Buying a car is not everyone’s cup of tea. Do you listen to the salesperson and just hope for the best or do you listen to all the advice everyone you know gives you the moment you say you’re looking? Is it better to buy a pre-owned or a new car? Do you know enough to buy a pre-owned car? Fear not, you are not alone in this period of turmoil. We’ve put together a couple of tips to help guide you.
When you start to think about getting a set of wheels, look at your budget to see what you can afford. Remember though, when you start your calculations, to include your petrol use, maintenance costs and your insurance premiums; don’t just look at the car repayment. If you need to apply for finance through a bank or other financial institution, remember that you will be forced to take out Comprehensive Car Insurance in order to take delivery of the vehicle. It’s also important to note you have the right to choose where you’d like to apply for a loan; the sales consultants are only there as advisors. If you do not feel comfortable with their suggestions, you don’t have to accept them; you can chat to any financial services company that you feel comfortable with and trust.
Ensure that you know exactly what it is that you are agreeing too as you’ll be the one carrying the financial burden. If there’s something you don’t know or understand fully, ask. For instance, agreeing to a balloon payment will lower your monthly premium, but you’ll have to pay an inflated final instalment, be forced to refinance that amount at the end of the loan term or sell the car to settle that amount which could leave you without a deposit on your next car.
Do the necessary research on the type of car you want but more importantly - need. Look for information on fuel efficiency, maintenance as well as the actual space in the car. Also, compare different cars in the same price group. Do quotes at different dealership and visit dealerships in different areas. Trevor Browse advises that you should ensure that “the dealer is a member of either the Retail Motor Industry Association (RMI) or Independent Dealer Association (IDA). These associations have rules of accreditation, codes of conduct and compliance with legislation. These rules and regulations are designed to protect the consumer”.
Visit your local police station and ask for advice and recommendations regarding cars and vehicle theft. Do as much research as you can – the more you know the easier it’ll be to make a good decision. Choose a car that answers all your needs.
Now that you’ve sorted out your finances, and decided on what car you’re buying where, you’re ready to sign the dotted line and claim your car. But before you do, you need to come to a sales agreement. It’s haggle-time. Listen to the sales pitch but don’t be talked into a deal you don’t want or can’t afford. You’ve done your research, you know what you want – go for it. Ask about the warranties, vehicle specifications, extras and service plans, anything you need clarification on.
If you’re buying a pre-owned vehicle, you can insist on having an independent roadworthy test done on the vehicle. Also, test-drive the car – know what it is that you’re signing up for.
Before you even think of getting in your brand new wheels to drive into the sunset, get it covered. Insurance is one of those expenses that nobody wants to make, but it’s a definite necessity. Eugene Herbert, in an interview with News24, compared the death toll on the South African roads to that of a jumbo jet crashing every ten days. That is excluding the fender-benders and more serious but non‑fatal car accidents. Not to mention that Fin24 stated that one car is stolen every nine minutes. Hence, car insurance is a necessity. So, before you and your new beauty drive off take the time to complete an online car insurance quote and find the deal that suits your needs and pocket best.
Disclaimer: The information provided in this article is for informational purposes only and do not constitute legal or other professional advice. Budget Insurance Company Ltd.does not accept any responsibility for any act, omission, loss, damage or the consequences thereof by the dependence by any person upon the contents of the article.