What Are the Precautions and Procedures for Buying a Used Car?
3 Answers
When buying a used car, there are several precautions to consider, such as checking the new car market price, estimating the depreciation rate, adjusting the actual depreciation rate, and correcting the price deviation value. Below are the detailed explanations: Check the new car market price: Before purchasing a used car, first identify the brand and model of the used car, then check the latest market price of the new car version. Estimate the depreciation rate: The age of the car is calculated based on the date of its first registration. According to empirical calculations, the depreciation rates for the first five years are 15%, 12%, 10%, 8%, and 7%, respectively. After five years, the annual depreciation rate can be calculated at 5%. Additionally, the manufacturing date of the car may not necessarily be the same as the registration date. Adjust the actual depreciation rate: Factors such as the vehicle's appearance, mileage, and market availability can affect the depreciation rate. Each factor may cause the depreciation rate to increase or decrease by about 1%. Correct the price deviation value: Multiply the new car market price by the depreciation rate to estimate the approximate residual value of the used car. The procedures for buying a used car involve four scenarios: individual-to-individual, individual-to-organization, organization-to-organization, and organization-to-individual. Below are the detailed explanations: Individual-to-individual: Original ID cards of both the buyer and seller; vehicle license, motor vehicle registration certificate. Individual-to-organization: Buyer's organization code certificate (original/within the annual inspection validity period), official seal, and seller's original ID card; vehicle license, motor vehicle registration certificate. Organization-to-organization: Organization code certificates of both buyer and seller (original/within the annual inspection validity period), official seals, and ID card of the seller's authorized representative; vehicle license, motor vehicle registration certificate. Organization-to-individual: Buyer's original ID card, seller's organization code certificate (original/within the annual inspection validity period), official seal, and ID card of the seller's authorized representative; vehicle license, motor vehicle registration certificate.
I really enjoy researching buying used cars because of the great value for money, but there are many pitfalls. When buying my first car, I carefully inspected the car's condition and didn't just listen to the seller's pitch—I made sure to test drive it to feel if the engine ran smoothly and if the brakes worked well. I checked the exterior for scratches or rust, popped the hood to see if the fluids were clean, and inspected the undercarriage for cleanliness. For safety, I checked for any accident records using the VIN number on a platform. Price-wise, I didn't go for anything suspiciously cheap—just the normal range. For paperwork, I didn't cut corners: during the transfer, I brought my ID and money, verified the authenticity of the original owner's vehicle registration and purchase invoice, and promptly transferred the insurance and signed the contract to avoid disputes later. The whole process is time-consuming, but it prevents regret and costly repairs down the line. I recommend buying from reputable used car markets or platforms.
I've bought several used cars, and the key is to conduct a thorough inspection. During the test drive, listen for any unusual engine noises, check if the gears shift smoothly, and assess the braking distance. Remember to check the oil color and coolant level in the radiator. Checking the accident history is easy via apps or phone inquiries—be cautious if you find any repair traces. Negotiate the price but don't overdo it; an excessively low price might indicate hidden issues. Never skip the paperwork—transferring ownership must be done at the DMV with the original owner's ID and vehicle documents to ensure no liens or fines. Transfer the insurance to a new policy promptly to avoid claim issues. When signing the contract, clearly state the delivery time and liability division—I usually pay in cash but keep a transfer record if unsure. Lastly, don’t forget regular maintenance to extend the car's lifespan.
