TÜV SÜD: former rental cars offer the highest price reductions – watch out for optional extras
Low prices, next to no waiting time and no need to fret over the significant drop in value of new cars: one-year-old cars, demo cars and – with certain reservations – lease returns from car rental companies and company fleets are in high demand among private car buyers. Nearly-new cars have clocked up only a few thousand kilometres and cost up to 40 per cent less than new cars. But how can private buyers find the right offer? What do they have to look out for when making their choice? What optional extras should the second hander have to ensure a high resale value? TÜV SÜD's experts give tips on what to look out for before signing the purchasing contract.
The used car market is booming. According to figures for 2011 from the German Federation for Motor Trades and Repairs (Zentralverband Deutsches Kraftfahrzeuggewerbe e.V., ZDK), 6.28 million vehicles had changed hands in Germany by November – a year-on-year increase of over five per cent. The used car market is fuelled by a significant increase in the number of new cars registered. According to the Federal Motor Transport Authority (Kraftfahrtbundesamt, KBA) almost 3.2 million new cars were registered for the first time in 2011, a rise of almost nine per cent. In view of these trends and the fact that growth figures have been revised downwards, should motorists postpone buying a new used car in the hope that prices will fall? Andreas Halupczok, used car expert at TÜV SÜD, answers this question with a definite No: "Prices are stable as most car dealers have built up a reasonable inventory of used cars and do not have to launch price wars to push their inventory turnover. Having said that, they have some highly interesting offers, especially among nearly-new cars."
According to Halupczok the best offer also depends on the buyer: "Motorists fixed on a particular make who want to buy with confidence should contact their local car trader. By contrast, best bargain buyers who do not set great store by the make and are prepared to travel hundreds of kilometres to get their new motor will probably find the best price over the Internet."
Make use of price benefits offered by ex-rentals: Nearly-new cars are a good alternative to new cars. One-year-old cars or demo cars are available at massive price reductions. Prices for lease returns from car rental companies may be down by up to 40 per cent. However, ex-rentals have usually clocked up a higher mileage of around 20,000 kilometres compared to demo cars with a mileage of between 5,000 and 10,000 kilometres. A new Mercedes E 250 CDI estate manufactured in 2011, for example, can be had for just under 60,000 euros, depending on the optional extras: according to current offers on major online platforms, the same model can be had as a one-year old or a demo car with under 10,000 kilometres on the clock for around EUR 50,000. As a comparison, the same model with the same year of manufacture but from a car rental company with around 30,000 kilometres on the clock is available for roughly 40,000 euros. According to Halupczok, the optional extras and, in particular, buyers' caution with respect to rental cars are responsible for the large difference. "Many potential buyers shy away from buying ex-rentals because they fear that these vehicles were not used carefully. We do not share these reservations. However, prospective buyers should examine the wear parts of ex-rentals especially carefully." The TÜV SÜD expert warns that lease returns or rental cars must always be identified as such in the purchasing contract as their resale value may be lower.
Watch out for the optional extras: Sun roof, nav-sat system, automatic transmission, xenon lights – when comparing the prices on the Internet, motorists quickly notice that certain extras are included in most cars. BMW 5 Touring models, for example, are hardly ever seen without nav-sat equipment. Most of them also come with automatic transmission and sun roof. These three extras are also included in many typical company cars such as the BMW 5, the Audi A6 and the Mercedes E class. While models without these optional extras are offered for lower prices, they are also more difficult to resell later on – an aspect to which all prospective buyers must pay attention if they change cars every three years and therefore need to keep an eye on resale values. Drivers who intend to hold on to their cars for ten years or so can take advantage of the lower-price offers if they can do without the convenience of heated seats or a sun roof.
Another important aspect for the resale of models in the upper intermediate class is the form of the car body. At present estate cars are more in demand than saloon cars. A quick search on the Internet shows which cars are for sale more often and at higher prices. In the compact car class, the number of doors is critical for resale: cars with five doors sell better than those with only three doors. Other important criteria in this class include tyre size, exhaust and electronics. If the car has been modified, better look for another one. However, this does not apply to typical sports cars whose resale value may be increased by premium tuning.
Back to the cars sold most often in the upper intermediate class – common extras, and thus important for the resale value, are leather seats, heated seats, park assist, xenon headlights and start-stop system. The following applies to used cars across all categories: "Enter the models in the common search machines and simply play around with the various extras – this give you the best overview of the extras that are a must for the specific types in question", says Halupczok.
Keep a critical mind on the Internet: The Internet offers not only opportunities, but also quite a few traps. Reality is often very far from the attractive photos shown on the web. Ask questions and inform yourself about the history of the car in advance, especially if the supposed best offer is hundreds of kilometres away. According to TÜV SÜD, prospective buyers should clarify the following issues in particular: Who is selling the car and how many previous owners have there been? Tread depth, date of the next service, was the car owned by a smoker? Also important: does the car's service history match the mileage on the clock? "Prospective buyers should always ask for the vehicle registration documents and the service book to be faxed to them, in addition to repair invoices and the reports of roadworthiness checks with a view to confirming the stated mileage. This information enables them to verify the details provided by the seller", emphasizes Halupczok. Also important: ask about any previous damage. Phrases such as "accident free" or "without damage caused by accidents or other damage" must also be stated expressly in the contract. But be careful: a note "without visible accident damage" is not sufficient! In the case of prior damage, always ask the seller to hand over the repair invoices – you will need them at the latest when you resell the car. If the potential seller of the car acts evasively in telephone or email contact, hands off! If sellers do not want to or cannot provide the necessary documentation, look for another offer!
Keep the dealer's interests in mind when negotiating: You went on a test drive, inspected everything thoroughly and found the car in good order but the price is still too high and the seller does not want to negotiate the price further? Ask for a longer guarantee, a car service voucher or – if you are taking out finance for your car – for better financing conditions. These are aspects on which car traders often find it easier to meet you half-way.
Have the used car inspected: Prospective buyers who want to be on the safe side when buying a new car can get expert support with the used car check for private car owners offered at every TÜV SÜD Service Center. The experts will examine the car and prepare a comprehensive test report. If a seller refuses the check: choose another offer
Further information for motorists is available at www.tuev-sued.de/autopartner(only availbale in German)
Contact: Frank Volk