97% of Australians confused when buying second hand car privately, Allianz research finds

Right now the second hand car market is booming.
Delays in new vehicle supplies, as well as increasing prices, the need to save money and a desire to be more sustainable has led many to opt for second hand over new when purchasing a car, Allianz research has found.
Despite the enthusiasm for buying used cars though, Allianz also says that a staggering 97% of those surveyed had experienced some confusion when buying a car from a private seller. A further 82% who had purchased a second hand car from a private seller, had also been hit with additional costs. These included: mechanical repairs after the purchase and extra registration costs as a result of where they live.
To help dispel some of the confusion around buying a second hand car from a private seller, Allianz has produced a ‘Private Buyer’s Manual.’
Tips for buying a car from a private seller
In its guide, Allianz gives tips on researching second hand cars, what to do when you inspect a second hand car for sale and what to do when you’re ready to buy.
When sussing out a fair price for a used car, which can be a sticking point for big purchases, Allianz gives the following recommendations:
- Compare cars that are the same make and model, of a similar age and that have a similar number of kilometres on the odometer.
- Make sure you factor in all the costs involved - includes stamp duty, registration, transfer costs, maintenance and repair costs, plus insurance.
- Consider gathering car insurance quotes before you buy. You can start comparing policies over at Mozo’s compare comprehensive car insurance page. Click on the ‘go to site’ button to get a quote from each individual provider.
Other things to consider when doing research is what size car you need, safety features and the fuel economy.
According to Allianz, a good second hand car advert should fully outline the safety features. These will be about things like airbags, seat belts, overspeed warnings, lane departure warnings and stability control.
In terms of the fuel economy, Allianz recommends checking the environmental impact of your future car with the Australian government’s green vehicle guide.
When inspecting a potential car to buy, typically you’d consider the interior, exterior, taking the car for a test drive and checking the car’s paperwork.
Of note, about 30% of Aussies have bought a second hand car without taking it for a test drive first, says Allianz. A test drive is important to help detect problems with the car that aren’t easily noted from it simply sitting parked.
Getting insurance for second hand cars
It is especially important to know that CTP (compulsory third party) insurance is a must all over Australia. Although what it is called and how it works will vary from state to state, so know what the rules are where you live. Check out our quick guide to CTP insurance in different states and territories to find out more.
It's also important to know what different types of car insurance are available. For instance, CTP insurance is the bare minimum you must have to legally drive in Australia. It provides cover for people injured in an incident, but does not cover your actual car or anyone else’s car you may be responsible for damaging.
Third party car insurance provides liability cover for damage you may cause to someone else’s wheels and comprehensive car insurance offers cover for your own wheels. The latter will generally come with the highest premiums, but could help you save money in the long run, should your car ever be in need of repairs.
Want to see what comprehensive car insurance is available right now? Head to Mozo’s compare comprehensive car insurance page for a list of options. Or take a look at the policies on offer below.
Compare comprehensive car insurance - rates updated daily
Gold Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $500 - $1,850
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount Up To 15%
Gold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days for at fault accidents.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers under 24, $600 for unlisted drivers, $500 for inexperienced drivers over 24.
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Budget Direct Gold Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- No
- Choice of excess
- $800 - $2,000
- Agreed or market value
- Agreed
Available discounts
- No Claim Discount
Comprehensive Car Insurance
Stella have created a more intuitive experience and offer a product that’s been designed with women in mind; offering premium benefits, and optional extras and rewards for being a safe driver. Stella are backed by QBE. Purchase a new comprehensive car insurance policy from Stella by 31st July 2022 and receive a $100 EGift Card. To redeem enter STELLA100 at checkout. T&Cs apply.
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $0 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for listed drivers under 25. $1,600 for unlisted drivers under 25
- Roadside assistance
- Optional Extra
- Other benefits
- Receive a $100 eGift card for new Comprehensive Car Insurance policies purchased from Stella by 31st July 2022. To redeem enter STELLA100 at checkout.
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Stella Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $800 Flat Excess Fee
- Agreed or market value
- Agreed
Available discounts
Comprehensive Car Insurance
Easier, better, smarter car insurance. Say g’day to ROLLiN'. They've taken the complicated out of car insurance and created a new route that's simple, u-turn free and keeps you in the driver’s seat. No cancellation fees, 24/7 online claims service and a policy that’s pay monthly. Buy now and boost your single car value under your policy by 15%. Excesses Apply.
- New car if written off
- Yes - within 15,000km of original registration
- Rental car after theft
- Yes - Up to 21 days, max $80 per day
- Rental car after accident
- Yes - Up to 21 days, max $80 per day
- Windscreen cover
- Yes - $0 windscreen excess
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- No additional excess for young drivers. $3,000 for unlisted drivers
- Roadside assistance
- No
- Other benefits
- Optional benefit to boost the Single Car Value by 15%, it will be shown on your Insurance Certificate
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about ROLLiN' Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $400 - $2,500
- Agreed or market value
- Agreed Or Market
Available discounts
- 20% Discount On Contents Insurance If Youi Car Insurance Also Held
Comprehensive Car Insurance
When change happens to you, like a new or used car, think Youi - a car insurer that’s all about you and where your life’s at right now. Start a quote with Youi today to see what you could save. Mozo People’s Choice Most Recommended Car Insurance award winner in 2021^.
- New car if written off
- Yes - within 2 years and a listed driver is the first registered owner
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- Yes for drivers under 25 years old - amount varies per policy
- Roadside assistance
- Yes
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Youi Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- No
- Choice of excess
- $500 - $5,000
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount 10%
- Up To 15% Promotional Discount Consisting Of: 5% First Year Discount, 5% For Online Applicants, 5% Discount If You Exclude Drivers Under 25
- Drive Less Pay Less Option To Reduce Premiums For Limited Kilometres.
Comprehensive Car Insurance
Take advantage of Woolworth's Price Beat on any comparable Comprehensive renewal notice if you're over 25. Buy online and you could save up to 15% on your premium. Features Drive Less, Pay Less to reduce premiums. Get a quote today. Winner in Exceptional Value Car Insurance Award 2020.
- New car if written off
- Yes - within 2 years of original registration
- Rental car after theft
- Yes - Up to 14 days, max $50 per day.
- Rental car after accident
- Optional Extra. Up to 14 days, max $50 per day.
- Windscreen cover
- Yes - standard excess. Option to reduce excess for first front windscreen claim each year to $0 for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $1,200 for listed drivers under 21, $800 for listed drivers between 21 and 25, $2,000 for unlisted drivers under 21, $1,600 for unlisted drivers between 21 and 25, $800 for inexperienced drivers over 25, $800 for learner drivers.
- Roadside assistance
- Optional Service - $88 a year with a new Car Insurance policy
- Other benefits
- 10% off grocery shop once a month, up to $500, conditions apply.
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Woolworths Comprehensive Car Insurance
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Car Insurance Awards