10 November 2012

Tips on buying a pre-owned car

I say it was because of our HK travel plan that we suddenly thought of buying - and actually bought - a car. Since our flight will be coming from Clark, Pampanga, at quite an inconvenient hour, we thought it wise to invest our savings in a pre-loved vehicle that we can certainly still use after the trip.

It is a good idea to set a price range for a start. Used cars can go for as low as less than 50,000 pesos and upwards to seven-digit amounts, depending on the model, make, year and condition among others. One can then try to get an idea of what car fits the budget through online buy-and-sell sites such as sulit.com.ph and ayosdito.ph. As per recent trends, in general, five-to-eight-year-old models cost between 250,000 and 700,000 pesos. Cars from 15 to 20 years ago can be in the 100,000-to-150,000-pesos range. For the price of a high-end smartphone, one can actually buy a car – a pretty old one, though.

While it is a lot better to buy a car from someone you know or from banks (for repossessed vehicles), it is also worth a shot to check buy-and-sell web sites. We got ours from one and I’m pretty confident that we actually got a good deal. Sometimes, sellers don’t like neighbors or relatives to know their properties are for sale. Guess where they advertise together with those who don’t mind.

Nevertheless, it is quite scary to scout for used cars from people you only know online. So of course the first rule is don’t trust anyone. Make sure that every word said can be proven either by the car itself or an accompanying document.

According to some mechanics and brokers, Honda cars have the highest resale value; Mitsubishi and Toyota are good. While repair and spare parts are cheaper with Toyota cars, many units might have been used as taxi cabs. An uncle who knows about cars says Nissan is a bad choice. Ask around for recommendations. Once you have a target brand and model in mind, find cars for sale and make a shortlist of your choices. It counts to check frequently as new advertisements may be posted every once in a while, and businessmen are quick to grab good-quality cars.

Read carefully the complete advertisement and study the pictures. Default information include the model, make/brand and year, reason for selling, seller’s location and contact information. The first thing to check after that is if it has no legal liabilities and if it comes with complete documents. If the plate number is available, it can be used to get the last date of registration and other quick facts by texting “LTO VEHICLE (plate number)” to 2600. Unless the information retrieved is satisfactory, you can move on to your next prospects.

Once the legal criterion is satisfied, it is time to communicate with the seller about potential issues with the car, such as usage history (where is it usually brought, where is it parked); maintenance patterns (where is it serviced, is the owner knowledgeable in car maintenance); parts that were already replaced and those that might need replacement (especially for old cars); and problems experienced. Used cars, of course, will never be as perfect as their brand new state. Be aware that sellers may lie and that if it sounds too good then it might not be true. You might want to consult experts to help you judge a car’s value.

When you finally visit and inspect the car, after you are convinced of its value, make sure you are accompanied by a mechanic, someone expert in car engine and electronics. Have him check the engine, battery and wiring connections. Inspect the tires and look for dents and scratches. Test all the lights, audio, and air conditioning and check that all doors, parts and compartments are working. Do not forget the wipers, windshield sprayers, locks, windows and trunk compartment. Also take a look at the registration documents, insurance, OR/CR and sale contract. An open deed of sale has the required information blank, which means ownership can be transferred with less hassle. After purchase, make sure you get the contact details of the seller.

Post comments below if you have questions about my car search and purchase experience.

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