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

Author

Eric Lau

Created On

2024-11-27

Edited On

2026-05-26

Text Size

P-Plate / New Driver Used Car

Buying property in Hong Kong is difficult, so if you want private space, buying a car could be a probable option. For first-time car buyers, there are likely many questions in their minds: Should beginners buy a new car or a used car? Where is the safest place for first-time buyers to purchase a car? Which car model is best suited for new drivers with a probationary license (P-License)? What are the procedures for buying a new or used car in Hong Kong? What should you pay special attention to when test-driving or inspecting a car? How much should you budget for owning a car in Hong Kong?

In the following series of articles, our experts at Kwiksure will address these questions one by one. Today, we provide prospective car owners with a detailed overview of the car-buying process, costs, points to note, along with some practical tips.

Table of contents

Should new drivers buy a "new car" or a "used car"?
Where is the safest place to buy a car?
Should you buy a petrol car, electric car, or hybrid car?
Summary of Procedures for Buying New and Used Cars
Tips for First-Time Car Buyers in Hong Kong
Recommended Cars for New Drivers
How Much Does Car Ownership in Hong Kong Cost?

Should new drivers buy a "new car" or a "used 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	Used Cars
Price	Transparent and fixed price Vehicle price is relatively high	Price fluctuates At least 30% cheaper than new cars Depreciation is less severe, making it hold its value better
Maintenance and Upkeep	Brand new inside and out, clean and fresh Comes with warranty from the manufacturer but requires regular inspections at authorized service centers Factory-tested before delivery, minimizing the likelihood of issues Replacement parts may need special ordering Vehicle inspection is only required after six years License fee must be purchased	Exterior may have damage or scratches, requiring minor repairs Some used cars sold by dealerships are factory-certified and come with extended warranties Older models may have more accessible and affordable parts, maintenance, and cosmetic options Older vehicles are prone to wear and tear, increasing the likelihood of repairs Test driving is essential to avoid purchasing problematic "cosmetic cars" (old gears disguised under a new appearance) or vehicles with underlying mechanical issues Parts for older models may be difficult to source and replace Classic cars might incur repair costs higher than the purchase price If the car is close to six years old, it may soon require mandatory inspection
First Registration Tax / License Fee	New cars require the payment of a first registration tax, which is calculated based on the retail price Electric private cars qualify for a first registration tax concession, capped at HKD $58,500 If replacing an old non-electric private car with a new electric private car ("one-for-one replacement"), owners can enjoy a first registration tax concession, capped at HKD $172,500	No need to pay the first registration tax unless it's a used car imported from overseas, in which case registration is required with the Transport Department Most registered vehicles currently in use already have a license fee paid (duration depends on the expiration date)
Insurance Costs	Comprehensive insurance is preferred for new cars, which has a higher premium	For non-luxury models, third-party insurance is commonly chosen, resulting in lower premiums
Handover Process	For vehicles in stock, the handover process can be completed within one to two weeks For popular models, delivery time ranges from 3 to 6 months	Transfer of ownership depends on both buyer and seller; it can be completed within 30 minutes Must visit the Transport Department's licensing office in person to handle the transfer

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Where is the safest place to buy a car?

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.

Should you buy a petrol car, electric car, or hybrid car?

Advantages	Disadvantages
Petrol Cars	Wide variety of models to choose from Flexible pricing options Easy to find petrol stations	Not eligible for the "one-for-one" tax concession Emits exhaust gases, causing environmental pollution Requires regular maintenance and replacement of wear-and-tear parts
Electric Cars	Zero emissions, aligning with environmental trends Not affected by rising fuel prices Eligible for the "one-for-one" tax concession	Requires time for charging Maintenance and repairs must be done at authorized service centers Insurance premiums may be higher than petrol cars
Hybrid Cars	Battery is charged by engine power, no need to visit charging stations Air conditioning can run without starting the engine	Battery deterioration over time Higher maintenance costs compared to petrol cars For long-distance driving, energy efficiency is worse than electric cars

Summary of Procedures for Buying New and Used Cars

New Cars	Used Cars
Step 1. Choose a car	Visit showrooms to select a car.	Schedule a car viewing through acquaintances, online platforms, or used car dealers. Pay attention to the manufacturing year (car age), number of previous owners (transfer history), mileage, and license fee expiration date. Generally, the lower the numbers, the higher the value.
Step 2. Test-drive	Focus on whether you like the car model and its driving performance.	Check for any unacceptable flaws in the car's exterior. Test basic operations such as the braking system, window controls, electronic indicators, and tire conditions. During the drive, listen for any unusual noises. What to look out for when test-driving a new/used vehicle
Step 3. Inspecting the Car	No inspection required.	After agreeing on the price with the seller, you can contact an inspection professional to visit the used car dealership for an on-site inspection. Alternatively, you can request the seller to accompany you to a workshop for a detailed inspection (commonly referred to as "lifting the car") to ensure the car hasn’t been in a serious accident. Avoid paying a large deposit before the inspection, but you may pay a small earnest amount (e.g., HKD $1,000). If the vehicle is in good condition, the inspection process typically takes half a day.
Step 4. Signing the Contract	If satisfied with the test drive, pay a deposit.	Sign a provisional sales agreement with the seller. Ensure the contract specifies: The vehicle is free from loans or liens. The vehicle is not under any car club membership.
Step 5. Purchasing Car Insurance	Choose an insurance company and provide the car chassis number to your insurance broker (usually found in the sales agreement). The insurance broker will issue a temporary policy, which you can forward to the car dealer to handle licensing and registration procedures.	Obtain a copy of the car registration document from the seller for purchasing insurance. Keep the temporary policy with you on the day of the ownership transfer.
Step 6. Vehicle Transfer of Ownership	The dealer will handle the registration process.	Both buyer and seller sign a transfer of ownership notification form and visit the Transport Department to complete the transfer. Steps in buying a used car and precautions to take in 2025
Step 7. Finalizing the Transaction	Ensure the car dealer has all necessary documents, including the original registration document (if under financing, only a copy will be available). Verify there are no significant issues with the car, such as severe scratches or unreasonable mileage. If major issues are found, the buyer has the right to refuse the transaction. If no problems are found, proceed to pay the remaining balance.	Pay the balance and collect the car keys after the ownership transfer is complete.

Tips for First-Time Car Buyers in Hong Kong

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.

Recommended Cars for New Drivers

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

How Much Does Car Ownership in Hong Kong Cost?

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.

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The above information is for reference only. Kwiksure takes no responsibility for the accuracy and timeliness of the information. For the coverage, mode of compensation, benefit limit and premium levels of any specific insurance plan, please refer to the relevant policy terms.

Author

Eric Lau

Eric is a content creator for Kwiksure, responsible for writing articles on various topics such as cars, travel, domestic helpers, etc., striving to provide readers with detailed and practical information.

With over 20 years of experience in the media industry and driving, Eric has worked for several newspapers, magazines, and online media outlets. Apart from his passion for writing, he also enjoys the pleasure that driving brings. On average, he drives over 40,000 kilometers per year.

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