Cautious drivers may voluntarily seek out a Roadworthy Certificate in order to learn about the general state of their vehicle. However, it can be a mandatory requirement in these specific circumstances:
- When buying or selling a vehicle
- When getting a loan to purchase a used vehicle
- When getting insurance for a used vehicle
Buying or selling a used vehicle
You will need a Roadworthy Certificate when selling a used vehicle, as the buyer will want to know the general state of the machine. If you are the buyer and the vehicle is 10 years or older, then you would need the certificate to get the vehicle on the road.
Getting a loan to buy a used car
If you require a loan to purchase a vehicle 10 years or older, your financial institution will need to ensure the vehicle is in good working order before placing a lien on it (expressing financial interest).
Getting insurance for your used vehicle
Before insuring a vehicle, your insurance providers will need to know the state of that vehicle in order to assess its level of risk and determine if an insurance policy can be issued. This applies only for vehicles 10 years or older.
A Roadworthiness inspection is also required in instances where a vehicle has been written off due to a collision, but the owner intends to repair it to drive again. In these instances, by law, it must be inspected by the Licensing authority, and that Roadworthy Certificate will be required for resuming insurance coverage and for financial assistance if necessary.