Date 15 March 2021
Legal Aid Queensland is calling on used car buyers to do their legal homework before signing a contract or paying a deposit on their new daily drive.
In time for World Consumer Day (Monday March 15, 2021), Legal Aid Queensland has released a new episode of its Law for All podcast called Legal Tips and Pitfalls: Buying a Used Car In Queensland
Principal lawyer and consumer advocate Paul Holmes said he and his colleagues regularly received calls from people who had problems with their car purchase.
“One of the most common calls we get is when someone’s bought a car and as they're driving away from the car yard, it breaks down, or it breaks down within a week of purchase and quite understandably they’re upset it’s lasted all of about five minutes before they’re having to pay to get it fixed,” Mr Holmes said.
“The other classic example we see is when a person buys a car privately and the seller hasn’t told them the car is secured against a loan and a few months later somebody knocks on the new owner’s door saying they're repossessing the car.”
Mr Holmes said prospective car buyers needed to be aware different rules and protections apply when it comes to purchasing a secondhand car.
Before buying a car from a private seller, people should consider:
- Checking the car’s market value (this can be done online)
- Organising an independent check of the car which should include a written report
- Checking the Personal Property Securities register (www.ppsr.gov.au) to see who has an interest in the car and
- Ensuring the registration is transferred through the Department of Transport and Main Roads.
He said overall people buying a car through a car yard do have better consumer protections, but they still should do market value and independent mechanical checks, and also:
- See what finance options are available through lenders if you need finance for your car purchase
- Don’t sign any document without reading it properly and understanding it first before signing it
- Don’t drive the car out of the car yard during the one business day cooling off period, otherwise it no longer applies, unless it is for a test drive, or independent mechanical inspection.
He also warned people not to feel pressured by either private sellers or car yards to buy a car unless they were sure they were comfortable and happy with the purchase.
For more information about consumer rights, go to legalaid.qld.gov.au/consumerrights, or call 1300 65 11 88.
Legal Aid Queensland’s podcast can be found at lawforall.podbean.com or is available wherever you find your favourite podcasts.
Media contact:
Amanda Catania (07) 3917 0407 or Caroline Page (07) 3917 0406
Last updated 15 March 2021