7 Steps and Precautions for Shopping for a Used Automotive

Shopping for a brand new automotive in Hong Kong typically prices a whole bunch of hundreds of {dollars}, plus registration charges and insurance coverage. Coupled with its astonishing depreciation price, even automotive fans 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 Automotive insurance coverage based mostly on expertise

Used automotive shopping for and promoting course of

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

Selecting up used automobiles?

When selecting a used automotive, you need to take note of the automotive’s manufacturing yr (i.e., age), variety of homeowners (i.e., variety of instances it has modified arms), mileage, license plate expiration date, and whether or not it wants upkeep. Usually, 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”, that 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 must also attempt to buy formally imported automobiles with authentic manufacturing unit upkeep data. If mandatory, you may name the producer to test the mileage. Relating to gray market automobiles, you should confirm whether or not the automobile has truly been imported. If there aren’t 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, after all, it’s a must to store round. You can also make an appointment to see the automotive via an internet platform, a used automotive vendor or a used automotive dealership.

Used automotive on-line platform

• 28car.com

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

• Vehicles

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

• Buycar

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

• Fb Market

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

• Carousell

• Potential consumers can search by automotive mannequin, value, and age. If they’re serious about parallel imports, they’ll discuss with the vendor’s transaction evaluations to grasp the vendor’s gross sales report, and can even contact the vendor and make a proposal inside Carousell.

• Value.com.hk

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

Used automotive sellers

• Dah Chong Hong Accredited Used Vehicles

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

• Sellers resembling BMW

• Whereas they do promote used automobiles, solely a restricted quantity could also be obtainable 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 widely known used automotive dealership, as they normally supply upkeep and after-sales companies.
• Automotive listings on dealerships could include the identical or related listings as these on on-line platforms, doubtlessly permitting dealership brokers to pose as personal sellers.
• Some used automotive dealerships could tamper with the odometer readings of older automobiles (a apply referred to as “adjusting the odometer”), “faking” the mileage, or concealing fault data. Be vigilant.

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

When you will have chosen your favourite automotive itemizing, you may contact the vendor to make an appointment to see the automotive and check drive in individual.

Automotive viewing precautions

When viewing a automobile, the physique and paint will usually be noticed for indicators of injury and upkeep to evaluate whether or not the automobile has been severely impacted and for defects which are unacceptable to the possible proprietor. Potential homeowners pays particular consideration as to whether 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

A very powerful factor about check driving is to understand how comfy it’s to drive. Due to this fact, you need 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 comfy, potential automotive homeowners can check the automotive’s fundamental operations, such because the braking system, window and door operation, digital flip indicators, and whether or not the steering is working correctly.

Patrons can even politely focus on the potential of a check drive with the vendor and agree on the check drive distance and route. The next gadgets might be examined through the check drive:

• Acceleration: Is the automotive’s shifting downshifting easy? 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 combined with any noises or irregular sounds, which can be as a consequence of 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 circumstances via the steering wheel? Whenever you flip 90 levels, do you’re feeling resistance or a pulling pressure? Attempt turning the lane fastidiously a number of instances and see how the automotive performs at excessive speeds.
• Suspension: Is it too tight or too unfastened? Does the automotive really feel comfy when driving on bumpy roads?
• Blind spots: Fashionable automobiles have bigger pillars contained in the automobile to extend security, however this could additionally create extra blind spots. Verify your rearview mirror and rear window to determine blind spots.
• Lights: Be certain that the brake lights and switch indicators are functioning correctly.

If any abnormalities are discovered through the check drive, it could point out an issue with a automobile element. In such instances, you need to inquire with the vendor. The transaction mustn’t proceed till the issue is resolved to keep away from incurring losses.

Negotiation course of and recommendations

Bargaining is sort of widespread within the shopping for and promoting of used automobiles. Sellers can also increase the worth barely when itemizing their automobiles, hoping that consumers will discount they usually can promote at their desired value.

Patrons can politely inquire in regards to the value negotiation based mostly on the check drive expertise. Nonetheless, they need to do their homework beforehand and test the market costs of comparable automobiles to keep away from being overly aggressive of their negotiations. In the event that they need to supply a bigger value discount, they should display ample sincerity, resembling proposing rapid deposit and signing of a gross sales contract, hoping to impress the vendor with circumstances that permit them to finish the transaction as rapidly as doable.

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

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

After agreeing on a value with the vendor, whatever the automotive’s value, it is suggested to contact knowledgeable automobile inspection. That is to make sure that all automobile parts 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 normally be accomplished inside half a day.

Two important methods to examine a automobile

• Prepare for a automobile inspection firm to return to your location for inspection.

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

• Most garages supply “listed” automobile inspection companies, with an inventory value starting from $700 to $1,000, relying on the mannequin and nation of origin. Japanese automobiles are usually cheaper than European automobiles. Equally, after the inspection, the mechanic will present fundamental info resembling whether or not the automotive has been in a serious accident or what components 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 entails the substitute of numerous components, the worth of the automobile and the price of the substitute components must 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 components replacements. You probably have doubts in regards to the authenticity of the license plate, you may focus on with the vendor about authorizing a paid ‘Certificates of Car Registration Particulars’ to confirm the identification of the automobile proprietor’s license plate.”

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

If the used automotive is in good situation after inspection, you may negotiate the ultimate value with the vendor and pay a deposit. To signal a provisional automotive sale and buy settlement, the brand new automotive proprietor ought to fastidiously evaluation the contract phrases to make sure that the contract clearly specifies the automotive value, detailed automobile info, deposit quantity, supply date, and the tasks of each the client and vendor. It must also 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 shall be answerable 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 will also be issued to verify that the automobile has no excellent fines or license plate suspensions. The certificates is legitimate for 72 hours after it’s issued.

Used Automotive Gross sales | 5. Buying Automotive Insurance coverage

Earlier than the formal switch of possession, consumers ought to bear in mind to ask the vendor for automobile registration paperwork, and a duplicate of the “insurance coverage e-book” is required in order that the insurance coverage firm can present a quote and challenge a short lived coverage (Cowl Word). Then, you may carry the short-term insurance coverage coverage and organize to satisfy the vendor on the Transport Division to finish the switch procedures.

Hong Kong regulation requires automotive homeowners to buy at the very least third-party legal responsibility insurance coverage (generally referred to as third-party legal responsibility insurance coverage). Kwiksure can offer you prompt automotive insurance coverage quotes and automotive insurance coverage value comparability.

Additionally be aware that in case you are beneath 25 years previous or solely maintain a short lived driving license (P-plate), you might be thought of the next danger 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 completely 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.

Automotive homeowners want to arrange 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 Automotive 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 Type TD25), together with a $1,000 switch price

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

• Unique automobile registration paperwork (license plate e-book)
• Identification paperwork of each the client and vendor (authentic Hong Kong identification card or passport).
• Automotive insurance coverage certificates (short-term coverage)
• Proof of tackle for the brand new automotive proprietor (issued throughout the final 3 months)

There are 4 licensing places of work 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 price

Schedule an appointment to finish automobile switch procedures

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

Used Automotive Gross sales | 7. Cost and Supply

Shopping for and promoting a used automotive is normally a cash-on-delivery transaction. Patrons are suggested to…Earlier than the switch of possession, fastidiously test the automobile chassis primary final time, examine the situation of the physique and mechanical components, be sure that the inside capabilities are working correctly (water deflector, flip indicators, and so forth.), and test that each one equipment are current (wheels, horns, and so forth.).Solely after confirming there aren’t any points ought to the remaining stability be paid in money or by test. If utilizing a financial institution switch, it’s also really useful to carry out the above checks earlier than the switch. After completion, the automobile must 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 automobiles do you have to not purchase?

A very powerful issue when shopping for a automotive is the driving force’s consolation. If the expertise of getting out and in of the automotive, driving within the automotive, and driving the automotive just isn’t best, even when the used automotive is in glorious 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 components, the transaction must be stopped.

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

The regulation doesn’t require each the previous 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 individual. Nonetheless, because the automobile switch process requires on-site verification of knowledge and making certain that the knowledge is full, it is suggested that each the previous and new automobile homeowners go collectively in individual 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 Type TD25The unique automobile registration doc (license plate), identification doc, automobile insurance coverage certificates (short-term coverage), and proof of tackle are required; the vendor should submit a duplicate of the automobile switch discover, automobile registration doc, and identification doc.

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

The transaction timeline is determined by 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 value might be negotiated, a provisional gross sales contract might be signed, and a deposit might be made. The vendor can then present a duplicate of the automobile registration certificates for the client to buy automotive insurance coverage. After acquiring a short lived insurance coverage coverage, you may 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 number 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 normally 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.