For most of us, buying a vehicle may be one of the biggest buys we will ever make after a house, so it only makes sense that we get it right.
We hope that these tips will get you on track to getting the best deal.
1. Which vehicle model will suit your needs?
When buying a new vehicle, first define what you need. Think with your head not your heart!!
Make a list of what you really need, and not what you want. For example, if you travel long distances, you have to prioritise fuel efficiency over speed or good looks. If have a very busy, taxing job, choose a car that requires low maintenance. If you have a growing family, that boot space is going to become all important. Research different models and compare the cost of services and parts.
Too often the temptation of just owning something new makes us forget about all the other costs that comes with it. You will be surprised at the cost of parts of exotic car models compared to the more mainstream models.
Be strict with your budget and remember to think beyond your monthly repayment amount. Factor in the running costs too. A tip to calculate those extra costs: if your car payment is R6 000 pm, double that to cater for fuel, maintenance and car insurance. Yes, you read right double it!!
2. Research vehicle prices and negotiate the best deal
Take your time to research sales prices before setting your heart on a specific car. Visit a few second-hand car dealerships and request written estimates to use as bargaining tools later. You can also visit popular websites such as autotrader.co.za and carfind.co.za.
Once you know how much you should be paying, start shopping around. Experts say that dealerships mostly clear stock towards month end or whenever their financial year-end is. This means they will discount the vehicle to meet targets or to clear old stock to make way for new models. Don’t be afraid to negotiate – or walk away!
3. Be smart about financing your car
If you can buy the vehicle cash, that would be first prize!! If not, it’s important to look for a loan with the shortest term and the lowest interest rate possible. Even if the monthly repayment seems higher, you will save on interest in the long run.
Try to put down as big a deposit as possible – ideally between 10 to 20% of the total purchase price. Also try and pay for any upgrades or additional warranties in cash rather than including this in the financing.
The excitement of a new vehicle often blurs our sensibility and we over look the actual amount we eventually pay for the vehicle, at the end of the loan term.
4. Get the most cash for your old vehicle
If you have kept your existing vehicle in a good condition – keeping up with its maintenance and services – it should not be too hard to sell it at a good price. Make sure you know how much it is worth by doing your research online or discussing a trade-in with a reputable dealer.
If you do decide to go the trade-in route, always ‘bank’ your deal – in other words, finalise the price of your old car before discussing the new purchase you wish to make.
5. Pay the right insurance premium
Do not assume that your insurance premium for your new car will cost the same as what it did for your previous car. Know what the retail and market values are of the car you are intending to buy. Check its replacement value to make sure you are not underinsured.
For first time vehicle owners with no insurance history, be prepared to pay a higher premium until you build up sufficient insurance history which will then allow insurers to offer you a more competitive premium.
If you need assistance with finding the best insurance premium, give us a call on 086 162 0000 or drop us an email at clientservices@xinixinsurance.co.za
We are partnered up with all of the large and reputable insurers. We will definitely negotiate a premium that will be best suited for you and your needs.
Go on give us a try??
