Thinking of getting a good deal on the used car market? Be very careful. Many car dealers in used car markets around the GCC buy junk or scrap cars from US and other markets. These junk cars are repaired by cheap mechanics in small garages, after which they are sold to unsuspecting customers at "bargain" prices. These customers who have very limited knowledge of cars, end up paying heavy repair charges eventually or in some cases getting into dangerous accidents due to faulty systems in the car. Read the 7 tips to avoid used car scams and lemons.
>> First: Investigate Car History >>
1. Investigate Car History
Always investigate the history of the car being sold as much as possible, especially cars that are American specifications. In many cases, these cars still have their VIN number printed on the dashboard. A quick checkup using VIN number can be done online, using CarFax.com in US. Also, use other sources, like the stickers on the car giving details of the original US dealer or the original registration that might still be in the car. If you are a resident of Al Ain or Abu Dhabi in UAE, you can check car service history by logging to Abu Dhabi Ministry of Interior website.
>> Next: Get The Car Inspected >>
2. Get The Car Inspected
Always get the car inspected by a reputed mechanic for flood damages. Check for body frame damage, rust removal jobs or electronic repairs recently done. Be very suspicious if there is frame damage to the car. Never buy the car if there is any kind of damage to the chassis because that car will generally not be given a green light by car registration and inspection authorities, particularly in UAE.
>> Next: Look At Dealer Reputation >>
3. Look at Dealer Reputation
Give more preference to reputed dealers. Certified Pre-Owned cars, while not perfect, are still more trustworthy than shady dealers who offer no warranties or assurances on the car. These days the "Certified" model is gaining rapid ground in UAE and Saudi Arabia. For example, Arabian Automobiles Dubai has a large number of certified pre-owned cars listed in our Used Cars Section. All major dealers have either launched pre-owned programs or are in the process of doing so. Approaching them might mean paying a bit more, but atleast there will be peace of mind with respect to potential damages.
>> Next: Avoid 'Hot' Deals >>
4. Avoid 'Hot Deals'
Be suspicious of below market "hot deals". If the price of a used car is too good to be true, it probably is! There is usually a reason why these cars are sold at such "low prices". The reality is that even these "low" prices have profit margins as the actual car is either scrap value or has a serious problem which is not being disclosed. Some imported cars, particularly US imported cars sometimes are priced very low because they were imported in Junk or Scraped condition and then repaired over by the dealer. More on that in the next tip.
>> Next: US Imported Cars: Be Careful >>
5. US Imported Cars: Be Careful
Last year there were many cars imported from US to UAE that were damaged by Hurricane Sandy in New York. Check out the pictures below of this flood damaged car. This is a 2013 Honda Pilot Touring which has been damaged in hurricane Sandy. It was imported to Jebel Ali and sent to Awir Auto Market in Ras al Khor, UAE. From the outside, it seems ok, but check out the interior when the seats are taken out. There is enough rust and damage to reveal some troubling issues. This car will be taken to Sharjah workshops, made to look brand new and then sold to customers at below market prices. Unsuspecting customers may buy it, thinking they got a bargain. In reality, they will be buying cars that have been written off by insurance companies and banks in US.
>> Next: Consider Resale Value >>
6. Consider Resale Value
Keep resale value in mind. American specification cars in GCC region generally sell at much lower prices, which means their resale value is also much lower. A GCC specification car will have a higher price but also a higher resale value because it's easier to find the service history of that car. Also, a car known to be "flood damaged" or "accidental" will likely have no real resale value. Hence it's important to realize while it might be cheap to buy that car now, the eventual costs might exceed the cost of an original car.
>> Final Tip: Check Market Value >>
7. Check Market Value Of The Car
In order to find out the used car market value of a car, one way is to look up global sites like Kelly Blue Book but that will only give a broad picture. If you live in Dubai or Sharjah, you can use Tasjeel, which is a registered partner of RTA. Tasjeel stations allow you to get a full evaluation of the car for a fee where you can get the market value of your car. This way you can check if the seller is actually pricing the car higher or lower than the market rate. Other ways to check vehicle market value is to go to a classifieds website such as ours or others and search for those and similar models with similar mileage. Remove the top and bottom 10% of prices quoted and you'll have a fair idea of the market value.
>> Bonus Tip For UAE Residents >>
Bonus Tip: Replace Old Salik Tag
If you buy a used car and start driving it with it's old Salik tag, it will continue using that account, so if you get fined, you will be fined for all the other times the previous driver violated Salik. In one case, a buyer had to pay 3,000 AED in fines because he did not replace the Salik tag and previous violations got added to his account. So do ensure that you REPLACE the old Salik tag with a brand new Salik tag when you buy the car.
