Buying a used car - what is to be considered

[make_batik_great_again]

Hi,

in case we go back to Indonesia, my wife and I think about buying a used car. Since both of us never bought or owned a car in Indonesia before, we try to get a clearer picture of the possibilities and the risks we should take into consideration. Every now and then, I heard from other expats that you should be a little bit more careful when it comes to buying a used car in Indonesia. So, I would like to find out on how I could lower the risks that something goes wrong. Maybe some of you have already gathered experience regarding buying a used car and have some advice.

My first thoughts would be:

1) Only buy from someone who has the vehicle registration documents - and if he can verify by passport/KTP plus those vehicle registration documents that he is the owner.

2) Instead of buying from a complete stranger, better buy from a (registered) local car dealer who offers used cars? Maybe they offer a warranty within the first or first two years or so? Or is this not common in Indonesia?

3) Avoid/Ignore offers that are "too good to be true". Obviously, the defintion of what is a too good to be true offer is vague. But if someone offers a car much below market price, you should probably step aside.

4) Before buying the car, I would ask the seller if he agreed on a short checkup in a service station that I can chose so that I can get a clearer picture of the car´s condition.

And a short other question: Does it make any difference if my wife or I own the car? Is there any advantage if the Indonesian spouse owns the car instead of the foreigner/expat?

 

[scouser59]

My advice is buy only new ,bcs of floods in certain areas , and certain unscrup.ulous individuals whom remove original spare parts and replace with copies , its a minefield .

 

[Vanuatu]

I agree with Scouser59, unless you are going for a much older car for a bargain price, buy new. My wife and I spent a month looking at used cars that were 1 to 3 years old hoping to get a good deal and got tired of the BS: See an ad with an online price and when you go see the car you find out that the online seller isn't the owner but an outside agent and misquoted (lied) about the price etc.... plus finding things wrong on the car that were not disclosed, the hassle of changing ownership etc... we found that buying a new one with a full warranty and free service wasn't that much more expensive and the peace of mind that came with it was worth the extra cost. Plus the newer car had much better safety features as well as Android Auto and Apple Car Play which were great bonuses to use Waze or Google Maps directly on the car's screen.

 

[make_batik_great_again]

Thank you so much for sharing your opinion and experience. Very much appreciated. After reading this I think it might be better not to buy a used car.

Do you know if it makes a difference whether the car is registered on the foreigner or the Indonesian spouse (regarding tax, insurance or or something else)? Our motorbike is already registered on my wife‘s Name and I don‘t own any vehicle in Indonesia yet if that is relevant for that question. If I am not wrong, the tax is progressive (means higher tax if someone owns more than 1 vehicle ... would mean that it might make more sense if the car was under my name then). If that‘s incorrect, feel free to correct me

 

[Vanuatu]

I am not sure if the higher tax goes into effect with a bike owned already or only with another car. We put the car in my wife's (Indonesian) name only, not really for any reason other than she had her KTP on her and it was easier than me going to get my passport. I've owned a motorbike and a car in my name and had no issue buying or selling later. I would think that the only issue that may come up with a car is when you sell the car later, the new buyer may not want to change the registration until taxes are due again and may be more comfortable doing that with a car that is registered in an Indonesian's name. I sold my bike to a friend and the car to a dealer so didn't have that issue.

 

[Bad_azz]

There are some genuine used car sales out there- I know, because I am toying with selling mine.
It is only 6 months old but just after I bought it we got informed that we will be going on a tour for a year, so now I am in the position of - do I sell it, do I leave it at home with family where it will be parked up for a year rotting away or do I rent it out.
It certainly hasn't been near any floods or accidents or anything apart from a minuscule (inch long) scratch under the front bumper where I caught a plant pot with it - hubby's fault for moving the damn plant pot of course.

IF I were to sell it I would probably suggest that the buyer keeps it in my name for the next few years due to the free warranty & service for 3 years package it came with.

 

[snpark]

Ok my turn

Buy new from a dealer or motor show, in your wife's name ON CREDIT
Here is the fun part

Pay about 30-40% d/p but from HER account (you transfer to her account before you go to the showroom for example)
Then get the credit in her name
They will easily approve a new car loan to anyone who pays more than 30% dp
Then get the credit over 36/48 months in her name paying from her account (even if it is you paying, you just put the money in her account every month before the due date)

This way your wife will build up her credit rating score with her bank as a responsible borrower so in turn later she should have no problems getting a credit card or house mortgage etc

Also buying from the dealer, you can negotiate for extras (they never give discounts) like floor mats, warranty etc and also he will arrange the insurance and even a "nomor cantik" if you want a fancy number plate like her initials or something

Why finance (apart from the credit rating)?
Well the last car I bought for a GF with BCA finance it was 3.75% a year and my savings were paying me over 8% a year at the time

So I still had my lump sum in the bank and still making some interest even deducting the loan interest.

That's my method anyway. She gets a car, she gets the benefits from the bank etc and it only really cost me the d/p

As for suggestions for cars, well here you find that you pay for the badge but some brands actually build the same model for a different company

Example - Daihatsu Terios / Toyoto Avanza. Same car pretty much identical, but Terios half the price.

Dihentikan Toyota Avanza 2024 Fitur dan Spesifikasi | Oto

Ketahui Spesifikasi & Harga Toyota Avanza 2024 di Indonesia. Temukan juga foto interior Avanza 2024, warna, konsumsi bahan bakar di Oto.

www.oto.com

Daihatsu Terios 2026 Harga OTR, Promo Juni, Spesifikasi & Review

Harga Daihatsu Terios 2026 mulai dari Rp 248,05 Juta. Terios 2026 Crossover terbaru tersedia dalam pilihan mesin Bensin. Sebelum beli, cari tahu dulu spesifikasi, konsumsi BBM, promo dan simulasi kredit bulan Juni, review redaksi OTO, dan bandingkan dengan rivalnya seperti Terios, Rush dan lainnya!

www.oto.com

 

[Dave70]

As for suggestions for cars, well here you find that you pay for the badge but some brands actually build the same model for a different company

Example - Daihatsu Terios / Toyoto Avanza. Same car pretty much identical, but Terios half the price.

The identical twin of Daihatsu Terios is not Toyota Avanza, it is Toyota Rush.

By the way, advantage of buying used car is that you don't need NPWP.

And sometimes you find great bargains and good value.

 

[centurion]

Well the last car I bought for a GF with BCA finance it was 3.75% a year and my savings were paying me over 8% a year at the time

So I still had my lump sum in the bank and still making some interest even deducting the loan interest.

Actually, the interest calculation for car leases in Indonesia is misleading. "3.75% a year" translates to more than 8% (or even 10%) effective interest rate (real interest rate) so you are losing money.

 

[Hawk256]

My wife and I bought new because we got big discount on a model year older that was still in stock in March. Don't know exactly how we got lucky on that, especially since it's a Honda but it was just as cheap to buy new at that point as to buy a used model of the same car. Used car prices are kind of high in Indonesia compared to other countries and a lot of times the prices don't make sense when compared to buying new. That being said, there are rare cases when you can get a very nice used car at a good price but it seems to be the exception not the rule.

 

[snpark]

Sorry yes Rush that was it
You don't need NPWP if you buy in Indonesian name

I am aware of 3.75% compound etc, I work in finance and with Indonesian banks
I can assure you it was cheaper for me to get finance than to use my own savings

 

[Jaime C]

When we were looking to buy a car over 9 years ago, I had assumed a 5 year old vehicle in good shape would be a lot cheaper than a new car.

I was wrong, as most 5 year old cars were only slightly cheaper. Maybe $16k USD compared to $20k USD. No warranty for the used vehicle, unknown condition, plus other problems made it a non-starter. Our Nissan Grand Livina has been pretty dependable.

Our car will be 10 years old later this year. Been pretty happy with it. Other than being rearended on the tolway from Bandung, nothing major wrong with it.

 

[snpark]

Yes sounds stupid but buying brand new and selling in 18-24 months is probably cheaper than buying an already 2nd hand one
There is an initial depreciation when you drive out the showroom but it stays pretty level for the next 2 years

 

[make_batik_great_again]

Thanks for all your feedback. I have been trying my luck in the meantime. And found already a car from Daihatsu that I thought it would be worth the money to spent for. But now the dealer says that it is soldout at the moment and not sure when it will be available again Could be 3 weeks, But could also be months...

Since the other types of Daihatsu are too expensive for me, I am now thinking about a Wuling. Anyone here who has experience or an opinion about Wuling?

 

[snpark]

Cheap and cheerful. Good enough for a family car for sure

 

[fastpitch17]

Thanks for all your feedback. I have been trying my luck in the meantime. And found already a car from Daihatsu that I thought it would be worth the money to spent for. But now the dealer says that it is soldout at the moment and not sure when it will be available again Could be 3 weeks, But could also be months...

Since the other types of Daihatsu are too expensive for me, I am now thinking about a Wuling. Anyone here who has experience or an opinion about Wuling?

My experience with Wuling is Grab and Go cars and of course car sales people in malls. The things I have noticed on my own is that Wuling seem to take a lot of notice to the creature comforts. Roomy, great A/C, radios seem quality, and has comfortable seats. The drivers indicate they like them. The drawback to me is from my experiences riding in them. The suspensions seem to wear rather quicky taking away from the smooth ride when brand new. Of course, most drivers here could care less if there is a bump or hole in the road so they would probably abuse the suspensions more than a Westerner would. As for suspensions, I see the same on other autos too and if they have some years on them they can be like riding on steel wheels with no springs. All in all, I don't think the Wuling would be worse that other autos in it's class and for some things, probably better.

Good luck.

 

[Hawk256]

Wife has a friend that bought a Wuling. Air conditioner was out in 3 months and tail lights stopped working in 5 months. Both were repaired under warranty but took quite a while to be repaired and was a big enough hassle that they don't want to ever buy another. Maybe it's just that one and YMMV but that is my experience with them.

 

[snpark]

Technically not your experience. Your wife's friend's experience

 

[snpark]

Just to be pedantic

 

[snpark]

Which means fussy, not to be patronising or anything