What to look for in a used car

It’s a good time to be buying a car if you know what you’re doing, if you don’t it could cost you plenty.

With the cost of living squeezing wallets, Aussies are making big changes to their budgets, including reassessing their vehicle – from trading in expensive vehicles for affordable alternatives to opting for a used car instead of a new one.

Car dealers are reporting an oversupply of used vehicles, with prices falling in a “buyer’s market” as second-hand cars take longer to sell.

Whether you’re looking for a new car or trading one in, there are a few things you should look out for to ensure your purchase doesn’t turn into a financial headache.

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But while it may be a smart move, financially, it may also be a major risk, especially if you buy a lemon.

A lemon is everyone’s worst nightmare: a vehicle that seems fine at first but can end up being costly.

Used car customers can mitigate risks with pre-purchase inspections and warranties that can help get you out of a jam.

Companies that offer pre-owned cars, such as Carma and Carsales Select, conduct checks of cars and offer a limited warranty to bring peace of mind.

Used car customers can mitigate risks with pre-purchase inspections and warranties that can help get you out of a jam. Picture: John Feder/The Australian.

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Carma spokesman Hugo Acosta says “four out of five vehicles on the road have some sort of conditional problem”.

“Our team inspects everything, down to the smallest details to ensure buyers avoid these costly mistakes,” he said.

Most drivers don’t have the expertise to spot a lemon, added Carma director of buying Peter Willis.

“Most buyers can’t tell the difference between a minor aesthetic issue and a major mechanical flaw,” he said.

So what are the red and green flags to look out for?

A full service history is important to consider. Picture: iStock

Red flags:

Inconsistent service history

If a car hasn’t been serviced on time or regularly, it could be a warning sign of underlying issues. Check log books to make sure cars have been serviced on time. If services are missing – or late – the car’s warranty may be void.

Heavy off-road use

Aussies love road trips and 4WD adventures but overlooked vehicles with rooftop tents or heavy racks can suffer from long-term performance issues, and these may even void warranties or insurance. Cars that spend a lot of time towing also undergo additional strain.

Performance car customers should look for signs the car has been abused on circuit, such as excess wear around the rims from trackside tyre changes, or underbody wear suggesting the car has been jacked up dozens of times.

Private sale

While private sale may seem like a bargain, they lack protections offered by a licensed dealer under Australian Consumer Law. Buyers could end up stuck with a faulty vehicle and no recourse. That said, a private sale is usually cheaper than one through a commercial service – often they just want to get rid of a car, rather than turning a profit.

Costly repairs

Luxury European vehicles can be tempting but maintenance and repair costs can be high, especially once the warranty runs out.

Before you buy, check if an extended warranty is available. Specialist mechanics can offer handy advice.

Luxury European vehicles can be tempting but maintenance and repair costs can be high.

Green flags:

Reliable brands

Not all mileage is created equal. Stick with trusted manufacturers when it comes to buying.

For instance, a Toyota with 100,000km on the clock might still have years of dependable service left, while a less reliable brand with the same mileage might be a disaster.

Extended warranties

Some brands have changed tune and offered five, seven or even ten-year warranties. These extended warranties can save you thousands in potential repairs cost and offer peace of mind.

Expert checks

Look for signs of wear, such as water leaks in small cars with more than 60,000km or transmission issues in utes over 50,000km. Ask the experts to run simple tests like checking for fluid leaks or ensuring smooth gear transitions.

Originally published as What to look for in a used car