How should beginners choose and purchase a used car? What should be noted when viewing and test-driving a car? What should be included in the provisional contract? What is "燕梳"? How to transfer ownership? When should the final payment be made?

BuyCar.hk brings you a comprehensive guide to help you wisely purchase your beloved car!

1. Identify target vehicle and schedule viewing and test drive

You can search for suitable used cars through used car dealers or online used car platforms and contact the seller to schedule a viewing and test drive. In this step, pay attention to the vehicle's manufacturing year (age of the car), the number of previous owners (transfer count), mileage, license fee expiration date, and whether it needs repairs. Generally, the lower these numbers, the higher the car's price should be. Regarding the number of previous owners, in Hong Kong, a car that has never been registered is considered to have 0 previous owners, while a car with one previous owner is considered to have 1 previous owner. For mileage, a typical car in Hong Kong runs about 10k-15k km per year. Also, ensure that the car is an official import with a manufacturer’s warranty record. If needed, you can call the manufacturer to verify the mileage. For parallel imported cars, ensure the vehicle has been registered, and avoid purchasing without proper import documents and detailed information.

2. Conduct preliminary inspection yourself and request a test drive if no issues are found

When viewing the car, pay attention to the following parts:

1.The wear and tear of the accelerator and brake pedals and tires.

2. The front of the car: Check if the metal parts and screws of the hood and chassis show any signs of mismatched paint or unusual dents.

3. The car body: Ensure the gaps between the headlights, bumpers, and doors are symmetrical and smooth. Check if the paint on different parts of the body is uniform or has ripples (which may indicate previous damage or partial repainting).

4. The rear: Open the trunk and lift the carpet to check for dents or welding marks.

5. Mechanical condition: Open the hood or observe under the car for oil leaks. There should not be any oil leakage, as it indicates mechanical damage.

If there are no major collisions or issues with the body, proceed to the test drive. During the test drive, take note of the following:

1.Turn on the air conditioning, close the windows, and turn off the audio system.

2.Pay attention to the engine, transmission, and power steering: Check if they operate smoothly during driving, turning, accelerating, braking, and parking, and listen for any abnormal noises or vibrations.

3. If the suspension is damaged, there will be a metal scraping sound.

3. Negotiate the price and request the seller to accompany you for a detailed inspection

After the test drive, you can ask the seller for a copy of the registration book and input the vehicle information online to get a car insurance quote. Once the price is agreed upon with the seller, you can request them to accompany you to a garage for a detailed inspection, commonly referred to as "going on the rack." Before the inspection, avoid making a large deposit; instead, pay a small amount as a good faith deposit (e.g., HKD 1,000).

4. Sign a provisional contract with the seller

The provisional vehicle sale contract should state: (1) The vehicle has no outstanding loans, (2) It is not registered with any car clubs. Additionally, if the inspection and transfer are not done on the same day, the buyer can make a deposit after the inspection and sign a provisional sale contract, with the balance paid on the transfer day. Before transferring the vehicle, ensure that all fines of the previous owner are fully paid. Otherwise, you will be responsible for paying the fines.

5. Purchase car insurance "燕梳"

There are two main types of car insurance. The first type is "Third Party Insurance," which is compulsory and provides the minimum coverage required by law. It covers third-party bodily injury or death and third-party liability insurance: compensating for claims due to third-party property damage or bodily injury. The coverage also includes legal fees (if any). The second type is "Comprehensive Insurance," which includes third-party bodily injury, third-party liability, additional fire and theft insurance, and coverage for losses due to accidental damage to your car. The coverage includes third-party property damage or bodily injury, legal fees, losses due to traffic accidents, fire, or theft (including towing fees due to accidents), and losses due to accidental damage to the car.

Note that if you are under 25 or hold a probationary driving license (P plate), the insurance premium may be higher, and there may be different deductibles before claims. Therefore, pay attention to the details specified in the insurance and avoid being penny-wise and pound-foolish. Once insured, you will receive a temporary cover note from the insurance company.

6. Conduct vehicle transfer procedures and transaction process

Before transferring ownership (vehicle transfer procedures), you can apply to the Transport Department for a certificate to ensure there are no outstanding fines or litigation fees, and no violation records, to ensure the vehicle has no unpaid fines. Both the buyer and seller need to complete and sign the vehicle transfer notification form (TD25) within 72 hours of the vehicle transfer and visit the Licensing Office together for the procedures. Note that the four Licensing Offices are located in Admiralty, Cheung Sha Wan, Kwun Tong, and Sha Tin. Their office hours are from 9 AM to 5 PM, Monday to Friday (closed on Saturdays, Sundays, and public holidays). You will need to bring the following documents:

The original vehicle registration document (vehicle registration book)

The original identification documents of both the new and previous owners

The temporary insurance cover note you purchased

Proof of your residence within the last three months

Finally, pay the transfer fee in cash or by EPS: HK$250 for motorcycles and tricycles, HK$1,000 for other vehicles, to complete the transfer process.

7. Perform final inspection after transfer and make the final payment

Before and after the transfer is completed, you can perform a final inspection of the vehicle, then pay the remaining amount to the seller in cash or cashier's order. If the seller agrees, you can also go to the bank together to make a transfer after the vehicle transfer is done.