Buying a Used Car with Cash in Melbourne: What to Check

Paying for a used car with cash does not remove the normal checks that come with buying a vehicle in Victoria. The important issues are who owns the vehicle, whether money is owing on it, its registration and written-off status, the roadworthy requirements and completing the transfer correctly.

Private sale and dealer purchase are different

Consumer Affairs Victoria notes that buying from a private seller generally gives you less legal protection than buying from a licensed motor car trader. In a private sale there is no cooling-off period and no statutory warranty. That makes pre-purchase checks particularly important.

See Consumer Affairs Victoria’s private-seller guidance for current information.

Check the seller and the vehicle

Confirm that the seller is the person entitled to sell the vehicle and compare their identification with the details they provide. Before paying, check the vehicle’s history so you understand whether it has money owing, has been reported stolen or appears on the written-off vehicle register.

A very low price or pressure to make a large payment before you have verified the vehicle should be treated cautiously.

Understand the roadworthy requirement

For a registered vehicle transfer in Victoria, a roadworthy certificate is generally required unless an exemption applies. A roadworthy certificate is evidence that the vehicle meets minimum safety requirements for registration transfer; it is not a guarantee that the car is mechanically trouble-free.

Complete the transfer properly

VicRoads says buyers and sellers should exchange the required details and complete the vehicle transfer process. The seller can start the process through myVicRoads, and the buyer then completes their part and pays any applicable transfer fee and motor vehicle duty. Keep a copy of the transfer records.

Current transfer guidance is available on the VicRoads buying and transfer page.

Use a payment method that leaves a record

Whether you use cash, a bank transfer or another agreed method, make sure the amount and timing are documented and that you receive a written record of the transaction. Do not let the payment method distract from verifying the seller, the vehicle and the transfer.

Inspect the car independently

If the vehicle matters enough to you to buy, it usually matters enough to inspect. Consider an independent mechanical inspection, especially when you do not know the seller or the car’s history. A roadworthy certificate and a mechanical inspection serve different purposes.

If you are selling rather than buying

If your goal is to move on from an existing vehicle before purchasing another one, our guide to where to sell a car in Melbourne compares private sale, trade-in and direct-buyer options.