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9 Things We Seldom Think Of Doing When Buying A Car

vuyi on January 7, 2022

By H&H Admin

Buying a car is an exciting time, but to ensure you don’t regret your purchase you’ll have to look beyond the shiny paintwork and glistening rims.

Although cars are produced en masse, finding one which suits your individual needs takes time and effort. Some people want lots of legroom, others, luggage space and there are those whose highest preference is the latest technology and driver convenience.

Here are a few other considerations to consider:

Safety features that are connected to reducing one’s insurance premiums, should be high on every car buyers’ list of priorities. These include, airbags (the more the merrier), electronic stability control, anti-lock brakes, lane departure warning, blind-spot detection, forward and rear cameras, collision alert monitors and electronic stability control, to mention a few.

Ergonomics are critical for operating a vehicle with ease and comfort so when you get behind the wheel, make sure you can effortlessly reach the car’s primary controls.
Open and close both the front and rear car doors to test their weight. It is important that all family members including minors can enter and exit the car stress-free. Similarly, check the weight of the boot door.
Make sure that items you use regularly fit in the car. These could include golf bags, strollers and car seats.
Sit in the rear seats and test leg and headroom.
Ensure that the rear seats are comfortable, supportive and adjustable. Also check if they fold down effortlessly, to increase the luggage space area.
Check that the display screens are easy to read.
Test that the pedals aren’t too soft or hard and that the steering wheel can easily be adjusted upwards, downwards, towards and away from you.
Satisfy yourself that your smartphone and other devices connect quickly and easily to the car’s Bluetooth system.
Check that the car has a modern, or updated GPS which is easy to use.

Because a car is a long-term purchase it is well worth your time to assure yourself that you are as comfortable as you can be with your decision. Once you’ve signed on the dotted line you are bonded to the vehicle for at least 60 months and that’s a long time to drive a car you are entirely happy with.

Moving from public transport to car ownership is easier than you think

vuyi on June 22, 2021

Owning your own set of wheels is very liberating and isn’t as far fetched as some might believe. We got some intel from Motus Retail on how to go about it.

Public transport is not necessarily cheap and the monthly travel expenses of a commuter using multiple taxis, trains, and busses or traveling long distances might very well be on par with the cost of an entry-level car. Besides the cost, owning a car is a dream for many public transport commuters.

“Research indicates that COVID-19 and the associated health and personal safety risks that commuters are exposed to when using public transport has encouraged many commuters to explore buying their own vehicle,” says the CEO of Motus Retail and Rental, Corné Venter.

Owning your own vehicle gives you the freedom to go where you want when you want safely
– CORNÉ VENTER, CEO OF MOTUS RETAIL AND RENTAL

“Owning your own vehicle gives you the freedom to go where you want when you want safely. Buying a car is a serious commitment but with a myriad of finance options to consider, buyers might be pleasantly surprised at what they can afford,” commented Venter.

Everyone’s financial situation differs, but as a general guideline, one should not spend more than 25% of their monthly net income on their total vehicle expenses. It is important to be realistic about what you can afford and just as important to stick to your monthly budget. A car loan is a long-term commitment and car-buyers should thus consider both current and future expenses when estimating their budget.

Buying a car is a serious commitment but with a myriad of finance options to consider, buyers might be pleasantly surprised at what they can afford.
– CORNÉ VENTER, CEO of Motus Retail and Rental

If you earn less than R7 000 per month, monthly installments may still be a little too much for your current budget. However, if you earn between R8 000 and R10 000 per month, you could certainly look at buying a pre-owned vehicle, keeping in mind that your total monthly vehicle expenses should not exceed R2000 to R2500. Saving up for a deposit will also help lower your monthly installments.

Motus promotes a variety of specials monthly that offer exceptional value for money
– CORNÉ VENTER, CEO OF MOTUS RETAIL AND RENTAL

Online calculators help in determining the cost of finance and the cost of ownership, permitting consumers to make an informed decision. Car-buyers can even apply for finance online, and finance applications are sent to all major banks ensuring that the customer gets the best deal in terms of repayments and interest rates.

Factors that influence your credit rating include how long you have been working for your current employer, how long you have lived at your current address, whether you own property and whether you are married.

Banks make it possible for you to structure your finance contract in a way that suits your affordability. This means that you can choose the contract term, the type of interest rate you want, whether you want to pay a deposit and if you would like to use a balloon payment.

“Motus promotes a variety of specials monthly that offer exceptional value for money,” concluded Venter.

The most important thing to do when looking to buy your first car is to shop around to ensure that you get the best deal possible.

What Questions Should You Be Asking When Buying A Pre-Owned Vehicle?

vuyi on June 1, 2021

Buying a new vehicle is a huge financial commitment so shopping around for the best deal is imperative. Very often pre-owned cars, even those with low mileage, can be found for quite a few rands less than their new car equivalents, but there are a few questions you need to ask before signing on the dotted line.

Who am I buying from?

Who you buy a pre-owned vehicle from is by far the most important consideration for any car buyer? While many websites advertise cars that are being sold by private sellers, buying a pre-owned vehicle in this manner has its risks. Vehicles sold privately or through stand-alone dealerships are largely voetstoots.

TIP: Be sure to do research about sellers by having a look at their website, social pages, and Google ratings.

What should I buy?

Filters on websites help shoppers narrow down the search according to the parameters that are important to each individual buyer such as budget, model, specification, model year, or mileage, and create a shortlist of vehicles worth viewing in person.

TIP: The age and mileage of pre-owned vehicles will affect the price but anomalies to watch out for include cars with high mileage in comparison to their age. A good average is 20,000 – 25,000km per year.

Consumers often browse for choices online but affirm their decision from the touch and feel moment
– Corné Venter, CEO of Motus Retail & Rental SA

Is the vehicle as advertised?

Visiting the dealerships on your shortlist allows you to physically inspect the facility and the vehicle, and to ask more specific questions.

“Consumers often browse for choices online but affirm their decision from the touch and feel moment. Fortunately, when shopping on our platform, whatever consumers select is exactly what they will get upon delivery,” said Corné Venter, CEO of Motus Retail & Rental SA

Is the warranty and service plan still valid?

Warranty and service plans are time and mileage-based and expire when one of those parameters is reached.

TIP: If you are considering a vehicle without a service plan, you need to be more aware of the technical condition of the vehicle or have it checked by an independent expert.

Does the car have a full-service history?

A full-service history means that the car was well maintained and will have a direct bearing on the warranty of the vehicle.

TIP: A service history should be a serious consideration for any buyer as it can eliminate surprise costs in the future.

Has the car been in any accidents?

An accident history that includes a minor bumper bashing that has been correctly repaired is nothing to worry about, but buyers should lookout for any signs of serious damage during the car’s life.

TIP: An easy way to spot a repaired vehicle is via uneven body panel gaps and alignment.

Can I take it for a test drive?

A buyer should insist on taking the car for a test drive. This will allow you to get a feel for the vehicle, check that everything works as it should, and allow you to identify any apparent issues.

TIP: Turn off the radio to be able to hear any strange noises and take note if the vehicle veers to either side.

Have any major components been replaced?

If major components like the windscreen, tyres, or brakes have been recently replaced, this could save you extra money in the medium term. Conversely, if any of these items will need replacing soon, that could mean extra costs on the horizon.

TIP: Take note of the tyre tread as replacing tyres can be a costly exercise.

Source: Motus

WHAT YOU SHOULD KNOW ABOUT : Balloon Payments

vuyi on May 28, 2021

Much has been written about the topic of balloon payments. Should a balloon payment be considered as an option when finalising the instalment deal on a new car, or is it something to avoid and steer well clear of?

Factoring a balloon payment into the finance agreement of your next car purchase may come with some appealing benefits, but make sure you fully understand these, and that you use these benefits wisely. Responsible budgeting is key with such payments and you’ll need to act sensibly during the repayment period to maximise what it offers.

Balloon payment deals require discipline
– Kutlwano Mogatusi, WesBank Communication Specialist

What is a Balloon Payment?

A balloon payment allows a buyer to take an amount owing on the purchase price of a car and set it aside, meaning the monthly instalment amounts are calculated on a lower value – in turn making repayments more affordable.

To put it simply, with a balloon payment, you’re essentially paying off a loan for most of the car, but not all of it. The amount set aside at the onset remains the buyer’s responsibility and will need to be settled in the long run.

Being responsible with your money and keeping within your budget are key to managing a balloon payment option.

– KUTLWANO MOGATUSI, WESBANK COMMUNICATION SPECIALIST

“Being responsible with your money and keeping within your budget are key to managing a balloon payment option. It should not be used as an end to a means to buy a car that you can’t afford to maintain,” says Kutlwano Mogatusi, WesBank Communication Specialist. “Balloon payment deals require discipline. If a buyer is not financially savvy enough to manage cash flow and continue to save during the finance term, then a balloon deal is probably not the best option for that person.”

It is important not to view a balloon deal as a means to purchase a car you simply cannot afford
– KUTLWANO MOGATUSI, WESBANK COMMUNICATION SPECIALIST

Vehicle owners considering a balloon payment deal should familiarise themselves with the term ‘breakeven point’. The breakeven point occurs when the financed car’s trade-in value matches the amount still owed to the bank.

When calculating the breakeven point, it’s important to include the amount outstanding in the balloon debt at the end of the loan period.

What you should know when considering a balloon payment

It is important not to view a balloon payment as an alternative to an upfront deposit. A healthy deposit on a new or used car will always reap returns further down the financial road. Not only will it bring your breakeven point forward, but it will also lower the monthly repayment costs and the deferred debt held in the balloon. You also won’t be liable for additional debt at the end of the finance period.

As an example, if a vehicle purchase price is R300,000 and a buyer defers 10% of this into a balloon payment, then the monthly repayment amount will be calculated on a price of R270,000. The deferred balloon sum of R30,000 will need to be settled at the end of the contract term.

This example illustrates how a balloon payment deal is similar to putting down a 10% deposit on the vehicle. However, the difference is that the buyer needs to save the R30,000 while paying off the loan to reimburse the bank at the end of the finance term.

“While the benefits that come with keeping monthly costs down may be extremely appetising, it is important not to view a balloon deal as a means to purchase a car you simply cannot afford. A looming lump sum payment, after years of driving a vehicle, is easy to ignore and forget. But settling that debt ultimately remains the responsibility of the buyer,”says Mogatusi.

Unlocking the lockdown on vehicle sales

vuyi on May 4, 2021

Sales during the first four months of the year remain 28.3% ahead of the corresponding period last year
– Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance

April new vehicle sales told an inspiring story of the South African motor industry’s resilience, while also providing a harsh reminder of the bleak outlook experienced a year ago. With April 2020 sales essentially at a standstill as motor retailers stood closed, the rejuvenated picture a year later, while certainly reassuring, remains under pressure.

In percentage growth terms, the sales dam was over-flowing while the floodgates couldn’t keep up. According to naamsa | the Automotive Business Council, the new vehicle market grew 6,133.3% in April compared to April last year. However, the reality was a little more subdued when considering that April’s 35,779 sales were 17.6% lower than last month – 7,649 units less than March.

“April sales are difficult to interpret within the context of lockdown,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance

“April sales are difficult to interpret within the context of lockdown,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank Vehicle and Asset Finance.

“On balance, April sales lost less against March than March sales had gained against February, meaning the market remains in its state of slow recovery.” March sales had increased 18.4% over February.

Sales during April will also have been impacted by the numerous public holidays, providing fewer selling days during the month. “Reassuringly, however, is that sales during the first four months of the year remain 28.3% ahead of the corresponding period last year.

This is purely as a result of April volumes measured against the 574 sales recorded in April last year. Within this context, first quarter 2021 sales were 0.9% lower than 2020.”

Demand in the new vehicle market remains high
– LEBOGANG GAOAKETSE, HEAD OF MARKETING AND COMMUNICATION AT WESBANK VEHICLE AND ASSET FINANCE

The passenger car segment sold 22,911 units during April, 86.2% of which were retailed through dealers to consumers.

Dealer channel sales were relatively robust and are 27.3% ahead year-to-date. The segment was 13.9% down on March sales.

Light Commercial Vehicles (LCVs) by comparison were 24.3% lower than March, taking a harder knock – although year-to-date sales in the segment are 46.9% higher. Dealer channels sales in the segment accounted for 90% of sales.

“Demand in the new vehicle market remains high as judged by WesBank’s daily application rate,” says Gaoaketse. “While WesBank continues to finance more than twice the number of pre-owned vehicles than new, there is a marginal shift towards new car sales as experienced during April.”

Affordability remains a key purchase consideration, driving consumers towards the pre-owned market.

“Attractive incentives in the new vehicle market, however, as well as low-interest rates, are providing some stimulus to the new vehicle market,” says Gaoaketse.

This could be the right time to buy your first car

vuyi on September 30, 2020

Any vehicle purchase should be guided by doing your homework thoroughly to reach an informed decision.
– Lebogang Gaoaketse, Head of Marketing and Communication at WesBank

If you are scanning the latest car models online, and dreaming of owning your first set of wheels, right now could be a good time to buy that car. For many young professionals who have recently entered the job market, buying a car is probably one of the first big ticket items on the road to independence and adulthood.

While the responsibility of buying and maintaining a car may be a daunting prospect, the current favourable low interest rates and some great deals on offer in both the new and used car markets, are both compelling reasons to purchase a car.

“Any vehicle purchase should be guided by doing your homework thoroughly to reach an informed decision. Whilst buying a new car is an exciting experience, it is also one of the most significant decisions to consider in your monthly budget,” says Lebogang Gaoaketse, Head of Marketing and Communication at WesBank.

“Following the extended lockdown period, there are now some very enticing offers being made to encourage the purchase of new and used vehicles. In addition, potential car owners have access to some of the most affordable debt, thanks to the exceptionally low interest rates. If a vehicle purchase is on your radar, right now is an opportune time to consider it.”

For us, it is important that graduates and young professionals fully understand the car buying process
– LEBOGANG GAOAKETSE, HEAD OF MARKETING AND COMMUNICATION AT WESBANK

Whatever your dream car, when it comes to the actual purchase – you need to remain grounded and realistic. Factors such as affordability and what finance deal will get approved, the lack of a credit history for many young professionals can be a stumbling block on the path to vehicle finance. To overcome this, WesBank has put a special vehicle finance deal in place, where a credit history is not essential. The application process to check affordability and get approval for a vehicle finance deal can all be done online, and is quick, easy and instantaneous.

“For us, it is important that graduates and young professionals fully understand the car buying process. When they apply for finance with WesBank, they are assessed on a different set of criteria to check affordability. This means that the finance packages we offer are exclusively structured for them to ensure the delight in owning a car is not hampered by the responsibility of it becoming a financial burden. As a responsible lender, we will only approve a finance deal that is affordable,” says Gaoaketse.

Owning a vehicle is also much more than the monthly instalment. Remember that extra costs for consideration include comprehensive vehicle insurance, fuel, maintenance and repairs, which can all impact monthly budgets and cash flow. Buying a car is also a long-term commitment, so it’s important to understand the economics involved over an extended period of time.

It is our responsibility to ensure that young professionals are equipped and knowledgeable when it comes to budgeting for their first long-term commitment purchase
– LEBOGANG GAOAKETSE, HEAD OF MARKETING AND COMMUNICATION AT WESBANK

The following tips from WesBank will help you become financially savvy when navigating the decision-making and car buying process:

Track your income and expenses – draw up a budget of all your monthly expenses and make sure you have more than you spend to determine exactly how much you can afford to spend on a car.
Spend less than you make every month – this sounds obvious, but if you don’t track your spending, you can overspend on your budget resulting in debt that may be difficult to overcome.
Spend less on wants than needs – peer pressure can result in going out and socialising or buying the latest fashion items, when that money could be better spent saving towards bigger purchases such as a car, a financial investment or even owning a house. Be careful not to make spontaneous spending and expensive purchases a habit – once in a while is fine, budget permitting of course!
Start saving early and regularly – you are never too young to open a savings account. Being disciplined about saving is an important lifelong financial lesson that should become a habit.

“It is our responsibility to ensure that young professionals are equipped and knowledgeable when it comes to budgeting for their first long-term commitment purchase. In our experience, the best purchasing decisions are always made when you have all the facts at your fingertips, and you are well informed. Now that you have the lowdown on what is required and you are ready to make the financial commitment, the best time to consider buying that car is right now,” says Gaoaketse.

Online car sales in South Africa: What’s possible, what’s not and why

vuyi on August 18, 2020

There is both good and bad news for those hoping to click a webpage button and see a new car magically appear a few days later.

Johannesburg, 17 August 2020: Online shopping trends were on an upward trajectory long before the pandemic. Enforced national lockdown saw South Africans investigating how to buy toilet paper and pool chlorine from the comfort and safety of their couches.

The rise in popularity of many existing and new online shopping platforms has fueled the notion that buying cars in similar manner will soon be a reality. Is it possible to buy a car online from start to finish and have it delivered to your driveway without ever leaving home? Yes, but it was prior to COVID-19 and only under exceptional circumstances.

According to Mark Dommisse, Chairman of the National Automobile Dealers’ Association (NADA), there is both good and bad news for those hoping to click a webpage button and see a new car magically appear a few days later.

“Many local car brands are currently advertising new methods for South Africans to browse, and in some cases even buy, their next car from home. While these tools are very handy, there are limitations to how far you can travel along this buying journey, despite clever wording which may imply otherwise,” says Dommisse.

… there are some simple reasons why e-commerce and car sales just don’t gel as a realistic option…
– Mark Dommisse, Chairman of the National Automobile Dealers’ Association (NADA)

The fact is these new services offer an elegant way for Original Equipment Manufacturers (OEMs) and dealers to cast a wider net on a bigger audience, together with convenient solutions for willing participants within that audience. But the progression of any deal will ultimately trickle down to a final transaction between buyer and seller at dealer level.

For most a new or used car is the second highest expense after housing costs, so committing to a large purchase such as this is obviously a bit more complex than ordering a new kettle from Takealot. If your kettle arrives by courier a few days after you enter credit card details and click Buy on your laptop, and you’re not happy with it for whatever reason, you simply return it and get a refund.

Online transactions are governed by the Electronic Communications and Transactions Act (ECTA) and it is here that matters such as offer and acceptance, as well as final delivery are regulated
– MARK DOMMISSE, CHAIRMAN OF THE NATIONAL AUTOMOBILE DEALERS’ ASSOCIATION (NADA)

Besides the fact that kettles don’t come with a myriad upholstery options, optional features, engine choices and paint finishes, they also don’t often come with mandatory insurance, finance plans, FICA requirements and large price tags. More importantly, it’s unlikely you’d be trading in your old kettle, and this process would certainly require some physical interaction to facilitate – as it does with vehicle trade ins.

“While new digital technologies have, and will continue to accelerate and streamline car buying in South Africa, there are some simple reasons why e-commerce and car sales just don’t gel as a realistic option in the foreseeable future,” says Dommisse.

“While there’s no doubt that for some a car is just an appliance, and the smell of leathers, face-to-face interactions and the feel of steering and gear shifts on test drives don’t rank very highly on importance scales, the vast majority of car shoppers would prefer the touch, feel and smell of a genuine showroom experience, or at least to inspect the goods they’re committing to.

“Then there are the nitty-gritty regulations which take the wind out of the sails of the pure online car buying fantasy. Technically all transactions in South Africa, other than for property, can be concluded with a simple offer and acceptance. But online transactions are governed by the Electronic Communications and Transactions Act (ECTA) and it is here that matters such as offer and acceptance, as well as final delivery are regulated”.

The Act is designed for items that are extremely standard and understood by customers – such as a kettle. When it comes to special orders or anything where specifications are set by the consumer, the goods will only be suitable for use or enjoyment by that consumer in particular. Cars often come with many specifiable options, accessories and bolt-on value add products, which would force number of protections generally afforded to consumers by the Act to be excluded.