Buying new and used cars for sale in South Africa is easy. However, there’s a couple of things you need to be aware of before you start browsing vehicles for sales.
ALSO READ: Tips on how to sell your used car in South Africa
Owning a vehicle is a big step towards independence, however, the are serious financial implications you need to be aware of. You need to understand the difference between linked and fixed interest rates as well as balloon payments.
If you are in a process of browsing cars for sale in South Africa, you need to know the following:
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Save Money and buy car cash
If you have just left varsity and started your first job, debt can wait. Rather save money as much as you can. If your family already has an old car, rather drive it until you have enough money to buy your first car cash.
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Pay off your first car
Instead of trading-in your car every time you see the latest cars, rather stick with it, pay it off and be without debt. It’s very tempting to trade-in your vehicle, especially if you are a person who loves cars.
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Many costs involved
Most people forget that after buying a car, you need other essentials such as car insurance (which is compulsory if you are financed by a bank), maintenance, tracker and petrol. Sometimes some maintenance or service plans don’t cover certain items such as tyres.
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A Balloon Payment
Try by all means to avoid balloon payments. You can do this by choosing the shortest possible term for your car loan. The faster you pay-off your car, the better. You won’t be left with debt. Although longer loans terms and big balloon payments bring down your monthly installments, it comes with disadvantages. People who take balloon payments and longer financial periods end up paying a lot of money.
At the end of your contract between you and the bank, a balloon payment will require you to pay a lump sum. A new loan might be required to pay-off your car interest. Some people end up selling their cars in order to settle the balloon payment, meaning they start another debt again.
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Budget Carefully
Be honest with yourself when budgeting for a car. Think of a car you can afford. Take your salary (net pay) and deduct all your monthly expenses. Think of grocery, medical aid, rent, transport money, life insurances, etc. The money that you will be left with, should be enough to pay for your car installment, petrol, tracker and insurance. Make sure that after paying all these, you are left with some money for emergencies or savings. A car shouldn’t be a burden to you.
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Other Things about Cars for sale
Other things that you need to be aware of is interest rates, your credit profile and credit score. Also find a Finance and Insurance (F&I) representative who will give you some advice and explain everything about vehicle loan or car finance and the application process.
Buying cars for sale in South Africa
When searching to purchase a car in SA, you will find that car prices in South Africa are slightly higher than in the US and Europe, although petrol costs more in the US than in Europe. Diesel is cheaper than petrol and most widely available fuel in the world.
New and Used cars in South Africa can be found via leading car advertising websites such as Cars.co.za, Autotrader.co.za and Carfind.co.za. If you are looking into buying a used vehicle in SA, you are advised to get the vehicle inspected at the dealership and check the serial number to see if the car has been involved in any accidents or if it’s a stolen car. Used cars also need a roadworthiness certificate.
Also make sure that your car is protected against smash and grab. There are companies in South Africa that will help you with smash and grab protection. Most new cars in the country already have this.
Car registration in South Africa
Once you’ve bought one of the cars for sale, you need to arrange a South African car registration. Cars are registered at the Traffic Department or vehicle license office within 21 days after change of ownership. However, if you bought your car from a registered dealer, it will come with previous owner’s details, a roadworthy certificate and proof of payment.
To successfully register your car, you also need additional documents such as your traffic register number, proof of your residence, drivers licence and South African ID Number (passport or foreign driving licence if you are not a South African citizen).
The traffic register number application form can be found at the Traffic Department or vehicle license office. The application form is accompanied by a licence fee. The fee you will pay depends on the type of car you are purchasing.
Well, that’s all about cars for sale in South Africa. For more information, you can visit car websites.
Image Courtesy: vw.co.za