types of financing options often as car dealerships. A private seller does not usually offer financing through a financial institution. All finance needs to be sorted out prior to the transaction taking place and money is to be paid in either cash or a bank transfer.
Warranties
Whether engaging in a second hand car transaction or a brand new motor vehicle transaction, warranties need to be upheld. Manufacturers warranties for example transfer with the vehicle until the warranty expires. It is important that warranties are upheld for consumers to avoid motor vehicle disputes. Manufacturers warranties cover aspects of the vehicle such as the engine, timing belt, etc.
If something happens to your motor vehicle which is covered under manufacturers warranty then you can have it repaired without needing to pay the cost or expense. You may even be able to get a refund for the vehicle if the defect is severe enough. In the event you do cover the cost of a defect without knowing it is under warranty then you can have the supplier refund you the money owing once coming to realize it is under warranty.
Cooling Off Period
During a motor vehicle transaction, there is a three-day cooling off period from the date of signing the contract. This is an opportunity for you to pull out of the sale if you no longer wish to go through with the contract. The contract is null and void however if the car is delivered during the three-day period as you would have already accepted its delivery.
Whilst a private seller may not have you sign a physical contract for the motor vehicle transaction, any evidence of how the terms of the transaction would be evidence of a contract. I.e. price, time of transfer, etc.
