How about buying used but first class sedans

Sudibyo M.Wiradji, Contributor, Jakarta

If you want to enjoy the comfort of driving a real luxury car but don't have enough cash to purchase a new one, buying from the second-hand car market might be the right alternative.

Just name your favorite cars -- BMW, Volvo, Mercedes Benz or Peugeot, you will easily find them on the used car market around town.

Not all cars sold in such a market are exactly vintage models. Many of them are 2001 and 2002 models.

Of course, you can also buy used cars directly from their owners or brokers but buying through a company which is specifically engaged in used cars, you will have many more advantages, mostly the assurance that the cars were not stolen. Besides, the prices are more competitive, some companies also offer credit terms.

PT Central Olympindo Auto, for example, sells the 2001 Volvo S40 series for Rp 275 million and the Volvo S90 series for Rp 290 million.

At PT Tunas Ridean, a 2001 BMW 530 series sells at around Rp 530 million, a 1999 BMW 318 series, at Rp 270 million. PT Indorent has a 1997 BMW 318 sedan for some Rp 134 million, a 1997 BMW 520 for only Rp 109 million. A 1998 Peugeot 406 series carries a price tag of Rp 104 million and 1998 306 series is Rp 74 million. In most cases, the sale price does not include cost for the change in the car ownership document or insurance.

PT Central Olympindo focuses on the sales of new and used Volvo sedans. Indorent offers various kinds of new and used cars of various brands, including Suzuki, Mazda, Peugeot and BMW.

"With a variety of brands, customers have many options," said Dewantoro, Indorent's Department Head of New and Used Cars. While, Mobil 88 that operates under the flag of Auto 2000 focuses on Toyota used cars.

As the competition in the car market is getting fiercer, many car distributors also repurchase the cars they sold, if the owners want to buy new car models. This barter deal has partly resulted in the significant increase in the sales of used cars in the country.

"As long as the used car remains in good condition, we will rebuy it and sell the new one to the owner. With this barter deal, will not only increase the stock of our used cars but could also boost the sales of the new cars, said Cahyo Wahyu Nugroho, who is in charge of selling used cars at Central Olympindo.

Most dealers offer different incentives to their buyers. But in most cases, they guarantee the originality of the car ownership documents and are also ready to provide skilled technicians and sufficient supply of spare parts if the buyers need them.

"When there is a problem with a document, the buyer can easily contact us and settle the problem," said a salesman at the BMW Division of Tunas Ridean.

The used cars available from dealers are highly recommended because the cars have a clear historical background, one of the primary requirements set by the dealers for buying cars, either from individual or companies. "Thus, the possibility of buying a used car with bogus documents can be prevented," a dealer said.

"We usually avoid buying a car which was severely damaged by accident or hit by flood," a spokesperson at BMW Division at PT Tunas Ridean said, adding that the purchased car should be 80 percent or 90 percent good.

Commonly, the newly purchased used cars will first be fixed in such a way that it will be readily used so that customers are expected to be able to savor the comfort and convenience that a BMW sedan offers, very similar to those offered by the new ones, she said.

"Customers can enjoy the 'comfort' and 'safety' that Volvo offers even though they are not buying them new," said Wahyu of PT Central Olympindo Auto.

With the benefits they offer, particular dealers see a constant demand for their used cars. PT Central Olympindo Auto Jl RS Fatmawati, for instance, sells on average between four and five Volvo sedans per month.

At PT Tunas Ridean on Jl. Raya Pasar Minggu, 10 units of used BMW sedans are sold per month. PT Indorent on Jl. Hayam Wuruk sells 30 units of used cars, including BMW and Peugeot per month and Mobil 88 at the Cilandak branch sells between 100 and 120 a month, including such luxury class sedans as Toyota Camry and Toyota Altis.

Similar to what is commonly applied to the purchasing of new cars, most dealers offer a 'cash and carry' system as well as allowing customers to pay on credit, with installment terms for a maximum of three years.

Those purchasing a used car on credit are required to pay the down payment of between 20 percent and 30 percent of the sale price, with competitive interest of around 10 percent.

Not all dealers offer warranty for second-hand cars. "The purchasing of used cars is not subject to warranty but what we guarantee is the car document," said a spokesperson at Mobil 88.

Central Olympindo Auto offers a one-year warranty in the form of providing 'free-service charge'. "Our used-car customers can have their car fixed or serviced at our authorized garage without having to pay the service charges," Wahyu said.

Meanwhile, several dealers expressed concern over the government's move to impose a 10 percent added-value tax (VAT on the sale of used cars. "The imposition of the added-value tax has affected the business of used cars," stated Said Agus Karto, a spokesperson from PT Gading Prima Perkasa.