It can often feel overwhelming when buying a new product for the first time, and cars are no different.
There are a lot of things to consider, but pricing and insurance premiums are among the biggest determining factors when it comes to getting your first set of wheels.
Here are the main things to look out for when shopping for a new car.
Pricing
The first thing to do when thinking about purchasing any new vehicle is to set a budget.
It’s reasonable to assume many people’s first car will be second hand, given the prevalence of second-hand purchases in South Africa.
The main factors determining a used car’s value are condition, year, model, and mileage.
And while a set budget is important, buyers must avoid setting their floor price too low.
For example: cars under R50,000 tend to be older and have higher mileages. You may save money in the short term, but it’s likely these older cars will cost a lot in maintenance as time goes on.
Newer cars also tend to be more fuel efficient, which will save you money in the long run.
A quick search on sites like AutoTrader shows that cars for under R50,000 are, on average, from 2008 or older and have over 100,000km on the clock.
Ideally, look for a car that is under five years old and that has a reasonable mileage – under 100,000km – as there is a good possibility it will still be protected under some form of warranty or service plan.
Another sub-section under pricing is “cost of ownership”. Make sure to select a brand that has a strong presence in South Africa, so you are covered when it comes to affordable services and repairs.
You can read more here – The cheapest cars to repair in South Africa
Insurance
Related to costs of ownership is the insurance premium you will pay on your vehicle – as this can be a big factor in determining the car you ultimately decide on.
The more expensive the car, the higher the insurance will be, but you also need to be aware of other elements such as model popularity and risk factors.
For example, the VW Polo is one of the most popular cars in South Africa. This is good for repairs and maintenances, as parts availability shouldn’t be a concern.
However, because Polos are so popular, they are also more likely to be targeted by thieves – adding a risk factor that can increase your insurance premium.
As a practical example, when I was shopping for my first car I was quoted under R800 per month for a 2015 Chevrolet Spark and over R900 per month for a 2014 VW Polo.
This was from the same insurer under the same protection, and the Polo would also have been required to install a tracker to get this premium.
Resale
While not always a primary factor when buying a used car, it’s also worth noting that popular models tend to come at a premium because they are in high demand – which has a positive effect on resale value.
It can mean you end up paying more for a particular model than competitors in a similar performance and feature bracket now, with the hope you can sell it for more later.
So consider how long you plan on owning the car, and whether or not you think the price difference is worth it.
Keyword: What to look out for when buying your first car