While buying a second-hand car might be the most financially viable option, it does come with a few risks. By being proactive and paying attention to the finer details, South Africans can make sure their preloved purchases turn out to be smart choices.
The most recent figures published by Wesbank prove the industry is under strain, with the growth of new vehicle sales sitting at just 0,8%. National car sale statistics provide a window into several key economic indicators, including consumer spending patterns.
Runaway inflation and the series of consecutive interest rate hikes seen since the end of the pandemic are the main drivers of this downward trend. However, South Africans still need to get around, and to do that, they are opting for used vehicles. Wesbank’s applications for used car financing now outnumber those for new cars two-to-one, according to the latest report.
“When buying a car, it’s important to have a full understanding of its mechanical condition, whether there are any faults with its exterior and interior, and if all the registration documentation is up to date and available. All these factors could play a role in whether a car insurer honours a claim,” says Siyakha Masiye, spokesperson at MiWay Insurance.
To navigate these risks, Masiye provides some heads-up for those who consider buying a used vehicle.
Obtain proper paperwork
When buying a used car through a personal sale or dealership, it is vital to obtain the correct documentation and details.
For example, the car buyer needs to make sure they obtain the car’s identity number, its VIN (engine) number and its chassis number (unique code). They will also need a roadworthy certificate, as well as its service history logbook. In addition, the previous owner or dealership must provide the new owner with a finance sale agreement.
The most important proof of ownership is the car’s certificate of registration, which will need to be updated post the sale with the new owner’s details. These documents need to be stored in a safe and accessible place.
Weigh insurance options
One of the ways to safeguard against the risk of unforeseen accidents is to take out the appropriate amount of car insurance.
“Many car owners wait until they purchase their car before looking into what it would cost to insure. Instead, motorists should do some pre-purchase research and obtain numerous quotes from insurers on the car options they are considering.
“In doing so, they will have a clearer idea of whether the insurance policy that will provide the best coverage is affordable and within budget.
“Insurers and brokers will also be able to give prospective car buyers valuable information on which makes and models cost the most to insure due to factors such as the cost of repairs, safety ratings and theft rates.”
Do proper checks
More and more South Africans are buying cars via online portals. Since the beginning of the year alone, AutoTrader has seen an 11% rise in the number of shoppers.
While online shopping provides an unmatched level of choice and convenience, there are also a few snags.
A good starting point is to verify that the dealer advertised is legitimate and properly licensed by checking their website or by requesting this information directly.
Another way is to research online reviews and client testimonials.
Buying a car online does not allow you to conduct a close-up inspection, therefore arranging an in-person inspection is recommended.
