7 Steps and Precautions for Shopping for a Used Automobile

Shopping for a brand new automotive in Hong Kong typically prices a whole bunch of 1000’s of {dollars}, plus registration charges and insurance coverage. Coupled with its astonishing depreciation charge, even automotive fanatics typically go for shopping for a used automotive. However what precisely is the method for transferring possession of a used automotive? QuickPro breaks down the 7 main steps and precautions for getting and promoting a used automotive.

Over 25 years of unique operation, Kwiksure compares over 60 insurance coverage firms, and we provide exceptionally low premiums for complete and triple protection of Automobile insurance coverage based mostly on expertise

Used automotive shopping for and promoting course of

Used Automobile Shopping for and Promoting | 1. Choosing Used Vehicles

Choosing up used vehicles?

When selecting a used automotive, it is best to take note of the automotive’s manufacturing yr (i.e., age), variety of homeowners (i.e., variety of instances it has modified palms), mileage, license plate expiration date, and whether or not it wants upkeep. Typically, the decrease the quantity, the upper the worth.

It is price noting the variety of homeowners. After preliminary registration in Hong Kong, the automobile register will present “0”. Every subsequent switch provides “1”, which means a register displaying “4” signifies the automobile has had 5 homeowners. As for mileage, Hong Kong automobiles sometimes journey roughly 10,000-15,000 kilometers per yr. You also needs to attempt to buy formally imported automobiles with authentic manufacturing unit upkeep data. If obligatory, you’ll be able to name the producer to verify the mileage. Concerning gray market automobiles, it is advisable to confirm whether or not the automobile has really been imported. If there are not any related import paperwork and detailed info, it is advisable to not purchase it.

The place to purchase a used automotive?

To purchase an inexpensive used automotive, in fact, you must store round. You can also make an appointment to see the automotive by way of a web based platform, a used automotive vendor or a used automotive dealership.

Used automotive on-line platform

• 28car.com

• 28car provides a big number of used vehicles, permitting consumers to filter their desired automobiles by mannequin, producer, yr, transmission, and worth. All listings show the final replace date, letting potential consumers know if the itemizing remains to be “lively.”

• Vehicles

• Previously often known as Beyondcars, it gives automotive shopping for, promoting, and upkeep companies. The platform provides official certification to confirm the standard of some automobiles, offering consumers with larger assurance.

• Buycar

• The homepage shows mainstream automotive manufacturers and worth ranges, permitting customers to instantly discover their most popular used vehicles. It additionally gives info on charging stations and parking tons, and provides a automotive registration service. Merely enter your required automobile particulars, and the web site will robotically search main Hong Kong used automotive web sites every day, notifying potential consumers instantly when an acceptable automotive is discovered.

• Fb Market

• People and automotive dealerships can each checklist and request automobiles on this platform, making transactions extra versatile. First, choose automobiles from the classes within the Market, then filter by itemizing date, worth, situation, and many others., to seek out your best automobile. Nonetheless, consumers should fastidiously confirm the vendor’s id.

• Carousell

• Potential consumers can search by automotive mannequin, worth, and age. If they’re focused on parallel imports, they will discuss with the vendor’s transaction evaluations to grasp the vendor’s gross sales document, and also can contact the vendor and make a suggestion inside Carousell.

• Value.com.hk

• Integrates costs from a number of automotive dealerships, making it simpler for automotive homeowners to match costs.

Used automotive sellers

• Dah Chong Hong Accepted Used Vehicles

• They’ve a showroom in Kowloon Bay, housing over 600 used vehicles for comparability; additionally they conduct pre-sale inspections on the vehicles on the market and supply a 6-month guarantee, providing high quality certification and after-sales assist.

• Sellers akin to BMW

• Whereas they do promote used vehicles, solely a restricted quantity could also be out there for viewing within the showroom. For those who plan to check drive one, it is best to contact them beforehand and schedule a time.

Used automotive dealership

• It is strongly recommended to decide on a well known used automotive dealership, as they often supply upkeep and after-sales companies.
• Automobile listings on dealerships might include the identical or comparable listings as these on on-line platforms, doubtlessly permitting dealership brokers to pose as non-public sellers.
• Some used automotive dealerships might tamper with the odometer readings of older automobiles (a observe often known as “adjusting the odometer”), “faking” the mileage, or concealing fault data. Be vigilant.

Used Automobile Shopping for and Promoting | 2. In-person automotive viewing and check drive

When you may have chosen your favourite automotive itemizing, you’ll be able to contact the vendor to make an appointment to see the automotive and check drive in particular person.

Automobile viewing precautions

When viewing a automobile, the physique and paint will typically be noticed for indicators of harm and upkeep to evaluate whether or not the automobile has been severely impacted and for defects which can be unacceptable to the possible proprietor. Potential homeowners pays particular consideration as to if the aspect doorways of the automobile have been changed, whether or not there’s a vital distinction in physique coloration, whether or not the entrance and rear covers have been repainted, and the novelty of the inside of the cabin.

Take a look at drive precautions

Crucial factor about check driving is to know the way snug it’s to drive. Due to this fact, it is best to first check how simple it’s to get out and in of the automotive, the consolation of the automotive seats and rear seats, how simple it’s to deal with the steering wheel, and whether or not the automotive pedals are adjustable. For those who discover that it’s not appropriate, you shouldn’t purchase it.

If the driving expertise is snug, potential automotive homeowners can check the automotive’s fundamental operations, such because the braking system, window and door operation, digital flip alerts, and whether or not the steering is working correctly.

Consumers also can politely focus on the opportunity of a check drive with the vendor and agree on the check drive distance and route. The next gadgets might be examined in the course of the check drive:

• Acceleration: Is the automotive’s shifting downshifting clean? Does it have sufficient horsepower to speed up uphill? Take note of any engine jerking.
• Engine and highway noise: How does the automotive sound when accelerating? Take note of whether or not the engine sound is blended with any noises or irregular sounds, which can be attributable to put on on the brake pads, steering wheel, or wheels.
• Braking: How does the brake pedal really feel when braking totally? Does the brake pedal really feel sluggish or unstable?
• Dealing with: Are you able to sense the highway situations by way of the steering wheel? If you flip 90 levels, do you are feeling resistance or a pulling pressure? Strive turning the lane fastidiously a couple of instances and see how the automotive performs at excessive speeds.
• Suspension: Is it too tight or too unfastened? Does the automotive really feel snug when driving on bumpy roads?
• Blind spots: Trendy vehicles have bigger pillars contained in the automobile to extend security, however this could additionally create extra blind spots. Examine your rearview mirror and rear window to establish blind spots.
• Lights: Make sure that the brake lights and switch alerts are functioning correctly.

If any abnormalities are discovered in the course of the check drive, it might point out an issue with a automobile part. In such instances, it is best to inquire with the vendor. The transaction shouldn’t proceed till the issue is resolved to keep away from incurring losses.

Negotiation course of and options

Bargaining is sort of frequent within the shopping for and promoting of used vehicles. Sellers may additionally elevate the value barely when itemizing their vehicles, hoping that consumers will cut price and so they can promote at their desired worth.

Consumers can politely inquire in regards to the worth negotiation based mostly on the check drive expertise. Nonetheless, they need to do their homework beforehand and verify the market costs of comparable automobiles to keep away from being overly aggressive of their negotiations. In the event that they wish to supply a bigger worth discount, they should show enough sincerity, akin to proposing instant deposit and signing of a gross sales contract, hoping to impress the vendor with situations that permit them to finish the transaction as shortly as doable.

Additional Studying:[Test Drive Guide] Precautions for Take a look at Driving New/Used Vehicles

Used Automobile Shopping for and Promoting | 3. Examine the Automobile Earlier than Shopping for

After agreeing on a worth with the vendor, whatever the automotive’s worth, it is suggested to contact an expert automobile inspection. That is to make sure that all automobile elements are functioning correctly and that the automobile has not skilled severe collisions or water immersion. Earlier than the inspection, the client pays a small “earnest cash” deposit, and solely place a full deposit after the inspection outcomes are passable. If the automobile is in good situation, the inspection course of can often be accomplished inside half a day.

Two principal methods to examine a automobile

• Prepare for a automobile inspection firm to come back to your location for inspection.

• Head to the storage for automobile inspection (generally often known as “placing the automotive on the shelf”).

• Most garages supply “listed” automobile inspection companies, with a listing worth starting from $700 to $1,000, relying on the mannequin and nation of origin. Japanese vehicles are typically cheaper than European vehicles. Equally, after the inspection, the mechanic will present fundamental info akin to whether or not the automotive has been in a serious accident or what elements have been repaired.

If an inspection reveals that the specified automobile has been in a severe accident that impacts driving security, the client ought to terminate the transaction. If the automobile drawback includes the substitute of numerous elements, the value of the automobile and the price of the substitute elements needs to be weighed to evaluate whether or not additional negotiation or termination of the transaction is critical.

Request the vendor to supply the automobile registration certificates and upkeep data.

Earlier than confirming the transaction, the possible purchaser can request the vendor to supply the automobile registration certificates and full upkeep data to know the first registration date, info on earlier homeowners, and the validity interval of the automobile’s license plates, in addition to data of the automobile’s common upkeep, repairs, and elements replacements. If in case you have doubts in regards to the authenticity of the license plate, you’ll be able to focus on with the vendor about authorizing a paid ‘Certificates of Car Registration Particulars’ to confirm the id of the automobile proprietor’s license plate.”

Used Automobile Gross sales | 4. Signing a Provisional Automobile Gross sales Contract

If the used automotive is in good situation after inspection, you’ll be able to negotiate the ultimate worth with the vendor and pay a deposit. To signal a provisional automotive sale and buy settlement, the brand new automotive proprietor ought to fastidiously evaluate the contract phrases to make sure that the contract clearly specifies the automotive worth, detailed automobile info, deposit quantity, supply date, and the duties of each the client and vendor. It also needs to state that the automobile has no excellent loans and isn’t registered with any automotive associations. Earlier than the automobile switch, it’s important to make sure that any fines from the earlier proprietor have been totally paid; in any other case, the brand new proprietor might be accountable for paying the fines.

Along with provisional gross sales and buy agreements, new automotive homeowners can apply to the Licensing Workplace freed from cost to view the related automobile info earlier than buying the automotive. A Certificates of no excellent fines and no violation data can be issued to substantiate that the automobile has no excellent fines or license plate suspensions. The certificates is legitimate for 72 hours after it’s issued.

Used Automobile Gross sales | 5. Buying Automobile Insurance coverage

Earlier than the formal switch of possession, consumers ought to keep in mind to ask the vendor for automobile registration paperwork, and a replica of the “insurance coverage guide” is required in order that the insurance coverage firm can present a quote and subject a short lived coverage (Cowl Be aware). Then, you’ll be able to carry the short-term insurance coverage coverage and prepare to fulfill the vendor on the Transport Division to finish the switch procedures.

Hong Kong legislation requires automotive homeowners to buy at the very least third-party legal responsibility insurance coverage (generally often known as third-party legal responsibility insurance coverage). Kwiksure can give you prompt automotive insurance coverage quotes and automotive insurance coverage worth comparability.

Additionally be aware that if you’re beneath 25 years outdated or solely maintain a short lived driving license (P-plate), you might be thought of the next threat by insurance coverage firms. Due to this fact, your insurance coverage premiums could also be costlier. Moreover, relying on the precise insurance coverage plan, you might have to pay totally different upfront charges earlier than making a declare (i.e., prepayment). Due to this fact, it is suggested to fastidiously learn the main points of the insurance coverage coverage phrases.

Automobile homeowners want to organize the next paperwork to make sure their automobiles:

• Car registration doc copy
• All registered drivers’ identification paperwork (Hong Kong ID card or passport)
• All registered drivers’ driver’s licenses
• Supporting documentation for no-claim low cost (if relevant)

Used Automobile Gross sales | 6. Car Switch of Possession and Associated Charges

Paperwork required for automobile switch

Inside 72 hours of the official switch of the automobile, each the client and vendor should personally carry the next paperwork to the Licensing Workplace beneath the Authorities Transport Division to finish the formalities.

• Full and signal the automobile switch discover (Transport Division Kind TD25), together with a $1,000 switch payment

• The brand new automobile proprietor should submit the unique notification letter to the Transport Division, whereas the copy should be submitted by the outdated automobile proprietor.

• Unique automobile registration paperwork (license plate guide)
• Identification paperwork of each the client and vendor (authentic Hong Kong id card or passport).
• Automobile insurance coverage certificates (short-term coverage)
• Proof of handle for the brand new automotive proprietor (issued inside the final 3 months)

There are 4 licensing workplaces in Hong Kong, that are open from 9 a.m. to five p.m. (together with lunch break) from Monday to Friday, and closed on Saturdays, Sundays and public holidays.

Car switch payment

Schedule an appointment to finish automobile switch procedures

As all 4 licensing workplaces are extraordinarily busy, on-the-spot switch procedures might require queuing for a number of hours or extra. It is strongly recommended that each events contemplate reserving the service on-line to shorten ready and queuing instances. At present, a free appointment might be made for the following ten weeks.

Used Automobile Gross sales | 7. Cost and Supply

Shopping for and promoting a used automotive is often a cash-on-delivery transaction. Consumers are suggested to…Earlier than the switch of possession, fastidiously verify the automobile chassis primary final time, examine the situation of the physique and mechanical elements, be certain that the inside capabilities are working correctly (water deflector, flip alerts, and many others.), and verify that every one equipment are current (wheels, horns, and many others.).Solely after confirming there are not any points ought to the remaining stability be paid in money or by verify. If utilizing a financial institution switch, it’s also really helpful to carry out the above checks earlier than the switch. After completion, the automobile needs to be locked (the client ought to maintain the keys), and the client and vendor ought to go to the Transport Division collectively to finish the switch of possession.

Issues to notice and customary questions when shopping for a used automotive

What sorts of used vehicles do you have to not purchase?

Crucial issue when shopping for a automotive is the motive force’s consolation. If the expertise of getting out and in of the automotive, using within the automotive, and driving the automotive isn’t best, even when the used automotive is in wonderful situation, it shouldn’t be bought. As well as, if the used automotive has skilled a severe collision or flooding, or has issues that have an effect on driving security, or if an inspection reveals that the automobile has issues requiring the substitute of numerous elements, the transaction needs to be stopped.

Do each the outdated and new homeowners have to go to the automobile registration workplace to switch possession when shopping for a used automotive?

The legislation doesn’t require each the outdated and new automobile homeowners to be current for the automobile switch, and the events or their brokers can submit the related paperwork to the Licensing Workplace in particular person. Nonetheless, for the reason that automobile switch process requires on-site verification of data and guaranteeing that the data is full, it is suggested that each the outdated and new automobile homeowners go collectively in particular person to appropriate any info and complement any lacking paperwork in a well timed method, in order that the switch process might be accomplished easily.

What paperwork are wanted for transferring possession of a used automotive?

Each the client and vendor should personally submit the next paperwork to the Licensing Workplace inside 72 hours of the formal switch of possession: the client should present a automobile switch discover (Transport Division Kind TD25The unique automobile registration doc (license plate), id doc, automobile insurance coverage certificates (short-term coverage), and proof of handle are required; the vendor should submit a replica of the automobile switch discover, automobile registration doc, and id doc.

How lengthy does it take from shopping for a used automotive to taking supply?

The transaction timeline relies on the progress of negotiations between each events. As soon as the settlement is reached, a time might be scheduled for a check drive and automobile inspection. If the automobile is in good situation, the ultimate worth might be negotiated, a provisional gross sales contract might be signed, and a deposit might be made. The vendor can then present a replica of the automobile registration certificates for the client to buy automotive insurance coverage. After acquiring a short lived insurance coverage coverage, you’ll be able to go to the Licensing Workplace inside 72 hours to finish the automobile switch procedures, pay the stability, and take supply of the automobile. If the negotiations go easily, the automobile is in good situation, and the paperwork are full, it may be accomplished in as few as a couple of days.

Do I have to pay taxes when shopping for a used automotive in Hong Kong?

When shopping for a used automotive in Hong Kong, you often don’t have to pay the preliminary registration tax, besides for getting an imported used automotive, which must be registered with the Transport Division and acquire a license plate.