Buying a new car is both an exciting and overwhelming experience. You have to think about your car insurance, petrol costs, selling or trading your current car and a whole lot more.
At QualityQuote, we love helping you save money! Whether it’s finding you the most affordable car insurance in South Africa or offering helpful tips to save a few pennies here and there.
Here are our top tips to help you save when buying a new car.
Tip #1: Do your research!
Buying a car is not cheap so we highly recommend you take the time to research. If you have a strict deadline for when you urgently need a vehicle, don’t rush the process. Instead, take a moment to read through our tips to get prepared.
Research reviews on the car, fuel tank size, cost of insurance, servicing costs, reliability, mileage, and all the nitty-gritty details. If this is your first car, do not be overly ambitious in thinking your first car can be your dream car. Narrow down your options to what’s practical and affordable for your lifestyle and income.
Tip #2: Create a budget plan: Get preapproved
Some might argue that the best piece of advice you can get is to get your financing preapproved first! Make sure you have a good credit score and an approved loan from your bank or credit union before you start discussing deals with a dealer.
If it’s possible within your budget, pay in full in cash. Paying the full amount upfront in cash will save you a lot of money that would be spent on interest.
Tip #3: Test drive, test drive, test drive
Did we mention test driving? Oh yeah, make sure you test drive the cars you’re interested in! Do not rush your car shopping process just because you think you know exactly what you want. Test drive a few cars from various dealers. If you’re going for a pre-owned car, check if the model you want is available at multiple dealers and test drive each of them.
This is a good way for you to feel if the car is right for you, and to pick up on any faults it may have. You don’t want to rush into closing a deal, getting the car, and then finding out all of its issues on your way home.
Tip #4: Consider a pre-owned car
Buying a pre-owned car is a smart way to save money. Pre-owned cars aren’t all faulty or problematic. In fact, many people trade in their cars when they’re ready to upgrade. You can get a great deal on a pre-owned car in excellent condition.
If you’re shopping on a tight budget, choosing an older car is also a great way to save on insurance and potential feature upgrades.
Tip #5: Shop around dealers
We briefly touched on this tip earlier, we encourage you to shop around at various dealerships. Don’t tell the dealers your budget right away, rather negotiate the car price with each of them first. Another great benefit of shopping around is getting an idea of what you can get with your budget.
Ask your friends and family for recommendations of dealers with good reputations.
Tip #6: Understand what you’re signing
We can’t stress this enough; read the fine print in ALL the paperwork! Make sure that you fully understand the information and clauses in the contract, loan, dealership plan, etc.
If you read up until here, then good job! You are now ready to buy your car! Whether you are buying your first car or shopping for a new one, these tips can help you save money when buying your car.
Do your research, get preapproved if you’re taking out a loan, shop around, test drive multiple cars, plan your budget for the total cost and you’re good to go! Remember, the model of your car is an important factor in your insurance premium.
Get a quick vehicle or home contents insurance quote from us on: https://qualityquote.co.za/car-insurance-quote/
This article is for informational purposes only and should not be construed as financial or legal advice.