In various discussions on the forum, we have seen poor punters getting mutton being passed off as lamb; i.e. older cars passed off as new. From a consumer standpoint, the car is new but in reality, it is as old as the day it rolled off the line.
Although our Team-BHP PDI list and VIN guides should assist you in not getting fobbed off, you might find great deals in old inventory too. What happens if there is a wallflower that appeals? A deal that is too good to be true? Well, it's fair to say that not all non-sellers are bad cars, so let us take an in-depth look into this.
Why would one consider this?
- Great savings – Sometimes there are good cars that lack market appeal.
Why you might want to run?
- Such cars might be difficult to sell in the used market, due to lack of market appeal.
- High depreciation, since they were never wanted.
- Niggles that creep in due to long periods of storage.
- Dealers use such cars for customer test-drives (with their odometer disconnected). These are inevitably abused.
The objective of this guide is to:
1. Help assess what to look for, in addition to the PDI.
2. What needs to be factored into negotiating the price. The dealer will tell you "like new" and stories like it has been kept in a hospital-like environment, but that may not be the case.
While we cannot deal much with market perception without starting a fanboy club, we can at least highlight potential risks and how to mitigate them.
So, what typical cars do we find sitting in the inventory?
Note: This list is based on past data and is subject to change.
- Overstretched Brand Victims– VW Passat, Hyundai Sonata, Maruti Kizashi
- Victims of Poor Forecasting & Overproduction- VW Vento
- Victims of poor marketing – Renault Fluence
- Overpriced – Fiat 500, VW Beetle
- Unloved Petrol Equivalents – BMW 523 / 320i, Polo 1.6
- Unloved CKDs– Chevrolet Captiva
- Unloved – Chevrolet Sail, Spark, Fiats, Tatas of all shapes and sizes
- Dudso's - Verito, Quanto
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For the purpose of discussion, I will assume old stock to be something greater than 6 months, but will highlight things that might be apparent between 3-6 months.
One needs to be aware about:
1. Variant Changes - what does the latest version have that the old stock doesn't.
2. How and where is the car stored, and for how long?
Although the Team-BHP PDI list should cover inspecting the car, we need to also look at addressing issues that might be unseen due to prolonged storage.
The most important addition is to see where the car was stored, how long for and under what conditions. If in a dusty or moist area, expect more corrosion and contamination. If stored on concrete ground, that would be a lot better.
If the car has been half jacked up or parked half in a large crater, this could create uneven wear or even distortion through a phenomenon called "creep" on the car's structure.
If both 1 and 2 are acceptable, it is then worth doing a drill-down beyond a PDI to ascertain what needs to be done & decide on what should be paid. Let's look at the various components one by one.
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If the car has been stored for 3 months – Check for storage damage.
If the car has been stored outside 6 months - Oxidation of paintwork + clearcoat deterioration.
Note: Some cars (e.g. VW, Skoda) come fully covered in a polyfilm, so are totally protected.
Minor damage might be repairable, but the issue of surface oxidation / clearcoat might need to be addressed.
The dealer might throw in a detailing or Teflon coating, but these are band-aids. The body work might need more than just a waxing job and can require paint protection. Factor in the cost of paint protection treatment into the price.
Some key walkaway indicators would be if rubber parts are rock hard and brittle. Check wiper blades, bumper inserts, window seals and assess their condition.
Interiors:
- Check for mildew.
- Lift carpets and boot floor to check for water leakage or water accumulation.
- Check that the door seals have not gotten stuck to each other.
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Engine:
3 months - Not much to worry, but check for leaks if any.
6 months - Surface corrosion and associated seizures.
Note, if it is a turbo engine, watch out for perished seals and hoses. It might be difficult to identify these, but you must factor in these costs.
A key indicator would be the under-bonnet foam insulation. If brittle and powdery, expect to budget for a replacement and do a thorough check on rubber parts.
Actions: The best safeguard is to ask the dealer to start the engine directly in front of you for the first time and listen. 90% of the time, it will be okay, but there is that odd chance something might have seized.
Check what comes out from the exhaust. Steam from cold is acceptable. Anything blue or white? Walk away! If you hear anything sounding oddly mechanical, walk away.
Actions: Budget an early engine oil / filter change within 3,000 kms if the first service is some time away.
Transmission:
- Gears & linkages could seize. Ideally, the car should be left in neutral during storage.
- Surface corrosion of flywheel facing could increase clutch wear slightly. Autobox transmission fluid could absorb some moisture (storage greater than 6 months).
Actions: Factor in a 10% clutch replacement cost or a transmission fluid change within 30,000 km.
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Electrical:
Connectors corrode as do sensors. We also have the problem of rodent damage. This could lead to short circuiting. Check that all electrical equipment works.
Actions:
- Check all gadgets and accessories and ensure that nothing jams / no fuses blow.
- Ensure a complete diagnostic check is performed and get a written clean bill of health.
Air Conditioning:
If stored for 6 months, unused ducts can lead to bacteria forming and also strange odours. If the car was parked in a dusty area or near trees, the filters and trunking can get leaves and dust accumulation.
A/C gas leaks can happen if the unit is not used as the refrigerant also acts as a lubricant.
Actions: Insist on re-gassing the A/C unit. Monitor the air-conditioning performance and refrigerant levels closely. Factor these consumable costs in.
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Brakes:
- If stored 6 months - The discs might have some surface corrosion, leading to rapid pad wear while bedding down and removing the surface rust. Handbrake mechanism, if used, could seize and might need to be freed up.
- If Stored 1 month – The handbrake, if used, could mildly seize. It usually gets released when the car sets off from rest.
- Brake fluid is hygroscopic and absorbs moisture.
Actions: Check that brakes are thoroughly cleaned on delivery. The surface corrosion will get abrased by the pads, but expect the first set of pads to wear a little faster.
Monitor brake seals for any leakages, in case a seal has perished.
Budget 20% of pad cost due to rapid wear + additional brake cleaning during the first service. Also factor in an early brake fluid change if the car has been in storage for 6 months.
Suspension:
With the exception of air / pneumatic suspensions, nothing much to be expected, although the suspension will creak due to lack of use until it is bedded in.
However, if the car has been stored half jacked up, half in a pothole or similar, the suspension loading might be uneven, leading to misaligned settings, since the components can get slightly distorted.
If the car has been stored on level ground, it should be fine. Some suspension lubrication might be required as part of the PDI. Check air / hydraulic suspension thoroughly for leaks and slow operation.
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Fuel systems:
Petrol - 3 months, it should be okay. 6 months, the fuel could have deteriorated and gotten contaminated. Fortunately, dealers rarely store cars with a full tank, so the first thing to do is fill the car up with fresh petrol.
Diesel - This is a tricky one. The big danger is water content. If the car has been stored for more than 6 months, one needs to consider whether the filter will be up to the job.
Action: For petrol cars, factor in an early fuel filter replacement during the next service. In the case of diesel cars, insist on a new filter being fitted before delivery.
Coolant:
Coolant serves not just a cooling role; it is also a lubricant for the water pump and a rust inhibitor for the cooling system. During the storage time, all it does is inhibit rust. So, if the car has been stored for 6 months or more, factor in a coolant change within a year.
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If left for more than six months, tyres can flat-spot, leading to uneven wear and also stress defects.
Action: Check tyre pressures and inflate to maximum pressure (as stated on the sidewall). Take an extended testdrive for 150 km to allow the tyres to warm up and assume the required shape. Let the tyres cool down, bring the tyre pressure to the rated value and re-balance wheels.
If no luck, you might need to consider a new set of tyres.
Test-Drive:
- Check that all equipment works.
- Check the speedo reading and that it works. Orphans are sometimes put to work unofficially.
Listen for sounds like:
- Droning of seized bearings.
- Hissing of air leaks.
- Whistles from wind noise due to perished rubber.
Look for smells:
- Seized brakes.
- Musty air conditioning.
- Damp carpets.
Make sure there is not much bump thump from misshapen tyres. Check alignment.
Stiff gears and controls can be fixed.
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Concluding:
- Old stock means the car was not a favorite. So, expect poor resale.
- Expect minor niggles.
- Make an assessment based on the above factors and negotiate hard. If no joy, twist his arm for additional warranty cover. Note this only works if the dealer has enough business to remain viable. If it is a Fiat or Mitsubishi franchise, they might not be around to honour that commitment.
- Check the warranty terms carefully and make sure it is valid from the date of delivery. One VW dealer has tried the trick of starting warranty from the date the car left the factory (and not the actual delivery date).
