June 19, 2021
You may want to buy a new car despite the COVID-19 pandemic’s negative impact on both the South African economy and many household budgets. Cash-strapped customers are looking for any means to save money. Read the following tips on how to buy the right car for your needs from a dealer.1
It’s a huge financial decision to purchase a new car, and we have to be careful in these financially challenging times not to get into too much debt. When buying a new car, you need to put your emotions on one side and rely rationally on what you need and not what you would like to have.
You need to thoroughly consider all the costs involved and your monthly payments to the financial institution, should you require finance. Work out the hidden costs, such as the fuel consumption of your future car. Can you afford the fuel regarding the distance travelled every day? If the tyres on a pre-owned car are not new, how soon will you have to replace them?
There are some pros and cons when buying a new car. You have full use of the warranty and knowing that your vehicle is untainted by any other driver. The only catch is that, despite a good trade-in, prices of new cars are prohibitively high. Buying a pre-owned vehicle has the advantage that the first buyer took the impact of the significant depreciation of the new car. The downside is that the car requires servicing and repairs sooner. It would help if you were meticulous about the condition of the older car, and all other aspects that could affect your pocket later.
You have decided to forego the idea of buying a pre-owned car and instead purchase a new vehicle. If you require financing from a bank, you will be compelled, by law, to take out comprehensive car insurance. PMD offers an excellent complete car insurance policy with the double advantage of having premiums that never increase* (*Ts and Cs apply), and an excess that reduces to zero over time. You are covered for third-party accidents up to R1 million. Claims submitted for theft, accidents, write-offs, fire, hijacking or disaster will not affect your car’s full retail value. You have peace of mind about any breakdowns because a 24-hour roadside assistance and towing service are there to assist you. If you are worried about bad roads or bad weather, your car is also covered for hail and glass damage.
Because car insurance may be complicated, this article must only be viewed as information. You still need to obtain professional advice from a certified financial advisor if you are interested in buying car insurance.
If you plan to buy a new car, why not consult with PMD well before the time and find out all you need to know about their affordable, comprehensive car insurance.