Financial Blog

Your 5-Point Checklist When Buying a Pre-Owned Car

By: Security Bank Team | June 13, 2017

Buying second-hand has its advantages. Remember that shiny new car that you wanted so badly but couldn’t afford several years ago? You can probably get it at half the retail price if you don’t mind driving a battle-hardened trooper. For entrepreneurs, buying pre-owned can save you a lot, which allows you to invest your cash in other areas of the business.

However, buying used cars can also be risky, to say the least. Unlike a brand-new set of wheels—which you expect to be running perfectly—a used car’s dependability relies on wear and tear, its old owner’s maintenance habits, and the overall integrity of the hardware. Spare yourself from buyer’s remorse and take note of our five useful tips:

It’s all about the price tag

Price is everything but that doesn’t mean that you should always go for the cheapest ones. Remember, cheaper units probably have higher mileage and will have more parts that need replacing. Components typically start wearing out around the 60,000-70,000 km. mark.

Accept that whatever car you buy, you would need to shell out cash for some refurbishing– whether it’s an extensive check-up, tune-up, or changing out some parts. To get the most value for your money, make a comprehensive list of the car models that you’re interested in then compare purchase costs and potential refurbishing costs.

You can check out how much you can borrow with our Auto Loan Calculator:

You can check how much you can borrow using our Auto Loan Calculator below:

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Test-drive!

Buying a pre-owned car without test driving is a recipe for disaster, even if the seller stubbornly insists otherwise. Test for steering problems by turning the steering wheel full lock left and right, and listen for knocking/tugging sounds. Do a brief, full-throttle acceleration and listen to the engine and transmission for strange noises. Test the breaks by simulating a panic stop.

To test the car’s stability, find a regular hump and drive through it a little faster than usual. This exercise will show if there are some loose joints or clanking noise. Finally, test all the gears, windows, side mirrors, sensors, and other driving essentials. When in doubt, don’t hesitate to hire a mechanic to come along so he can tell you what else is wrong with the car.

Treat the purchase like a minefield

One missed red flag and you could get less for what you’re bargaining for, or worse, get scammed altogether. Ask for the car’s service records, its official receipt, and registration documents. You can either text the Traffic Management Group (TMG number: 2600) or track if its plates have been changed to check if the vehicle is clean or a stolen one. Lastly, check if the chassis and engine numbers match the records provided by the seller.

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Inspect the car like a murder scene

Doubt is your best friend. Check the car in daylight so you can see the paint quality: Spots that don’t quite match are clue that it has been bent, scratched, or touched up with masilya (body filler/putty), and painted over. Check the lock of the trunk and doors and see if the mechanism is working properly. Pop up the hood and check its fluids, especially oil, by performing a dipstick test. To check the engine’s condition, start the car and notice the sound it makes and the exhaust’s color. Lastly, check under the vehicle for some form of liquid leaking. If it’s water then it might just be the air conditioner but if it’s oil, then it could be a sign of a degraded engine or bad oil seals.

For the interior, try out the seats if they still have to cushion and check if all the gauges and lights work. Test the A/C at its lowest and highest settings and see how long it takes to cool the vehicle.

Haggle!

Now that you’re done with a thorough inspection and a comprehensive test-drive, it’s time to slap a price tag on your new favourite toy. Improve your chances of getting a lower quotation by compiling your findings and pointing out the red flags to the seller. If you can’t make the seller lower their asking price, ask if they can throw in car insurance, accessories, or anything to add value to your purchase. After all, buying a pre-owned vehicle is all about getting as much value as you can.

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