Buying a car poses a number of questions for the consumer.
Here DECO Algarve offers step by step advice for anyone looking to buy a car.
Used car buyers also have rights!
Second-hand vehicles can be a great option, but we need to be extra careful regarding their condition and warranties.
Is used car protected by a warranty?
If you choose to buy a used car from a private individual, be aware that these people in most cases do not provide a warranty. For this reason, it is advisable to ask a mechanic you trust to make as exhaustive checks as possible, a process that can save future headaches.
The warranty obligation only applies to traders, but even in certain cases there are some details to take into account. Used cars do not have to be given two years if the buyer and seller agree on another deadline. As a rule, used car stands offer only one year, the minimum period allowed, offering a discount on the sale price. Attention: with discount or not, warranties of less than one year are unacceptable.
What about a new car warranty?
According to the Law, it is two years from the date of purchase. During this period, the seller is obliged to be in compliance with the warranty, without any charges to the buyer.
Some car brands offer warranties with a longer term, called volunteer warranties, but the obligation is two years, not including tires, brake pads or elements of natural wear and tear.
What should I do if the car has a defect?
If the car is still within the warranty period, from the moment the consumer finds a defect, you have 60 days to make a written communication to the seller. Then, the seller has up to 30 days to make the repair.
You do not need a specific document to validate a warranty. Just present a proof of purchase, such as the payment receipt or sales contract. If it is not possible to repair the car, you can either ask to replace it or end the contract, recovering the amount paid. A fourth hypothesis is to ask for a price reduction, but in most cases, this does not make any sense.
You can also claim compensation from the company that sold you the car for the damage caused. For example, if due to a breakdown you missed a professional meeting and, as a result, lose business. Also other expenses that must be included - with the towing and travel - must also be paid by the seller.
I have decided to buy my car abroad (7 steps)
Be aware of the steps you must follow:
- You will have to pass the vehicle through an authorised inspection Centre for complete registration (Center for Technical Inspection of Vehicles category B), which will issue a certificate of declaration model 112.
- You must fill in the Form 9 available at the Mobility and Transport Institute - IMT - for vehicle approval.
- It follows the Customs to fill out a Vehicle Customs Declaration (DAV), which you have to deliver with all the documentation collected in the previous steps. Customs will issue the ISV settlement note and will have 10 working days to settle the payment (at customs or via ATM).
- As soon as the Vehicle Tax is paid, the national registration number can be attributed to the car, which will be printed at the DAV. Now, you must arrange for the production of a vehicle registration plate with all documents that you have been given through customs. With a DAV and an enrolment you can circulate for 60 days. Don’t forget to take out car insurance.
- After these 60 days you must return to IMT to deliver all the documents obtained from Customs ((DAV and copy of the booklet authenticated by customs) so that the process can be sent to the Conservatória de Registo Automóvel, to issue the Single Automobile Document in your name).
- Now you need to go to Conservatória de Registo Automóvel to pay the emoluments and request the Single Automobile Document. Do it on the website: https://www.automovelonline.mj.pt/AutoOnlineProd/
- Finally, you have 90 days to pay the IUC, counting from the date of registration.
Cash or credit?
If you decide to take out credit to buy the car, do the maths first: the total debt should not exceed 35 percent of net monthly income. If possible, save a good deal of money before proceeding with the loan. In addition to reducing your level of indebtedness, you will be able to obtain more advantageous financing conditions.
There are also several types of car loans to take into account to make the best choice: credit, long-term rental and leasing.
How to choose consumer credit?
In order to choose the best proposal, be sure to analyse an annual global effective cost rate (APR), which is the main comparative indicator in credit for buying a car.
Tricks to lower costs
ALD and leasing are not always cheaper than credit. The owner damage insurance, which we advise for up to 4 years of the car, is mandatory in ALD and leasing modalities. However, if you are not interested, credit can be cheaper.
The maximum rates announced by the institutions may drop with negotiation, so negotiate with your bank. If it is not possible, consider taking out a personal credit, sometimes they have competitive rates.
Lastly, if you’ve got an old car you are going to have to figure out how to get rid of it. You can always sell your old car on your own, however if it’s not in the best of shape another option to consider is selling it to a company that buys cars like Junk That Car.