May 12, 2022
Buying a car is something most exciting to experience for South African motorists, but it comes with the responsibility of paying for it. Do you plan on financing your new car through a bank or other financial institute? We live in challenging times in 2022. So, it makes more sense to get the right deal for financing your next vehicle purchase. So, it will be to your advantage to read about some tips you can use for financing your next car purchase in South Africa.1
You've presumably paid off your current set of wheels. So, while you don’t yet have to pay any instalments, save up for a large deposit on your next new car. In this way, you can reduce your monthly instalments, especially during these tough financial times.
There may be a significant difference between the car you want and the one you need. If you are a bachelor, there’s no need to have a massive car, which would be more suited for a family with children. If you play a lot of golf, you may need a car with great boot space.
What should also influence your choice is what monthly instalments you can afford. Remember, that the more expensive the car, the higher the car insurance premium is likely to be. It’s great to have all those horses under the bonnet such as a Ford Mustang, but you’ll pay more for petrol consumption. Choose a middle-of-the-range car with a reasonably strong engine and economical to run.
You may be surprised how many used cars are still in amazing condition, that can serve you well for many years to come. There’s no stigma to having a used car. Take great care that you are not buying someone else’s problems. An electronically sophisticated used car such as a BMW may look like a great deal, but if something goes wrong, you’ll have to pay dearly for the repairs.
A great choice could be to select a recent model of low mileage, which is still more upmarket than what you have. For less than the price of a basic new Polo Vivo, you can get, for instance, a 3-year-old Nissan Qashqai with a mileage of about 60 000 km. Demo models are also attractive, with their low mileage and having undergone considerable depreciation.
Even though a private purchase price may be less than a dealership's, banks may be reluctant to finance such a deal. That means you would have to pay cash, which is beyond the reach of most motorists. There are also some cons to consider such as the security of the whole transaction. There may be a lack of comeback should you discover something fraudulent about the deal. The advantage of reputable dealerships is that you can always contact them about any problems.
Car insurance is complex, and that’s why this article can only provide information at best. For the same reason, first, approach a certified financial consultant for professional advice before buying any car insurance.
Remember, if you’re considering buying a new car, the law demands that you take out comprehensive car insurance if a bank finances the car. This is where PMD enters the scene with their affordable, comprehensive car insurance with fixed premiums* and reduce to zero excess*. Contact them for more information about their innovative and affordable car insurance products for South African motorists. T’s and C’s apply.
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