Seeking Advice: Precautions When Buying a Used Car with an Owner Leaving the Country

[Sameera Kumarasinghe]

I'm planning to buy a used car made in 2014. It's registered under the owner's name, but the owner is planning to leave the country in a few weeks. They have all legitimate documents, and I am also planning to take a leasing, so they will verify all the documents as  well. Do you think it's safe to buy such a vehicle? Are there any precautions I should take?

Few years back my father bought such vehical, then owner had signed an invalid signature purposly and he left country. So RMV refused to change vehical owner name and we had to go through some troubles. Are there any precautions I should take to avoid such cases.
 

[Meritekah]

Stay cautious, get all the details squared away, and good luck with your purchase!

[Inakomisly]

When buying a used car from someone leaving the country, being cautious is super important. First, check the car’s history thoroughly—look for any accidents or outstanding loans. You can never be too careful, especially if the seller is in a rush. Also, get a trusted mechanic to inspect the car before making any decisions. A professional's opinion is invaluable, even if the car seems in great shape. And, use a reliable resource like car price guide canada to ensure you’re not overpaying. It's always better to take your time and ensure everything checks out. It’s tempting to jump on a deal, especially if the seller seems in a hurry, but remember that this is a big purchase. 

Edited August 26, 2024 by Inakomisly

[amsandun]

If the owner is in a rush and you need time to check everything properly, you can ask the owner to give a power of attorney to a close relative of his to finalize the transaction one all the details checks out. You should not initiate transaction just because the other party is in a hurry, specially in a scenario like leaving the country.

[Noobdriver]

First of all, inspect the car in person and see if it has any obvious issues and if it does, decide if you want to bother dealing with it. Then check service records. They might say that they have service records and they'll hand it to you when you take the car home but do not fall for it. Tell them you won't even consider closing the deal without seeing and inspecting the service records. It is not very hard to throw a piece of paper into a file and keep that file somewhere safe (especially if that could make a vehicle you own more valuable when you re-sell). If the car has been less than 5 years since registration (rare these days), I would expect full-service records. If it is more, then I would expect 5 years of service records. Ask them if you could take pictures of the records or get a photocopy. Also, inspect that the service intervals have been met properly and tally the mileage across intervals and current. The emission records would also be able to help you tally the mileage. But don't fret too much over the mileage, these are very easy to play around.

Pay close attention to the repairs done, and see if they've used genuine parts or used Chinese knock-off parts on repairs. If It is not genuine parts, just walk away. They never loved their car and never cared for it. No point wasting time on a car like that, you might have to redo all those exact repairs soon.

One quick trick that I kinda realized is the oil viscosity during service intervals. If the car has not been modified (engine/ECU), and if the viscosity suddenly changed from a factory-recommended viscosity to something higher, it might be a clear indication of a potential engine oil burn. Ask them why they changed the oil viscosity and note down their response somewhere. 

Based on all the groundwork you did above, find a reputable business capable of conducting an inspection. Hand them the service records to go through and identify if any areas need extra attention. Also, tell them about the viscosity change reasoning and ask them to verify if that was true (some cars just burn engine oil while some don't).

Hopefully, they'll be able to give you a report of the issues identified. Ask them for an estimate to repair all of those issues (ask for a physical estimate document). Now if it has minor issues (less than 2-3% of the vehicle value, don't fret too much and you should rather be expecting something of that sort when purchasing a second-hand vehicle.

So now you know what the condition of the car is, and if there is anything major, decide if you want to even bother with it. If you don't, move to the next car. If not, add up all the major repairs and add a 20% buffer on top and that is your cost to repair the car to optimal condition. Do a final market research on a comparable car and determine whether the car price is fair. Offer the owner his asking price minus the cost of major repairs with the 20% buffer. If they flat-out refuse, just walk away. If they're willing to work with numbers, pull out your repair sheet and negotiate as much as possible. At the end of the negotiation, if their final price adjustment reflects at least 50-65% of the repair cost, then it is time to seal the deal.

Ask them for their CR Copy and send it to your bank for initial verification and once you receive their go-ahead, give them an advance (25k-50k usually, don't give more) with the condition of at least a week's worth of time (sometimes the leasing process takes long). Instruct your bank to make the transfer using 1-day service (More expensive but worth it). Once their DO is ready, the seller and you can meet at the bank for the exchange. This is where you can hand in the cash part to the seller as well.

Good luck!