Buying a Slightly-used Car

Many people think that the best value cars are ones where the majority of the depreciation is gone.  Well, that's fine if you are poor and/or don't mind driving a shit-heap but many people prefer nearly-new cars where the interior smell is still present and has not been replaced by that of someone's body odor, cigarettes or a wet dog.

In my view used car prices provide better value for money the closer you get to "new," but not so new that you have to pay the dealer's list price. The cheaper a car is the larger the market there is for that vehicle and therefore the value is artificially inflated.  In addition, when a used car is valued deductions are made from the book value only for items that are visibly worn or damaged.  You can never account for all the things that that you can't see or are just about to go wrong.  It does not help that dealers in NZ, especially import dealers and those outside of the main centres, seem to have a vastly-inflated view of a car's worth.

A new car has a fixed specification, a warranty, an irrefutable maintenance history and a near-certainty that it has not been damaged, modified or abused.  The closer you get to that, the easier it is to evaluate and the risk is exponentially lower.  And, six months of usage as a new-car dealer demo will likely cause less wear and tear than if I drove the car for that same period, and yet I could save many thousands of dollars.

Demos can be heavily-discounted at dealers.  They have already drawn the value out of them as part of their sales budget.  For some brands that have fixed sales prices set by the NZ importer, selling a car "used" is the only way the buyer can negotiate a lower price.  Demos are my preferred targets when I look for a new car. Unlike a low-kms used car, they have have not been "personalized" by the owner, nor extensively subjected to super-market parking lots, pets and children.  Even though you can be sure that every potential customer that test-drove "your" demo will have thrashed it mercilessly, cars these days are remarkably tolerant to this sort of abuse.

Snooping Around the Car Lots

I love looking at car lots, but only on Sundays or evenings when the sales people are gone.  Kiwi new-car dealers I've encountered are generally very pleasant to engage and low-pressure, but I cannot focus with someone looking over my shoulder.  On my walks around town I look at almost every lot, in particular new car dealers.  I look over every visible aspect of cars I'm interested in, including (and especially) underneath.

So, here are my tips (in order) on how to quickly assess slightly-used cars.

1.  Headlights - is the plastic fogged by UV exposure even slightly near the top?  Walk away - the car is clearly not that new.

2.  Wheel rims - check for curbing and stone chips.  Unless everything else about the car is perfect and the damage is limited to stone chips there is no reason to accept this if you are paying good money.

3.  While you are down there check the front tyres for wear.  If they are feathered or the tread looks shiny I would suggest caution.  On a front wheel drive car with few kms, heavy feathering likely means abuse.

4.  Look through the grill at the air conditioning condenser and radiator.   Look for masses of bent fins (indicating careless cleaning with a pressure washer,) stone damage or excessive bugs and debris.  I would not bother with the car unless this area was nearly perfect as damage here will affect performance and reliability.  It's not an easy job to clean or repair either.

5.  Look at the front valance underside for scraping damage from driveways or impact damage.  

6.  Working your way back, check the driver's seat right-side bolsters for wear or crushing.  This is one of the fastest areas to show wear and damage on cars and indicates how many times people have slid their slovenly posteriors into the very same seat you are looking to own.

7.  Check the steering wheel to make sure it looks like new with a matte finish.  Many cars have leather-trimmed wheels and a glossy look means a lot of greasy fingers have been sliding around it.  Inspect the control stalks for wear and finger grease too.

8.  Check the driver's side door handle and window controls for wear or damage.  VWs seem to loose their finish rapidly in this area.

9.  Check the area around the ignition key for scratches due to missed insertion of the key.  To me, a lot of scratches indicate a lot of different drivers as people learn quickly where a key goes on a vehicle they drive a lot.

10.  If you can get inside the car inspect the driver's side floor, another area that suffers rapidly.

11.  Ignore the back seat for now as they are usually perfect but look under the rear valence and inspect the muffler and suspension for rust and impact damage.  I've noticed Subaru and Suzuki vehicles develop surface rust quickly underneath on components other than the body.  It's never an issue with German cars as they are well-finished everywhere.  Significant surface rust is also a sign that a vehicle was driven on a beach.

12.  Look underneath at the finish on cast aluminium components such as the transmission.  Corrosion in this area is an indication of age and a new-ish car should be very shiny.  I have noticed that the Korean cars often show considerable corrosion from new.  Perhaps the ocean journey does that?

13.  Needless to say, look over the body work for door dings.  Check the rubber gaskets for overspray indicating repairs.


Visiting the Dealer


Generally I do a lot of research before choosing a car model and only visit the dealers during business hours when I am ready to buy and am targeting a particular example that I have already identified.  I am already fully conversant and satisfied with all the technical details of the vehicle model, but am not there to make a fool of the salesman nor engage in pointless debate.  My job is to ensure that I make the right decisions and his job is to make that happen as smoothly and as stress-free as possible.  By researching and checking-off everything possible beforehand I can focus on just the items remaining, without being distracted by basic questions such as "do I really need a new car?"

After verifying any items in the above list that are outstanding or in question, the next item is to get under the bonnet and find the manufacture's ID plate which will tell you the month and year of manufacture.  Did you know that NZ law (and only since 2009) bizarrely allows a dealer to claim the vehicle model year is the same as the one during which it was first registered?  It could have been built several years earlier and may not have the features you would expect for that brand's model of the advertised year.  Another reason to open the hood is that it will attract the salesman's attention if he has not already pounced on you.

If I have not sat in this particular model before I check to see that I am happy with the seating and various adjustments related to driving position.  Some cars fit you well and some don't.  Lumbar support, arm rests, view to the instruments, and view to the outside are all very important.  Make sure your feet fit in the footwell in a position comfortable for a long trip, especially where your left foot is concerned.

When I test-drive the car, I am of course looking to make sure it is an acceptable fit to what I expect (if I have not driven that model before) but more importantly I'm looking for any signs of that particular example being a lemon.  New cars drive so nicely these days (and smell great) that you could not help but be impressed which is why statistically you are very likely to close the deal if you reach the test-drive stage.  Hopefully the dealer will allow you to take the car out on your own where you can focus on it without having to listen to sales prattle or idle chit-chat.  If not, I would consider going elsewhere.

I listen carefully to the engine and watch the exhaust when the salesman starts the car.  Obviously a near-new car should be very quiet on start-up and not emit any odd smoke, but you never know and anything amiss here would be a show-stopper.

While on your test drive:

a)  Does the car pull to one side?  Obviously it should drive dead straight when you let go of the steering wheel on a straight, minimally-cambered road.  Wiggle the wheel sharply back and forth when driving straight at town speeds and note the dynamic response.  The resulting sway should be critically-highly-damped, meaning it disappears the moment you straighten the wheel.

b)  At highway speeds on classic NZ chip-seal roads note the interior noise level (radio off and fan on low, of course.)  Be sure you can live with it in the long term.  Note any rattles, there should be none.

c)  Once the engine is warm give it a full-throttle acceleration and be sure you are comfortable with the smoothness and transmission shifting.    From your research you have already checked-off the zero to 60 km/hr time as being acceptable for your needs, so no need to measure it.

d)  I generally do not worry about testing (for operation) every item in the car as the dealer will correct any defects found on a near-new car within a reasonable period.

After the test drive I think it's important to avoid further discussions with the salesman unless you are 100% sure the vehicle is for you, and you have a good idea of the sort of dollar numbers you will accept.  You can always go back and buy it later.

Detecting Issues in your New Car

Just bought a new car?  No doubt it's under warranty, but is there a way to reduce being surprised by the needing of repairs?

No one can see into the future but there may be some problems that you can avoid or nip in the bud with a little detective work.

1.  With the palm of your hand walk around the car and check the warmth of the wheel hubs occasionally after a drive.  You are looking to see if one is significantly hotter than the rest that might indicate tight bearings or dragging brakes.

2.  Keep a close eye on the tyre wear pattern in case there is a minor misalignment   The dealer will normally make adjustments for free during the first few thousand kms, but not the entire warranty period.  You are looking for a very slight feathering of the blocks.  Truck-type vehicles may show some even with a good alignment but in general cars should not.

3.  If you have hypoid differential(s), change the oil at around 1-2,000 km.  Not only does a lot of metallic debris break loose on a new hypoid gearset in those first few kms but you never know how well the unit was cleaned on assembly and its a chance to clear the magnet of debris.  Use a GL-5 oil type of the exact viscosity grade recommended.

4.  If you have a manual transmission, also change the oil in the first few thousand kms.  Put in a full synthetic of the exact type recommended, GL (usually 4) and viscosity grade.  As with the differentials, rolling element bearings (ball, needle  and roller) in these units do not like to ingest particles of metal and an early oil change will keep them quieter for a longer time.

5.  If you have a conventional automatic, understand how the torque converter lockup works in the upper gears, especially if you are going to tow.  In newer designs it may work in all or just the upper gears.  When driving conditions cause the converter to unlock, oil temperature can rise as fast as 1 degree per second and dangerous levels reached in only a few minutes.  An oil temperature gauge on the "hot" cooler line is a very useful instrument to add and will tell you if you need a second cooler.

6.  Document your fuel economy on every tank.  You can quickly plot it in Excel and determine if you vehicle meets the claimed fuel economy.  It may also likely highlight issues should they occur.  Be sure to use at least the fuel octane (or cetane) rating required.

7.  Find an internet owner's forum, join and get to know the others.  This will unearth any common problems that might occur.  Don't be the person whose very first post is seeking help to a problem.

8.  No doubt your first service is at 15,000 km (or one year) but change the engine oil yourself at around 3,000 km and install a full synthetic.  Again use the exact grade recommended with an OEM filter.

9.  Never wash your car with a pressure washer.  Although safe on many surfaces, it's an instant disaster on others such as radiator fins, doors and electrics.  Hand-wash and wax.