LONG CONSIDERED the preserve of shady profiteers, the Hong Kong used-car market still offers considerably better value than many other countries. In a city where the latest Lexus is the ultimate status symbol, it is not difficult to see why prices for used cars are relatively cheap. However, while many believe that buying a used car represents a huge leap of faith, there is evidence of a number of excellent deals across the territory. Taking advantage of open space and low rentals, a number of used-car dealers have sprung up in the Sai Kung area. Expat Motors, run by David Neil, has been in the business for over three years. Mr Neil's main market is, of course, expatriates, who often prefer a used car as they will only be in the SAR for a short period. 'Demand is high in September, October and November, when people leave and people arrive to replace them. March, April and May is also a good time because people working in the financial sector get their bonuses.' Mr Neil believes the recent uncertainty surrounding the stock market has affected the used-car market, with demand only recently beginning to pick up. The turn of the year is usually a good time to buy, though, as cars become a year older and prices go down. 'Everyone now wants a 2001 car,' said Mr Neil. Of his current stock, Mr Neil recommends those cars that come with a full service history, something of a rarity in Hong Kong. His views reinforce those of another Sai Kung-based dealer, Paul Gross of European Motors. 'Consumers in Hong Kong run the risk of being deceived,' said Mr Gross. 'Some cars may have been in accidents and it may take an expert to detect this.' The other factor that buyers must watch out for is the car being 'clocked', or having its mileage altered. 'There's a lot of unscrupulous dealers around,' said Mr Gross. 'We go to great lengths to prove with our cars that mileages are not adjusted.' There are a number of steps potential buyers can take to ensure they are getting a roadworthy vehicle. With cars more than 10 years old, the need to establish the car is in good condition becomes even more pronounced. 'We always advocate that anyone wanting to buy a car of any age and especially an older car, to get it checked out by their friendly local garage, the Hong Kong AA, or a trusted car mechanic,' said Mr Gross. People should also trust their instincts, believes Mr Gross. He said: 'People should use their own intuition - if the answers to their questions feel right, then hopefully the car will be right.' It is crucial to get a second opinion, particularly if a person has little knowledge about cars. 'If someone is not mechanically minded, get a second opinion,' said Mr Gross. Apart from the general condition and appearance of the car, the key detail that requires attention is the provenance of the car. The number of owners, car maintenance and whether the car has been in an accident are all factors to take into account. Another aspect to consider is what use the car has been put to. Mr Gross refuses to buy cars from repossession auctions because he cannot verify the ownership history of the car. Other dealers are less stringent, making it imperative that the buyer checks the car through thoroughly. As for the price itself, Mr Gross advises caution if the car is anything less than HK$20,000-$25,000. 'I would be suspect at most cars below that mark,' said Mr Gross. Having said that, a particularly good deal to be found at European Motors is a 1981 Mercedes 500SE, selling for HK$15,000. Apart from a few scratches and some brake-work, the car is in good condition, testimony to the resilience of a Mercedes. Meanwhile, David Neil offers some advice on the timing of buying a car. 'Sports cars are more expensive in the early part of the year, after the financial sector get their bonuses, because then they want a sports car,' said Mr Neil. He cites a 1996 Toyota RAV4 at HK$149,000 as an excellent offer at Expat Motors, along with a 1997 Mazda 323i for HK$59,000. Along with the two Sai Kung showrooms, there are several more sources for used cars. The big exclusive dealerships like Zung Fu Motors and Crown Motors all offer used vehicles. The Internet is a good place to research prices, with Web sites such as autopoint.com and autogallery.com providing a wealth of information, from pictures to prices. Also worth noting are the difficulties in financing and insuring used cars, two factors which contribute to the relatively low prices. For cars over 10 years old, getting financing is difficult. 'General hire purchase may not be possible,' said Mr Gross. 'What you may get is a bank loan against such a purchase, whereby the bank looks more at the proposer than they do at the car.' Graphic: car10gwz
