Step 1 - Test Drive
The first thing that a prospective buyer would ask for would be a test drive of the vehicle being put up for sale. Though it is routine to ask for a test drive, the seller should provide an Indemnity form for the buyer to sign. This releases the seller from any liabilities in the event of any damage, loss or injury sustained buy the buyer during the test drive.

Download the Indemnity form here.

Step 2 – Sales Agreement Form
Once the prospective buyer has agreed on the price and condition of the vehicle, a Sales Agreement Form should be signed to confirm the purchase. This agreement includes details on the buyer, seller and the vehicle being sold. After the agreement has been signed, the buyer would proceed to place a...

New cars are no longer as cheap to buy. It will be nigh impossible to see COE prices fall back to the sub-$10,000 levels again. This means that entry-level cars are now priced at where mid-level cars used to be.

If you are in the buying market and compromising means getting a lesser car, the pre-owned section would be where you might want to take a look. To that extent, here are things that you might want to know about pre-owned cars.

Spend less for more
Cars are generally built to last a lifetime as long as you maintain them properly. A discerning buyer will realize that a pre-owned car in the local market here hardly seems to be "used" at all and yet costs considerably less than a brand new one.

To further prove this point, an average Sing...

PARF vs COE
The Pre-owned car market is typically broken down into two major categories. They are the "PARF cars" and "COE cars". Which category your desired pre-owned car falls under will greatly affect your budget considerations. We break down this two terms and explain in detail what they mean.

PARF Cars
If you do not know by now, a COE or Certificate Of Entitlement is valid for only 10 years. This means it allows you to own a car for 10 years before the COE expires, in which case you can either choose to de-register your car or renew your COE.

However, if you were to decide to de-register your car earlier than 10 years, that means taking your car off the road earlier than intended, you will be entitled to a rebate. (Yes, the governme...

As early as 5 years ago, most people looking for a pre-owned car will just head straight for a pre-owned car dealer as that is the easiest way to find one then. However, with the advent of Internet classifieds and motoring websites, buying directly from car owners is becoming increasingly popular in recent years.

With the ever-constricting COE quota given out each month, Authorised Distributors of New Cars are also moving into the pre-owned market as a way to sustain their business as well.

We dissect the different avenues to buying a pre-owned car here to help you decide which route you should take.

Pre-Owed Car Dealers

A pre-owned car dealer is the middleman that connects the sellers with the buyers. Their typical business model is...

It does not matter whether you are selling your current car or buying a pre-owned. Knowing how to calculate the estimated value of the car is paramount in making sure that you get the best value for your money. The overall value of a car is made up of the "Paper Value" and the "Body Value". Let us start with understanding what constitutes the "Paper Value".

PAPER VALUE
The term "Paper Value" is the most commonly used term in the pre-owned market. It is the money you get back from the government when you de-register your car, thus making it the only money you will get back in the case of a total loss to the car (i.e. major accident).

There are two components that will make up a car's Paper Value. They are the "PARF" benefit and the "CO...

We understand that the volume of cars that moves in and out of pre-owned car dealers inventory affects their profit margin. Although most companies can be trusted, some do employ unscrupulous ways to get you to sign on the dotted line just so that they can earn that extra few dollars.

Odometer tampering
"Low Mileage", "Family's second car, seldom used". Heard of such claims before? Browse through a used car classifieds and these phrases will probably appear once in every 4 to 5 car. Think logically. Will there be so many families capable of owning second car? With such high car prices, will someone buy a car and leave it at home most of the time?

It is all too common to see a pre-owned car at "34,000km" being driven over again into wo...

Although the salesman or seller might tell you that this car is accident-free or that it is well maintained and park under the shade most of the time. Do NOT believe everything they say. There is nothing like your own pair of eyes you can trust. We go through different areas of a car here and what you should look out for in each area.

Before we start, bring along these simple tools to help you during the inspection.
1) Pen and Paper
2) Small Flashlight (LED keychain type would be perfect)
3) Some Tissue (for checking of engine oil)
4) CD or MP3 player (to check the vehicle's Stereo)

Paintwork
This is usually the first place you will find evidence of a repair, whether minor or major. A new paint job could mean that the vehicle could be inv...

After inspecting with your eyes, it is time to take the car out for a spin to test out its mechanical bits. Remember to go slow as you get used to the car.

The first thing to do is to check that the engine starts properly without any prolonged cranking. Anything more than 3 seconds and you should probably walk away. Difficulty to start a car might be attributed to a weak battery or faulty starter motor. However, it can also be an indication of more serious engine issues.

After the engine has warmed up sufficiently, it should be idling around 850rpm. Disengage the transmission and get someone to step on the accelerator hard a few times and check that the car is not spewing any blue smoke.

Brakes
Before you start the car, step on the b...