Buying a Used Car for Service: Experience in Avoiding "Lost Money"

Buying a used car for service is a potential option
Latest update date: February 26, 03

Buying used cars for service is the activity of buying and selling used cars for the purpose of transportation business such as taxi, Grab,...

Compared to buying a new car, buying a used car helps save 30-50% of investment costs, can start a business immediately with many diverse choices, has little risk and is easy to resell. This is a suitable solution for people with low capital but still want to start a transportation business.

However, buying a used car also poses risks if you do not have knowledge and experience. Carefully consider the purpose and budget of buying a car, make a list of necessary criteria for a business car, and the origin of the car. At the same time, check carefully before finalizing the order, choose to buy a car at the right time to save costs, choose to buy used cars from big brands in reputable places with clear procedures. This helps you make the most economical, optimal and appropriate decisions.

This article will provide you with important tips to buy used cars for efficient service, avoiding "losing money". Let's follow along to make buying a used car with service easy. 

1. Why Should You Buy a Used Car for Service?

Buying used cars for service is a potential option for those who want to start or develop a transportation business. Buying used cars for service not only saves investment costs, can start a business quickly, has diverse options, has little risk, but is also easy to resell. Not only that, with low initial investment capital, it is quite suitable for those starting a service business.

Specific reasons to buy a used car to run the service:

  • Car prices are usually 30% to 50% cheaper than new cars of the same type, helping to save significant investment costs. Above all, low depreciation helps to quickly recover capital.
  • Buying a used car does not need to wait for delivery like when buying a new car, but you can start business right after buying the car.
  • The used car market has a variety of car models, models, and prices, making it easy to find a car that suits your business needs and budget.
  • Used cars that have been inspected and repaired are often less at risk due to mechanical defects.
  • The demand for buying used cars for service is high, so it is easy to resell them when they are no longer needed or do not generate profit or recover capital.
Buying a used car for service is a potential option
Buying a used car for service is a potential option

However, to bring the above benefits, buyers need to buy in the right place, check carefully before "closing the order" and get many opinions from experienced people. Buying a car based on emotions or not being careful can run the risk of buying a car that has been in an accident, flooded, or has major wear and tear, leading to "lost money".

2. Experience Buying Used Cars for Service to Avoid "Lost Money"

Starting a service car business certainly brings with it many concerns, especially choosing a "favorite car" companion. To buy a quality used car for service, you need to clearly determine the purpose of buying the car, your available finances, the required criteria for a used car, the origin of the car, etc. At the same time, check the car carefully. more, choose the right time to buy a car, a famous car brand, a reputable place to buy and buy and sell according to the process,evil customs. 

2.1 Clearly determine the purpose of buying a car

Clearly determining the purpose of buying a car is the first and most important step to choosing a car that suits your needs and budget. Before choosing the right car model, you should focus on answering the following questions:

  • What business do you buy a car for?
  • How many people do you need to carry regularly?
  • What terrain do you often travel on?
  • What is the budget for buying a used car?

After answering these questions, you will be able to determine your vehicle needs and choose the right vehicle.

2.2 Determine the budget for buying a used car

Buying a used car is an economical choice but still meets the transportation needs of many people. For car buying to go smoothly and effectively, determining a clear budget is extremely important.

Xác định ngân sách dành cho việc mua xe ô tô
Xác định ngân sách dành cho việc mua xe ô tô

You should make a specific financial plan to buy a used car effectively: 

  • Determine your business purpose to choose the appropriate vehicle model.
  • Determine your ability to pay, if you have debt, how much additional loan is appropriate to your monthly income.
  • Choose a vehicle type that suits your intended use and affordability.
  • Make a savings plan if you don't have enough money.

Making a financial plan before buying a car will help you be more proactive in spending and avoid borrowing too much, leading to financial pressure.

2.3 Clearly determine the necessary criteria for used vehicles to operate in service

Choosing a car with all the right criteria will help you run your service business effectively, attract customers and increase profits. Criteria that service vehicles need to meet: 

Low input costs

Price is the key factor that determines the effectiveness of car service business. Choosing to buy a cheap car that still meets all functions is a smart strategy to help recover capital quickly and optimize profits. 

You need to refer to the market price to make a choice that is suitable for your finances. You should not be greedy for a car that is too cheap and choose a car that is degraded, has had an accident, is hydro-damaged, etc.

High durability

Even though it is an old car, you must choose a powerful engine that suits your needs, ensuring flexible operation and fuel economy. The sturdy chassis helps the vehicle withstand loads well and move stably on all terrains. A good suspension system helps absorb shock effectively, providing a comfortable driving experience for both drivers and customers and is integrated with safety features such as ABS, EBD, ESP,... to ensure passenger safety. use.

Energy saving

Fuel economy is an important issue for service vehicles, helping to reduce operating costs and increase competitiveness and profits for drivers. Furthermore, using fuel-efficient vehicles reduces emissions and protects the environment. You should choose a used car with the following characteristics to save fuel:

  • Aerodynamic vehicle design helps reduce wind resistance.
  • Engine size suitable for use needs, small capacity.
  • Advanced engine technology such as direct fuel injection, turbocharging,... 
  • CVT automatic transmission helps the car operate smoothly.
  • Tires have appropriate specifications and standard tire pressure.

Spacious seating space

Spacious vehicle space helps both drivers and customers have a more comfortable experience when traveling. You should choose a car with spacious, comfortable seats that can adjust the tilt appropriately and have ample legroom in the front and back. If it is fully equipped with amenities such as air conditioning vents, USB charging ports, power sockets, etc., it would be great, helping to increase customer comfort. 

Chọn xe ô tô có khoang ghế ngồi rộng rãi
Chọn xe ô tô có khoang ghế ngồi rộng rãi

Large luggage volume

A vehicle with a spacious luggage compartment is an important criterion when buying a service vehicle because:

  • Customers traveling long distances often carry a lot of belongings such as suitcases, gifts, personal belongings, etc. The car has a spacious luggage compartment to help meet this need in the best way.
  • Increase convenience for customers by not having to worry about arranging furniture.
  • Expanding to a wider range of customers, especially families with young children or traveling with a lot of luggage.

Maintenance costs and spare parts replacement are cheap

When buying used cars for business, you should choose popular cars with durable engines because the supply of spare parts is always abundant and comes with low maintenance costs and few breakdowns, helping to optimize repair costs. . 

Choose the car color that matches your destiny

When buying a used car, choosing the right car color according to feng shui is a concept that many people believe in. However, this should not be the top priority and affects other practical factors such as price, durability, aesthetics, etc. 

Select the most recent car model

You should choose to buy the closest used car because it is equipped with modern amenities, saves fuel, is safer and has high resale value. However, new cars often have quite high prices, so you need to balance the model and price, and consider carefully to ensure economic efficiency.

2.4 Clearly identify the origin of used cars 

Vehicle origin is an important factor affecting the quality and value of used cars. Therefore, clearly determining the origin of the car before buying is extremely necessary to avoid buying a poor quality car and facing legal risks. Below are methods to help you determine the origin of your used car:

  • Check vehicle documents:
    • Evaluate the legality and accuracy of information on documents such as vehicle registration, warranty books, inspection papers, etc.
    • Compare the chassis number and engine number on the vehicle with the number recorded on the documents.
    • Pay attention to signs of erasure or alteration on documents.
  • Find out information about the old car owner:
    • Contact the old car owner directly to ask about the vehicle's usage and maintenance history.
    • Check to see if the car owner has enough legal ownership to sell the car.
    • You can ask an acquaintance or a car appraisal service to check information about the car owner.
  • Consider vehicle usage history:
    • Check the warranty book and maintenance card to know the vehicle's repair and maintenance history.
    • Ask the car owner about the car's accidents and collisions.
    • Check to see if the vehicle is flooded or hydro-damaged.

You should not buy cars that do not have a clear source, lack transparency, or have unexpectedly cheap offers. Determining the origin of a used car helps you buy a good quality car, ensuring safety and long-term use value.

2.5 Check the vehicle carefully before finalizing the order

Inspecting the car carefully is the most important step when buying a used car, especially for service vehicles. Take the time to thoroughly check the exterior, interior, chassis, engine, gearbox, etc. to ensure you choose a car that suits your needs:

How to check the exterior of an old car:

  • Vehicle shape: Place the vehicle on a flat surface to check if any parts are sagging.
  • Car paint: Carefully observe rust, dents, and scratches.
  • Tires: Check tires for wear, cracks, and blisters.
  • Windshield: Check for cracks, chips, and scratches.
  • Rearview mirror: Check adjustment, folding, and breakage.
  • Bumper: Check for scratches and dents.
  • Car door: Check the fit and operation of the handle and door lock.
  • Bonnet and trunk: Check the tightness and operation of hinges and locks.

How to check old car interior:

  • Seat: Check the seat for wear, tear, and dirt.
  • Control panel: Check the operation of buttons and indicator lights.
  • Sound system: Check sound quality and operation of buttons.
  • Air conditioning system: Check cooling ability and operation of buttons.
  • Door glass: Check the operation of the glass and door lock.
  • Floor mats: Check the carpet for wear and dirt.
  • Screws: Check if there are signs of scratches, rust or replace them, the vehicle may have had its engine/transmission rebuilt. 
  • Other amenities: Check the operation of functions such as sunroof, curtains, etc.

How to check the chassis and chassis of old cars:

  • Vehicle frame: Check for signs of rust, warping, and collisions.
  • Undercarriage: Check for signs of rust, dents, and collisions.
  • Exhaust pipes: Check for leaks, rust, and distortion.
  • Suspension system: Check wear, rust, and operation of parts.

How to check old car engines and transmissions:

  • Check the level of oil and coolant leaks.
  • Check engine noise during start-up and operation.
  • Check engine vibration during operation.
  • Check the operation of the gearbox and clutch (for manual transmission vehicles).
  • Check engine exhaust smoke.

In addition, you need to check some of the following issues:

  • Trunk: If there are signs of rust, it is likely that this car has been hydro-damaged. 
  • Check the fuel tank to see if it is leaking. If you see foam left inside, it's best to ignore this car.
  • Check the maintenance and repair history to see if the vehicle has had parts replaced or regular maintenance performed.
Kiểm tra thật kỹ xe ô tô cũ trước khi ký hợp đồng mua bán
Kiểm tra thật kỹ xe ô tô cũ trước khi ký hợp đồng mua bán

2.6 Choose an economical time to buy a used car

Choosing the right time to buy a used car will help you get the car you like at the best price. You should buy a used car at the following times:

  • New car launch cycle: Usually at the end of the year or the beginning of the year, car companies will launch new car models. At this time, used car dealers often have discounts and incentives for used car models to clear warehouses for new cars.
  • Holidays and festivals: On major holidays such as Lunar New Year, Christmas, etc., used car dealers often have promotions and discounts to stimulate shopping. This is a good time for you to buy a used car at a good price and receive many attractive gifts.
  • End of month, end of quarter: At the end of the month and quarter, used car dealers often need to push sales to complete targets. Therefore, you can easily negotiate prices and receive many incentives when buying a used car at this time.
  • Market demand: Demand for used cars increases at times such as the beginning of the year, after Tet, etc. At this time, used car prices may increase and you may have difficulty finding a car you like. You should buy a used car at times when market demand is low to have more options and buy a car at a better price.

2.7 Used car brand to choose

When buying a used car, brand is an important factor to consider. Because popular car brands have high liquidity, making it easy to resell when necessary. 

Reputable car brands will use high quality materials and have strict production processes, ensuring the vehicle operates durably and with little damage. At the same time, the popular brand makes finding spare parts and repair costs much easier and more reasonable.

Some used car brands are highly appreciated for their quality and liquidity: 

  • Toyota: Japanese car brand famous for its durability, fuel economy and high liquidity value.
  • Kia: The Korean car brand is popular for its modern design, comfortable equipment and reasonable price.
  • Mazda: The Japanese car brand is highly appreciated for its flexible performance and sporty design.
  • Honda: Japanese car brand famous for its powerful engines, fuel economy and durability.
  • Ford: The American car brand is popular for its strong design, spacious interior and smooth operation.
Thương hiệu đóng vai trò then chốt trong việc định giá xe ô tô cũ
Thương hiệu phổ biến thường có giá trị thanh khoản cao

2.8 Choose a reputable place to buy and sell used cars

Buying and selling used cars is an important transaction, requiring care and meticulousness. Choosing a reputable place to buy and sell will help you feel more secure about the quality of your car and avoid risks.

Things to note when choosing a reputable place to buy used cars: 

  • Choose websites and groups with high traffic and active activities.
  • Read carefully the reviews and comments of people who have bought and sold cars at that location.
  • Compare prices and included services of different locations.
  • Contact the seller directly to ask for more information and discuss your needs.

2.9 Clear car buying and selling procedures

Buying and selling a car is an important transaction, requiring care and meticulousness. Carrying out clear car buying and selling procedures will help ensure benefits for both parties.

The car buying and selling procedure includes the following steps:

  • Step 1: Vehicle purchase and sale contract: Make a written car purchase and sale contract, with full information about the two parties, vehicle information and price. The contract needs to be notarized to be legally valid.
  • Step 2: Transfer title to change vehicle owner: Submit the application to change the vehicle's name to the vehicle registration agency. Documents include: Vehicle purchase and sale contract, vehicle registration, identification documents of both buyers and sellers, documents proving registration tax payment,...
  • Step 3: Pay for the car: Pay for the car purchase as agreed in the contract. You should pay by bank transfer and take a photo of the bill to ensure safety.
  • Step 4: Receive vehicle and vehicle documents: After completing the ownership transfer procedure, the buyer receives the car and vehicle documents from the seller.

During the purchase and sale procedures, please note: 

  • You need to carefully check the information on the car purchase contract and vehicle documents before signing.
  • Transactions should be carried out in a public place with witnesses.
  • You can ask a lawyer for advice to ensure safety in transactions.

3. Frequently Asked Questions When Buying a Used Car for Service

3.1 How much is a reasonable amount to pay for a used car service?

Depending on the type of service you do as well as your budget, buying a used car is reasonable. Specifically: 

  • If you buy a used car to drive a taxi, you should choose a spacious car, a 7-seat car with prices ranging from 500 million VND to 1 billion VND. You can refer to car models: Toyota Innova, Kia Sedona, Ford Everest,...
  • If you run GrabCar or GoCar, you should buy cheap, fuel-efficient cars that range from 200 million to 500 million VND. You can refer to Kia Morning, Hyundai Grand i10, Toyota Vios,...

3.2 What costs should be estimated when buying a used car for service?

In addition to the cost of buying a car, you need to estimate the following additional costs when buying a used car for service:

  • Vehicle registration fee:
    • Registration fee: 2% of vehicle value.
    • Vehicle registration fee: 150.000 - 300.000 VND.
    • License plate fee: 200.000 - 500.000 VND.
    • Compulsory civil liability insurance fee: 873.000 VND/year (for 4-seat car).
  • Insurance costs:
    • Material insurance: 1-2% of vehicle value/year.
    • Body insurance: 1-3% of vehicle value/year.
    • Fire, explosion and natural disaster insurance: 0,5% of vehicle value/year.
  • Repair and maintenance costs: There may be additional costs for repair, maintenance, and upgrades after buying a used car.

3.3 Are there any risks in buying a used car?

Buying a used car with a service can bring price benefits, but it can also come with risks such as difficulty checking history, being scammed, high maintenance fees, difficulty in pricing, and fake documents.

  • Difficult to check history: Old cars may have had many owners, making it difficult to trace usage and repair history.
  • Risk of fraud: Some sellers may lie about mileage, hide vehicle defects or falsify documents.
  • Potential damage: Used cars may have many hidden problems, leading to high repair costs.
  • Difficult to price: Valuing used cars can be difficult, leading to the risk of buying wrongly.
  • Legal documents: You need to carefully check the vehicle's legal documents to avoid buying a vehicle with a dispute, mortgage or fake documents.

3.4 What is a reputable address to buy and sell used cars in Ho Chi Minh City?

Thanh Phong Auto is proud to be the top reputable used car supplier in HCM with more than 10 years of experience in the field of buying, selling and repairing cars. Thanh Phong Auto is committed to bringing you the best experience when choosing a used car.

Benefits of buying a used car at Thanh Phong Auto:

  • Diverse choices: Providing a variety of used cars of popular brands and car models such as Toyota, Kia, Hyundai, Ford, Mazda,... Guaranteed to meet all customers' needs and budgets.
  • Guaranteed vehicle quality:
    • All used cars are thoroughly inspected by a team of experienced technicians.
    • We guarantee that the car will not crash or flood, and will be replaced with genuine spare parts.
    • Provide complete vehicle documents and maintenance history.
  • Competitive price:
    • Vehicle pricing is accurate, correct with depreciation rate and most competitive in the market.
    • Low interest installment payment support, quick procedures.
  • Professional service:
    • The staff is enthusiastic and knowledgeable about cars.
    • Supports title transfer and vehicle registration quickly.
    • Providing warranty, repair and replacement services with genuine spare parts.

All used cars at Thanh Phong Auto must go through all the steps from document check, accident check, interior and exterior check, engine compartment check, cooling system check, chassis check. , check tires - wheels, check speedometer,...

Coming to Thanh Phong Auto, you will certainly be satisfied with the quality of services and products that Garage provides. If you need advice and answers to questions about used cars for service, contact Thanh Phong Auto for a timely and thoughtful response. 

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