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The keys dangle in your hand, a symbol of freedom and independence. The open road whispers your name, beckoning you to new adventures.
When you are buying a car for the first time, or don’t know a lot about the whole car-buying process, you can feel pretty edgy about spending so much money and maybe making an expensive mistake.
This guide will equip you with the knowledge and wisdom to navigate the road to your dream car, one that is both affordable and reliable, a source of pride and a trusty companion on your journeys.
Know Thyself, Know Thy Needs
Before you unleash your inner petrolhead, take a pit stop for introspection. Ask yourself:
- How will you use your car? Daily commute, weekend warrior, or occasional joyride? This dictates size, power, and fuel efficiency.
- Budget matters! Be realistic about what you can afford, factoring in loan payments, insurance, and maintenance. A used car might be your best bet.
- Safety first! Research crash test ratings and prioritize features like airbags, ABS, and stability control. Remember, your life is priceless.
- The comfort zone: Think about ergonomics, interior space, and features that make driving enjoyable. Is a sunroof a must-have, or do you prefer heated seats? Eco-conscious crusader?
- Explore fuel-efficient options like hybrids or electric vehicles. Consider your environmental impact and fuel costs.
- Space needs: Will you be doing the grocery shop for a family of six and still need space for prams, or sporting gear? Do you love going away on holiday with friends, and need extra boot space for all those bags? Not enough space becomes a big deal very quickly.
Research Is Your Co-Pilot
Armed with your self-knowledge, dive into the research pool. Start with online resources:
- Car review websites: Compare specs, features, and reliability ratings across different models. Read owner reviews for real-world insights.
- Used car listings: Search for models that fit your budget and needs. Filter by mileage, year, and features.
- Financial calculators: Estimate loan payments, insurance costs, and fuel expenses to avoid nasty surprises.
- Family and friends: Ask about their car ownership experiences, especially with models you’re considering.
- Mechanics and technicians: Get their take on the reliability and maintenance costs of specific models.
- Test drives: This is crucial! See how the car handles, feels, and fits your needs. Take it on different roads and test all the features.
- Research fair market value: Know what the car is worth before you enter negotiations. Use online resources and car valuation tools.
- Start low, aim high: Make a low offer and be prepared to counter-offer. Be polite but firm, avoid emotional attachments.
- Walk away if necessary: Show the seller you’re willing to walk away if you don’t get a fair deal. This can often give you an edge.
Financing Finesse
Buying a car might involve applying for a loan. Do your homework:
First prize is to arrange finance before looking for a car. Set a budget, say R500,000 and then approach finance companies or banks and tell them you are looking for pre-approved finance before choosing one. You can then negotiate the vehicle price with a dealer and only then tell them that you have already arranged finance.
If you don’t do this, second prize is to arrange your own finance after seeing the car of your choice by shopping around at reputable banks. You must specifically instruct the dealer that they must not obtain “quotes” on your behalf. There are two reasons for this: firstly, once the dealer has applied for finance the customer is prohibited by the bank from doing it themselves for, I think, two weeks.
Secondly, the dealer gets a commission for arranging finance and YOU will be paying this on an increased interest rate so you can save a percentage point or two.
- Shop around for competitive interest rates: Don’t just accept the first offer you get. Compare rates from banks, credit unions, and online lenders.
- Consider a co-signer: If you have limited credit history, having a parent or relative co-sign your loan can improve your chances of getting a better rate.
- Read the fine print: Understand all the loan terms and conditions before signing anything. Ask questions if something is unclear.
Maintenance Matters
Owning a car comes with responsibilities. Be prepared for:
Your car is a medium-term commitment, more of a stepping stone than a destination. Don’t feel pressured to get the flashiest model. Pick a car that fits your budget, meets your needs, and makes you feel good – something you can take pride in and rely on.
- Regular maintenance: Follow the manufacturer’s recommended service schedule to keep your car running smoothly. Oil changes, tire rotations, and tune-ups are essential.
- Unexpected repairs: Set aside an emergency fund for unforeseen repairs. It’s better to be prepared than caught off guard. Although new cars come with warranties it pays to consider purchasing a warranty for a second-hand vehicle to cover you in case of unexpected breakdowns and repairs.
- Insurance coverage: Choose an insurance plan that meets your needs and budget. Compare quotes from different insurers before deciding.
- Also compare items such as excesses (some of the cheaper Insurances have exorbitantly high excesses) and whether they offer a hire car in the event of an accident, do they insure for full retail value or the lesser so-called market value, emergency assistance and so on. Do not be fooled by the advertisements offering cheap premiums – you definitely get what you pay for.
Your car is a medium-term commitment, more of a stepping stone than a destination. Don’t feel pressured to get the flashiest model. Pick a car that fits your budget, meets your needs, and makes you feel good – something you can take pride in and rely on.
10 Steps Timeline to Your Dream Car
Only a few weeks to go before you choose your very own set of wheels? No sweat! Follow these 10 steps and hit the gas on finding your perfect first car:
The Lead Up
- Dream Machine Vision: Picture your ideal car (size, power, fuel efficiency). Think about popping into a few dealerships to test drive or ask your friends and family if you can test drive their cars, to get a sense of what various cars feel like on the road, and what you do or don’t like.
- Trawl online at Auto Online’s showroom to get an idea of the vehicle value.
- Budgeting Reality Check: Define your affordable spending, including loan, insurance, and maintenance.
- Think about your car needs and personality: see our article on The Right Ride to help you.
- Research Roundup: Scour online reviews, car listings, and manufacturer websites. Start shortlisting your favourites.
- Get onto a reputable online site like Auto Online and see what lines up with your list. Add a few best buys to your favourites or watchlist.
- Finance Finesse: Compare loan rates, consider a co-signer if needed, secure terms you can afford.
- Schedule a pre-purchase inspection and do a vehicle history check before purchase for peace of mind.
- Insurance Savvy: Shop around for coverage that fits your budget and needs.
- Deal or No Deal? Finalize price, loan terms, and warranty with confidence.
- Download car-care apps: These apps track maintenance needs, remind you of important dates, and even help you find deals on gas and car washes.