What are the common traps when buying privately?

Used-car buyers are generally more comfortable purchasing a car from a private seller than from a dealer. With the dealer, the negotiation is between the buyer and a seasoned professional who knows precisely which levers to pull and which buttons to push.

With a private seller, however, the playing field is level. Or is it?

Private sellers are under an obligation to describe the car for sale truthfully and deal with the buyer in a fair and equitable transaction. That said though, there are few if any repercussions for the seller who isn't entirely straight with the buyer.

If the buyer purchases a lemon, getting compensation can be difficult, time consuming and costly. Even when there is clear legal comeback, the very first roadblock may be the private seller's location. They may no longer reside at the 'last-known' address.

There are no ironclad procedures in satisfactorily finalising a private sale, but for starters, assess whether the vendor lives at the address or is just using it as a temporary base. It is not unreasonable to ask for proof of ownership and to take down their license details.

If anything makes you uncomfortable or their explanation doesn't add up, walk away. There are plenty of other cars for sale.

After you have made a thorough inspection and taken a test drive, take a deep breath. Do you really want this vehicle? Do you need time out to think about it?

Negotiating a 10-minute walk around the block might be the best first step in any used car purchase, as it gives both parties time to consider their position. If the asking price is too high, this is the time to decide on a bottom line figure and stick to it!

Do not indicate any interest or intention to buy unless the price is what you want and you are ready to make a commitment. Some sellers are very good at making you feel obligated to go through with the purchase.

While we always recommend buyers (and sellers) stay calm, friendly and rational during the negotiation for a car, buyers should be aware that many private sellers are taught the same selling and closing techniques in their jobs as the most accomplished used car sales staff. Don't underestimate the seller's abilities just because you are in someone's backyard, and that someone works as a 'clerk'.

Does the person you are dealing with have the authority to negotiate the terms of sale? Make sure that the vehicle is owned by the person who is selling it -- because if you later find out it has been stolen or sold without the owner's knowledge, you have no legal right to keep it.

At this point too, it can be helpful to know the approximate cost of any repairs so that they can be taken into account during final negotiations. Before making an offer, be very clear on who is going to pay for any faults that you have found. If a vendor is not being realistic, politely walk away. Don't slam the door on a deal when either party may think differently on reflection. 

If you don't know what needs spending on the vehicle, now is the time to bring in the experts. Before you do this, you will need to negotiate a way of holding the vehicle until you get the inspection results. If you make an offer, put a time limit on it so your offer is not used to jack up someone else's. 

Even if you reach a final price but don't yet know the results of an inspection, you will need to clarify that the price only holds on the basis that everything will check out. You will also need to negotiate an exit clause, or how you will re-negotiate the final price if the experts find unexpected faults.

Most vendors will expect you to leave a deposit if they have to take the car off the market for your inspection.

Make sure that these conditions of purchase are written down, including the terms surrounding the payment of a deposit and its refund if a pre-purchase inspection does not meet your satisfaction.

If a car is to be supplied with a current roadworthy certificate (RWC) you have every right to expect it to meet the required standards. Most states will act on dodgy licensed vehicle testers but getting satisfaction can be time-consuming. Do NOT rely on any state roadworthy test as a pre-purchase inspection.

If a vehicle is not being supplied with a RWC or equivalent, be aware that the vendor in most states must hand back the registration plates. Unless the vendor delivers it to you before removing the plates, this will leave you with an unregistered vehicle to pick up.

Before you leave the vehicle after paying the deposit, be aware that the time between paying the deposit and taking delivery is when things can often go wrong. Dodgy sellers can swap tyres, batteries and wheels or remove accessories and other items, then claim they were never there. The movie classic "The Big Steal" was not too far removed from the way the worst private sellers behave.

A quick runaround with a digital camera inside and out and under the bonnet is the best defence against any dishonesty in this area. Use the time while waiting for the inspection to verify everything you can about the car including registration and finance history, service history and repairs.

Clarify what happens if the car has been damaged or key features have been removed when you come back to pay the balance.

If you have paid a deposit and made a commitment to purchase the car as first presented to you, it is not unreasonable to note the speedo reading and specify that the car must not be used until you return with the balance. If the vendor still needs or wants to use the vehicle, negotiate the terms under which you expect your deposit back and the sale to be made void if anything happens to the vehicle.

If a car is subject to a financial agreement, verify the exact amount owing and how this is going to be paid out before you hand over your money. Let the seller know that you're aware the car remains subject to finance from having arranged a Personal Property Securities Register (PPSR) report through carsales vehicle history report. The sale of the car will be contingent on the seller providing proof that you, the buyer, won't be left paying the outstanding money owing on the loan. Not directly, at least.

Genuine vendors should not have any objections to these procedures when it also protects their interests and ensures that a sale will proceed as smoothly as possible.

And don't forget to arrange insurance cover -- the vehicle becomes your responsibility once you hand over the money.

Buying a car privately