How to buy a used car wisely and safely

The used car market is particularly active during a pandemic, but how to navigate it for a beginner? To help customers prepare for the purchase of a car, Citadele experts and musician Kaspars Zemītis, who is a technician-mechanic after his first education, have prepared tips to avoid the most common mistakes. According to Kaspars, in order not to get caught up in tempting advertisements, where it is promised that “a car has just been from Germany, a senior has driven it once a week”, but in reality the car is fitted with rally car pedals, which indicate false information.

The used car market in Latvia is impressive – last year 13,720 new and 43,010 used cars were registered in Latvia for the first time, half of which or 49.8% are older than 11 years, but 18.2% are 6 to 10 years old, according to the Road Administration. Statistics of the Road Safety Directorate (CSDD). Most of these cars are still waiting for buyers. How to navigate the big offer so that the car and its purchase process will bring satisfaction and be safe?

“As a result of the pandemic, the share of used cars is growing both in the leasing market and is among the most popular purposes of using consumer credit. In addition, aspects of sustainability in the selection and purchase of used cars are becoming increasingly important in the selection of more environmentally friendly engines, hybrids and electric cars. 41% of Latvians plan to buy a car for up to 7 thousand euros, while 22% plan to spend 7 to 10 thousand euros for it, ”says Ģirts Glāzers, Head of Citadele Baltic Leasing.

How to buy the first car?

The first car is usually the most emotional purchase, when the practical issues of car suitability, ease of use and cost-effectiveness often remain in the background. Kaspars Zemītis bought the first car 25 years ago and remembers: “It was an old Moskvich who often broke and sometimes lost his brakes or had other faults. Although I myself am a technician – a mechanic, and now and then I repair another damage, but more often I go to a car repair shop. Gradually I decided that I needed another car and went to the then popular car market in Rumbula, Riga, where I bought a Toyota Corolla. Unfortunately, I did not check its technical condition and regularly got oil applied. However, I remained loyal to this brand even later, only before buying, I always checked the technical condition of the car at a car repair shop. Now I already enjoy what it’s like to drive a new model from the salon, but when buying a used car, I definitely recommend checking the watched car at a car repair shop, offering to share the costs with the seller, ”encourages Kaspars Zemītis.

As one of the most common mistakes when buying the first car, experts mention, the omission of all costs. Buying a car is only a fraction of the cost. Expenses for fuel, maintenance and repairs, as well as the annual car operation tax, MTPL and CASCO costs are no less important.

Which is the best car?

The best car for the lifestyle and the planned budget is the best. Evaluate where and how often you will drive to understand how big or compact a car is. For example, for a young family or a mother with an infant, the size of the trunk will definitely be important to accommodate the stroller, but for lovers of active recreation, it is important to be able to transport bicycles comfortably. It is also worth considering which roads the car will have to drive on – only city or country roads and even possibly off-road. If you plan to drive on poor quality roads and off-road – it is better to choose a car with a higher lift from the ground, as well as a higher power.

Kaspars Zemītis: “Before buying, you have to think about what is everyone’s lifestyle, what purpose the car will serve. I am a sensible driver, I also choose a car for my needs, for example, it is important for me to be able to put a guitar and other things in the trunk. ”

Where to buy a used car?

First of all, you need to make sure that the car is registered in Latvia. Cars not registered in Latvia may be purchased only from registered car dealers, other persons may not sell them. Before buying a car, make sure on the CSDD website whether the car dealer is registered in Latvia. On the other hand, individuals may only sell cars registered with the Road Traffic Safety Directorate, which are already in their possession, so before buying a car, it is necessary to make sure that the seller is the owner of the car.
If you buy a car abroad, you will need to present the original registration and purchase documents when registering it with the Road Traffic Safety Directorate.

To be sure of the purchase, do not forget about the contract, which specifies both the parameters of the car and the exact seller. Do not enter into agreements with unknown persons abroad who sell you a car – remember, if the car is not registered in Latvia, the contract must also include a car dealer registered in Latvia.

How to pay for a car purchase?

Try to pay for the car purchase by bank transfer. Both to have proof that you have paid the money and to own it, and to be sure of the legal restrictions on buying a car with cash. When buying a car that is more expensive than 7200 euros, it is forbidden to pay in cash.

If part of the purchase amount already exists, but additional financing is needed, use only a car loan or leasing from a licensed financier. To avoid unpleasant surprises, also study all the terms of the contract, not only the loan amount, monthly payment and term, but also the legal status of the car during the contract. . For example, whether it will be your property or the lender’s property, the car may be pledged.

Financial leasing assumes that the car will be in your possession after the end of the lease payments, while operational leasing is like a long-term car rental. At the end of the operating lease period, a person can choose to return the car or redeem it for the remaining value.

Other costs will also depend on the type of financing, for example, a car loan will not require a car appraisal and a down payment, which is usually required in the case of a lease, because the loan amount is much higher. The maximum age of a car that can be purchased with a car loan or leasing also differs – there are no restrictions on a car loan, but financing for a car that is older than 15 years will not be approved for leasing. However, when considering the purchase of an older car, which may have a lower selling price, it should be borne in mind that the funds will more often have to be invested in car repairs.

Buy a car without trying?

Buying a used car remotely without inspecting and testing it in person is risky. The fact that the car is working is not an indication that it will perform well. Definitely worth a drive around the area or even get a try for the day. It should be noted that due to the current epidemiological situation created by Covid-19, all national safety measures must be observed when purchasing a car.

Just like you have your own hairdresser and dentist, ideally, you can also invite a reliable person who is well acquainted with the construction of cars, the market of used vehicles, sales, prices. He will also be able to advise you not only on the criteria for choosing the right car for you, taking into account your needs, family situation, planned trips, etc., but also on issues that you will not think to study yourself. Like most service providers, car specialists have adapted to provide advice remotely.

Many years, low mileage?

Of course, when buying a used car, it is important that it does not disappoint later, says Kaspars Zemītis: “Be careful, especially if a foreign seller tells tales about the car just from abroad, where seniors drove it, but can not understand why the car is equipped with a rally. car pedals ?! ”

If, for example, a car is ten years old but has traveled 50,000 km, the interior leather or fabric is worn, this is a signal that something may be wrong here. The seller may have a plausible story that the car was mostly parked in the garage as a spare option, but at such times the mileage should be checked. The car’s history can be checked – it will cost an extra amount, but it will pay off.
Now the Road Traffic Safety Directorate offers the opportunity to find out the car’s mileage history also abroad, although not all European countries have mileage history information available to the public.

Look at the car in daylight, if you have any questions, ask and follow to see if you get the answers you need. If what is said is not convincing, arrange a technical inspection at a car repair shop of your choice.

Source: Press release

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