Should you invest in a pre-purchase used-car inspection?

When you purchase a used car, there’s always the risk you’re also taking on mechanical issues that might be hiding under the surface or waiting to pop up.

Buy from a private seller, and that risk increases. While a licenced motor car trader (LMCT) must provide a statutory warranty for any car less than 10 years old and with fewer than 160,000km on the odometer – giving you some legal protection within the first three months or 5000km of ownership – private sellers have no such obligations.

If that car has an issue or breaks down, it's up to you to get it fixed and cover the cost.

So how do you avoid getting stuck with a lemon? One option is a pre-purchase inspection.

The concept is simple: someone who knows cars, typically a mechanic, inspects the vehicle for current damage, malfunctions or problems that could develop.

They then provide you with a report showing how the car stacks up, giving you a clearer picture of its condition and allowing you to make a more informed purchasing decision.

Pre-purchase inspections are offered by a range of organisations, from state motoring bodies such as the RACV and NRMA to market-analysis businesses such as Redbook. Many independent mechanical workshops also offer a pre-purchase inspection service.

Your average pre-purchase inspection includes a detailed visual inspection of a car's exterior, cabin, under bonnet, suspension and underbody areas, as well as a road test to check for any driving issues.

They'll check that all of a car's crucial functions are working and they'll use various tools to check whether its engine has any fault codes or if body repairs have been performed on it in the past.

They might also check that the car has a clear title, ensuring you're not stuck with a stolen car or one that has been written-off or still has money owed on it.

It's possible you could fork out for a pre-purchase inspection only to find you really didn't end up 'needing' it because your chosen car is in tip-top shape. If you were plain unlucky, you could pay for multiple inspections just to pin down a car that isn't a mechanical liability.

And because an inspector can't check every single aspect of a car and not every component gives a warning of imminent failure, a pre-purchase inspection is no guarantee you won't still face the odd mechanical issue.

But much like insurance, the cost – generally $250 or more depending on the service – needs to be balanced against the risks.

If an inspection does identify pre-existing issues, you'll have a chance to walk away from buying a car that could potentially cost a lot more than a pre-purchase inspection to put right.

Alternatively, if you do still want to buy it, you'll have credible information that could allow you to potentially negotiate a better price from the seller.

Just make sure the seller is aware of your intentions from the start. Before you lay down a deposit, make sure the contract states that the sale is conditional on you being satisfied with the results of an independent inspection.

^Disclaimer

^{Viva Energy Australia Pty Ltd (“Viva Energy”) has compiled the above article for your general information and to use as a general reference. Whilst all reasonable care has been taken by Viva Energy in compiling this article, Viva Energy does not warrant or represent that the information in the article is free from errors or omissions or is suitable for your intended use.}