Buying a Used Car in Australia: What to Check Before You Hand Over a Dollar

A used car can be the smartest money you ever spend on transport, or the most expensive mistake you make this year. The difference usually comes down to about two hours of checking before any money changes hands.

Most bad used car purchases are not bad luck. They are finance owing that nobody mentioned, an odometer that does not match the service book, a recall that was never done, or a noise on the test drive the buyer talked themselves out of.

This checklist runs in the order you will actually do things, from the first search to the transfer papers.

Quick answer: research the price, run a $2 PPSR check on the VIN, match the VIN and odometer to the paperwork, check service history, keys and recalls, do a slow walk around and a cold start test drive, pay for an independent pre purchase inspection, then sort the roadworthy rules for your state and transfer the registration within the deadline. Never pay a deposit before the PPSR check.

Step 1: Research the car and the price

Before you look at a single car, decide what you need it to do and how much you can spend in total. Your budget is not the asking price. Add stamp duty, transfer fees, insurance, and a buffer for tyres, brakes or a service, because one of those will almost always be due.

• Shortlist two or three models, not one. It keeps you calm when a car turns out to be a dud.
• Track real asking prices for the same model, year, trim and kilometres for a week or two. Note how long cars sit unsold.
• Check the model's recall and known fault history before you fall in love with it (more on recalls in step 5).

Advertised prices are what sellers hope for. A car with full history and two keys is worth more than one without, so note what each listing includes. That becomes your negotiating evidence later.

Step 2: Run a PPSR check before you pay anything

The Personal Property Securities Register is the official national register run by the Australian Government. A vehicle search costs $2 online (or $7 through the assisted phone service) at ppsr.gov.au, and you only need the VIN.

The certificate tells you whether the car has money owing on it, has been reported stolen, or has been recorded as written off. If finance is registered against the car and the seller does not clear it, the lender may be able to repossess it from you, even though you paid in good faith.

• Search the VIN, not just the number plate. Plates move between cars.
• Run it again on the day you pay. Finance can be registered after your first search.
• Keep the certificate. It is your evidence if something goes wrong.

Rule of thumb: no clear PPSR certificate, no deposit. A genuine seller will not argue.

Step 3: Match the VIN, odometer and registration

The 17 character VIN is usually on the compliance or build plate, at the base of the windscreen on the driver's side, and stamped into the body. Check that every one you can find matches the registration papers and your PPSR certificate.

• VIN mismatch, scratched or replaced plates: walk away. That is not a negotiating point.
• Odometer: compare the reading with the service book stamps, any roadworthy certificates and old registration paperwork. Kilometres should only ever go up, at a believable pace.
• Wear versus kilometres: a worn steering wheel, sagging driver's seat and polished pedals on a low kilometre car deserve questions.
• Registration: check that the rego is current and the seller's licence name matches the registered operator. NSW offers a free online registration check that also shows recorded odometer readings.

Step 4: Service history and keys

A full service history is not just paperwork. It tells you whether the engine got fresh oil on time, whether the cambelt or transmission fluid was done when the maker said, and whether the car has spent long periods off the road.

• Ask for the logbook and invoices, or the digital service record from the brand's dealer network.
• Look for gaps of more than a year or more than the scheduled interval in kilometres.
• Find the next major service in the manufacturer's schedule. If it is close, factor in its cost.
• Ask how many keys come with the car. Modern smart keys often need coding to the car, and a replacement can run to several hundred dollars from a dealer.

Step 5: Check for open recalls

Recalls are free to fix, but only if someone books them in. Plenty of used cars change hands with an outstanding recall, including serious ones such as the Takata airbag recall.

• Search the official vehicle recalls listings on the ACCC's Product Safety Australia site (productsafety.gov.au) and the federal vehicle recalls site (vehiclerecalls.gov.au).
• Use the brand's own VIN recall lookup on its Australian website, or call a franchised dealer with the VIN. This is the most reliable way to confirm whether that exact car has been fixed.
• If a recall is open, ask the seller to have it done before settlement, or confirm you can book it in straight away.

Step 6: The walk around: tyres, brakes, panels, paint and leaks

Do this in daylight, on dry, level ground, and never in the rain. Water hides paint flaws beautifully.

Tyres

• Check tread depth across the full width. Uneven wear on the inner or outer edge points to alignment or suspension issues.
• Look for matching brands on each axle, cracks in the sidewall, and the four digit date code (week and year) on the sidewall. Old tyres harden even with plenty of tread left.

Brakes

• Look through the wheel spokes at the discs. A deep lip on the outer edge or heavy scoring means rotors are near the end.
• Ask when pads and rotors were last done, and check the invoice.

Panels and paint

• Crouch at each corner and look down the side. Ripples, mismatched colour between panels and uneven gaps around doors, bonnet and boot suggest past repairs.
• Look for paint overspray on rubber seals, badges and under the bonnet.
• Check the boot floor under the mat and the spare wheel well for creases, water or rust.

Leaks and the engine bay

• Look under the car and at the ground where it is usually parked for fresh oil, coolant or transmission fluid.
• With the engine off, check the oil level and colour, and the coolant level. Milky oil or oily coolant is a serious warning.

Step 7: The cold start and test drive

Ask the seller not to start the car before you arrive, and put your hand on the bonnet when you get there. A warm engine can hide hard starting, rattles and smoke.

• Cold start: listen for chain rattle, ticking or knocking in the first few seconds. Watch the exhaust for blue (oil) or persistent white (coolant) smoke.
• Warning lights: every light should come on with the ignition and then go out. A light that never comes on may have had its bulb removed.
• Drive for at least 20 minutes on mixed roads, including a freeway run if possible.
• Transmission: shifts should be smooth with no flare, slip or clunk. Test reverse too.
• Brakes: firm pedal, straight line stop, no pulsing or grinding.
• Steering and suspension: no pull, no clunks over speed bumps, no vibration at 100 km/h.
• Everything else: air conditioning, windows, locks, camera and infotainment.

Step 8: Get an independent pre purchase inspection

Even if everything feels right, pay a qualified independent mechanic or an inspection service to look at the car on a hoist. Expect to pay from about a few hundred dollars depending on the car and where you live. On a $20,000 purchase, that is cheap insurance.

• Choose the inspector yourself. Never rely on one suggested by the seller.
• Ask for a written report with photos and estimated repair costs.

A good report either confirms you are buying well or hands you a costed list to negotiate with. Either outcome pays for itself.

Found a car that passes all of this? Send us the listing or a dealer quote and we will tell you what it is really worth. If there is a better used, near new, demo or new option through our network, we will find it. Get help with your deal.

Step 9: Roadworthy and safety certificate rules by state

These rules are different in every state and territory, and they matter because they decide who pays for safety repairs. Here are the three biggest markets.

• Victoria: a private seller of a registered car generally needs to give the buyer a roadworthy certificate (RWC) from a licensed vehicle tester. It is valid for 30 days and is needed to transfer the registration, unless an exemption applies. See VicRoads.
• Queensland: the seller must provide a current safety certificate before disposing of a registered vehicle (other than to a dealer). For private sellers, it is valid for 2 months or 2,000 km, whichever comes first. See Queensland Government Transport and Main Roads.
• New South Wales: there is no roadworthy certificate for a private sale, but most light vehicles more than five years old need a yearly eSafety check, the pink slip, before registration renewal. Check when the rego is due and whether a pink slip will be needed. See Transport for NSW.

Remember that a roadworthy or safety certificate is a basic safety check on the day. It is not a mechanical inspection, and it does not tell you the engine or gearbox is healthy.

Step 10: The paperwork and the transfer

• Get a written receipt showing both parties' names and addresses, date, price, VIN, registration number and odometer reading.
• Pay traceably, ideally by bank transfer, and avoid carrying large amounts of cash.
• Rerun the PPSR check on the day you pay.
• Lodge the transfer quickly. Each state sets a deadline, and in NSW it is 14 days before late fees apply. Stamp duty is paid at transfer and is calculated on the price or market value, depending on the state.
• Arrange insurance to start the moment the car becomes yours, before you drive it home.
• Buying from a dealer? Read the contract, check what statutory warranty applies in your state and confirm any cooling off rights before you sign.

Your printable used car checklist

• ☐ Budget includes duty, transfer, insurance and a repair buffer
• ☐ Price researched across at least five comparable cars
• ☐ PPSR certificate clear ($2 at ppsr.gov.au), rerun on payment day
• ☐ VIN matches plates, papers and PPSR certificate
• ☐ Odometer consistent with service records and wear
• ☐ Registration current and seller's ID matches the registered operator
• ☐ Service history sighted, next major service costed
• ☐ Number of keys confirmed
• ☐ No open recalls (ACCC Product Safety and manufacturer VIN lookup)
• ☐ Tyres, brakes, panels, paint and fluids checked in daylight
• ☐ Cold start, 20 minute test drive, all features tested
• ☐ Independent pre purchase inspection report in hand
• ☐ Roadworthy, safety certificate or pink slip rules sorted for your state
• ☐ Receipt signed, payment traceable, insurance started
• ☐ Transfer lodged before the deadline

Frequently asked questions

How much does a PPSR check cost?

A vehicle search on the official register at ppsr.gov.au costs $2 online, or $7 through the assisted phone service. You need the car's VIN.

Is a roadworthy certificate the same as a pre purchase inspection?

No. A roadworthy or safety certificate checks basic safety items on the day it is issued. A pre purchase inspection looks at the overall mechanical condition and likely repair costs.

Do private sellers have to give a warranty?

No. In Victoria, NSW and Queensland, private sales carry no statutory warranty and no cooling off period. Licensed dealers must give a statutory warranty on eligible cars, and the rules vary by state.

What if the car has finance owing?

Do not pay until the seller's lender confirms the payout and the security interest is removed, or you pay the lender directly and get written confirmation. Then rerun the PPSR check.

Fees and state rules checked 3 October 2026 against PPSR, VicRoads, Queensland Government and NSW Government pages. Rules change, so confirm with your state before you buy. Images: Colin (CC BY-SA 4.0), Riley from Christchurch (CC BY 2.0), MediaPhoto.Org (CC BY 3.0), Simon Speed (CC0) and Envy fstop (CC BY-SA 4.0), all via Wikimedia Commons.