first time car buyer Archives - Heels & Horsepower Magazine

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.

Age vs. Mileage: Which is more important when buying a pre-owned vehicle?

vuyi on June 21, 2021

Understanding the balance between a vehicle’s age and its mileage is critical when buying a car. Motus South Africa shares invaluable insights for buying a pre-owned car.

When shopping for a pre-owned car, buyers need to find the optimum balance between age and mileage. Understanding how these factors impact a car’s overall condition and which is more important is vital when making a purchasing decision.

In most cases age and mileage work against each other in the manner that the market prices pre-owned vehicles. While mileage drives down the price, the newer the vehicle the higher the price will be.

Two identical cars with the same mileage, but differing by a year in terms of their first registration could differ as much as R50 000.

As mileage directly relates to how much a vehicle was driven; a good rule of thumb is 15 to 20 000km per year, anything more than this is considered high mileage.

The higher the mileage, the higher the wear and tear, but mileage is not the only factor affecting a vehicle’s condition.

When inspecting a vehicle, it is important to try and ascertain how it was used. A bakkie that has high mileage from highway driving will most probably be in better condition than a bakkie that has a lower mileage but spent its life on dirt roads.

How vehicles were stored and cared for can also have a bearing on their condition. A high mileage vehicle that was washed regularly and parked undercover will be in a much better condition than a low mileage vehicle that was not cleaned regularly and spent its life in the sun.

Cars with high mileage in relation to their age might very well have many years of trouble-free use in them still, especially if they have been properly maintained. It is therefore very important to enquire whether the vehicle in question has a full-service history and if any major components have been replaced. Well-maintained vehicles can continue to serve their owners reliably assuming that you continue with the routine of regular maintenance.

“Naturally, there are advantages to buying a newer model vehicle. New cars will feature the latest technology in terms of engines, infotainment, and safety and if that is important to you, it could be worth paying the premium,” says the CEO of Motus Retail and Rental SA, Corné Venter.

Newer cars should also be cheaper to maintain in the medium term as they may still be covered by a manufacturer’s service plan or warranty. Major components like a timing belt, CV joints, and shock absorbers, which can be costly to replace as the mileage creeps up, will still have a few years’ life in them.

All vehicles sold by Motus, irrespective of their mileage are subjected to a comprehensive inspection before being listed for sale, ensuring that they are in a good, roadworthy condition.

New Versus Pre-Owned – Which Car Is Right For You As A Graduate?

vuyi on October 20, 2020

Affordability may be the most important factor to consider when deciding what car to buy
– Lebogang Gaoaketse, WesBank Head of Marketing and Communication

As a first time buyer, it is easy to get overwhelmed, or even carried away, with the reality of purchasing your first car. You may get the feeling that everything is aligning in your life to get your first set of wheels, but there are many things to consider when making this budget-impacting purchasing decision.

One of these could be your lack of credit score if you have only recently entered the job market. Under normal circumstances, this could be a negative consideration when trying to raise finance to buy your chosen car. However, thanks to finance offerings such as WesBank Graduate Finance, this is one less thing to worry about. The application process to check affordability and get approval for a vehicle finance deal can be done online, and it only takes a few minutes.

”Affordability may be the most important factor to consider when deciding what car to buy, but there is another important decision to make. This is deciding whether to get a new or a pre-owned car. While your dream car may be the latest flashy model on the showroom floor, with all the added extras including cool rims and a high-end sound system, the reality is that you need to buy within your budget,” says Lebogang Gaoaketse, WesBank Head of Marketing and Communication.

“That might just be the pre-owned car next to your dream car that is in great condition, has low mileage on the clock and, most importantly, is affordable. It is a significant choice for you to make because each option carries its own set of considerations. Talk about adulting, right?”

You also need to remember that there are more costs involved when buying your first car than the monthly repayments. While the right time to buy your first car could be now, affordability is key. Make sure you take into account all the expenses that come with independent mobility and act responsibly when making the financial commitment.

If you are considering buying a brand new car, budget permitting, WesBank advises that you place the most emphasis on getting value for your money. This includes not compromising on the car’s safety features such as ABS brakes and airbags, and what your needs are with regards to space and add-on extras. You need to also make sure that you understand the details of your contract. Buying your car from a licensed and WesBank approved dealership is recommended.

Nothing beats the smell of a new car, except perhaps the smell of a perfectly valeted pre-owned car that fits your budget more comfortably
– Lebogang Gaoaketse, WesBank Head of Marketing and Communication

In the case of a new or pre-owned vehicle purchased through a reputable dealer, you are likely to be offered an extended motor plan, service plan or warranty as part of the purchase agreement. These are insurance-related products and are aimed at protecting you from unforeseen costs down the line such as a vehicle breaking down.

It is advisable to consider including plans such as these, budget permitting, that offer a little extra peace of mind further down the road. These options can take some burden off your wallet when the time comes to pay for the car’s services and general vehicle maintenance after any standard maintenance plans and/or warranties expire.

Remember those other recurring financial obligations besides the monthly instalment we mentioned earlier? Fuel is an ongoing cost when driving around town, so consider a car that is fuel efficient. Taking out comprehensive insurance cover is a non-negotiable, and premiums can vary depending on the car you choose, so do some research with your insurance provider ahead of signing. You may also consider installing a vehicle tracking device as an additional security measure and, although this comes with a monthly payment, it could also mean a reduction in insurance premiums. All these costs need to be managed and included in your budget.

How you tackle this big decision-making process will determine the overall experience of buying and owning your very first set of wheels
– – LEBOGANG GAOAKETSE, WESBANK HEAD OF MARKETING AND COMMUNICATION

If a pre-owned car in good condition is what you decide on, WesBank offers the following advice:

Firstly, check the service history of the car. Pre-owned cars should have a full-service history (FSH) that will inform you whether the previous owner took the car to a licensed service centre, whether the car was serviced timeously and if the FSH does indeed reflect the real condition of the car. A car without a recorded service history may come at a reduced cost, and seem like a great deal, but can be risky in the long run.
Secondly, the Vehicle Identity Number (VIN) serves as the fingerprint of the car. The VIN found on the license disc must match the one on the car (usually stamped where the windscreen meets the dashboard). It’s a lengthy number but inspect it carefully and, and if anything doesn’t match, enquire with the dealer as to why. Even more advisable is to walk away.
Thirdly, it is important to find out if the car has been involved in a major accident. The effects of a major accident could result in mechanical damage to the vehicle that could present costly problems down the line. WesBank recommends that you ask someone knowledgeable, such as a trusted mechanic, to inspect your chosen vehicle before you sign for it on the dotted line.
Fourthly, a test drive is the only way to get a solid impression of a car’s driving dynamics, features and comfort levels. Don’t just drive around the block: take the time to check the comfort and size of the car and how it handles on a variety of roads. Listen carefully for any strange noises and if anything doesn’t seem right ask the salesperson if they would be willing to investigate and repair any issues. If you’re unhappy with anything, make it known and feel free to move on if you’re uncomfortable. Test drives do not come with any commitment to purchase. Finally, don’t feel pressured or obligated to buy the car the same day – take time to think it over.

“Nothing beats the smell of a new car, except perhaps the smell of a perfectly valeted pre-owned car that fits your budget more comfortably. Ultimately, the choice is yours. Either way, take your time, do your homework thoroughly and ask as many questions as possible. How you tackle this big decision-making process will determine the overall experience of buying and owning your very first set of wheels,” 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.