Buying a pre-owned car is pretty similar to buying a new car – just that you have a greater variety of brands in a used car showroom as opposed to new car showrooms which typically only hold one brand. Previously, I wrote about the benefits of getting a pre-owned car such as increased choice of cars and getting a bigger car at the same cost.
How does the pre-owned car buying process go?
There are a few ways that a pre-owned car is sold – one, direct selling between you and the potential owner; two, you sell your car to a dealer who will take over ownership by buying the car from you; three, a broker comes in to help hook up the buyer and seller and takes a commission.
Pre-owned car dealers such as Urban Motors buy the car from you and then add it to their sales fleet. Of course, there is a set of prerequisites before they take in cars and then there is a procedure to prepare the car before it is sale-ready – but those are stories for another time.
Meanwhile, I went behind the scenes with Urban Motors to understand how the shopping process goes.
1. Viewing of cars at showroom
With an estimated budget in mind, one will usually browse the various options available in the showroom and round down to a few choices.
2. Test drive
After narrowing down to a few choices, the next thing to do is to take the cars round a few blocks to test its comfort and performance – just like you would for new cars.
3. Working out the math
Once you have decided on which car to get, you sit down with the sales person and sort out the necessary paperwork and whatever other concerns or queries you might have.
4. Closing of sale
After going through the administration and financing details, you are now ready to sign on the papers.
5. Submission of loan/hire purchase
After inking your name on the forms, the most important form is the application for financing. This will determine if you can get your car. Of course if you can afford to cash out the car then this step and the next will not be applicable.
6. Approval from financial institution
Upon consent from the bank and your loan is approved, your car purchase has now passed the paper hurdles.
7. Final servicing of car
For Urban Motors, they will send the car to their appointed workshop for a final servicing as part of the preparation process.
8. Pre-delivery inspection
Before the car is handed over to the owner, it is sent for an inspection.
The key is yours!
For cars bought at Urban Motors, owners can take the cars to VICOM (neutral party) and if they are not satisfied, there is a possibility of getting a refund of the deposit.
> Urban Motors: Supplying cars to the city
> Becoming Your Own Boss, with Benjamin Yeo of Urban Motors
> A Successful Outing for Urban Motors’ 1st CATS Classifieds Car-nival
> Benefits of Buying a Pre-Owned Car