Buying and selling a car...pitfalls and advice.

Road Trip! =)

We are currently in Melbourne and looking to buy a car to travel up and down the east coast. Our flight out of Australia is already booked out of Brisbane at the end of July. From reviewing the posts so far it is evident that buying in one state and selling in another is a tricky matter. However I'm still not quite clear on all the nuances. What advice and warnings would you give about buying a car in Victoria and selling it in Brisbane when we're finished?

- Would it be best to buy through a place like Autobarn who not only has a buyback guarantee but also has a location in both cities?
- When buying from another backpacker - should we be looking to buy a car registered in victoria (where we start)? in queensland (where we finish)? western australia (where registration changes can be done over the phone)?
- How will the car's out of state registration affect the eventual sale? What will my costs be and what must I have done to make the car marketable in Brisbane? (assuming it has out of state rego)

Any advice would be greatly appreciated.

There's a view on here that some very old cars circulating in the backpacker market are quite over-priced, however you are more likely to find a Qld-plated vehicle in that market. Certainly have a look at Trading Post (online) to see what vehicles are going for in the wider market, and also the hard copy papers here in Melbourne. At least you will have a better idea if looking at backpacker vehicles. Just because someone paid $3,000 for a vehicle and had no toruble for 10,000 km doesn't mean it is worth paying that, if the same vehicle can be got for $1,800 in the wider market. All that other stuff - camping gear and so on - can be picked up second hand or even new very cheaply.<BR><BR>Certainly look for a vehicle that has registration running well past July - three months more at least if possible. I think if you find a suitable vehicle (and to be honest you don't need much for an east coast roadtrip - it's all flat and all bitumen) then you should be able to sell it in the Byron / Gold Coast / Brisbane area for a reasonable price. If you arrive in your last destination (Noosa, Gold Coast, Byron, etc) a couple of weeks prior to your flight, you shuld be able to sell - you won't need a car for the last period anyway. As to your main question - the importance of the plates - I wouldn't worry too much about that if the rego runs long enough. But if you see a reasonable Qld or NSW vehicle in Melbourne, might be worth paying a little extra for it.<BR><BR>From experience - a largish hatch or station wagon is REALLY worth looking for, for a roadtrip. Even a Corolla Hatch is pretty good. Get a tent too - camping is great and saves you much money. Good luck.

Thanks for the advice Ian! =)

A couple of additional items come to mind based on your response:

1) If, for example, we do find a Queensland plated car registered until July (past the end of our trip) does that mean we don't need to get an inspection when we transfer the rego?

2) If the car is out of state it still needs to have its rego transfered into our name immediately does it not? How is this done if we aren't actually in Queensland at the time we purchase it?

3) If we found a car registered here in Victoria would you suggest that we register it for several additional months so that when it comes times to sell it person buying it (potentially a backpacker) could make it back to Victoria to renew the registration.

4) If it did have out of province registration at the time of sale (in Brisbane) could pawn it off on a used car dealer (as a last resort) for a bargain basement price and have it be still worth their while? I assume it would still be worth some money even if it was out of state?

Thanks

Hi<BR><BR>(1) I don't know the details for each state, but in general the simple transfer of ownership does not require an inspection for roadworthiness. If the amount of registration does not exceed July, really, I wouldn't buy it - there are plenty of cars on the market. There might also be difficulites with a Qld vehicle trying to re-register it (either at the same time as ownersihp transfer or not) out of state. And with no address in the state for either ownerhip or vehicle registration, or both. In The FAQs there are links to each of the states' department of motor vehicles, and the procedures will be set out there.<BR><BR>(2) I think I covered that above, but it is good point. I have transferred ownership of many cars in my time, but I have always been a resident of - and physically in - the state/territory where I m seeking to register and re-plate the vehicle. Maybe each state doesn't care too much - thousands of vehicles are bought and sold by travellers, so it must be possible - even easy.<BR><BR>(3) I wouldn't bother registering it further than the registration it currently carries (make sure it is August or later) - I think you can only do it in six or twelve-month increments in any case. If it is genuine car there will be a buyer, but very unlikey to be one who has a plan to drive it back to Victoria to re-register - possible but unlikely.<BR><BR>(4) Absolutely - there is the risk of over-stating the importance of the plate and state issue - cars are bought and sold all the time, but the biggest issue is where you are when the rego runs out, so for those travellers with a 12-month program it is important (which is why WA vehicles are an advantage apparently, but I still fail to understand how you do the process without a WA address - perhaps people make one up). In you case, just buy the best thing you can, definitely with rego exceeding August, and then it becomes the next person's problem. Good luck - sounds like you're on the ball. Make sure you &quot;kick the tyres&quot; really well - check mainly for oil and water soundness, and drive-chain integrity.

That's some great feedback!

I've gone to the FAQ and looked on each site...

Here's the low down on registering vehicles. This of course assumes that it is a transfer only (i.e. there is enough registration to get us to July as suggested in (1.). As long as there is registration to July and we have the prior owner's inspection certificate there doesn't appear to be any need for an inspection.

Queensland: unclear whether registration can be done by mail, phone, email (the website lists all methods, but also says "Lodge a completed registration transfer application form and certificate of registration at a Queensland Transport customer service centre" which is a bit vague, in my opinion - Does that mean in person or not?)

- transfer fee - $18.95
- vehicle registration duty - $2 for every $100 of value of car (> of mkt value or amount paid)

Victoria: can be done by mail
- transfer fee - $29.60
- Duty - $8 for every $100

NSW: must be done IN PERSON
- transfer fee - $25
- stamp duty - 3% of value

WA: can be done by mail or over phone
- transfer fee - $8.50
- stamp duty - 2.75% of value

SA: can be done by mail
- subsequent registration in different name - $13.00
- stamp duty - sliding scale up to $60 for the first $3000, $4 for every $100 after

It would appear that the only catches are:

1) NSW is the only one that must be done in person (and maybe QLD), so for my purposes these are out, i think.
2) For some you have to provide an address where the car is garaged - it has to be in the state (I'm thinking people just fib about this)
3) If doing it by mail you won't know what the exact stamp duty is and given that we'll be on the road there's no way for them to mail it to us directly. So I'm guessing we could just try to calculate it ourselves and send a cheque for the amount we've calculated along with the registration application in the mail. Or wait a week or so and the call them and pay over the phone.

Is that about right???

If you bought a NSW plated and registered car (likely to be the second-most common plates), you could just head off along the coast (very nice by the way) and complete the transfer at the first NSW DMV office in Merimbula, Eden, Bega - wherever it is. You get two weeks or so for this. So I wouldn't write off NSW car at all, if you see a good one. People must fib I agree - use a hostel address or something similar. If you do buy a car with non-Victorian plates, I am sure the local VicRoads office will still assist you, including giving you a figure for stamp duty and so on. There is an accessible VicRoads in Lygon Street Carlton, by the way.<BR><BR>The registration will contain a component for compulsory third party (personal injury) insurance in all states, except NSW I understand - where it is purchased separately, but is still compulsory. You do also have the option of buyingTPPDO (Third Party Property Damage Only) insurance - not that expensive and covers you for damage caused by you to other vehicles and other property. Can be a good idea - depends how risk averse you are. See the RACV for maps and lots of other advice (not sure it's worth joining for just a 3-4 month roadtrip). Have fun - it's an interesting drive - and don't neglect either the mountains or the islands.

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Another thing to check is that the vehicle does not have finance over it - although if you are buying a cheap backpacker type car, it is unlikely to. There is a state register of encumbered vehicles which provides this information for a nominal charge. If it does have finance over it, when you buy the car you are also buying the debt.

3rd party property damage insurance is a good idea IMHO. Even minor collisions will cost $5,000 and if you are unlucky enough to bang into an expensive car... well, it could be expensive.

Most cheap cars will have something a bit wrong with them, the things which off the top of my head could be expensive are:

- timing belt failure; timing belt should be changed every 100K km or so (likely to have been forgotten in an old car), if it is say 120K km on the clock (or has service records to show it has been replaced), it is probably a safe enough risk that it won't break.

- water in oil, indicative of cylinder head problem. Check oil for bubbles/signs of coolant in oil.

- dodgy suspension (obvious when you drive it)

- dodgy CV joints in front wheels in a front wheel drive car

- worn tyres... on a cheap car, new tyres are a significant proportion of the purchase price

- worn clutch or auto tranny which slips out of gear

Hi there, I bought one of travellers autobarn in Darwin and did the buyback in Cairns. No problems at all, you just have to be there at the date you discussed with them. We thought of buying a car of a guy we met in the hostel, but you never know what you get...he didn't know it either when he bought it :-)
Enjoy your trip!

If you don't have much experience buying or running a car at home, I you'll be taking a greater risk than you would otherwise.

Backpackers I have met look for particular models or particular types of car: Falcon, Commodore, Hiace Vans etc. Think outside the box. Something a bit unfashionable, slow etc.