The Importance of Pre-Purchase Inspections for Used Cars

Why Opt for a Used Car?

Purchasing a used car can be a financially savvy decision. New cars can depreciate by as much as 20-30% within the first year, and sales tax can add up to $25,000 or more. In states like Arizona, private party vehicle purchases are exempt from sales tax, making used cars an even more attractive option. However, whether buying from a dealer or a private seller, it’s crucial to protect yourself with a PPI, even if the car is still under warranty.

The Role of Pre-Purchase Inspections

Accident History

One of the primary concerns when buying a used car is whether it has been involved in an accident. While services like Carfax provide valuable information, they are not infallible. There can be a significant delay—sometimes up to 12 months—between an insurance payout and the incident appearing on a report. Additionally, repairs paid out-of-pocket may never be documented.

Our PPI includes a meticulous inspection of the paint finish and any signs of collision damage. If a car has been to a body shop, it can affect its value, even if it doesn’t impact performance. Surprisingly, many cars still under warranty have had bodywork done. For instance, a new Ferrari 458 Italia with only 100 miles on the odometer had significant body damage.

Mechanical and Electrical Checks

Beyond aesthetics, it’s essential to understand how the car has been driven. For example, newer Porsches often show over-revs in their computer systems, which can indicate missed shifts or early downshifts. Exceeding the redline by 200-400 RPM can harm the engine and affect long-term performance. Our diagnostic tools, including Autologic and Porsche software, help us track hours, misfires, mileage, and other critical events in the life of Porsches, BMWs, and Minis.

Odometer Verification

While it’s challenging to tamper with odometers on most modern vehicles, older cars are more susceptible. The Porsche 993, for instance, has seen significant appreciation in recent years, leading to more mileage anomalies. We recently inspected a 993 from a North Scottsdale dealer and found that the speedometer had been tampered with. Proper documentation is crucial to verify the car’s history and mileage.

Market Trends and Valuation

The Porsche 993 has appreciated significantly over the past few years, much like pre-’74 911 models. Enthusiasts and collectors value these cars for their robust air-cooled engines, functional A/C, and excellent drivability. However, sellers often try to capitalize on this appreciation without maintaining the car properly. A top-notch 993 should command a high price, but a neglected one should be priced accordingly.

Beck’s European: A Trusted Name in PPIs

For nearly 40 years, Beck’s European has been providing objective and accurate PPIs. Some local dealers may try to steer you away from us, but if a dealer refuses to allow a professional inspection, it’s a red flag. As a buyer, you have the right to hire a legitimate professional to evaluate the car’s value.

Consistent Standards

We maintain a consistent standard: “New or better than new (restored collector cars).” Whether the car has 200 miles or 200,000 miles, our inspections are thorough and unbiased. This approach ensures that every vehicle stands on its own merits, providing clarity for the buyer.

Conclusion

In summary, a pre-purchase inspection is a vital step in buying a used car. It protects you from potential pitfalls and ensures you’re making a sound investment. Remember, caveat emptor—let the buyer beware.

Live with passion, drive with passion.

Frank Beck

Interesting Stats

• Depreciation: New cars can lose 20-30% of their value in the first year. Source: Edmunds
• Odometer Fraud: The National Highway Traffic Safety Administration (NHTSA) estimates that odometer fraud costs American car buyers over $1 billion annually. Source: NHTSA
• Used Car Market: In 2021, the used car market in the U.S. was valued at approximately $841 billion. Source: Statista

Additional Resources

• Carfax Vehicle History Reports
• National Highway Traffic Safety Administration (NHTSA)
• Edmunds: How Fast Does My New Car Lose Value?