Buying a second hand vehicle

Reliability is very important, if you're buying a second-hand vehicle to travel WA.

Mechanical breakdowns in the Australian outback are expensive, not to mention inconvenient. The nearest mechanic may not be in the vicinity and car parts difficult to get. They can also be very dangerous. Imagine being stranded in the Australian outback, with temperatures soaring to an uncomfortable forty degrees!

 

Buying through a dealer gives the advantage of a warranty, but of what use is a warranty in the outback? Used-car warranty requirements vary from one organisation to another. Ensure that you check with the Royal Automobile Club of Western Australia (referred to as the "RAC WA") and the Consumer Affairs Department. Be careful about the terms of any contract you sign when buying a motor vehicle.

Get help from a solicitor if you don’t understand what the warranty terms mean. Please note that some of the warranty terms might exclude coverage if you are taking the vehicle off road.

 

Finally we strongly recommend an independent mechanical appraisal of any vehicle before you complete a contract; you may get a detailed inspection from appropriate organisations, such as the RAC WA.  An RAC WA check, and report on your vehicles condition, is an excellent idea. Its relatively small fee, before you buy, for peace of mind.

 

It is fairly expensive to register cars in Australia. Registration fees are rising annually. Research how much registration is going to cost when you are budgeting to buy a second-hand vehicle. This payment includes third-party personal injury insurance.

 

REMEMBER: Please take out separate third-party property insurance, even if you don’t wish to insure your own vehicle.

 

Your car may not be worth much, but relatively minor collisions with other vehicles can cost a lot. Third party property insurance is designed to cover the cost of the damage you might do to another individual’s property.

 

Try repairing a minor scratch on a Rolls Royce, for example, and see what it costs. If the brakes fail on your old car, who knows what you might hit!

 

Many of the Australian insurance practices will hold a driver responsible for part of the damage bill, even where the driver simply made a minor mistake or misunderstood local road rules. It is not worth the risk.

 

Remember that it is not always what you might do that can cause an accident. Whilst the accident may (in your opinion) be someone’s fault other than your own, it is wise to ensure that you have good coverage. If they don’t have the money to pay for the problems they caused, you will become responsible for the costs.

 

Always consider what amount of excess is payable by you in the event of a claim.

 

What is an Excess? In WA, you can reduce the premium you pay by taking over a portion of the risk – often the first few hundred or thousand dollars – which is called an “excess”. This means that you can only claim from the insurance company the amount of the damage bill over the agreed amount of the excess.

 

This is intended to get the insurance company out of liability for the small claims, which comprise the greatest number of claims. As a result they can offer you a more competitive premium. To minimise risk, the idea is to set the excess at a figure that is a manageable amount of risk for you to take.

 

The greater amount of the initial risk or excess you accept personally, the cheaper the premium. It is important, also for peace of mind, to strike a balance between a realistic premium and a realistic excess.

 

 

Windscreen insurance is worth considering if you are going to do a lot of country driving whilst you DriveWA.  Always read the small print within insurance contracts.

 

Be particularly careful to ensure that if you are intending to travel on gravel or dirt roads, your insurance policy will cover you - unless you take a 4WD policy, you will probably not be covered – even if you have paid the premium. This may not be the case if you have a special notation on your policy.

 

Many insurance policies will prohibit you from travelling on dirt roads; at this time it is vital to read the small print carefully.

 

If there is anything at all you don’t understand, ask before signing the agreement! Any valid comments in reply to the question(s) asked will then need to be written into the insurance contract.

 

Verbal representations are very hard to enforce particularly, if you are not a local. We recommend you don’t accept them as sufficient.

 

Disclosure to the insurance company is always an important issue. You MUST inform them if you are a remote or rough area.

 

Also be aware that there is state Stamp Duty to be paid when you buy a car in Australia.

 

Please also note that it is easier to sell a vehicle in the Australian State in which it registered.

 

If your car wasn’t registered in WA, you will need to re-register the vehicle accordingly. This can be difficult and expensive. It may be best to avoid purchasing a vehicle registered outside WA, or agree upon the purchase of the vehicle only when the current owner registers it in WA first.

 

Please also check to see if Consumer Protection has any material on buying second hand or new cars.