It's buyer beware in the second-hand car market
The smell, the pristine leather, the immaculate paint job — everyone loves a new car.
But in this economy? Please. So, when you need transportation but you don't want to break the bank? Go USED!
You're nervous. It's OK — everyone's doing it!
Take Guy. Guy needed a car to shuttle his family back and forth. Can't put the wife and newborn on the back of the bike, now can we? (NB: feasible but in no way advisable.) Guy was in Bermuda on contract so spending a lot of money didn't make sense.
Like any good discount hunter, Guy went straight to the online classifieds on www.emoo.com. There were a few good nibbles but his break came through a friend of a friend selling a sweet little Class A 1996 Daihatsu Mira in good shape and relatively inexpensive for less than $5,000.
Now, Guy's not a mechanic, but this wasn't his first time around the block. "As an ex-owner of a Volkswagen Westalia — you know, the camping car with a pop up top, very popular in the 70s? I had a minimum of concern about a few basic things, any leaks (oil, Prestone, etc) when looking under the car floor, rust on the body, etc.," he says.
Due diligence paid off because Guy's little Mira lasted the family four years without a problem.
Once he even managed to fit more than the manufacturer's recommendation into his reliable little chariot. "We had to get my brother-in-law and his wife to the airport. The cab we called was an hour-and-a-half late and we were scared they would miss their flight. My wife put our daughter in her car seat. They all got into the car — three adults and three kids, plus four big pieces of luggage, and headed straight for the airport."
And when Guy finally headed off the Island, he ended up selling the car for almost the same price as he bought it ("This is the beauty of Bermuda," he says.)
But not everyone's going to be as lucky as our friend Guy. That's why we've compiled this list of questions and asked Honey Adams at Consumer Affairs the things you should consider before purchasing your own second-hand vehicle — whether from eMoo.com, word of mouth or dealerships, you don't want to be stuck with a lemon.
Royal Gazette: Pre-shopping — what should you know about the "second-hand market" before you start looking around for a second-hand car?
Consumer Affairs: The Consumer Protection Act 1999 and the Sale of Goods Act (as amended) 2002 have limited application to buying goods privately.
This is an area where essentially all sales are final and the principle of "caveat emptor", or let the buyer beware, apply to the majority of cases of clients seeking their money back in the event the product is faulty.
So in the case of a second-hand car, buying from a private seller is risky.
The time to find out about the condition of the car and any anticipated future problems is before you buy it. The majority of complaints we receive at Consumer Affairs about second-hand goods is from buyers who did not do their homework first.
I highly recommend that anyone considering buying a second-hand car, or anything second hand, visit the Consumer Affairs website first, www.ca.gov.bm.
RG: Is there an equivalent to CarFax in Bermuda?
CA: Unfortunately Bermuda has no service similar to Carfax at this time. In the absence of this type of service the responsibility lies with the buyer to carefully do their due diligence before buying a second-hand vehicle.
RG: For lack of that service, how do you find out the vehicle's accident history?
CA: Ask the seller of the car for the service history and get it in writing. If the seller has no records, find out who has serviced the car and speak to the mechanic or body shop that has serviced the car.
RG: Is it going overboard to have a vehicle examined by an insurance professional or mechanic before you buy?
CA: At the end of the day you want to reduce your risk when buying a second-hand car and everything and anything you can do to accomplish this should be done. Buyers should not always rely on the seller's statement on the condition of a car they are selling you.
It is imperative that a prospective buyer has the car fully checked by an independent motor mechanic and of course check with the insurance company for the book value of the automobile. Regardless of any upgrades or accessories the seller has added to the automobile, the car is only worth what the insurance company says it is, and that's the most a buyer should pay.
RG: What's your take on the phrase: "When you buy second hand you're buying someone else's problems"?
CA: Buying second-hand goods does have its benefits — it's a great way to save money on certain items and of course a good way to "reduce, reuse and recycle". However, as I said earlier, do your homework first, especially if you are buying big ticket items — appliances, cars, boats. Don't be afraid to write a contract that protects. As long as both parties sign it you have some measure of protection.
Buyers of second-hand goods must know their rights and responsibilities and make the terms and conditions of their next transaction more favourable towards themselves.
RG: Are you better off buying from a dealer or straight from the owner?
CA: Either way the principles remain the same — buyer beware. Know before you go what your rights and responsibilities are. Buying from a dealer carries the same risks as buying straight from the owner.
RG: What are some of the warning signs that this car might be a lemon?
CA: If the owner attempts to pressure you to skip having the car fully checked by a mechanic, taking a test drive and reviewing the service records, due to other prospective buyers wanting to purchase the vehicle, take a pass.
RG: How important is the test drive?
CA: The test drive is an expected part of the car buying process.
Start the vehicle when the engine is cold. Check that the engine is running smoothly and revs cleanly. The brakes should stop the car without pulling to the left or right and should not grind. The steering should be smooth and not rickety. Listen for any strange noises.
RG: What are some things people should look for they may have never thought to consider?
CA: Firstly, research the model of car you are buying and check to see if owners of the same model have any service problems with their vehicles. Speak to people who have the same make and model, call a dealership (are parts readily available), and of course do an online search for any information (check recall lists as well) — Consumer Reports website (www.consumerreports.org) is a wealth of information on automobiles.
Check the paperwork, service records and mileage of the vehicle. The numbers on the engine and chassis should match those on the paperwork.
Check the quality of the paint work and interior trim. Ensure the electrical switches and monitors are functioning. Check the tyre treads, as excessive wear can result in a loss of traction, especially on wet and slippery roads. Make sure the spare wheel and tyre are in good condition.
Have a mechanic inspect the oil cap (which could indicate the need for a new head gasket), rubber hoses and belts for signs of wear and tear.
Ask the seller of the car the following questions: Are you the owner of the vehicle? Why are you selling? Have there been previous owners? Have you had the car regularly serviced (If so check the records)? Is there a warranty/guarantee still in effect?
RG: How many miles are too many miles?
CA: A car can't really be judged on its mileage. The condition of the automobile is more important and this must be determined by a certified motor mechanic.
RG: Should you sign a contract and keep your receipt?
CA: When it comes to buying any second-hand good you have the opportunity to design your own contract — and you should. As long as both parties agree on the terms and conditions set out in the contract, and sign it, the buyer has some measure of protection.
Always get and keep a receipt for any second hand purchase.
More importantly perspective buyers must ensure that the car they are looking at has a clear title.
The only way you would know if the car were mortgaged is to visit the Registrar General's office in the Government Administration Building on Parliament Street. There is a small fee to search in the book of mortgages to see whether the person purporting to be the owner had a mortgage on the car.
RG: What are your options if your second-hand car turns out to be a dud?
CA: The only instance where you may be able to successfully pursue redress upon buying a faulty vehicle is if the seller withheld information about the service history of the car and you are able to prove it (a difficult task if you didn't do your due diligence at the time of purchase, and ask for and file for future use, copies of service records). However, compensation will have to be decided by Magistrates' Court.
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