When looking to buy a car
to travel our amazing country, you have three practical options:
1.
Buy from a dealer with a guaranteed buy-back offer
2. Buy from
a regular dealer
3. Buy privately (either from a fellow
backpacker or a local)
Option 1. Dealers with guaranteed
buy-back offers
There are several specialist dealers that
offer to sell you a car, 4x4 or van, with a guarantee and a fixed
buy-back price at the end.
There are obvious advantages and
disadvantages with these deals.
You will pay a more
than street market value for the vehicle, but with a guarantee and a
fixed buy-back at the end, a good dealer is usually only making a
fair working profit margin.
In addition, service, safety check and
registration are generally completed by the dealer, possibly saving
$1,000+ that is often forgotten in a private sale!
Friendly
support from the dealer also is a nice thing to have, often there
will be maps, recommended routes, roadside assistance, telephone
support, roadside assistance and helpful advice provided.(dealer
dependent)
Sometimes the car may even be provided with camping
gear.
Cost? An example, maybe you buy a Ford Falcon from a
'buyback-dealer' for $5,500 and get a guarantee to buy it back from
you at the end of your trip for 40% of that value ... ($2,200) ... so
the car would depreciate in value by $3,300 over the time that you
owned it.
If you kept the car for 6 months, that is $550 per
month, or ~$18 per day ... not too bad when compared to
rental?
HOWEVER - you bought the vehicle, it is YOUR car, so
you have the option of selling it before you are due to
return it.
If you can sell the car (via advertising it FREE @ BCC
for example!!), you will stand a good chance of getting more than the
guaranteed buy-back, making the whole deal a lot more
attractive!!
Can't sell the car and need to fly home? Return it to
the dealer for your buy-back money ... easy, no last minute stress
:-)
In the case above, you would not get $5,500
for the car in a private sale, but every dollar above $2,200 is a
bonus - agreed?!
If you are planning on traveling for more than 3
months and want to de-risk the ownership
experience, a buy-back dealer can be a good option, especially if you
manage to sell privately before the return.
Use BCC to
pre-advertise your car / van / 4x4 as soon as you buy it, regardless
of where you bought it.
We have a future sales board, that allows
backpackers en-route to Australia to check out your car before you
even get to your destination!
http://www.holidaycarclub.com/forum_au/index.php?board=114.0
Profile
of a person buying from a buy-back dealer?
Person who wants to
maximise their time here having fun, does not want the uncertainty @
the end of the trip on how they will sell their car.
Sell and go
mentality, happy to pay a premium for less hassle.
Option 2. Buy
from a regular dealer
Buying from a regular dealer can be
intimidating and there are bad car dealers in the world!
We
suggest looking for a specialist dealer that has a reputation for
looking after backpackers.
There are some recommended dealers
coming in from backpackers and we will add them to the review page
as they come in.
All dealers are obliged by law to make sure the
car has clear title, this means it is not stolen and it is free of
finance.
A good dealer should also help with the registration
process.
Buying from a regular dealer will get
you a car for “less” money than a buyback-dealer, but
you will need to sell it!
Profile of a
person buying from a regular dealer?
Person who does not want to
pay the premium of a buy-back dealer and therefore has allowed extra
time at the end of their trip to
sell their car.
Option 3. Buy
privately
Obviously buying and selling privately
allows you the maximum choice of vehicles and prices.
In many
cases, you will probably be able to pick-up a car in a private sale
at a bargain price, but there are risks and you should understand
what you are getting into.
Note:
You should budget at least $1,000 on top of any private sale
to cover a safety check, a service and registration fees /
charges.
It certainly is possible to buy privately and thousands
of backpackers buy and sell cars privately each year, but getting it
right is important to ensure you are legal, covered by insurance and
safe.
More than 4,000 private backpacker sales were recorded on
the BCC site in 2009 and 2010 and can be viewed here for
research:
http://holidaycarclub.com/forum_au/index.php?board=117.0
Buying
a private car? What could be easier?
Pay some money ...
drive away?!!!
If you buy a car privately, there are some things
to consider and complete to make sure you are 100% legal!!
At
minimum :
1. You need to register your new car in your name
(vital)
2. You need to make sure you have proper
insurance (vital)
3. You need to understand the length of
registration a car has.(important)
4. You need to get a
service and safety check.(important)
Registration
There
are 8 states / territories in Australia. (NSW, QLD, NT, WA, SA, VIC,
ACT and TAS)
Cars are registered to a state, if you look @ the
number plate of the car, you will instantly know which state the car
is registered too.
If you double check the windscreen sticker,
you will see how long the registration lasts.
The sticker on the
windscreen is paired to the registration document. Often the
registration document is mistakenly referred to as the blue slip,
(as it is a blue document!!) however the blue slip is actually the
paper you get after the safety inspection you get when you transfer
a car from another state to NSW!
Do not take the
windscreen sticker as proof of legal registration!!! The paperwork
must also be in order.
If you transfer registration from one
person to another, you will need to let the registration authority
know. Some states are easier than others in this regard.
If you
don't do this and you are stopped or have an accident, you will face
severe financial penalties, possibly in worst case imprisonment and
or deportation!
Transfer of Registration
The
trickiest part, but do not skip it!
With eight states,
each with slightly different rules, this is a hot and difficult
topic.
Cars from WA, QLD, NSW and VIC are the four most commonly
listed states for cars on the BCC site.
VIC and QLD insist
that the car has a safety inspection before it is offered for
sale.
This makes private interstate sales of QLD and VIC cars
hardest, however if the car has a valid safety certificate, it 'can'
be sold anywhere.
You will need a permanent address in the
registered state to transfer the car into your name and the
registration document will be posted there, so you can't give a
false address, call a hostel in that state and make sure they are
happy to hold your mail until you arrive!
Note: QLD will
still insist the buyer is in QLD within 14days of sale to attend the
registration office though!
NSW cars have an annual safety
check (similar to the MOT in the UK), however it is required that
the buyer attends the registration office in person within 14days of
buying the car.
This makes selling a NSW registered car tricky if
outside NSW, but easier when buying or selling in NSW.
WA
allow Internet transfer.
This makes WA the easiest registration
for backpackers to buy and sell anywhere!
If you buy a car
that does not allow mail or Internet registration transfer,
you will need to register the car again in the state you purchase
it.
This will usually involve an inspection, a government fee
and some taxes. You maybe able to get a small refund from the
original registration state.
The easiest and probably the
best thing to do is buy (and sell) a car registered in the state
where it is registered too.
You can use the BCC
forum for help and advice / tips from the BCC community of
members.
The pink
slip, the blue slip and the green slip ... what are they?!!
(NSW)
In NSW the Pink slip
is the safety inspection ... and is a written record of the
annual safety inspection needed to complete re-registration. (cars
over 5 years old)
Many NSW cars nearing the end of their
registration time are advertised for sale with a new pink slip.
The
idea being that the new buyer only needs to purchase a green slip
and pay the government charges for the re-registration. (fixed
costs)
The pink slip is good to have, as it lets you know the
basic safety items meet minimum state standards, e.g. brakes and
lights work, tires are okay etc.
The pink slip does not
cover the engine, gearbox or anything else ... so don't take a pink
slip as anything other than the minimum safety check!
In NSW a
Blue slip is also proof of a
safety inspection. The blue slip is only required if you are
transferring a car from interstate, for example a QLD car being
registered in NSW would need a blue slip.
The blue slip check is
a little longer and covers more detail than the pink slip.(see the
forum for blue slip mechanics)
In NSW (and other states) the
Green slip is the
mandatory third party insurance required to complete registration.
It is not refundable unless you scrap the car or transfer to a
different state. The green slip is linked to the registration of the
car, so if you buy a legally registered car, the green slip must
have been valid at the time of registration and covers the duration
of the registration.
Your green slip covers injury to other
people if your vehicle is involved in an accident.
Your green
slip does not cover damage to property, other vehicles or to
your vehicle, nor does the green slip cover theft.
Insurance for
those occurrences is obtained through a third party property
policy.
We strongly advise and recommend that green slip
insurance needs to be supplemented with third party property
insurance.
Why? If you scratch, bump or scrape something,
without third party insurance you will pay out of your own pocket!
There are some expensive things you can damage, so purchase
insurance to cover the unexpected ... Third Party Insurance it is
not that expensive!
Call around NRMA, AAMI, GIO for quotes ...
you can normally get a pro-rata refund when you sell the car.
(pro-rate refund is the money back for the time you don't own the
car anymore!)
You can also get a quote for insurance from the
travellers-autobarn or the Kings Cross Car Market (which is no
longer a car market, but still exists as a car dealership).
As
an overseas visitor, your green slip may vary wildly from $300 to
$600 +
The registration document itself, is proof of
ownership, although the document is not proof of clear title. (see
below)
Ensure that when the owner offers a registration
document, it has the official annual payment receipt box filled in.
If it doesn't, it may actually point to the car being
unregistered ... double check this.
In some cases the receipt
number maybe written in pen, if this is the case, a quick phone call
to the registration office will confirm its validity.
Do not
take the windscreen sticker as proof of registration!!! The
paperwork must also be in order.
Proof of clear title
You need to make 100% sure that the person you are buying the
car from is the person who is the registered owner. If you don't,
you may end up buying a stolen car!!
You should also ensure that
the car is not financed and there is no outstanding debt.
When
buying the car, always ask to see proof of identity and make a note
of license and / or passport number on your receipt.
Of course
make sure the identity (passport and / or drivers license) maps to
the name and address on the registration document!
In regard to
finance, you can run what is called a REVS check against the car. To
complete this, you will need the chassis (or VIN) number, engine
number and registration number.
Example for NSW revs
check:
https://online.revs.nsw.gov.au/revs/public.htm
There
are other useful links in our forum.
Address
You
most likely don't have a permanent address, but the registration
authority requires one!
Most hostels will allow you to use their
address, but will return mail to sender after two weeks. (double
check this with your hostel manager)
In many cases if you are
buying a car from a backpacker / traveler, you will obviously note
that the seller has a hostel address ... this is un-avoidable and
fairly normal.
A better option is to use a mail service such as
Mail4ward. There is a Mail4ward discount
in place for BCC users.
From just $10 per month, mail4ward will
provide you with a permanent address!
(Note: we are not
paid in any way for recommending Mail4ward!!)
The Car
!
Obviously don't pay too much for a car!!!
You can use
BCC to check what cars are being bought and sold for at the
moment.
Note: Advertised
price does not reflect the value / final sale price!
Redbook
can be used as a guide, but the variation in the price of older car,
4x4, vans and campers in particular is not black and white.
Long
registration, good condition and camping gear may increase the price
by several thousand dollars from a car of the same age in poor
condition, with short registration and no camping gear. Redbook is a
very good guide for newer cars, not so good for backpacker
cars!
Ten or twenty years will also lead to major variations
in condition.
An old car in good condition maybe worth more and
be easier to sell (important!!) than a similar age/model car in
average or poor condition.
Obviously this car will be with you
for a long period of many months and be in your photos and memories
forever ...!
Included items such as good camping gear maybe a
reason to pay a little more than average ...
Length of
remaining registration should have a significant bearing on
the value of the car.
Re-registering a car has expenses involved,
so the longer the rego the better ... in some ways the shorter is
also good, because the price should be much lower, perhaps by more
than $1,000 ... but you will need to do more work and have some
risk, i.e. pink slip or blue slip and green slip expenses.
Drive
the car yourself or a have a mechanically minded friend drive it,
then if initially satisfied, have the car checked by a certified
mechanic before you part with cash. We have quite a few recommended
mechanics in the forum.
It is always good advice to have the car
serviced when you buy it, so when talking to the mechanic and asking
for a mechanical check, let them know if the car is okay you will
come back for a service. (ask for a price, servicing prices
obviously vary from car to car, place to place and is kilometer
dependent)
Tell the garage you are intending to drive around
Australia and ask for the hoses and radiator to be double checked
... loosing water in the dessert is not good ;-)
Station
wagons (estates) are popular with travelers, for the simple reason
you can get more stuff in them + even sleep in them!
Buy a car
with an eye to selling it ... if you can get your money back or
something close, then you are way ahead of the rental / buy-back
curve!
Buy the wrong car or fail to sell it, you may wish you
rented!
As a general rule, stick to major Australian
or Japanese brands ... if you need a spare radiator @ Three
Ways Junction (middle of the country), your lovely European car
could be sitting waiting for skills and parts for a long
time!!
It is easier to sell a $2000 car than a $10,000 car
... $2000 to $3000 and you have a good chance of buying and selling
a good private sale travel car with registration.
Van's and 4WD's
will obviously be more expensive and cost more to run ... do you
need a 4x4? Do you need a van ... or is a tent okay ... there is no
right or wrong answer!! It depends on where you are going and what
you are doing .... our research shows 39% of people believe cars are
the way to go, but over the same sample period, 45% went for vans
and 16% for 4x4's.
Remember the tourist industry is seasonal,
so it is considerably harder to sell your car in winter than
summer.
If you are planning to leave outside of summer, be
prepared to slash the sale price, or re-consider buying from a
buy-back dealer!
Profile of a person
buying privately?
Bargain hunter with spare time at the beginning
and end of the trip ... cash poor and time rich.
Insurance
Don't
forget to get car insurance. This is not about protecting your van,
it is about protecting your pocket!
If you crash (or bump!)into
another car, who will pay for 'their' damage?
Take out at very
minimum Third Party Property insurance.