Things to consider before buying a car.

Once you've got your license there's usually one thing you can't wait to do. BUY A CAR! 

It is such an overwhelming experience with so many considerations, unless you've got lots of money stashed somewhere but even then there are things you need to think about before driving away in your new wheels painting the town red. So here are a couple of things you should consider before buying a car.

New car or used car

Buying a new car generally requires less maintenance than a used car for the first few years and you can spec a new car just the way you want it with various options and luxury features. Also the warranty is untouched, meaning you are relieved from having to pay for expensive repair costs. On the other hand, getting a new car is much more expensive and it immediately gets worth less than what you paid for it as depreciation kicks in instantly.
When buying a used car though, it's quite obvious that it will be a lot friendly to your pockets. No taxes will be payable for the purchase. You might even benefit from the balance of the motor plan and warranty which will be transferred with the car. The unfortunate thing is that you will be liable for a lot of  additional repair and maintenance costs if the car is out of warranty and its service plan has expired and you can't be selective on certain features like colour or model year.

Where to buy a car?

There are two options you can consider; dealership or private seller. Buying a car from a reputable well know dealership will provide you with many advantages, here  the dealer has an obligation to guarantee that there is no money owing on the car and in certain conditions the dealer is obliged by law to provide a warranty, they also offer finance or insurance for your car. Whereas buying a car privately means  you have to rely on your own judgment and knowledge and costs such as arranging for a vehicle inspection are charged on your pocket.

Financing your car

This is where things get a bit tricky, unless as mentioned earlier, you have a bag full of money and can buy your car with one payment and no hassles. But if you don't have that much money, there are other available options such as balloon repayments, where you pay reduced monthly installments for the term of the loan, with a large final payment that clears the debt. A loan, where the total amount you pay to the lender will depend on the amount you borrow, and interest rates are charged by the length of time that you borrow the money. These interest charges are usually added to your loan account each month. Or leasing, where there is no obligation to buy the car, the ownership stays with the lender and the car is returned at the end of the lease term. The payments are based on the difference between the cars' sale price and what the car is estimated to be worth at the end of the lease.  


Last but not least, before settling with a dealership or a private seller, consider all options available to you and don't forget to shop around for the best deals that suit your needs.

For affordable deals on new or used cars visit www.cars.co.za