Everything you need to know about buying a car in South Africa

First-time car-buyer or new South African resident in need of wheels? We take you through the process of buying a car in a few easy steps! 

 

How to Choose the Right Car for You

The first step is to figure out what you need from your new car, in other words, its main purpose. Consider the following points carefully and ask yourself the following questions:

1. Space

How many people do you need to seat - are they kids or adults? (Read How to choose the right family car.) Need to fit kiddies seats? How much cargo space do you need? Do you have an active lifestyle? Will a bicycle fit in the back? What will you use the car for most often? Is it for business or private use?

Related: Best cheap cars for parents

 

2. Distances you will cover (and where you'll be driving)

Plan to travel long distances or will you mostly be driving in town? What kind of fuel economy are you looking for?  What are the roads like where you'll be driving? Would a crossover or SUV (or even a bakkie) be more suitable for the road surfaces you plan on travelling on? Are there frequent hijackings in those areas? Does the car you want have roadside assistance as standard? All these factors come in to play when deciding on a car; it may even help you choose between a petrol, hybrid, diesel and electric car.

3. Features

What features are important to you? Is safety a major consideration? Should you get manual or automatic? Consider the car's safety ratings and research if the car has what you need, such as ABS brakes, the number of airbags, stability control or traction control, a rearview camera etc. Read reviews of the car on AutoTrader as well as news and advice about the car in question. 

4. Your Budget

How much can you spend on a monthly repayment, fuel, servicing and maintenance costs, wear-and-tear items (such as tyres) and insurance? Are you sure you'll be able to cover everything and not be caught out of pocket? While the general rule of thumb is not to exceed 30% of your monthly income on a car instalment, it’s always safer to err on the lower side of the spectrum to allow for unforeseen expenses. (We recommend watching our video that explains how car insurance works, here.)

Related: What is the difference between a maintenance plan and a service plan?

If your salary is very small, can you and should you still buy car? How much are servicing and maintenance costs for the car you're interested in, are parts readily available, and are they affordable or expensive? If the car you're interested in doesn't have Roadside Assist, should you budget for an AA membership? What is the car's maintenance schedule?

Related: What is the cheapest car you can buy in SA?

What is the warranty on the car you want, and what does it cover? What is the car's average fuel economy? (You can search AutoTrader for articles on fuel economy and also learn how to work out your car's fuel consumption, here.)

See our pick of the best SUVs for matrics and students

Try out our car finance calculator, here

 

5. Resale Value

Are you planning on trading in or selling your new (or used) car shortly? Does the car have decent resale value or will you have trouble getting rid of it, and will a dealership only offer you peanuts for it later on? Many buyers fall into this trap especially if they're buying cheaply, so be very aware of this trade-off. Buying a reliable and trustworthy car from a reputable automaker (like one of these on my list) may be more expensive initially, but in the end you'll save more money.

Knowing the type of car you need and how much you need to budget for every month is the very first step. Once you know this, we can move along to finding the car in question at the right price!

 

 

Should I Buy a New or a Used car?

Both have their pros and cons! Buying a new car can be exciting, as you get to choose the exact features and specifications you want - and nothing beats that new-car smell! However, used cars are usually much cheaper than new cars, and lightly-used or demo models are basically still brand new - but they've already taken that first big depreciation knock.

You can also find used cars with all the features you want, and you may even be able to find one that is customised to your specific needs. We recommend reading New vs. used cars: Which one should you buy?

We highly recommend reading Top 10 tips for buying a new or used car as well as Top tips for buying used cars in South Africa from car dealerships.

Related: What should you check before buying a used car? 

Before buying used, we recommend using our Ultimate used car inspection checklist here.

 

 

How to Find the Best Deal 

Once you've decided on a car, it's time to start shopping around for the best deal. AutoTrader is your best place to start, as we have thousands of listings of new and used cars and you can filter your search to your heart's content according to new or used, fuel type, price, mileage, colour, body type, location, and more. Thanks to our new price rating, it takes the guesswork out of getting the right price for a car.

Did you know that some cars are cheaper or more expensive in other parts of the country?  There are even certain times of the month and year when you can get better deals  - find out when, here.

Related: Documents needed to buy a car on finance

 

 

Should I buy a car from a dealership, or from a private seller?

Both have their pros and their cons. There's more admin and paperwork involved if you go the private route, but going the dealership route also has its strong points, such as the consumer protection act that has you covered if something should go wrong.

Related: How to get the best deal when buying a car with cash

Paying for a car: Cash, finance or personal loan?

Should you buy or lease a car?

 

Buying a Car from a Dealership

Going the dealership route? Here are a few tips and considerations before you make the trip to your dealership(s) of choice:

• Consider buying a used car: Used cars will always save you money because a new car depreciates the moment you drive it home from the dealership. Just be sure to have a used car inspected by a mechanic before you buy it, or bring your car-clever friend with when you go shopping.
• Know what to look out for when test driving a car: this article will tell you.
• Do your research: Be sure to research the dealership before you go there. Read reviews online and make sure the dealership has a good reputation. Hello Peter is a good place to start. There are also reviews of the different manufacturers as well as specific dealerships.

• Shop around online: There are a lot of great deals to be found on AutoTrader, so be sure to compare prices from different dealerships before you make a decision. Our new price rating feature takes most of the guesswork out of finding the best deals.
• Get pre-approved for financing: This will give you an idea of how much you can afford to spend and will make the car buying process go more smoothly. Before you do that, we recommend using our car finance calculator to find out how much you monthly payments for the car will be (but remember to factor in those other costs such as servicing, insurance, and wear-and-tear items such as wheels, as well.) Read Top Tips on Getting your Vehicle financed as well as Car Finance, Explained.
• Ensure you know how the different car finance options work, and what credit score is needed. 
• Don't be afraid to negotiate: The sticker price is just a starting point. Don't be afraid of haggling down the price! 
• Insist on an inspection report: An AA-approved Dekra report or Bosch Service Center Certificate is a great way to ensure that the car you want to buy has no hidden issues that will bite you in the wallet later.
• Get everything in writing: Before you sign anything, be sure to get everything in writing, including the price of the car, the interest rate, and any other fees, such as those pesky on-the-road fees.
• Don't be afraid to walk away: If you're not happy with the deal, don't be afraid to walk away. There are plenty of other dealerships out there who'll be happy to help.

Related: Can you pay off a car finance contract early?

 

Questions to ask the dealership

Decided on a car? To ensure that all your bases are covered, we recommend asking the dealership or salesperson the following questions so you don't accidentally bite off more than you can chew. 

1. With all the costs factored in, including fees and charges, what does the total cost of the car amount to?

2. What after-sales service and support do you provide? If something should happen to my car, will you supply me with a courtesy car while my car is being repaired? 

3. What if something goes wrong - is there a cooling-off period?

4. How soon will my car be delivered? Do you deliver nationwide, and is there a cost involved?

Related: Top 5 Things you need to know when buying a used car in Cape Town

 

 

Buying a Car from a Private Seller

Some great deals are available from private sellers too - in fact, if you think you're better off avoiding car dealerships altogether, you can filter your search on AutoTrader to show you deals from private sellers only. (View the pros and cons of buying privately, here.)

If you're buying a car from a private seller, here are a few things to keep in mind:

• Meet the seller in person: Be sure to meet the seller in person and inspect the car properly before you buy it. When going to view the car for the first time, we recommend taking someone with you for security reasons - there are many scammers out there. A public meet-up is best!
• When you inspect the car, also keep a lookout for mismatched paint and an expired license disk. 
• When you test drive the car, here is what you have to do and pay close attention to.
• Keep a test drive checklist close by so you can compare cars afterwards. We found this handy (and very comprehensive) one on Autobytel, here.
• Request the car's service history: Be sure to ask the seller for the car's full service history, including any accidents or repairs. Fortunately AutoTrader offers a handy VIN number tool that allows you to check if the car was involved in an accident.
• Get a mechanic's inspection: It's always a good idea to get a mechanical inspection done before you buy a used car, or you can have the car DEKRA inspected. Take a friend along who has mechanical knowledge if you don't want to go the full inspection route.

Related: Can you get finance for a car sold by a private seller?

 

Questions to ask a private seller

1. Are you the rightful owner of this car? Is the paperwork in order? Is there still money owed on the car?

2. Tell me about the vehicle's history. How long has the current owner had the vehicle and are any service records for this period? (Always insist on the full service history to see what work has been carried out on the car.)

3. Has the car been in an accident? Was there a recent roadworthy?

4. Is the license disk still valid (take a closer look at the license disk)?

5. Has an inspection been done and if so, can I see the report?

(Remember to use our Ultimate used car inspection checklist!)

 

 

Here are some additional tips for buying a car in South Africa:

• Consider buying a car from a reputable dealership group. These dealerships have a large inventory of cars to choose from and can offer competitive prices. 
• Take advantage of financing offers. Many dealerships offer financing options that can make it easier to afford a car. We recommend that you read Buying a car with cash vs. financing.
• Don't fall into the balloon payment trap - it seems convenient now, but will cost you dearly later on.
• Don't forget about the hidden costs. In addition to the purchase price of the car, there are other costs to consider, such as insurance, registration, and maintenance, as well as those aforementioned on-the-road fees.
• Be prepared to negotiate.  Be prepared to negotiate with the dealer to get the best possible price.

Related: How to buy a car with bad credit