CRA Motoring News & Personal Finance – South Africa
Times are tough right now, but if you’re lucky enough to be in the market for a vehicle, it may be best to look in the used car market.
There are a number of reasons why a second-hand car might be the best option for you, we’ve listed a few below:
It’s Better For Your Wallet
You may not afford that luxury car you’ve always wanted, however, considering a car with a few kms on it may fit your budget. Buying a pre-owned vehicle is a great option when you’re on a budget. In comparison to a new vehicle, you will be able to pay off a used car much faster, saving you on potentially hefty financing fees.
We know that a new car depreciates in value the moment you drive it off the lot. New cars decrease about 20 percent in value the second you drive away from the dealership and will lose another 10 percent during the first year. Buying a pre-owned car doesn’t mean that your car won’t depreciate in value, but that depreciation will occur in smaller increments.
You Can Save On Insurance Costs
A major factor in determining the cost of car insurance is the value of the car. A used car has less value than a newer model, so the cost of insurance could be less if you opt for a pre-owned vehicle.
Before you commit to the car, be sure to get a car insurance quote so that you know how much you will be spending on insurance. Some insurers even offer insurance for your budget which allows you to tailor some elements of your policy based on your needs.
Now that you know why going pre-owned could work for you, here are some tips and tricks to consider when making your purchase:
Research – People who drive have a bevy of knowledge, so they are the perfect people to ask about the cost of a car service if it’s not under a motor plan. When making a decision, consider where you live or work, and if you will have easy access to service centres. Also consider the availability of parts for the model that you’re interested in.
Test drive – Switch on the ignition and allow the car to idle. Walk around the vehicle and check the wipers, lights and listen to the engine noise. While test driving the car, make sure you test all the gears, and include an incline on your test route.
Take a couple of minutes after the test drive and check to see if there are any fluids that have leaked on to the ground. Oil or coolant could indicate a serious issue with oil seals, engine or cooling system.
Get a professional opinion – You can also ask for a thorough check to be done by a reputable car inspection company just to make sure that the car is mechanically sound for added peace of mind.
Negotiate! – Everything is negotiable. If buying from a car dealer, ask them whether they can include all on-the-road costs (car license registration, etc.).
Be prepared to walk away – Although it may be tempting, do not buy a car on the spot, especially if it’s a bargain. Rather give yourself the time to make an informed, rational decision and avoid buyer’s remorse.
Remember to do your research, think with your wallet, and use your negotiating skills. You could be driving home with the car of your dreams at the price of your dreams too.
This article is sponsored by MiWay.
MiWay is a licensed insurer & FSP 33970. Ts & Cs apply.
Feature image: Supplied