What To Look For When Buying A Used Car

Introduction:

Buying a used car is one of the most exciting yet confusing and stressful activities that people go through every few years. For some people this could be a lot more frequent. Some of my friends change cars every six months. Me on the other hand, I like to hold on to my cars for at least 5 to 10 years. Although I have sold some of my cars in a much shorter time period, I like to buy a car with the assumption that I would use it for at least 7 to 10 years so that I get my expectations and the economics right without having to be disappointed if I sell it at an earlier date. Few friends of mine have held onto their cars for more than 20 years with very little maintenance and running costs simply because they had the right mind-set and chose smartly.

Being a Motorhead and an Automotive Journalist, I often get asked for advice and tips for buying a new car and I have found myself repeating most of the advice that I give my friends and colleagues so many times, that I decided to write a detailed article on ‘what to look for when buying a used car’ in a language that is easy to understand for most people. In fact, buying a used car is a simple exercise and can more often than not, be made one that is a lot more stressful than it usually is, if the right checkpoints are followed. 

When buying a used car, the most common concern for buyers is ‘what to check or things to check when buying a used car’ followed by ‘what questions to ask when buying a used car’ because no one wants to be taken for a ride and fooled into buying an automobile that hasn’t been cared for and well serviced when used by the previous owner. Most people save up for months or years together to buy themselves a good used car and one needs to be careful when investing a substantial amount of money in a used car. A ‘buying a used car checklist’ would be a great help especially for those who are venturing out into buying a used car for the first time as well as for those who have bought a used car before, but would still like some good practical advice and tips when buying a used car from a private seller. 

In this article about buying a used car, I focus primarily of what to look out for when buying a used car and I hope to offer some practical tips which compiled as an essay could be used for your future reference or if you print out this article, it could turn into a brief ‘buying a used car guide’ which you can carry with you when going out to check out various used cars in your local market. It will serve as your handy guide giving you simple ‘steps to buying a used car’ which are quite universal in nature and would apply irrespective of which part of the world you live in. 

Mind-set when buying a used car:

The most important factor to get right when buying a used car, is the mind-set of the buyer. In most cases, the buyer has an idea of the amount of money budgeted to be spent, but is not sure about how long the car is intended to be used. Having a general idea about how long you would want to use your car would make it easier to plan out and budget your running cost for the number of years you intend to own it. Ownership cost is a lot less if you plan well, buy a reliable car and use it for 10 years. If you have a 3 year mortgage, and you use your well maintained car for 10 years, you would actually be driving a mortgage free car for 7 years out of 10 with a negligible amount of maintenance costs. Buying a new car every three years is not only expensive (unless you buy it for full 100% cash down without a mortgage), you’re still paying high interest rates years into the ownership of the car which has depreciated at an average of 20% every year. Depreciation rates are a lot higher for premium cars. The best way then would be to buy a 1 year old car on a short term mortgage. This way, you still get to buy a good car on a warranty from the dealer itself or from a private seller who has a full service history, as well as saving on the depreciation which is highest in the first year. You get to drive off with an almost new car sans the depreciation with full warranty. 

Things to check when buying a used car:

For those who intend to buy slightly older cars which are not sold by the dealer, but instead by a private seller, there are a series of checkpoints to be followed to mitigate the risk that comes with buying a car that has a history you have no clue about. Following these checkpoints is not a guarantee that you will have a bullet proof analysis of the car that you are going to buy, but it will steer you clear from most of the major troubles you may have faced if you had not considered them. In other words, it’s a much better bet to have followed these points than to have not when buying a used car.

1. VISUAL CHECK:

Daytime

Have a nice thorough visual check around the car that you intend to buy. It is always a good idea to do the visual check at daytime rather than during the evening or at night when most of the defects on the body and paint if at all won’t be as obvious as it would be during the day. I always insist on being able to view the car during the day because I would be able to say right away whether it passed my most important check which is the visual one. Your first look at the car with fresh eyes is always the one that makes the first impression and in my experience, if the first impression isn’t great, don’t bother about the second and third impressions unless of course it is an irresistible offer worth considering further. But on a general note, the first impression is the gatekeeper - the one factor that decides whether you need to look further or not. 

Second pair of eyes

No matter how many times I have visually inspected used cars, I always ensure that I take along someone with me who is ‘auto savvy’ enough to be able to tell if the car looks like it is in good condition from the outside. I never completely rely on my judgement because years of experience can also make you overlook simple things which are quite obvious because you are looking for the major issue. Having a second pair of eyes accompany you on your first visit when buying a used car is always a good idea. 

Walk around

When doing the visual check, walk around the car and look for inconsistencies in the paint job. For most colours, a freshly painted area even with the same colour-code will have a brighter and shinier look than the rest of the car especially if the car is a few years old. Again, it is important that you make the visual check for paint irregularities in sunlight because that is when it is most obvious. 

Paint inspection

The areas where paint jobs are most commonly re-done are on the front and rear fenders, and this is usually not a big problem since small damages on the fender don’t usually affect the car unless it is major. So, if you do notice any fender repaint areas, make a note of it and do a detailed check as described later in this article. Also look for dents and deep scratches which are difficult to remove with a good polishing job. Deep scratches usually will require a repaint of the area and if the car in consideration has too many deep scratches and dents on it, it is a sign that it wasn’t cared for as well as you would have wanted. This however is no indication of the condition of the mechanical parts or their working, but a general indication about the carelessness of the owner. 

Rust

When inspecting the paint, also look for signs of rust especially in the edges and areas around the roof-rack in the case of SUVs. Rust is not a very good sign and it is better to stay away from cars which have rusty areas on the body unless it is on the fender in cars which have them in metal. 

Windows

The next thing to check for is the windows. Look carefully for any cracks on the windscreen as well as the other windows. Cracked windscreens even if minor are expensive to repair unless done through your insurance when the crack occurred, that too if it is part of the coverage. Small cracks on the front windscreen are quite common and easy to overlook most of the time.

Tires

On the exterior, the next thing to look at is the tires. The tires are a good negotiation tool especially if they are not in great condition. Look out for thread wear and run your palm over the top part of each of the tires to check if there are any signs of unevenness in the wear. If there is a log of unevenness as well as considerable amount of wear, the tires are not good enough to use and will probably require a change. Keep this in mind when negotiating the final price at a later stage and in the meantime, check for tire prices for the same size in order to factor into your final price negotiation if you do decide to go ahead with the car. For cars that carry a full size spare, do a full inspection of the spare tire. 

Wheels / Rims

Do a close inspection of the wheel rims. Steel rims can be repaired quite easily if there are any defects, but damages especially from  the pavement on alloy wheels are usually permanent and will require replacement if in bad condition for aesthetic reasons. There’s really no point in buying a flashy car that has alloy rims in bad condition. Half of the appeal of the car on the outside depends on the condition of the wheels and they need to be in acceptable condition. Besides, if you did want to replace them at a later stage, alloy rims are not cheap and in premium cars, they do cost quite a fortune to replace. You also run the risk of not being able to source the same rim design if the car is more than 5 years old which means you may have to replace all 4. Keep this in mind when doing your inspection.

Headlights

Next, do an inspection of the headlights, indicators and tail lights / brake lights and check if they are working well. Modern cars with LED lights won’t have the lights dying out that easily, but if they do, they can be quite expensive to replace. For conventional lights the bulbs are quite cheap to replace. In headlights with Xenon HID bulbs, check if the installation is OEM or installed from an after-market supplier. For after-market installations, there really isn’t any guarantee that it will continue working and if one of them gives up, it will be hard to source a replacement lamp which has exactly the same colour. Most after-market HID bulb manufacturers have slightly different shades of what they call ‘white’. If it is an OEM HID system, and it works fine, there isn’t any need to worry because you can find a replacement bulb. 

Engine Bay

Open up the hood and have a visual inspection of the engine bay. Look at how well it has been cared for. If it looks really dusty and dirty, chances are that the owner hasn’t really bothered cleaning the engine compartment every time the car got serviced. I have seen cars that are close to 15 years old with engine bays in pristine condition because of how the owner maintained it. I have also seen cars that are less than a year old with really dirty engine bays. It really is an indicator of the owner’s attitude towards the car. 

For cars that are more than 5 years old, have a look at the belts and the plastic components and hoses. Look for cracks and conditions of wear and tear. Most rubber and plastic parts will start deteriorating after 5 years and may require replacement. Remember, if the car is over 5 years old, it is probably out of warranty and any replacements are extra cost.

Start the engine and listen for any irregular or strange noises. A well maintained car even if it is 15 years old should have a smooth running system even if it is a bit louder than a newer car. With the engine running, go around to the back of the car and check for any white smoke coming out of the exhaust. For older cars, thick white smoke can be an indicator of a faulty engine and you need to keep this in mind for the subsequent checks.

Interior

Get into the driver’s seat and have a feel of how it would be like to own this car for a few years. Check the steering wheel condition as well as the dashboard and instrument cluster. Plastic parts need proper visual inspection again in daylight to make sure that there are not cracks or broken parts which replacing out of warranty can be expensive. Check if the instrument cluster is working along with the dashboard lighting. Shift the gear lever from P to the low gear and feel for any major jerks in the R or D positions. A big jerk can be a sign of weak engine or gear mountings which may need to be replaced especially if the car has crossed 80,000 kms. 

Turn on the sound / Infotainment system and check if the display, buttons, speakers and knobs are working. 

Inspect the seats for wear and tear and check if the seat belts are working well. Testing the seatbelts can be done by suddenly jerking them to see if the locker kicks in and you need to do this with all the belts individually. Check for the airbag locations and inspect for any signs of deployment in the past – a sign that the car could have been in an accident. 

2. SERVICE HISTORY

Always ask for service history. It is one of the most important questions to ask when buying a used car. Most people will have the service booklet in the glove compartment complete with updates on what services have been done at the dealer or authorised service centres. Some car owners only do major services at the dealer workshop and minor services which include oil and filter change only at regular service centres or workshops. Even in that case, the last oil change will mostly be recorded somewhere. Ask for it.

Make a note of the car’s license plate / registration to double check with the dealer if the car has indeed been serviced at the service centre. In most cases, the dealer would give you the information that you ask for if you are genuinely looking for a ‘service-history’ for buying a used car. 

3. COMPUTERIZED CHECK – MULTI POINT INSPECTION

A fully computerized check is something that I usually recommend to anyone who has asked me for advice on buying a used car. This is because one can never be too sure about why the car is being sold in the first place. It could have been in a major accident and been repaired at a workshop chosen by the insurance company which the dealer and their workshop have no record of. In such a case, if the paint job looks good and the service history is flawless as well, only a computerized check at a good auto-centre will give you a more accurate feedback based on the car’s current condition.

If the owner strongly resists getting the car computer checked even with a reasonable amount of persuasion, walk away from it no matter how tempting the offer may look. If the car has been serviced and taken care of like the owner claims to have, then there should really be no resistance in getting a final computer check done just to make sure. Although getting a computerized check will cost you some money, it is a wise investment to avoid getting into trouble and ending up with thousands of dollars of lost money if there was a problem that you could have identified for a hundred dollars or less. I usually insist that all my friends get their cars computer checked in addition to doing the visual check and verifying the service history. In my opinion, it would be money well spent even if you end up not buying the car. 

4. ONLINE e-COMMERCE AUTOMOTIVE MARKETPLACES

If you use Automotive eCommerce platforms available in the Market today, most of them offer Multi-Point inspection and certification with warranty, depending on what you are looking for. This saves the buyers the hassle of finding out the exact condition of the car by themselves. This is also a good option for those who really do not have the time to run checks independently on the car, or would like a good third party certification of the true-condition of the car that is on sale.

Further Reading:

• How to Avoid Buying a Lemon: The Economics of Asymmetric Information

https://philipshane.beehiiv.com/p/how-to-avoid-buying-a-lemon-the-economics-of-asymmetric-information