[Beginner Driver’s Guide] Should You Buy a New or Used Car? | Car Purchase Procedure | Things to Note When Buying a Car

The first step for new drivers when buying a car is to decide whether to purchase a "new car" or a "used car." Each has its pros and cons, as detailed below:

New Cars

Visit major local car dealerships such as Dah Chong Hong (Nissan, Honda), Crown Motors (Toyota, Lexus), or Zung Fu (Mercedes-Benz, Hyundai). Most brands have showrooms and websites to browse vehicle models and prices.

Used Cars

It's important to shop around. Options include second-hand car dealerships or certified used car programs from major brands, such as Dah Chong Hong's Approved Used Cars, Inchcape Used Car, or BMW Premium Selection. These vehicles undergo thorough inspections and offer warranties for added reliability.

Alternatively, you can explore online platforms like 28car.com, Buycar.hk, or Carro, where both dealers and private sellers list their vehicles. Online marketplaces like Facebook Marketplace and Carousell are also popular options.

Tips for Buying a New Car

1. Car Model Versions

The same car model may have different versions. Ensure the car you’re purchasing matches your desired version.

2. Prepare Documents

Bring your identity card, driver’s license, and proof of address to facilitate the car dealer in processing the necessary documents.

3. Payment

Unless paying in full, if you plan to make installment payments, pay attention to the payment terms, such as the number of installments and the interest rate.

Tips for Buying a Used Car

1. Pay Attention to Key Numbers

When selecting a vehicle, you should pay attention to several sets of numbers on the vehicle registration document (registration book), including: the year of manufacture (i.e., vehicle age), the number of previous owners (i.e., transfer count, with a lower number being better), as well as the vehicle's mileage and the license fee expiration date.

It's particularly noteworthy that for vehicles that have never been registered in Hong Kong and are newly imported, the owner count is 0. When the vehicle is transferred to the next owner, it becomes 1, and so on. Regarding mileage, given Hong Kong's road conditions, an annual mileage of about 10,000 to 15,000 kilometers is considered reasonable. You should also try to purchase vehicles that are sold through authorized dealers and have original maintenance records. If you are considering gray market vehicles, make sure to verify whether the vehicle is registered with the Transport Department. If it lacks the necessary import documents and detailed information, it is advisable not to buy it.

Request for a "Certificate of Particular of Vehicle"

The "Certificate of Particulars of Vehicle" records whether the vehicle has been involved in any accidents or insurance claims. This information is extremely useful for potential buyers, as it can help avoid purchasing a second-hand vehicle that still has outstanding notices. For more information, please contact the Licensing Office of the Transport Department.

2. Inspect Before Making a Deposit

Inspection is an essential step before making a deposit on a used car. The Hong Kong Automobile Association offers inspection services to ensure the car is in good working condition. If you personally know a trusted mechanic, ask them to inspect the car at a garage for convenience.

3. Test Drive

Regardless of where you’re buying the car (dealership, auction, or private resale), always test drive if possible. Test driving allows you to personally evaluate the car’s performance, interior space, and functionality. Check for proper operation of the transmission, brakes, and tires during the drive.

Petrol Cars

1. Honda Jazz

2. KIA Morning

3. Nissan NOTE e-POWER

4. Mazda2

5. Suzuki Hustler

Electric Cars:

1. ORA 03 

2. smart #1 

3. ZEEKR X 

4. AION Y Plus 

5. Wuling Bingo EV 

1. Car Price
Compared to other countries, used car prices in Hong Kong are relatively affordable. For example, a new BMW 218i GRAN COUPE M SPORT from 2020 costs nearly HK$360,000. As of now, a used one costs around HK$100,000+, losing over half its value within a few years. If on a budget, consider purchasing a used car to lower upfront costs.

2. License Fee
Paid every four months or annually, the fee depends on factors such as fuel type and engine capacity. Larger capacities incur higher fees, and vice versa. For electric vehicles, the fee is based on the vehicle’s net weight.

3. Parking Fees

With limited space and many cars, parking fees in Hong Kong are high and constitute a significant portion of ownership costs, often reaching several thousand HKD per month. This includes residential, workplace, and occasional parking expenses.

4. Fuel Costs

Hong Kong’s fuel prices are consistently among the highest globally. With prices mostly rising, fuel expenses remain a heavy burden for car owners.

5. Insurance Costs

Insurance premiums depend on several factors, including the driver’s age, driving experience, profession, car type, insurance coverage, and no-claims discount. Generally, premiums range from HK$1,000 to over HK$10,000. A longer driving history, more no-claims discounts, and low-risk vehicle types result in lower premiums.