Imagine a car buyer is scrolling through a social media or marketplace page. He comes across his desired make and model, so he goes to the VDP and reads the description and reviews. He is impressed with the videos and top-notch images you have shown and has placed an order. But as soon as it gets delivered to their doorstep, they find a broken headlight, torn seat covers, patches on the deck, and whatnot.
Result: the buyer immediately places a return, and you have to go through the reverse logistics costs. The buyer has lost all his trust and has decided to avoid you wherever he comes across your ad. This is why vehicle inspection for used cars becomes critical. Selling a used or pre-owned vehicle doesn’t mean you can deliver a wrecked and ruined car on its last legs. Your vehicle should be workable and look almost as new and clean as possible. This blog will walk you through the whats and whys of vehicle inspection: the checklist, purpose, inspection report, and so on. Let’s dig in.
What is a Vehicle Inspection for the Used Car Market?
A vehicle inspection for the used car market thoroughly examines a vehicle’s condition to assess its overall health. It identifies any problems that may affect its performance or safety. The inspection typically covers various aspects of the car, including the engine, transmission, brakes, suspension, tires, electronics, etc. The main aim is to provide buyers or sellers with an accurate assessment of the vehicle’s current condition and help them make informed decisions about purchasing or selling it.
Inspections can be performed by trained professionals, such as mechanics or certified inspectors, or through online inspection services that use technology to remotely assess the vehicle’s condition. In general, an automotive inspection involves:
- A visual analysis of the vehicle’s exterior and interior
- A test drive to check its performance
- A comprehensive evaluation of its mechanical, electrical, and safety systems.
- A detailed analysis of the vehicle’s condition, any repairs or maintenance needed, and an estimate of its value in the current market.
What is Checked During an Automotive Inspection?
During a car inspection, several vital components and systems of the vehicle are checked to assess its overall condition and identify any issues that may require repair or maintenance. While the checklist may vary depending on the make, model, and condition of the used car, the overall requirements and pre-purchase car inspection checklist remain the same. These include:
Brakes: Checked to ensure that it is functioning correctly and that the brake pads, rotors, and drums are not excessively worn.
Suspension and steering: Inspected to ensure they are in good condition and not excessively worn.
Tires and wheels: The condition is checked, including the tread depth, tire pressure, and overall condition of the tires and wheels.
Lights and signals: Checked to ensure they are working correctly, including the headlights, taillights, turn signals, and brake lights.
Exhaust system: Checked for leaks to ensure it is in good condition.
Engine: Inspected for any signs of damage or excessive wear, including checking the oil level and condition, coolant level, and any signs of leaks.
Transmission: Inspected for any issues, including checking the fluid level and condition.
Electrical system: Checked to ensure that all components are working correctly, including the battery, alternator, and starter.
Emissions: Depending on the location and regulations, an emissions test may be conducted to ensure the vehicle meets the emission standards.
Odometers: Tampering with odometers is a prevalent practice, and if the readings do not match the car’s condition, the inspector may reduce the overall grading for your vehicle.
Legal documents: To ensure that you legally possess the car and that no unlawful element is associated with the title, inspectors will pay special attention to these papers. Legal documents required for a used vehicle inspection include:
- Registration certification (RC) to check how the car’s ownership was transferred.
- Insurance papers to ensure seamless transactions using your RC.
- No objection certification (NOC) to make sure there are no pending loans or mortgages against your car.
- Original purchase invoice.
What is the Purpose of Pre-Purchase Car Inspection?
A pre-purchase car inspection aims to assess the overall condition of a used vehicle before purchasing it. It helps to identify any existing or potential issues with the car that may not be visible to the untrained eye. It mostly includes mechanical, structural, or cosmetic problems that may affect the car’s safety, reliability, or value.
By obtaining a professional inspection report, a buyer can make a more informed decision about whether or not to purchase the vehicle, negotiate a fair price, and plan for any necessary repairs or maintenance.
Remember that car buying is a daunting process for most buyers. It involves hours and hours of research, gathering reviews, sending queries, and whatnot. While a car may appear in good condition on the surface, it may have underlying issues that could result in costly repairs or even pose a safety risk.
Used car inspection will help gain the power to negotiate. Car buyers will always try to bring down the price. By leveraging the excellent condition of your used car, you can improve online car sales and dodge settling for lower-than-market price values.
What will take Place During a Used Car Inspection Service?
A regular motor vehicle inspection is a four-step process wherein an inspector will inspect the identification details, do a preliminary check of the vehicle’s condition, go through the physical details, and finally look for hidden damages. Other than these four parameters, inspectors can do the following things.
Dive deeper into the background history
To check a used car’s history, an inspector will obtain all info regarding the car’s sales, registration, and odometer records, as well as accident, repair, maintenance, and recall history.
The physical inspection will include static and dynamic checks, focusing on significant issues such as the car’s title. Salvage or rebuilt title indicates severe body damage, so avoid such cars. Also, they will verify that the VIN on the title matches the car to avoid purchasing a stolen vehicle.
Checking under the hood
When inspecting a car, inspectors will examine its fluids under the hood. It involves pulling the oil dipstick and checking for grit in the oil at the bottom, which signals excessive engine wear. Additionally, they will look for water or a gray foamy substance, both of which are problematic. Any problems in these areas could indicate that costly repairs may soon be required.
Checking maintenance history
Although an inspection report may show some maintenance history, collecting receipts allows them to verify how frequently the oil has been changed and when costly maintenance tasks were last completed. For instance, many new cars require the engine’s timing belt to be replaced every 100,000 miles, costing around $1,000. Suppose the inspection reveals that the vehicle is in good condition. In that case, it may be a wise idea to have a mechanic examine or replace fluids, hoses, belts, brakes, and other typical maintenance components before you finally sell it and ensure less effort for buyers.
What is a Vehicle Inspection Report?
A vehicle inspection report is a document that outlines the results of an inspection performed on a car. The report mainly includes information about the condition of various systems and components of the vehicle, including the engine, brakes, suspension, tires, lights, and other safety features.
These reports are often required by law in many countries to ensure that vehicles are safe to operate on public roads. A buyer would want to know if the price quoted for a used car is worth asking and if the features claimed on the VDP are true.
The report includes a summary of the inspection results, any areas requiring attention or repairs, and recommendations for maintenance or further inspection. Buyers or sellers of used vehicles may also use reports to assess the vehicle’s condition before making a purchase or sale.
The main component of an inspection is a vehicle body analysis which records:
- Labeling of Car’s Exterior
- Exterior Images from different angles
- Labeling of Wheels & Associated Images
- Important Questions about the used car
- Labeling of Car’s Interior
- Interior Images from different angles
- Test Drive & Condition
- Hood Images
A report can include comprehensive details of the car under 150+ checkpoints, including car video coverage and hygiene checks. It covers 226 to 318 factors based on mechanical and electrical components to a history check and outstanding finance report.
Sometimes, dealers anticipate an inspection to determine whether the car has passed or failed – but this is only occasionally accurate. Unlike an MOT, which provides a brief overview of the car’s condition before giving a pass or fails verdict, an automotive inspection delves deeper into the car’s condition, providing more details to help buyers make an informed decision about the vehicle while allowing you to mend the gaps before selling.
Why is Car Inspection Required?
Every used car seller or dealer must prioritize road safety and implement various measures to ensure the safety of their vehicle on the inventory floor. Conducting vehicle pre-use checks should not be treated as a mere compliance requirement. Instead, they are an effective and straightforward method of identifying potential hazards and defects before you sell the vehicle to buyers.
Importance of vehicle inspection for the used car market
Maintaining a lower insurance cost
Selling a defective vehicle can be perilous and may result in severe injury or even death, besides losing customers’ trust and loyalty. To prevent selling faulty cars, you must conduct regular safety inspections before selling.
Extending the life of your used cars
Regular and proper maintenance of vehicles, along with verification of optimal working conditions, can significantly increase your used cars’ lifespan. Regular pre-purchase car inspections will help you reduce repairs and replacement costs, maximize value, and extend their longevity.
Preventative maintenance
The benefit of preventative maintenance is that it prevents small problems from growing into bigger (and costlier) ones. Giving your vehicles the attention they require will also help decrease their downtime. Preventative maintenance ensures that you maximize the vehicle’s service instead of having it sit in the garage and cost you or your buyer massive penalties.
Align with regulatory compliance
Dealers and sellers must inspect their vehicles before selling per safety laws and regulations. Inspections ensure you are not caught with penalties and provide a pre-use inspection document in case of an accident. This document limits your liability exposure and protects you from non-compliance penalties and fines.
Improved customer experiences
Ensuring that your vehicles are in excellent working condition boosts customers’ reliability. It reduces the likelihood of breakdowns on the road and ensures the timely delivery of services. So customers will have a positive experience and be satisfied, contributing to building a good reputation that attracts more customers. Additionally, showcasing a flawless vehicle with your company logo on the streets creates a positive impression of your car dealership.
Importance of vehicle inspection in the insurance industry
Insurance companies often require vehicle inspections to determine the condition and value of the vehicle before providing coverage. This inspection helps the insurance company to assess the risk associated with the vehicle and to determine an appropriate premium for the policy.
Inspections also help insurance providers prevent fraudulent insurance claims. Inspections can identify pre-existing damage, which can prevent individuals from making false claims about damages that occurred after the policy was issued. Additionally, checks can verify the ownership and condition of the vehicle, preventing individuals from claiming ownership of a stolen or damaged vehicle.
In the event of an accident, an inspection report determines the extent of damage to the vehicle and whether it is repairable or a total loss. This information can be used to determine the amount of compensation that the policyholder is entitled to.
How to Prepare your Used Car for a Car Inspection?
Preparing your used car for a pre-purchase inspection can help ensure the review goes smoothly and accurately reflects the vehicle’s condition. Here are some steps you can take to prepare your used car for a pre-purchase inspection:
Clean the car: Cleaning the car inside and out can help the inspector to see any issues more clearly. A clean car also shows that you have taken care of the vehicle.
Organize maintenance records: Gather any maintenance records, receipts, and service records for the vehicle. This information can be helpful for the inspector to understand the vehicle’s history and identify any potential issues.
Address any known issues: If you are aware of any problems with the car, address them before the inspection. This can help avoid any surprises during the inspection and demonstrate that you are a responsible owner.
Check the lights and signals: Ensure all the lights and signals are working correctly, including the headlights, taillights, brake lights, turn signals, and hazard lights.
Check the tires: Ensure that the tires are correctly inflated and have adequate tread depth. Worn or underinflated tires can be a safety concern.
Check the fluids: Check the oil, transmission fluid, coolant, and brake fluid levels, and ensure they are all appropriate.
Test drive the car: Take the car for a test drive before the inspection to ensure that it is running smoothly and there are no apparent issues.
How Much Does a Used Car Inspection Cost?
The cost of a vehicle inspection varies depending on the type of inspection and the location. In general, a basic inspection can cost anywhere from $50 to $100, while a more comprehensive inspection can cost up to $300 or more. The cost may depend on the type of vehicle being inspected and the inspector’s qualifications. It’s always a good idea to shop around and compare prices from different inspection services before choosing one.
Leveraging AI for Vehicle Inspection
Pre-purchase car inspection is a costly and time-consuming process. Moreover, damages and dents are often not so easily visible to the naked eye. Now imagine you deliver a car with such critical faults to a buyer only for them to discover later on while driving! You lose a buyer’s trust and a good chance of repeat purchases.
But this is just one avenue. There are also chances for you to fall into false claims by insurance providers. Insurance is supposed to cover you and your used cars from damages caused due to accidents or thefts. However, the providers ignore major damages and force you to settle for a lesser amount.
This is where AI vehicle inspection comes into play. AI can speed up the process by detecting minute details that the human eye may miss. Here are a few ways AI for vehicle inspection can help you.
Automated Inspection: AI systems can quickly and accurately identify defects and issues in a vehicle by analyzing images and data from various sources, including cameras, sensors, and diagnostic tools.
Predictive Maintenance: AI algorithms can analyze data from a vehicle’s sensors and predict when parts are likely to fail, allowing for proactive maintenance to be performed before a breakdown occurs.
Quality Control: It can analyze images and data from manufacturing processes to ensure that vehicles are being produced to a high-quality standard, with any defects or issues being detected and addressed before the vehicle is sold.
Safety: AI-powered systems can help identify potential safety hazards in a vehicle, such as worn brakes or tires, which could lead to accidents.
Data Analysis: AI can help analyze large amounts of data from various sources to identify automotive industry trends and inspection patterns, which can give insights into improving maintenance processes and reducing downtime.
Conclusion
Hope this blog helps you understand the importance of vehicle inspection, what it is, what an inspection report includes, and how you can leverage AI for car inspection. Long story short, automotive review should be quintessential to your used car market strategy. You cannot sell a car that will land car buyers huge maintenance costs, leading to major troubles when traveling.
A thorough inspection will validate your car’s working condition and make it worth asking for the price. Wish to know more about how to leverage AI for car inspection? Reach out to us today.
