Key Points
- There are three car-selling avenues in Australia: person-to-person, through a dealership or via auction.
- Things to consider when selling privately, include pricing, any repairs needed beforehand and in certain states a mandatory roadworthy compliance check.
- Completing a transfer of registration as required by your motor registry authority, is mandatory after selling your car.
For sellers of used cars in Australia, there is a big pool of prospective buyers to target.
According to recent , the used vehicle market is roughly three times the size of the new vehicle market.
But how do you go about putting your car up for sale?
The first thing to decide is whether to sell privately or through an accredited dealer or auction house, says Kathy Townsend, Director of Regulatory Engagement at New South Wales Fair Trading.
Credit: Alan Powdrill/Getty Images
An auction house is preferred for selling classic and collector vehicles, while a car dealer service is a good option when trading your old car for a new one or just wanting to delegate the selling process.
Person-to-person sales, usually via an online advertising platform like Facebook Market or another, is a common car-selling avenue for private sellers.
Ms. Townsend gives an overview of the paperwork you are expected to have handy when opting for a private sale.
concerned Asian Chinese mature woman comparing financial bill statement with bank on phone line Credit: Edwin Tan /Getty Images
Tips for a private sale
Kara Faella, Consumer Marketing Manager of online platform Carsales, shares the key factors affecting the success likelihood of a car listing.
- Transparency about your car’s history and condition, including any imperfections: “This will help when you do eventually meet with potential buyers in person during inspections and help avoid any awkward surprises on the day.”
- Your response time to buyers: “Responding to inquiries and questions in a timely manner is important […], And it's in your interest to do so because if the buyer is inquiring on your car, they're likely to be inquiring about other cars as well, so you want to make sure that you're jumping on the opportunity.”
- Negotiations and price setting: “The price will largely dictate the level of interest you'll get from buyers. Try to price your car within the recommended range around that true market value to help you attract interest. […] And if you can, allow a little bit of wriggle room in your listing price for negotiations, as well as know the lowest price you're willing to accept.”
Alex Forrest is the Manager for Vehicles and Fuels at the Royal Automobile Club (RAC) in Western Australia.
He says mechanical repairs on the car prior to selling can play a role in pricing and negotiations with interested buyers.
Often, you see that in advertisements. So, you know, that the car’s just been serviced, it's got new tyres, and that's something to make a potential buyer feel better about the car that they're going to purchase.Alex Forrest
“Typically, all those add-ons and optional extras that you can buy in the aftermarket don’t add much more to the value of the car, especially if the buyer has to go and modify the car again back to how it was before because they don't like those optional extras that are on it.”
Australia Explained - Selling your Car - woman driving a car Credit: FG Trade/Getty Images
Ms. Faella suggests ways to work around this.
“You can arrange to meet the buyer in a public place, for example, a shopping centre car park, where there are people around.
“With the test drive, you can ask to hold on to the car keys for the car that they drove to meet you or even hold on to their driver's license just as a bit of security when going on the test drive. And you can also go in the test drive with them and sit in the passenger seat.”
However, optional upgrades and modifications are not necessary nor always the smartest option before selling your car.
Australia Explained - Mechanic fixes engine Credit: Reza Estakhrian/Getty Images
Pre-selling and after-sale requirements
Depending on your state/territory, having your vehicle pass a compliance condition check before selling might be a prerequisite.
In Victoria, for example, you must obtain a roadworthy vehicle certificate before transferring ownership. But this is not the case for Western Australia.
“So, there's significant differences in the vehicle checks that are required by law across the different states in Australia,” Mr Forrest says.
“And then there are also the vehicle mechanical condition checks that that are not mandated, but they are highly recommended for people who are looking to buy a used car.”
Lastly, after you’ve sold your car, there are three key things to do:
- Contact your insurance and roadside assistance providers
- Make sure your tollway account is transferred to your next vehicle, and
- notify the motor registry office in your state/territory
In New South Wales, for example, you will need to notify Service NSW about the disposal of your car.
“This is important to do as soon as possible after selling because it'll stop you receiving any fines that might be incurred by the new buyer,” Ms Townsend from NSW Fair Trading explains.
Car repairman giving car keys to customer after success car repairing in garage Source: Moment RF / thianchai sitthikongsak/Getty Images
“Check with what your local state requirements are. They will change from state to state. But in most cases, you will have to notify whoever is your motor vehicle registering authority. And that's a fairly common requirement. It's just that the authority who deals with vehicle registrations will vary state to state.”
You’ve sold your car?
Congratulations! Here’s what you need to do next, depending on where you live in Australia.
