5 important points to remember when buying a pre-owned car
If you want to upgrade your car, it’s possible that an older used car that’s more affordable is the way to go. And you wouldn’t be alone in thinking so. AutoTrader’s Mid-Year Car Industry Report shows that 263 million searches for used cars translated to R65.7 billion in sales in the first 6 months of 2023. That’s 17 searches per second!
If you’re in the market for a second-hand car, these 5 points should help prevent an affordable option turning into a high-cost headache.
Do the maths
Check your budget for affordability, and factor in interest rate hikes if you’re going to finance the car. If you take a balloon or residual amount in order to reduce your monthly payments, you need to be able to pay the outstanding balance when it becomes due. Another potential pitfall is that used cars often don’t have maintenance or service plans and you’ll need to either buy 1 or put money away every month to cover these costs when necessary.
Take it for a test drive
Always test drive a car you’re thinking of buying. Listen for any strange rattles or squeaks. Make sure all the features work properly. Although the Consumer Protection Act No. 68 of 2008 dictates that sellers must disclose all defects, a legal dispute will take time and money to resolve.
Make app-solutely sure
An app called FirstCheck gives you access to a car’s current market value, its full history, whether it’s been in an accident or stolen, who owns it, and whether it’s still under finance which affects whether it’s legally allowed to be sold – and more. FirstCheck also allows you to get your up-to-date TransUnion credit score, which empowers you to negotiate with the institution that’ll be financing the car for you.
Inspect, inspect, inspect
Not all second-hand cars have transparent mechanical and service histories. However, you can determine the actual condition of a car by having it inspected by an independent party, like the AA, and so limit unexpected repair and maintenance expenses.
Insure your asset
If you finance a car, you must have comprehensive insurance for it – this is in the fine print of your finance agreement. And even if you pay cash for a car, if you can’t afford to repair any damage that happens, or replace it if it’s stolen, you should insure it. And remember, insurance doesn’t only cover your costs. In the event of a valid claim for damage you cause to someone else’s car or property in an accident, the third party liability element of your insurance will cover these costs.
When you’re buying a used car, you need to do all your homework and get all the paperwork before you sign on the dotted line. When that’s all done, you can head out on the highway and enjoy your new wheels… Just make sure you get a commitment-free car insurance quote from the king of insurance first. When the king’s got your back, you know you’re in good hands. Pop a WhatsApp to 0860 50 50 50.
Psst… This blog provides general info only, and doesn’t count as financial or product advice from King Price or our legal and compliance experts. Remember, all our premiums are risk-profile-dependent, and T’s and C’s apply. Our most up-to-date KPPD (policy wording) can always be found here.
Our website T’s and C’s can be found here.
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Article Name
5 important points to remember when buying a pre-owned car
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This blog post provides 5 useful tips for buying a pre-owned car, like doing the maths, test driving, using an app, inspecting, and insuring the car.
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The king
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King Price Insurance
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