When it comes to used or second-hand cars, there are many things that need to be considered. For starters, you should consider the price. Some used cars like the 1990 Proton Saga or the 1995 Honda Civic can be quite cheap where you probably need about RM5,000 to RM15,000 to get one. The fact that they are so cheap tells you something.
One thing for sure, the condition might not be as favorable as you might expect. Cars around RM5k would surely be old and beaten which means that you will probably use them for short trips and simple journeys.
Use the 1:1 ratio – If you are buying a car for RM5,000, then consider using the 1:1 ratio which means you should allocate another RM5,000 to ‘do up’ the car. This could be an overhaul of the engine or you could even change the entire engine altogether.
Shop around – No doubt you are going to buy the car as a one-off purchase. Once you have decided on a specific model, you should shop around for the right one. You might not be too particular about the color and such because the aesthetics can be changed anytime. Go to dealer outlets where you can find, and then once you have found the one you like, talk to the dealer. Always remember that it is not logical for a new model to be sold cheaply.
Checks – Even if the car is old and beaten, you should check the condition. Bring along a mechanic or someone who has knowledge on this and make sure that you are not tricked into buying a stolen vehicle or one of those ‘kereta potong’.
Ownership – Never agree to anything until the ownership is properly transferred to your name. This is because you do not want to buy a vehicle where the previous owner still have installments pending with the bank or any other complications like that.