Buying first car, any advice?

BeatBot

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Hi everyone,

I am looking to purchase my first car and I would just like to hear peoples opinions and experiences, what to look out for, what is the best approach to go about it.

I am buying a second hand car, paying more than half as deposit and getting a loan for the rest. My main question is can I not approach the garage and say I am offering this much can we make a deal? I am pretty clueless about this so any rants and raves no matter the size would be gladly appreciated.

Thanks!
 
Yes, can you not buy a car to the value of your deposit? Avoid car debt all in all.
 
The post about avoiding debt is very sound advice, keep it in mind.

Your plan about paying half of the cost as upfront deposit is also good even though it is still preferable to buy what you can afford without getting into debt.

What normally happens is that you approach a dealer and express your interest in one of the cars, the dealer then does an application on your behalf to the bank for finance and if successful you get your car.

What to look out for:

The car you buying obviously, is it in a good condition?, if you don't Know much about cars better get somebody who does to take a look.

Next step is finance, which I already explained, bear in mind that you must have comprehensive insurance for a bank financed car, have you made an allowance for that?

Suppose your finance application is successful, how much interest will you be paying on the loan, are you happy with it? Scrutinise the contract carefully and ask any questions you might have, check if everything is in order, your deposit amount is reflected on the contract and no other amounts of things not agreed upon are in the contract.

All other aspects of the sale will be concluded after the contract has been signed.

Good luck on your purchase.
 
Take someone with you who has experience buying cars. From your inexperience, I forsee the dealer sharks will be circling for your blood to sell you an overpriced lemon.

Get your own finance quote from one of the big banks.

Check out autotrader for similar vehicles to get an idea of price.

Always buy a decent warranty. Check what is included and excluded. The CPA gives your 6 months after purchase to demand that the dealer fix any obvious problems or defects with the vehicle that aren't "reasonable" wear and tear.

Protip: All the "extras" offered to you (smash and grab, credit shortfall insurance, paint protection, warranty etc. etc) say NOOOOOOOO. It is all overpriced crap. Rather source it yourself after the deal is signed, if you want it.
 
Just be sure to get quotes from at least two or three different dealers and cars and play them off each other.
 
Thanks guys. Let me answer some questions that were asked.

I cannot afford the car full price. Well I can to be honest but I was thinking go through the bank to finance will help me be a bit safe as they will not finance something that is a clear steal and I end up not getting the car.

I have made some provision for insurance. I am still trying to source the best one before getting to the dealers so I know which direction to head to.

I will try to get my own payment options from different banks.

By the way, which is better? Personal loan or car finance? Never really got to know the difference.

Thanks once again.
 
^, what the other posts meant was buy a car to the value of your deposit rather than one you have to finance over and above the deposit.
 
My top 10 things to do when buying a car:

  1. When inspecting a 2nd hand vehicle, obtain the VIN number for the car and phone the manufacturer. Ask for the service history, warranty claims, and accidents. You want to know about the vehicle's past. Ask many dealerships to cross reference the results.
  2. Test drive the car! Try and get the car into all the scenarios daily driving will see you in. Stop-go, speed bumps, traffic jams, highway driving, etc. Buying a car is one thing, living with it is something else entirely.
  3. Inspect the condition of the car thoroughly. You're looking for chips, scratches, kerb rashes, tyre life, brake life, mismatched colours, accident damage, misaligned doors, misaligned panels, working electronics, etc. Either they pay for the fixes/replacement, or they give you a serious discount. You need to go through the car with a fine comb.
  4. Google common problems regarding the car. Check for manufacturer recalls, and find out of the car was affected. If yes, make sure the work was carried out to fix the problem.
  5. Insurance! If you're young (sub-25) performance cars are going to smack you in terms of insurance quotes. Remember this key tip: If you have been designated as a primary driver on any insurance (even if it is not on your name) you can put down that duration as how long you have been insured for. This single piece of advice saved me R800 per month on my insurance.
  6. Common consumables, availability and price. Common consumables are: brake pads, rotors, oil, air filters, oil filters, tyres, wiper blades and shock absorbers. Find out about these before hand. You don't want a nasty surprise when no one stocks shock absorbers for your car except the agents, and they want to slam you R3k per shock.
  7. Shop around. Scour the various websites like Cars.co.za, AutoTrader.co.za.
  8. Haggle to have all admin fees included in the sales price. If the car is near a service, see if you can get the car serviced at their cost.
  9. Wheel and tyre insurance! Holy ****, when your tyres cost you R2600 per tyre and the wheels R7500 a wheel, you'll be happy you have this.
  10. Fun factor, and practicality. Remember, unless you're Scrooge McDuck, you're going to have this vehicle for a while. You want something that is a pleasure to drive.

(Credit goes to @TehStranger for some of this advice)
 
Hi everyone,

I am looking to purchase my first car and I would just like to hear peoples opinions and experiences, what to look out for, what is the best approach to go about it.

I am buying a second hand car, paying more than half as deposit and getting a loan for the rest. My main question is can I not approach the garage and say I am offering this much can we make a deal? I am pretty clueless about this so any rants and raves no matter the size would be gladly appreciated.

Thanks!
I bought a car on my own for the 1st time 2months ago, here's what I did:

I tried to find the lowest price I could for that car with a max of 30,000km milage, then went to two different dealerships, asked them to match the spec and milage.

Test drove 3 cars and drove the 1 I wanted twice, and nitpicked things I noticed to get them to "sweeten" the deal.

Did the same with Insurance, got a low quote from one (King Price), then hopped between 3 of them, until I got to a figure I was happy with.

In the end they dropped the car price by R15000 and gave me R5000 more for the car I was trading in, so saved around R20000 and got Anti SmashNGrab free as part of the deal.

I could have prob done more, it was my 1st time and my parents stayed at a distance as they felt I had to do it on my own.

One thing I learnt is that you don't have to make decisions there, take everything in, go home, sleep on it, get advice and then go back. I had the dealer on WhatsApp, and the other on email, and would ask questions throughout the day.

I found it easier to communicate with them over email and whatsapp as I have a clearer head than when I am there at the dealership and all excited to just get the car.
 
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I bought a car on my own for the 1st time 2months ago, here's what I did:

I tried to find the lowest price I could for that car with a max of 30,000km milage, then went to two different dealerships, asked them to match the spec and milage.

Test drove 3 cars and drove the 1 I wanted twice, and nitpicked things I noticed to get them to "sweeten" the deal.

Did the same with Insurance, got a low quote from one (King Price), then hopped between 3 of them, until I got to a figure I was happy with.

In the end they dropped the car price by R15000 and gave me R5000 more for the car I was trading in, so saved around R20000 and got Anti SmashNGrab free as part of the deal.

I could have prob done more, it was my 1st time and my parents stayed at a distance as they felt I had to do it on my own.

One thing I learnt is that you don't have to make decisions there, take everything in, go home, sleep on it, get advice and then go back. I had the dealer on WhatsApp, and the other on email, and would ask questions throughout the day.

I found it easier to communicate with them over email and whatsapp as I have a clearer head than when I am there at the dealership and all excited to just get the car.

When you were shopping around for insurance, did you also take the excess into consideration? I've noticed that higher premiums mean a lower excess which I don't mind unless I went about it wrong.
 
When you were shopping around for insurance, did you also take the excess into consideration? I've noticed that higher premiums mean a lower excess which I don't mind unless I went about it wrong.
Technically the other way around: the higher the excess the lower the premiums. You'll need to get quotes for bothering excess amounts from the same insurer though to see if it is worth it. I changed my excess from R3500 to R7000 and it made a difference of just R100.

There's a school of thought that reckons you should only insure for major damage and not bother with "small" amounts. Basically don't bother insuring g your mobile phone etc. because you should have enough saved to be able to replace it. Depends on the individual though.
 
When you were shopping around for insurance, did you also take the excess into consideration? I've noticed that higher premiums mean a lower excess which I don't mind unless I went about it wrong.

Indeed, I had to get a nice balance between excess and monthly premium, other wise you end up with a R10,000 excess. Also things like car hire, cash back bonus and how they value the car.
 
Buying a used car? 12 things to look out for

Johannesburg - While buying a second-hand vehicle is a good option for many, buyers need to be aware that there are also pitfalls; there may be mechanical problems, body damage, replacement parts may be harder to source, and warranty benefits will expire sooner.

It’s important that buyers conduct proper research, compare prices, and not rush into the first good deal they come across, according to the Automobile Association.

The AA said it is important that buyers shop around for used vehicles by scanning online car websites, scouring classified advertisements in newspapers, consulting buyer’s guides, and visiting car lots to compare prices of makes and models they are interested in.

Start with your budget, look at your cash flow, and, if you need finance, determine how much you can afford to repay. From there, look at the cost of the car that you can afford and how much debt you are willing to take on and do not deviate from this.

“It’s important that you have a look at the car in daylight, inspect every inch of it, and take it for a test drive. If possible, have someone with mechanical insight take a look at the engine. For even more peace of mind buyers can take the car to their nearest AA Quality Assured specialist or Dekra centre for a bumper-to-bumper once over before they make their final decision.

The AA advises the following when buying a used car:

1. If you can stretch your budget, look at a low mileage demo model from a reputable dealer; these cars are usually well priced, almost new, and have often been very well looked after.

2. When test driving, check handling, brakes, and look for any signs of mechanical problems such as overheating.

3. Turn off the radio while you test drive, and check that there are no extraordinary knocking or rumbling sounds when you start it up.

4. Check the interior for any obvious faults such as ripped material or leather. The wear on the rubber of the brake, clutch and accelerator should be consistent with the age of the car.

5. Check that the battery terminals are clear of any build-up.

6. Check for smoke from the exhaust – this may mean some sort of engine damage.

7. Check that the body colour is even throughout the car, a change (even slight) may mean replacement body work has been done, and may indicate that the car was involved in a crash.

8. Look for overspray on the inside of body panels, this may also indicate body work has been done.

9. Check that the tyres are in a good condition, and if not, that replacements are both available and reasonably priced. Replacement tyres may be expensive so check prices beforehand to ensure that, if necessary, your budget will cover this.

10. Tyres with uneven wear may indicate bigger problems, not easily resolved with tyre-alignment machines. Have this checked out with the rest of the car before you buy.

11. In the case that the vehicle has been in a crash, this need not always be terminal to the deal. A basic bumper-bashing may not indicate any structural damage, but make sure that you are happy that the damage is not significant and that you are comfortable with the price / value for the transaction.

12. Always insist on the car’s paperwork and service record as this will also give you some idea of the car’s history and how well it has been cared for.

And don’t be hasty...

This is not a definitive list but it may be a good starting point. Be careful of making hasty decisions; rather walk away from a deal than rush into something that you will regret, and always stick to your budget, the AA advises.

The Association also warned that a roadworthy certificate (RWC) is not a guarantee that the car is problem-free.

It is a document that simply states that the vehicle meets the minimum statutory requirements in terms of safety, such as brakes, suspension and lights. A car could have a RWC and still have a mechanical problem.

Finally, remember that a deal that sounds too good to be true, usually is.

http://www.iol.co.za/motoring/special-features/buying-a-used-car-12-things-to-look-out-for-2057047
 
Quick related question: Is it a requirement to put down a deposit on the vehicle when trading in?
 
Just be sure to get quotes from at least two or three different dealers and cars and play them off each other.

+1 I've never really done this before, mostly because the cars I bought previously I just couldn't find anywhere else and had to take the only offer(s) available. But just this week after unsuccessfully searching online for similar cars to one I had an offer on already I phoned one other dealership in the region.

Just saved R35,000 with a single phone call and that's without haggling, I'm not a great haggler :)
 
+1 I've never really done this before, mostly because the cars I bought previously I just couldn't find anywhere else and had to take the only offer(s) available. But just this week after unsuccessfully searching online for similar cars to one I had an offer on already I phoned one other dealership in the region.

Just saved R35,000 with a single phone call and that's without haggling, I'm not a great haggler :)

It doesnt matter if you don't want the other cars. Even if you only want one. You pick cars in the same class elsewhere so the dealer thinks you're interested in them as well.
 
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