Purchasing Used Car: Your A-Z Guide on Process, Financing & Must-Know Tips!

Although Hong Kong has a highly developed public transport network, there is still a number of people own a private car because of personal preference or family needs. However, some people may prefer used cars because of the steep prices of new cars or own preferences. The used car market is divided into dealership sales and private sales, each with its own set of complexities. Do you familiar with the process of buying a used car? And what if you don't want to make a one-time full payment? This article gathers information about the process of buying used car, financing options, and other important considerations, helping you to find your dream car smoothly!

Save This! 6 Key Steps to Buy a Used Car

Step 1: Choose Your Dream Car
Whether it's through a dealership or a private sale, pick a used car that catches your eye. Dealerships or agents typically offer maintenance and after-sales service.

Step 2: Schedule a Viewing and Inspection
Once you've set your sights on a car, contact the seller to arrange a viewing. Pay attention to two major aspects:

• Carefully inspect the car parts, including the engine, gearbox, body, front and rear of the car, doors, roof, and bumpers etc.
• Check the vehicle registration for details like the year of manufacture, first registration, and the number of previous owners. Consider to get a detailed inspection from a third-party for a complete assurance.

Step 3: Pay a Deposit and Sign a Provisional Contract
The sequence of paying a deposit varies. If the seller agrees to let you inspect the car before buying and you are satisfied with the results, you can finish the deal immediately. However, in most cases, sellers may ask for a deposit before performing an inspection. Regardless, when signing the provisional contract, pay close attention to its terms to avoid disputes.

Step 4: Purchase Car Insurance
Hong Kong law mandates buying third-party liability insurance as basic protection. Owners can also opt in for comprehensive car insurance. You may need to get a copy of the vehicle registration document from the seller before purchasing insurance.

Step 5: Ensure All Fines are Paid
To ensure the car has no outstanding fines, the prospective buyer can check for unpaid fine records and a certificate of no violation at any Licensing Office, minimizing the possibility of license suspension.

Step 6: Transfer Ownership and Pay the Balance
Once everything is confirmed, both parties must complete the transfer of ownership within 72 hours. Bring all necessary documents to the Transport Department for the transfer. The seller's third-party insurance will become invalid in 72 hours after the transfer. Once the transfer is complete and the vehicle registration document is updated, the buyer can pay the remaining balance. When the above procedure is completed, you can get the keys to your dream car!

Full Payment or Financing Car loan?

It is common to finance a car purchase through a dealership, but it often comes with many limitations, such as the loan amount will be limited by the type and age of the car. Consequently, people may consider applying for personal loan nowadays, which offers a more flexible solution for car financing.

Applying for an instant personal loan from Promise doesn't require you to show up in person^* or submit vehicle's registration document as collateral. This flexibility is advantageous for changing cars, renewals, or changing license plates in future. The loan approval is not limited by car type or age, offering more flexibility than the traditional car loan. With repayment periods up to 84 months, no extra fees and penalty interest for early repayments, it will be an alternative way to solve your car financing issues.

We hope this article helps you understand the process of buying a used car clearly, assisting you in selecting the most suitable financing option and finding your perfect car!