How to buy good car with small change

Buying used cars is a good choice for people who are on a limited budget. Used-car salespeople are easy to find. But getting the best deal on a used car is not easy. Buyers want a good car in their price range, but some dealers are ready to make a big profit off of buyers who are not informed of their choices. The Jakarta Post reporters Johannes Simbolon, K. Basrie, Sugianto Tandra, Ida Indawati Khouw, Sylvia Gratia M.N., Primastuti Handayani, Yogita Tahil Ramani, Lukman Natanegara and IGGP Bayu Ismoyo look into the issue in this week's edition. More related stories on Page 11.

JAKARTA (JP): Susan, an Australian expatriate, looked at the classified ads in the "used cars for sale" section of the Kompas and Pos Kota dailies when she recently wanted to buy a used car.

She already spoke Indonesian. But the abbreviations used in the advertisements were often too difficult for her to understand.

Finally she asked for help from a local friend to find her a jeep, and now she has got her car.

"The process of finding a used car in Jakarta was actually quite easy thanks to the word-of-mouth network here. I did not even need to open a newspaper and scour the 'For Sale' column," recalled Susan.

Finding used cars for sale in Jakarta sounds very easy. There is a lot of information in the classified ads of newspapers. Some papers like Media Indonesia also run a regular column every week on the prices of different used cars.

Besides, you can ask for information from friends, neighbors or colleagues as Susan did.

The most reliable source of information is indeed people who often buy used cars. They know exactly where and in which town certain brands are sold.

"Jakarta is the place to buy used Japanese cars. People from as far away as Bandung come to Jakarta to buy Japanese cars. But if you want to buy savvy European cars, go to Bandung," said Duki Sadikin, a singer, government official and used-Mercedes specialist.

Duki said Semarang was also known among used car hunters as the storehouse of used European cars.

"Semarang people are strange. They buy luxury cars, but store them in their garages and go out in cheaper cars. That's why there are many old types of Mercedes with low mileage in the town," Duki said.

In Jakarta, used-car traders concentrate along Jl. Pecenongan, Jl. Mangga Besar, Jl. Angkasa and the Kemayoran Fairgrounds in Central Jakarta, and in Kelapa Gading, North Jakarta.

Traders on Jl. Pecenongan and Mangga Besar mainly sell sedans, while those on Jl. Angkasa focus on vans. Traders in Kelapa Gading sell all types of cars and they have large repair facilities open to prospective buyers.

Aside from that, there are hundreds of small traders who just park their used cars in a courtyard or on a street near their house.

Finding used-car salespeople is easy, but getting the best deal on a used car is not so. Many people are initially very happy to buy a cheap car, but end up disappointed after their car breaks down several days later or is confiscated by police as evidence in a car theft.

Thus, there are many things we have to be assured of before buying a used car.

Duki gave us the first piece of advice. "Don't buy used cars from people who live in rented homes, because they could easily move to other places and you would not be able to find them if you wanted to complain."

Traders usually polish and repaint their used cars to attract buyers or to hide dilapidated machines. Buyers who are not well- versed in the inner workings of a car easily get duped into a purchase just because of a car's nice appearance. Thus, it is important to bring a technician along.

Managing director of the country's largest used-car lot Mobil'88, Budiana, noted a difference between local people and expats in buying used cars.

"Local people are more interested in appearance, while expats usually check out the specifics and even take a test drive," Budiana said.

Duki said buyers should also trace the origin of the cars they wanted to buy. "Don't buy cars originating from North Jakarta. Water in the area is salty and damages not only the car's body but also the car's engine." he said.

Police

Last but not least, make sure that the cars are not stolen by checking out the car's registration with police.

"Some stolen cars are modified to make it difficult for police to trace them. Some criminals even change the color of their vehicles and sometimes the cars' chassis and engine number," Jakarta Police spokesman Lt. Col. Edward Aritonang said, adding that an average of nine motorcycles and three cars were stolen each day in Jakarta last year.

People who want to check out used cars they want to buy should bring a copy of the vehicle's registration (STNK) and ownership document (BPKB) to the City Traffic Police Department. After a background check of the vehicle, which may take up to three days, police will issue a notice stating that the used car or motorcycle is legal and genuine.

Some big companies like Mobil'88 realize the worries of its prospective customers. Some provide customers a guarantee that its used cars are in top performance and not stolen.

The Association of Indonesian Automotive Industries puts the sale of new cars in the country at 337,000 vehicles last year, down from 384,545 in 1995. The association has no data on the sale of used cars.

Budiana admitted that the sophisticated service provided by the company raised the price of its merchandise. "But, looking from a wider point of view, our prices are reasonable," he said.

According to Budiana, Mobil'88, which has 10 showrooms across Indonesia and 150 mechanics, recorded sales of Rp 180 billion (US$51 million) last year.

Duki said it was wrong to assume that big dealers sell better used cars than ones offered by small traders.

"I have two good technicians at home. None of my customers ever complain. I can even say my used cars have a better quality and price than those sold by many big traders," Duki said, adding that his profits ranged between 10 percent and 15 percent of sales.

Budiana said for people who wanted to buy cars for one or two years and then sell them, used cars would be better because the value of new cars dropped by up to 20 percent after one year of use.

The question is, where is the best place to buy used cars? Reputable dealers or small traders? The first provides security and a guarantee but a higher price, while the latter sets a lower price but provides no guarantee.

It is up to buyers. Anyway, making a profit or suffering a loss is part of business. Do not buy anything if you are afraid of suffering a loss.