The Car Buyer's Guide

(Thomas Zscherpel, Germany, 1993 and Erik Möller, Sweden, 1996)

There are two reasons why you should consider buying a car instead of renting one during your summer in the U.S. If you own a car only three months it will not fall much in value. That means you can probably sell it for about the same price that you bought it for. The second reason is that you can own that old, V8 powered American car that you have always dreamed about, but never could afford to drive home in Europe.

This guide is intended to provide you with all the information you need to buy, register, insure and sell a used car. There is also a section about how to get a California driver's license.

Buying a Used Car

You can either buy a used car from a dealer, there are a lot of them on Steven's Creek Blvd. and El Camino Real, or from a private person. Some good newspapers to look for advertisements are:

The San Francisco Chronicle (daily, short 2 line ads)
San Jose Mercury News (daily, short 2-4 line ads)
The Auto Trader (weekly, every car is shown by a picture)
The HP Trader (monthly, HP employees' cars)
You can also read the Internet news groups:
ba.market.vehicles
misc.forsale

To know what is a reasonable price for a specific car you can check out the official price list called the Blue Book. You can find the book at HP Credit Union or at any big bookstore and if you don't want to buy it you can always sit down and read about the cars that you are interested of.

American cars are usually cheaper to buy than European cars and easier to sell than Japanese cars but consider only U.S. used cars older than '75 or newer than '88. Before '75, American cars were built like tanks, nearly indestructible. It seems that the cars were built with parts out of an unique unit construction system which must have served all Detroit car manufacturers. This a big benefit for you, because each small garage even in the desert will be able to fix your American car. Around '75 even the U.S. car industry had to realize that the time of these old road monsters was over. So they began downsizing their cars - and started to build junk. It took them nearly 15 years to learn how to build small cars, so better keep your fingers off from cars of this period. If you absolutely want to buy a Japanese car, well, then you should buy one which is newer than '83.

Due to the climatic conditions in California, rust is usually not a problem - even bare metal parts won't rust, so if you discover multiple rusty parts on a car, it may have been owned in a rust belt area. To check the overall state of a car, you can:

take a look into the engine (hoses, oil, automatic transmission oil, brake fluid, power steering fluid,...)
take a close look at the bottom of the car (hoses, oil traces, wheels bearings, steering,...)
test the powered features
take a test ride (and listen to noises, so switch off the radio!).

At the end of the test ride, leave the engine running and watch carefully if anything is dripping from the engine. If it does and it is not the condense water from the air conditioning, then keep your fingers off this car!

You can also take the car to a garage to let them check the car for you.

There are four papers to deal with when purchasing a car:
Certificate of Title
Bill of Sale
Smog Certificate
Odometer Disclosure Statement

The first and most important is the "Certificate of Title," also known as the "pink slip". This is the car ID with information about the car's registered owner. When you purchase a used car, the owner must sign the certificate and give it to you. This signature says: "I sold the car". At that time, the owner will also give you a "Smog Certificate" that must be less than 90 days old. This tells you something about the exhaust of the vehicle. It is the law in California that the owner of a car has to smog test the car before he sells it. This is the only way the U.S. government checks if cars are still operating. Great Country! Then you have the "Bill of Sale" which says how much you paid for the car. It is nothing more than a contract stating that you are responsible for any damages caused by this vehicle in the future. If the car is newer then '80 you also need an "Odometer Disclosure Statement".

Registering a Car

Every vehicle with a license plate has to be registered in the U.S. by the Department of Motor Vehicles (DMV). After purchasing your car, you must go to the DMV office within 5 days to register the car in your name. You must bring with you the "Certificate of Title," the "Smog Certificate," the "Bill of Sale." And, if the car is newer then '80, the "Odometer Disclosure Statement". For registration you pay 7.75% tax on the car price stated on the bill of sale plus $10 for the paperwork. The DMV will then give you a "Registration Card" to keep in your car and will mail your new "Certificate of Title" within three weeks.

There is an additional tax for license plates which is called "License and Registration Fee." This is for the stickers which appear on the license plates and are valid for one year. If you have bad luck you have to pay for the renewal during your three months stay.

The registration can also be done at most AAA Auto Insurance offices if you are a member. AAA is short for American Automobile Association and as a member you get free road service, free maps, discounts on several hotels and more. The membership costs $58

Many buyers request that the seller writes a lower price on the "Bill of Sale" to lower the registration tax. This is of course illegal but it is very common to do that.

Insuring a Car

The California law says that every vehicle on the road must be insured. The minimum coverage is $15,000 for bodily injury and $5000 for property damage.

Most American insurance companies insist on a California driver's license, but there is one company group that will accept international driver's license too. They are called "Farmers Insurance" and have several offices in the Bay Area (refer to the yellow pages in the telephone book). If you are under 25 years old or smoker you will have to pay higher rates. Females may get a discount. For getting an insurance you must show the international or California driver's license, the car's registration card and your passport. You must pay the first insurance payment immediately. By the way, do not tell the insurance company that you will be in the U.S. for only three months.

You can get discounts if you:

have had a Californian driver's license at least 18 months
have had an International driver's license for at least three years
provide a "Motor vehicle insurance - Certificate upon change of insurance company". It should show no accidents. If you have at least one, you can save the effort to get the certificate.

There is something called "Uninsured Motorist" in most insurance policies. This insures you against motorists driving without any insurance. The "Collision Damage Waiver" is for damages you incur if you have an accident.

There is an alternative to get an American car insurance. Look in your home country for insurance companies who insure cars abroad. They are normally more expensive but have much better coverage. It is better to prepare everything before leaving Europe.

Getting a California Driver's License (class C)

The first thing to do is to apply for a "social security number" because the DMV require this. You go to the Social Security Department bringing your passport and the pink visa paper (don't forget that). You will get a receipt for the application and the social security number in about 2 weeks. But if you really need it soon, you can phone to the SSD after four or five days and ask for the number, the DMV will allow you to make the driving tests even if you only know your number. Maybe you can get the SSN at a bank, too. I know no details about it.

Next, go to the DMV or the AAA and pick up a "California Driver's Handbook" (it is for free!) and a sample test. This will inform you about the California driving laws. It is also a good idea to get an application form for a non-commercial driver's license so that you can fill out this at home: This will save you time when you will come back to the DMV to apply for the written test (usually there is a long line and it is a good idea to go to the office 30 minutes before it opens).

You must then take a written test at the DMV, so bring the application form for non-commercial vehicles. First you will take an "eye exam" and pay $12. Hopefully you will pass the written test (the easiest way to do it is to read some old tests, the questions are all the same!). If you pass the written test and show that you have an European license you will get a temporary license. Some days later you must take a driving test. In order to do this you must have a car, proof of insurance, the practice license and your social security number, or if you are a Hewlett-Packard employee (and luckily we are), you can use a Hertz car to attend the driving test, but you have to ask at HP for a certificate that states it. The road test takes about 15 minutes of driving time and includes three point turns, stops and driving backwards. If you pass you will be issued a temporary license but if you fail you should try to redo the written test immediately and the road test the next day. You will receive a permanent license in about four weeks good for four years. Note: it is a good idea to make an appointment with the DMV ahead of time so you don't have to stand in line.

Motorcycle License (class M1)

The procedure for getting a motorcycle driver's license is the same as for a car. For the written test you have to take an additional multiple choice test. You must also take a road test which is done on a parking lot, driving in circles and swinging. If you are under 21 years of age, you must first have a car driver's license before obtaining a motorcycle license.

Advantages and Disadvantages of Getting a CA Driver's License

Advantages:

you may find a cheaper insurance for your car
you can use it as an ID card for pubs, clubs (disco)
insurance discounts if you come back the following years
nice souvenir

Disadvantages:

need time to do the tests
the police won't let you go that easy if you are stopped (The policemen normally let you go if you show them your European license, but if they use their electronic system to check you and they figure out that you have a CA license as well, you will get into trouble - it happened to one of us)

To Sell Your Car

You have to sell your car, don't even think about taking it home. The transportation is no problem, it costs about $800, but you have to pay tax and worst of all, you have to get the engine approved for use in your country. The latter might even be impossible!

To sell the car you probably want to advertise in one or more papers. To place an add in the HP Trader is for free, but submit your text a couple of weeks before the issue is going to be published. To run an add in the San Jose Mercury News for two weeks cost $60 for two lines. As when you were buying your car, check the Blue Book for the price range and the average price of the car.

Before you sell the car you have to do a smog test which cost about $30. You also have to fill out the form "Certificate of Title" and, together with buyer, the "Notice of Release of Liability". The latter you have to mail to DMV when you have sold the car. If the car is newer than '80 you also need to fill out the form called "Odometer Disclosure Statement".

That's all. Good luck!