The Fair Trading website includes advice on how to check whether a car's previous owner has any unpaid debts connected the vehicle, which may mean the car could be repossessed by a finance company.
A new multilingual campaign is working to educate consumers about their rights.
It is an information video, translated into six languages... aiming help Australians from diverse backgrounds avoid the pitfalls of buying a used car.
Available in Vietnamese, Tamil, Mandarin, Korean, Farsi and Arabic, the video explains some of the risks associated with buying a car from a private seller, for example from a website such as eBay or Gumtree.