How to protect yourself when buying a car online in Australia

Published on: 19/10/2023

Buying a car online can be a great way to find a good deal, but it's important to be aware of the risks involved. Scammers are always looking for new ways to take advantage of people, and car buying is no exception.

Here are some tips on how to protect yourself when buying a car online in Australia:

1. Do your research

Before you even start looking for a car online, take some time to research the market. This will help you to understand what a fair price is for the type of car you're interested in. You can use websites like carsales.com.au and RedBook to get an idea of current market values.

2. Be wary of too-good-to-be-true deals

If you see a car that's priced significantly lower than similar cars on the market, it's likely to be a scam. Scammers will often use low prices to entice people into expressing interest in a car. Once they have your contact information, they will try to pressure you into paying a deposit or sending them money.

3. Ask for a lot of information

Once you've found a car that you're interested in, ask the seller for as much information as possible. This should include:

  • Detailed photos of the car, including close-up shots of any damage
  • The car's VIN number
  • The car's current registration details
  • The car's service history
  • Any known problems with the car

4. Get the car inspected by a mechanic

Before you buy any car, it's important to have it inspected by a qualified mechanic. This is especially important if you're buying a car online, as you can't see it in person before you buy it.

The mechanic will be able to check for any mechanical problems or damage that you may not be able to see. They can also give you an estimate of the cost of any repairs that may need to be done.

5. Use a safe payment method

When you're ready to buy the car, be sure to use a safe payment method. This means avoiding methods like cash or wire transfer, as these can be difficult to trace if something goes wrong.

Instead, opt for a method that provides you with some buyer protection, such as PayPal, or an online escrow service such as two-hold.

6. Be aware of the risks

Even if you follow all of the above tips, there's still a chance that you could be scammed when buying a car online. It's important to be aware of the risks involved and to be prepared to walk away from a deal if something doesn't seem right.

Here are some additional tips to help you avoid being scammed:

  • Never give out your personal information to someone you don't know and trust.
  • Be wary of sellers who ask you to pay a deposit or send them money before you've seen the car in person.
  • Never send money to someone overseas.
  • If you're unsure about something, ask a trusted friend or family member for advice.

By following these tips, you can help to protect yourself when buying a car online in Australia.