The Consumer Protection Act does not cover a private sale, so you do not have an implied warranty to fall back on if the car has defects.
Buying a car from a private seller can really be tempting, but you have heard so many stories about what happened to other people when they met a private seller and were robbed or even murdered. But what should you do if you find a really good deal from a legitimate private seller?
You can usually save some money when you buy a used car from a private seller, but it also has some risks you will not face at a dealership, Ernest North, co-founder of Naked, a digital insurance platform, says.
“To ensure that you make a wise purchase, you must ask the right questions, ensure the paperwork is in order and take some common-sense precautions.”
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Keep these tips in mind when you buy a car privately
North has these tips to keep in mind when you buy a car privately:
#1: Do your homework on pricing
Before you even phone the seller of a car that catches your eye, check the average price of similar models online (try sites like Cars.co.za or AutoTrader). You should not only avoid cars that are too expensive, but you must also beware of cars that seem like a massive bargain.
#2: Ask the right questions when you buy a car privately
Before you even meet to view the car, collect some basic information about the car. It is a red flag if the seller is unwilling to answer questions on the phone and insists on interacting only through text messages or email. Some questions to ask include:
- How old is the car?
- How many previous owners did the car have and for how long did the most recent owner have the car?
- What is the current mileage and what was it when the seller bought the car?
- Was the car involved in an accident or have major repairs?
- Is there outstanding financing on the car?
- Does the seller have the service history logbook and a roadworthy certificate for the car?
- Why is the seller selling the car?
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#3: Meet in a public place
If you buy the car from a stranger, the next step is to view the vehicle. Meet during the day in a public area to ensure you are safe. Avoid remote or private locations and always get the full address in advance.
Also bring a friend or family member with you if you can, and let someone else know where you are or even drop them a live location on your phone.
#4: Inspect the car
Look for signs of wear and tear or damage to the exterior, interior and engine of the car, paying special attention to the tyres and brakes, lights and electrics, fluid levels and leaks and windscreen and wipers.
Bonus tip: If you are not confident in your own car knowledge, you can pay for a professional inspection via a provider like DEKRA if you want to buy the car.
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#5: Take the car for a test drive
If you consider making a serious offer for the car, ask to take it for a test drive and drive it for at least 20 minutes and pay attention to things such as braking (try a safe emergency stop), handling and steering response, gear changes and any strange noises like rattling from the engine or grinding from the brakes while the windows are down and the radio is off. Also turn the car off and restart it to test the ignition.
Bring your driver’s licence with you to show the seller. Also ask to see the seller’s insurance details since you could be held liable if you have an accident and the car is not insured or if the insurance only covers the driver’s named in the policy.
#6: Confirm the car’s documentation is in order
Before any money changes hands, ask the seller for original copies of the registration documents in his or her name and ask to see his or her ID book, roadworthy certificate that is valid and current, proof of ownership and full service history.
Also check that the vehicle identification number (VIN) and engine number match the documents and ask the police to confirm the car is not stolen.
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#7: Look out for signs of a potential scam
Red flags include a price far below market value, a seller who avoids calls or insists on email messages or who pushes for a deposit before you have seen the car. Also beware of a seller who does not have the original paperwork or asks you to pay money into a foreign bank account. If anything feels off, walk away.
#8: Payment and ownership transfer
Avoid paying cash. Bank transfers are safer because you will have a paper trail. If the car still has outstanding finance, the seller must settle it before you make the full payment. Never hand over money without seeing the car and paperwork first.
#9: Put it in writing
Create a contract with detailed information about both parties, the car and the sale terms to protect both of you. Include details such as your ID numbers, full vehicle details (make, model, VIN, mileage, registration number) and terms and conditions (such as ‘sold voetstoots’ or ‘seller agrees to fix faulty brake light before transfer of ownership’).
ALSO READ: Car tips: How to change ownership when buying or selling privately
#10: Register the car in your name
After the sale, transfer ownership at your local traffic department. You will need the roadworthy certificate, sales agreement, proof of residence and a copy of the seller’s ID. This step is essential because until you register it, you do not legally own the car. Also remember to get insurance before you get behind the wheel.
This graphic sums up the advantages of buying a car from a private seller or dealership:
