Used cars can be big deals: Buyers

Used cars can be big deals: Buyers

JAKARTA (JP): Used cars can be big bargains, even among the
status conscious who would balk at buying anything else
secondhand.

But it takes a bit of savvy and sometimes the help of experts
to pick out the choice buys from lemons. Everyone knows of at
least one horror story of a used car buyer being taken for a
ride, and ending up with a dud vehicle.

Jakarta residents, ranging from expatriates to used car
dealers, gave their opinions on the business of buying and
selling used cars.

Susan, an Australian expatriate: Faced with the daunting task
of buying a car in a foreign country, I did what any sensible
person would have done -- asked my local friends for help.

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

In Australia, newspapers or magazines specializing in goods
for sale would have been my first port of call. The Kompas and
Pos Kota newspapers here list hundreds of used cars for sale but
the ads are written in abbreviated Indonesian which would be
almost impossible for me to read.

Buying a new car in Indonesia, as in Australia, was out of the
question because I simply did not have enough money to pay up-
front and did not want the complications of borrowing money from
a bank or car dealer.

After three months of living in Jakarta I knew that a car was
a necessary evil and began the usually energy-draining task of
car shopping.

My first choice of car would have been a sedan but, in
Jakarta, bigger is better if you want to survive the traffic
maze.

After asking around, friends told me about two Toyota jeep
hardtops and a Daihatsu Taft in my price range. After taking the
Toyota and the Daihatsu for a test drive I decided that the Taft
was more suitable for me -- simply because it was easier to drive
and park.

I had absolutely no idea whether the engine was good, whether
the body was going to need major repairs or whether I was being
ripped off price wise.

But I was spared the uncomfortable, and potentially wallet-
draining task, of deciding whether it was a good deal. My local
friends took care of that, and I am now the proud and happy owner
of a jeep.

Angkasa Hutapea, used car seller on Jl. Fatmawati, South
Jakarta: I set up the Figur Karya Auto used car showroom three
years ago. Business is currently quite profitable with sales of
20 cars a month. The best sellers are the Japanese makes Toyota
and Honda.

Our cars, like all those sold at used car shops, are
definitely more expensive than those sold by individuals. They
are more expensive because we have to provide buyers with a
guarantee that the cars are in good shape. Also, we always
provide our buyers with complete registration documents to prove
that our cars are legal and not stolen.

If someone offers to sell me a car, I first make sure that the
car is still in its original condition or has not been modified.
Then I check out the machine and equipment. If there is damage, I
bring the car into the workshop before reselling it.

Dharsono Sutarman, used car buyer in East Jakarta: I have
three used cars. One car is not enough for the family. I bought
used cars because they were cheaper than the new ones.

The first thing I check out is the machine. I must make sure
that the machine has not been overhauled more than once. Of
course, laymen find it difficult to tell this.

So, if possible, bring the used car to an auto repair shop to
have the machine examined before you make a deal.

Of course, it's not easy. Sellers usually forbid prospective
buyers from checking out the machine with auto repair shops. But
try to find ways to do that.

If you are still unable to bring the car to the car shop, do a
test drive. If you don't hear any unusual sounds, that probably
means the car is ok.

Also, make sure the car has never been in an accident. If it
feels wobbly when you drive it, chances are it was once in a
smash.

Andi R. Djoyo, used car buyer in Pondok Gede, Bekasi: I have
five used cars; a 1975 Volkswagen sedan, 1988 Kijang van, 1992
Peugeot sedan, 1992 Mitsubishi Lancer sedan and 1986 Jimmy
hardtop jeep.

I am more interested in used cars because they have a history
and are cheaper than the new ones.

A used car has some kind of spirit because it has spent years
with its owner. It is different from a new car which just came
out of the factory.

I don't like to buy from dealers because they usually set
higher prices and they do not inform you about the car's history.

My Peugeot, for instance, has its own history. I bought it
from someone in 1993 after he got in an accident. He thought the
car was unlucky and sold it to me at very low price.

I spent at least Rp 3 million (about US$900) to fix it. And
that's it. I haven't had an accident or trouble with this car. It
is my favorite now.

It's not easy to determine if a used car is in good condition
or not. My advice is trust your intuition. Test drive the car you
want to buy. If you feel all right, the car is probably in good
shape.

Alian Lesmana, owner of a used car showroom in Kelapa Gading,
North Jakarta: I started selling used cars eight years ago. I
think it is a profitable business, if not very promising.

People are interested in buying used vehicles because the
prices are lower than a new car. People from all income levels
are car owners today. Used cars are very practical for the middle
to lower classes.

I can sell at least two cars a day, with an average 15 percent
profit margin.

Unlike other businesses, the used car business has not been
affected by the current rupiah depreciation against the U.S.
dollar. The price of new cars is increasing, but the price of
used cars remains stable. That's why people still buy used cars.

The appearance of a used car is important to attract
customers. I polish and repaint the cars..

I have several customers who come regularly to visit my
showroom. And I advertise in newspapers to get new customers.

Jack, an American expatriate: Compared to here, it is really a
buyer's market in America. Every type of car, in every price
range is available, either from used car dealerships or in the
classified ads. But, it is also a case of buyer beware.

It is quite easy to get duped by a used car dealer unless you
keep alert. Lawyers are probably the only people with a worse and
more amoral reputation than used car salesmen. (team)