5 Steps to Buying a New Car

Are you among the many South Africans looking to spend a sizeable sum of money on buying a new car? If that’s the case, Jacob Moshokoa presents a list of 5 easy steps to follow to make the buying process a lot easier, brought to you by Absa.

PARTNERED CONTENT

Cars.co.za recently hosted Yumna Mohamed – the winner of Cars.co.za Consumer Awards Roadshow competition held in Sandton City late last year – at our Johannesburg office. Yumna won R500 000 from Absa, the title sponsor of the Cars.co.za Consumer Awards, to purchase a car of her choice and our team guided her through the process by explaining the pros and cons of each of the models she considered.

We’d like to help you, the prospective new- or used car buyer, navigate your purchasing journey too, so here are the 5 steps that could save you a lot of time and hassle when you’re looking to buy a vehicle.

1. Do your research

And by this, we don’t mean flicking through our app to look at car pictures. Buying a car is a MAJOR financial commitment, so you need to understand all the aspects and pitfalls of becoming a car owner.

Ask yourself serious questions like: Can I afford this car? Does it truly suit my needs (as opposed to my wants)? What are the pros and cons of diesel vs petrol? What are the insurance and maintenance costs?

Be sure to ask the right questions (even if they seem “stupid”) and proceed calmly, armed with the knowledge that you need, so that you don’t get yourself on the wrong side of your bank manager.

2. Create a budget

Your budget needs to accurately reflect your financial situation. Are you certain that you can cover expenditures such as repayments, insurance, maintenance, registration, repairs, tyre changes and fuel?

There’s a lot to think about when buying a car and, as they say, “sometimes the maths isn’t mathsing“. However, it’s better to be realistic and get the car you need and, importantly, can comfortably afford.

3. Consider buying a pre-owned car

Granted, a used car won’t necessarily still have that new-car smell and delivery mileage on its odometer, but buying a certified pre-owned vehicle is a great way to get a good car for MUCH less than a new one.

You could even get an older-, but higher-spec model of the same car for a lot less than the new(er) one.

4. Inspect the car thoroughly

When you’re inspecting, or experiencing, a car you are thinking of buying, put your proverbial detective hat on and look for any clues that might signal bigger issues. Every ding, scrape and scratch has a story.

There’s no such thing as “just a flickering light”… some minor issues might be pointing to a bigger issue.

Don’t let anyone rush you while you’re doing your inspection. Take your time. Check everything. Oh, and don’t hesitate to ask as many questions as you need to: age of vehicle, service history and so on.

Remember any issues you discover, however small, could give you a bit of leverage in the negotiation.

And then, you MUST take the car you’re eyeing to buy out for a test drive. Put it through its paces; be wary of sloppy handling and strange noises the vehicle may emit; find out if the acceleration is normal.

5. Secure finance

Then, when you’ve found a good car that you want and can afford, do your utmost to put down a sizeable deposit when you make the purchase. By reducing that loan amount, you’ll pay less in interest over time.

Besides banks, dealerships also offer financing. See what’s on offer and accept the best deal for YOU.

Keen to know what you can afford to spend on a vehicle? Use our Car Finance Calculator

Earlier episodes in our Street Smart video series:

All you need to know about the interest rate

How to deal with vehicle finance repayment challenges

Absa’s Deen Govender details how the interest rate on your loan is calculated.

Absa’s Pascal Siphugu explains the importance of value-added insurance products.

Absa’s Chelton Keppler chats about dealing with challenges to meet your vehicle-finance loan repayments.

Absa’s Sarvas Naidoo and CMH’s Joel Chetty about balloon payments.

Absa’s Fulufhelo Mandane and Hatfield VW Melrose’s Vleis Manyama explain the importance of getting and maintaining an acceptable credit score.

Absa’s Sbu Dhlamini explains the most pertinent terms in an instalment sale agreement. Understanding your instalment sale agreement [Part 1] and [Part 2]

Absa’s Michelle Moodley emphasises the importance of taking precautions to avoid falling into fraudsters’ traps. Vehicle Sales Fraud: What to look out for

Absa’s Fulufhelo Mandane discusses what you need to consider before you start shopping for a vehicle, the costs of ownership and your various finance options. Absa First-time Buyer Guide to Vehicle Finance

Absa’s Gordon Wood details how the new Aftermarket Guidelines, which were introduced in the motor industry last year, affect you as a vehicle owner. Absa’s Guide to Responsible Vehicle Ownership