Thursday, May 17, 2007

Avoid Buying A Stolen Vehicle

Imagine, coming across a vehicle you are interested in the newspaper and you call up the owner to set an appointment to see the vehicle. You meet the owner who seems to be a decent person. After some negotiation, you feel the price is right and the vehicle meets your requirements. You proceed to buy the vehicle. But alas, a week later, the police comes knocking on your door to inform you that you are driving a stolen vehicle. Buyers beware! You could have bought a stolen vehicle without even knowing it. It's bad enough to have unknowingly purchased a stolen vehicle, but there is a high chance that you will have to surrender the vehicle and lose the money you have invested in it.

Find out how you can prevent this from happening to you.

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Question the Seller

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How many previous owner?
Ask the seller about the vehicle's history. Don't wait until it's too late to find out that the vehicle you are going to buy has a hidden history. Ask to see the vehicle's registration document. The number of official owners are listed there. The fewer, the better.

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Are there any outstanding loans?
Find out its past financing and insurance. Every vehicle's registration document has a section that lists every finance company that the vehicle has ever received a loan from. Cancelled or settled loans have the word "Dibatalkan" or "Cancelled" stamped across. Call up the finance company to verify. For a brief history of the car including unsettled loans, you may obtained from the Road Transport Department (JPJ) for a fee.

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Are there any unpaid fines and summons?
Check with the Road Transport Department (JPJ) and the police (PDRM) for any unpaid fines and summonses as when the vehicle goes to you, so do the summonses.

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Is he the legal owner of the vehicle?
Ask the seller for his Idenification card to compare the information with those in the vehicle registration document. Where did the he get the vehicle and why does he want to sell it? Ask the seller to show you the repair or maintenance records for the vehicle. Where does he normally have it serviced? You may want to check with the workshop to see whether the mechanic there knows the owner of the vehicle and whether they have serviced the vehicle. If yes, this increases the likelihood that he is the lawful owner. If the answers to any of these questions appear vague, you may want to investigate further.


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Inspect the Vehicle

Check the chassis and engine numbers. Verify that they are intact and compare with those recorded in the vehicle registration document. Check that the vehicle registration number on the registration document has not been tampered with and compare it with the vehicle number plates. Be sure that all the numbers match. Check the windscreen and windows to see that the vehicle number etched on them (if any) matches too.

Get the vehicle inspected by a mechanic you can trust. Don't forget to look for scrape marks by the window. Also, check the doors and look for pry marks. A door that is sprung may have been pried open. Check the floorboard for welding patterns on the joints. There are cases where a car is actually two cars joined together.

Check the odometer readings. Odometers can be 'rolled back' quite easily. An average car clocks about 20,000 to 25,000 km per year. Compare the vehicle age and the number on the dashboard


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Avoid Dealer Scam

Only buy from a licensed motor vehicle or a reputable dealer. Many times the buyer knows little about the private seller's reputation. If you don't know the seller, check the credentials of the individual or his firm or get a friend's recommendation.

Majority of dealers and sales representatives out there are interested in selling you a vehicle and building a good customer relationship. They want you to leave satisfied and recommend their services to others.

While you may get a reputable dealer, you should be aware that there are some dealers who will sink to sneaky tactics to get the most out of their commissions. For example, charging a high cost for window etching service. To avoid being charged, anytime they tell you something is free, tell them to put it in writing. If they say it's already on the car and cannot be removed, reconsider buying the car.

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Closing the deal

Make the dealer/seller draw up an agreement if you decide to purchase the vehicle. Pay the seller a deposit and start preparing a cheque or bank draft. Get the car transfer to your name, the sooner the better. If the dealer handles it for you, make sure he shows you the completed document. Check with the Road Transport Department if there is any doubt. Pay the dealer/seller the final cheque and obtain the documents and key.

Do not buy cars that seemed to be under priced. If a deal sounds too good to be true, it usually is!

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