Shop around to avoid that lemon

Doing some research before you buy can save you in the long run. Photo / Bay of Plenty Times

A number of years ago buying a car second hand was the only option for many as buying new was too costly. However, the cost of new vehicles has come down rapidly and, these days, you can get a lot more bang for your buck.

Many private sellers are yet to realise how much the market has changed and are still advertising cars privately at inflated prices. If you really look around at all the reputable dealers, you'll find buying new is a better option in a lot of cases.

The are two adages that always hold true; you get what you pay for and if it looks too good to be true, it probably is.

I'm sure there are real quality, private used cars bargains out there, but the odds of finding one are so long, the only sensible option is to visit an established, and if possible, recommended dealer or franchise.

Few of us have the knowledge to tell the difference between a good car and a lemon. And not everyone's friend is a mechanic.

When it comes to buying quality used cars, unless you know what you are doing you are at risk. The first rule when buying privately is, don't hand over the money until you get the keys, registration documents or some other proof of ownership.

Ask if the car has been in an accident and who repaired it. There's no point in asking about how many kilometres are on the clock, as you've got no way of checking it anyway. If it's new, do some research to ensure there's no outstanding finance on the vehicle.

If the car has a book value of $15,000 and the person is selling it for $7000 for a quick sale don't believe it. No one in there right mind would sell anything for 50 per cent of its worth. More than likely it's not even the seller's car, especially if there is no paperwork with it.

Before you look at the car, do some homework and find out what similar makes and models sell for, and in what condition they should be in. Another plan for finding a good, cost-efficient used car is to take out a membership with a motoring organisation and use their staff to run an eye over any potential purchase. There are varying degrees of inspection on offer depending on just how thorough you want to be.

Also, at many of the car auctions, onsite inspection by qualified mechanics is available at not a great cost compared with buying a lemon.

When all is said and done, the process of finding a good used car can be long and tiresome for many people who don't want to trawl through pages and pages of private cars adverts. It is much more difficult than finding a new car where you can rock up to a dealership, have a chat, take your time, pick the model you really want in the colour you want, be protected by the law and come back the next day knowing it'll still be there.

WHAT TO LOOK FOR

Consumer NZ has a few tips before buying a car. For an explanation go to: www.consumer.org.nz/reports/car-buying-guide/car-inspection-checklist

General inspection: Good light is a must and the car should be clean and dry, or you may miss defects in the panel work.
Test drive: The drive should take up to 30 minutes and have someone with you to assess some of the items on the list. Make sure you include some speed driving on the motorway or open road, and some hill work for checking the gears and handbrake.
Mechanical inspection: Most of the time it's not a good idea to use a mate. If they miss something, it's bad luck. But if you pay a specialist inspection service or your own garage or mechanic, they are obliged under the Consumer Guarantees Act to do the job to a reasonable standard. If they get it wrong, you can hold them liable for any losses you incur.
Paperwork: The car itself is only half the story. There's also documentation to check, especially if you buy from a dealer. Check the car has a warrant of fitness, a supplier information notice, is debt free, has current ownership papers, a sale agreement if you're buying from a dealer and complete the change of ownership paperwork.
Finance: Check around for the right finance deal before you put pen to paper at the dealership.