Over the past few years, used vehicle sales in South Africa have been climbing steadily thanks to their affordability. However, there are a few things to consider before making your purchase. Buying a second-hand car can be a gruelling process. There’s a lot to factor in: budget, undisclosed issues, whether you’re buying a car privately or via a dealership, inspections and so much more.
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Luckily, there are some sure-fire processes to follow to ensure you get absolute bang for your buck. Here are some tips from Standard Bank on how to go about it:
1. Set your budget
It’s important to determine how much you can realistically spend before you start to shop around. Standard Bank recommends using an online calculator to work out what you can afford and what your monthly instalments would be if you were to get vehicle finance.
In addition, the AA highly recommends investigating the vehicle’s safety features and related safety ratings. Also, bear in mind your ideal fuel consumption, and consider future maintenance, service costs and the cost of vehicle insurance.
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2. Research a pre-owned car dealership
Buying from a pre-owned dealership can offer greater peace of mind. If you need information on reputable, established outlets, the Retail Motor Industry of South Africa can help with dealerships that are members of the National Automobile Dealers Association. Also, have a look on social media to see what other motorists have to say about the dealership you’re considering buying from.
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3. Research the actual value of a used car
To gain some insight into the trade-in and retail value (also known as the ‘book value’) of a used vehicle, use TransUnion’s Car Value Report system. This ‘book’ refers to TransUnion’s monthly Auto Guide, which lists vehicles in terms of their original retail price compared to how the value of the car depreciates. This can help ensure that buyers don’t pay more than the value of a car. However, consider that some sought-after used cars might warrant higher prices. So, having the TransUnion report might help buyers negotiate better prices.
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4. Complete a used car inspection
Not all second-hand cars have transparent mechanical histories. However, if you can determine the actual condition of the car by conducting an independent check-up, you can limit unexpected repair and maintenance expenses. For example, if you’re buying a used vehicle via Gumtree, you can conduct a DEKRA test and inspection with Buy Safe Sell Safe. You’ll also be able to confirm ownership as certified by TransUnion or ask the seller to provide you with a DEKRA test certificate, which can be conducted (at a fee) at vehicle-roadworthy testing centres.
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5. Negotiate the deal
You can start negotiating with a private seller or dealership once you have completed all your research and decided which vehicle you want to buy. It is important to remain patient during this process, as the seller might reduce the price for a good enough reason (for example, if this decision is based on your research). As a buyer, you have the right to walk away if you feel pressured or uncertain about a deal or vehicle. After both parties decide on the price of the car, an offer to purchase will be signed. In some cases, buyers have to pay a deposit for surety reasons. This is typically about 10% of the asking price, although it can depend on whether you’re buying cash or financing a portion of the total cost.
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Picture: Antoni Shkraba / Pexels
