What features do you look for when buying a car? Reliability and price might be at the top of your list. Or perhaps it’s comfortable seats, a good sound system and air conditioning that matter to you. You might be looking for an electric/hybrid vehicle to lower your fuel costs and reduce your impact on the environment.

Whatever your reasons for buying a car, it’s important you know your rights and make some important checks so that avoidable problems aren’t part of your next car buying story.

Improved protections for used car buyers

You get more protections if you buy from a licensed dealer, and recent changes to second-hand vehicle dealer laws in South Australia give you even more protections.

Many cars come with a statutory warranty, and you can no longer waive your overall warranty rights. The dealer must fix certain defects, free of charge, when the vehicle is under warranty. If you buy an electric or hybrid vehicle, the warranty now covers the main propulsion battery.

The dealer should tell you about any known defects, and they can now negotiate a better price with you by informing you of certain defects that could be excluded from the dealer’s duty to repair. Such defects need to be recorded on a ‘Notice of defects’ form for you to sign so there’s a record of the specific defects and your agreement to exclude them from the dealer’s repair obligations. The car must still be roadworthy.

Protections that continue

Existing protections continue if you buy from a licensed dealer, including automatic guarantees under the Australian Consumer Law. For example, the car must be of acceptable quality, must match any sample or demonstration model, and must be reasonably fit for any purpose you have specified, such as towing a caravan.

Consumer guarantees cannot be removed, even if you agree to it. If a guarantee is not met, you have the right to a fix or solution.

Other existing protections when buying from a licensed dealer include:

• important details about the car are provided on the ‘white display sheet’
• you are guaranteed ownership of the car you purchase
• you get a two-day cooling off period, so you have some time to think about the purchase and change your mind if you want to. If you decide to cool off, you’ll need to notify the dealer in writing before the cooling off period finishes.

But it’s still important to understand your rights and the dealer’s obligations, and to take a car for a test drive before buying. Listen and look out for any signs of engine damage or parts that aren’t working properly.

Before buying an extended warranty, read through the details to find out what is covered, and check if the warranty gives you anything extra to your automatic rights under statutory warranty and consumer guarantees.

Buying privately

If you’re considering buying a car privately, don’t be rushed or pressured into a sale. Make some important checks to avoid disappointment or expensive repairs. You don’t want to be caught out if there’s hidden damage or other repair needs that the private seller hasn’t disclosed.

To reduce the risk with a private sale:

• take the car for a test drive
• ask a qualified independent mechanic to inspect the car, as the cost of a mechanic inspection could be much cheaper than repairs needed after the sale
• Check the government’s Personal Property Securities Register (visit ppsr.com.au) to find out if the car has been stolen, flood damaged, written off, or if money is owed on it, as you don’t want the car you buy to be repossessed due to someone else’s debt
• don’t sign anything until you’re confident the car is in good condition and the deal is right for you.

For more information

See helpful tips about buying a used car in the new short videos:

• Buying a used car? Avoid hidden damage
• Buying a used car? Know your rights.

Visit cbs.sa.gov.au/cars for more information and use the checklist to help you make the right purchase.