June 13, 2022
It’s certainly a most exciting experience to buy your first car. It takes care of having to catch the bus and always being dependent on others for transport. It means you suddenly have an extra ‘pair of legs’ that you can use at any time you want. But a challenge to becoming a first-time car owner is that you may well have no car to trade-in. Most likely, you don’t have a long credit history either. So read on and find out what’s the best way to buy your first car in South Africa.1
Instead of taking a substantial financial leap and buying a new car, preferably get a cheaper pre-owned car that’s about two years old. Such a car will still have the reliability of a new car and the manufacturer’s warranty and service plan. A new car depreciates massively in its first year, and that’s the amount of finance you are not borrowing when buying a pre-owned car.
The car rental industry provides most of the pre-owned cars on the market. These are 9-12 months old and as good as new, seeing car rental companies look well after their fleet.
Get hold of a reputable dealer and choose well-known brands for reliability. A good dealer can offer you professional advice and is someone you can approach later with any issues. It’s worth paying the extra premium that such dealers charge for brand reliability. Buying a car from a car rental company will be cheaper.
Don’t start with a large car when, in fact, you can only afford a small one. As a first car, it will be easy to drive and park.
Most first-car owners can't buy with cash, so a bank will have to do. A reputable dealer has contacts with banks and can arrange an acceptable loan for you with terms that best suit you.
Ask the dealer if the car has been in any accidents because that could cause problems later. Avoid the car should the dealer be hesitant to answer your queries. If you need another opinion, have another professional look at it.
Such a car will serve you well, but it will also have a good resale value when it’s time to get another car. So don’t fall for a cheaper but less-known brand that may give you trouble later and has a lower resale value.
Find out about DataDots on your car that carries identifying information such as the chassis number.
Because car insurance is complex, this article can only supply you with information. For a similar reason, first, contact a certified financial advisor and ask for professional advice on the car insurance product you intend to buy.
You may be jumping up and down with joy because you are about to buy your first car. According to the law, if it’s a new car and financed by a bank, you need to buy comprehensive car insurance. This is where PMD can offer affordable, comprehensive car insurance with excellent benefits such as fixed premiums* and reduce to zero excess*. T’s and C’s apply.
November 7, 2023
November 7, 2023