How to stay safe buying a car online

The purchase of a car, whether it's new or used, a first car or a retirement car, is an exciting prospect and one that's generally not undertaken very often.

Conducting such an expensive transaction online can also feel somewhat daunting, especially when it comes to concerns about safety and security.

As with any online purchase, it's crucial that you have your wits about you to manage your purchase in the safest way possible. So, what exactly can you do to minimise potential risks? Here are a few tips from our experts.

Keep records! It sounds obvious, but it's too easy for important information to go missing. It pays to be thorough and keep written records of important documents, including written confirmation of a deposit, which should include signatures from yourself and the seller for proof of payment.

You should also keep the seller's details – including their phone number – and the car's previous registration number (if applicable), as well as a copy of the ad, which is great for future reference and in case there are discrepancies.

Investing in a carsales vehicle history report will also provide peace of mind that you are purchasing a vehicle at its proper value. A vehicle history report delivers you a vehicle's complete history and helps to ensure you won't have to jump any hurdles later down the track.

When it comes to payment, keep yourself and your bank balance protected by using only trusted payment methods. These include cash, bank cheque or direct transfer to an Australian Financial Institution. Try to avoid making offshore payments via Western Union and PayPal. It goes without saying that the ideal outcome is paying into the seller's bank account at the very moment they hand the key to the car over to you.

Of course, if possible, a test drive is perhaps the most important aspect of the entire car buying process, so follow these simple but vital steps when you do so.

There are also pros and cons for buying a car from a private seller versus a dealer. You'll generally pay more at the latter, but buying from a licensed motor trader come with a number of clear advantages.

Last but not least, be suspicious. If something seems too good to be true, it generally is. Don't let yourself be rushed by the seller; check for whether the car is stolen, a write-off or previously flood damaged, and watch out for 'shell-trick'-style scams involving the transfer of funds. Make sure the car actually exists, and you're not being sold a vehicle that the 'seller' can't show you because they're not currently in the country.

Check for the warning signs: is the price much lower than what the car is worth or other similar vehicles? Have you been able to make genuine contact with the seller? Does something just not seem right?

Remember, we're here to support you along the journey of buying a new car. Our Customer Care Team is always on hand should you have any queries.

Tips for canny buyers