How to Buy Used Cars in Melbourne

How to Buy Used Cars in Melbourne: 14 Essential Steps

Buying a used car can be a daunting task, especially if you’re not familiar with the process. There are many things to consider, such as the condition of the car, the price, and the paperwork involved. It’s important to be well informed before making any decisions to ensure a smooth transaction.

That’s where Cash for Cars Melbourne comes in. With years of experience in the automotive industry, they have seen it all when it comes to buying and selling used cars. They have compiled a list of rules to follow to help you navigate the process and avoid any potential pitfalls.

Rules for Buying Used Cars in Melbourne

Here are some rules for buying used cars in Melbourne.

1. Budget

When buying a used car in Melbourne, it’s important to consider how much you can afford. As a general rule, your car payment shouldn’t exceed 10% of your take-home pay if you’re financing the purchase. However, Spend less if you have less money.

It’s important to remember that used cars will require additional maintenance, such as replacing tires, so it’s important to factor these costs into your budget. Additionally, don’t forget about other expenses such as fuel and insurance. If the car you’re considering is no longer under warranty, it’s wise to set aside some funds for unexpected repairs.

By carefully considering your budget and expenses, you can find a used car that meets your needs without breaking the bank.

2. Build a list of preferred models

It’s important to consider more than one brand to save money. Make a list of three cars that meet your needs and fall within your budget. Scrap Car Removal is a great resource to guide your choices. If you’re looking for a vehicle that’s less than 5 years old, consider a certified pre-owned (CPO) car.

The following is a list of preferred CPO models: Chevrolet Equinox, Ford Explorer, Honda Accord, Toyota Corolla, Nissan Pulsar, Subaru Outback, Hyundai Sonata, Mazda CX-5, Kia Sorento, and Volkswagen Jetta. All of these models come with long-term warranties backed by the carmaker. Remember that they must be bought from the same brand new franchised dealer in order to get the CPO benefit.

3. Check prices

The price of a used car can vary depending on where you’re shopping. There are many places to find used cars like dealerships, used car lots, CarMax, and private seller websites. Generally, private-party cars will have a lower selling price compared to other options.

On the other hand, certified pre-owned (CPO) cars will usually cost more due to their added benefits. To get an idea of what other buyers are paying for the same car models, you can check out Scrap Car Removal, which can be found on each vehicle’s inventory page.

4. Find cars for sale near you

It’s important to start your search by locating the available options in your area. One way to do this is by visiting the Facebook marketplace, which allows you to filter your search by various factors such as mileage, price, features, and distance from the dealer.

Other websites may also offer similar search methods to help you find the ideal vehicle nearest to you. By locating the used cars for sale in your area, you can save time and money while ensuring that you find the perfect car for your needs.

5. Car history report

It’s crucial to check the car’s history report. Unless you know the seller personally and trust their word, this step is essential. By obtaining a vehicle history report, you can learn vital information about the car’s past, such as whether it has a salvage title or if the odometer has been tampered with.

6. Contact the seller

One of the important rules to follow when buying used cars in Melbourne is to contact the seller first before visiting to see the car. This initial communication can help establish a relationship with the seller and verify information about the car. Private-party sellers can be asked about their reason for selling the car and whether it has any mechanical problems.

For dealers, a phone call or text message can ensure that the car is still in stock. It’s also important to wait until after seeing the car to negotiate the asking price, as you can tie your offer to the car’s condition.

If everything checks out, set up an appointment to test-drive the car during daylight hours to get a better look at its condition.

7. Car’s Condition

It is important to thoroughly check the car’s condition before making a purchase. This includes inspecting the interior for any tears or stains in the upholstery, as well as testing any electronic items such as music systems or monitors.

On the exterior, be sure to closely examine the car for any rust or damage to the paint. Checking the framing of the vehicle can also reveal important information, such as ensuring that the car is placed evenly and that there is nothing loose near the undercarriage.

Additionally, inspect the condition of the tires for wear and tear, as uneven wear can lead to alignment issues while driving. It is suggested to thoroughly inspect the engine for leaks, corrosion, and cracked tubes, and to check the oil and transmission fluid using a dipstick.

Finally, discuss the mileage with the seller in detail, as high mileage can indicate deeper problems with the vehicle.

8. Maintenance Records

One important aspect to consider when buying a used car in Melbourne is the maintenance record of the car. While some car owners keep detailed records of their servicing, others may not have any records at all. So talk to the seller about the car’s maintenance record.

If the seller has well-maintained records, you can use them as a guide for your own maintenance. If there are no records, you can still assess the car’s condition and determine how much servicing it may need. Always make sure to consider the maintenance record before making a purchase.

9. Registration Certificate

One of the most important things to do when buying a used car in Melbourne is to verify the authenticity of the vehicle’s registration certificate. It is crucial to ensure that the certificate is original and not a duplicate marked as DRC.

When purchasing a DRC, it’s important to inquire about its registration status. If you plan on moving to another state, you’ll need to register the car with that state’s RTO.

10. Car Insurance

Transferring car insurance to the new owner’s name is a necessary step. If the seller does not take care of this, it becomes the buyer’s responsibility to do so. Failure to transfer the insurance can result in legal problems if the vehicle is involved in an accident or other unfortunate events.

It is also crucial to check the extent of the insurance coverage, whether it is a Third-party Liability policy or a Comprehensive one.

When renewing your car insurance policy, it may be worth considering additional add-ons to enhance your coverage. One option is to purchase a new policy by terminating the current one.

11. Test-drive the car

It’s important to test-drive the car to ensure it’s the right make and model for you. During the test drive, focus on the car and check for certain things. First, make sure it’s easy to get in and out of the car without any discomfort. Check for enough headroom, hiproom, and legroom, including in the back seat.

Ensure the driving position is comfortable and that you can adjust the steering wheel and seats to your liking. Check for any warning lights on the dashboard, and test visibility and potential blind spots. Use your nose to check for any strange smells and inspect the tires and brakes.

Pop the hood to look for anything leaking or covered in oil. Finally, test the air conditioning and all lights before asking for the service records.

Rules for Buying Used Cars in Melbourne- Test-drive the car

12. Have the car inspected

One important rule to follow when buying a used car in Melbourne is to have it inspected by a mechanic before making the purchase. To find a reliable mechanic, you can read reviews on Google and Yelp. It’s recommended to invest in a pre-purchase inspection that typically costs between $100-$200, as it can alert you to any potential problems with the vehicle that you may not have noticed yourself.

Private-party sellers may allow you to have the car inspected without much resistance, while most dealerships will let you take the car to an outside mechanic for inspection at your own cost. If the car is already a certified pre-owned vehicle with a warranty, there may be little reason to have it inspected by an independent mechanic.

13. Negotiate a good deal

When buying a used car in Melbourne, negotiating a good deal is key. It doesn’t have to be a stressful experience if you approach it with a plan and reasonable expectations. Start by determining your maximum budget, but don’t reveal this number right away.

Instead, make an opening offer that is lower than your maximum price but still within the range of the average price you found during your research. Use this research to support your offer and show that you know what you’re talking about.

If you and the seller can come to a price that is near the average, then you’re likely getting a fair deal. Keep in mind that the seller may also dislike negotiating, so try to approach the process with a friendly attitude and willingness to compromise.

14. Get the paperwork done

One of the most important aspects of buying a used car in Melbourne is to make sure all the necessary paperwork is completed correctly. If you’re buying from a dealership, you will need to go through the finance and insurance office and sign the contract.

Take the time to thoroughly review the sales contract, which should list the cost of the vehicle, documentation fees, sales tax, license fees, and possibly a small charge for a smog certificate.

You might also be asked to buy extra things like warranties, anti-theft devices, service plans, or fabric protection. Make sure the title and registration are transferred before exchanging cash from a private seller. Closing the deal properly prevents post-sale issues.

Rules for vehicle registration and licensing can vary from state to state, so it’s a good idea to check with your local department of motor vehicles to ensure there are no past-due registration fees you would be responsible for. Finally, make sure you have insurance for the vehicle before driving it away. Once all the paperwork is done, it’s time to celebrate your new purchase!


In conclusion, buying a used car can be a daunting task, but with these rules from Scrap Car Removal In Melbourne, you can approach the process with confidence. Remember to do your research, ask the right questions, and always be willing to walk away if something doesn’t feel right.

By following these guidelines, you can ensure that you get the best possible deal and avoid any potential headaches down the road. So go ahead and start your search for the perfect used car today!