Buying a used car from a licensed motor vehicle dealer is often more expensive than buying privately but it offers the greatest protection. Licensed motor vehicle dealers are regulated by the law and must give certain guarantees that do not apply to private sellers.

One of these guarantees is clear title. This means that ownership of the car will be passed onto you in the sale and the car cannot be taken from you (repossessed) because of someone else's debt.

Licensed motor vehicle dealers must also provide a statutory warranty for cars that are less than 10 years old and have not travelled more than 160,000 km. If the car is sold without a statutory warranty (it's over 10 years old or it has travelled more than 160,000 km) then it's possible to buy an extended warranty from the car dealer. However these warranties are often quite limited in the cover they provide and the conditions should be read carefully before purchase.

Important

If you choose to buy privately you won't get any warranty and you will need to check for clear title yourself. You can do this by contacting the Personal Properties Securities Register (PPSR on 1300 007 777 log on to PPSR