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Riskiest places to buy a used car in Australia revealed

Announcement posted by Veda 22 Nov 2013

VIC worst state, new laws slash dodgy cars in NSW & force sell-offs over the QLD border

Almost 1 in 4 used cars for sale in Australia could result in a buyer taking a significant hit in the hip pocket if they went ahead with the sale[1], according to a new report from vehicle history site CarHistory.com.au.

Analysis of CarHistory.com.au data over 12 months to February 2013 found unsuspecting potential purchasers were at risk of buying cars that were a safety or financial risk.

Victoria took out worst state, as home to 5 of the top 10 risky regions to buy a used car. Queensland was a close second with 4 risky regions in the top 10. Tasmania’s West and North West ranked as the number one worst area, with 29% of CarHistory reports on used cars returning a negative result.

Head of CarHistory.com.au, David Scognamiglio, said stricter NSW laws for repairs to written off vehicles had dramatically reduced negative results on used cars in the state since the previous analysis of the worst regions in 2011-2012. 

“NSW previously claimed the title as the worst place to buy a used car. But major changes by NSW Roads and Maritime Services about written off vehicles seemed to have stripped NSW of this dubious accolade.

“While NSW is no longer in the top 10 riskiest regions, areas close to the NSW border like Queensland’s Gold Coast make the top 10 – which shows buyers need to be wary of interstate re-birthing,” he said.

He said negative reports on used cars were not to be taken lightly. “We’re not talking a small scratch – these vehicles have been written off, had the odometer rolled back, reported as stolen, listed as a repairable write off, have money owing, or been flooded or storm damaged.”

Buyers should also keep an eye on the colour of used cars that tend to be the riskiest. Black (31%); silver or grey (27%), followed by orange, purple or yellow (26%) are the most common colours for risky used cars.

Worst in each state:

·         VIC: North West Melbourne and Ballarat are Victoria’s risky used car capitals, with 28% of reports on used cars returning a negative result.

·         NSW: South West Sydney is the worst region in NSW (25%).

·         QLD: South Brisbane (28%) the worst region in QLD.

·         TAS: West and North West (29%) are the regions to show caution in Tasmania.

·         SA & WA: North Adelaide (25%) is on par with North East Perth (25%) as the worst region in SA and WA.

·         NT & ACT: 22% of used cars in the Northern Territory had negative reports and ACT 21%.

“Buying a dodgy used car may not only cost you money, but can be a safety risk.

“We’re warning consumers to do their research, such as a comprehensive CarHistory Report. $33.95 is a very small price to pay for peace of mind and safety for you and your passengers,” he said. 

Top 10 Risky regions to buy used cars in Australia:

NO STATE REGION % OF NEG REPORTS 1 Tasmania West and North West 29% 2 Victoria Ballarat 28% 3 Victoria Melbourne - North West 28% 4 Queensland Brisbane - South 28% 5 Queensland Townsville 27% 6 Victoria Shepparton 27% 7 Queensland Gold Coast 27% 8 Queensland Logan - Beaudesert 27% 9 Victoria Latrobe - Gippsland 26% 10 Victoria Hume 26%

Riskiest regions by state:

STATE CAPITAL CITY REGIONAL National Average All States 23%   NSW 22% Sydney South West 25% Sydney Inner South West 25% Sydney Parramatta 25% Richmond – Tweed 24% QLD 24% Brisbane South 28% Townsville 27% Gold Coast 27% Logan – Beaudesert 27% ACT 21% ACT 21% N/A VIC 24% Melbourne North West 28% Ballarat 28% Shepparton 27% TAS 24% Hobart 23% West & North West 29% SA 23% Adelaide North 25% Adelaide South 25% South East SA 21% NT 19% Darwin 18% NT Outback 22% WA 24% Perth North East 25% Perth South West 25% WA Wheatbelt 24%


[1] [1] 2.5 million used cars sold annually of which 4.8% (120,000) of respondents, or a member of the respondent’s family, have been a victim of fraud or deceit with an average loss of $4,419