A practical guide to getting the best graduate car deals in South Africa

But the sense of pride in managing to score your first job can quickly evaporate as you start to take a look at the expectations that life requires from you. You might even get a bit overwhelmed when you think about the fact that you’re earning an entry-level salary. And, this can make you unsure of whether buying a new or used car is a viable option for you. But there’s no need to overthink it.  Why? Because of these three magical words – graduate vehicle finance. It’s also the ultimate answer to your question about how you will buy a car without a credit record. 

What is graduate vehicle finance?

As a new graduate, you might feel that you’re at a disadvantage because of your entry-level salary, or since you haven’t had the opportunity to build a solid credit history. But it’s not all doom and gloom. Car finance for graduates is aimed at helping people like you to get a loan to buy a car. While it works for a new car as well, the best option for you would be to go for a pre-owned car as it won’t cost as much as a new car will.  Fortunately, graduate car finance in South Africa is a big enough market to provide you with suitable options to choose from. Once you open yourself up to this opportunity, you won’t have to worry about how you’ll move around without a reliable set of wheels.  Now that you know there’s an option tailored to your financial needs, let’s talk about how to buy a second-hand car and how to find the best used car. Understand that finding and purchasing a second-hand car takes time and effort. To help you with this, we’ve put together a used car buying checklist to consider as part of your car search process. 

Find a price range you can afford 

Before you start shopping around for a pre-owned car, it’s important to narrow down your options. You have to do this to avoid becoming overwhelmed with the volume of available choices. It would be a waste of time to search for cars which are above your affordability range. So, start thinking about the price range you’re comfortable with. 

Start shopping around 

Check your affordability first and once you’ve decided on your price range and car options, you can start shopping around but remember not to deviate from your price range. View cars online, visit a private owner or car dealerships to learn more about the types of cars you’re interested in and their costs. That way, when you seek assistance from lenders, you’ll know how much you need to ask for. 

Choose between private owner or car dealerships

As a first-time car buyer, you might be unsure about where to go shopping around for cars on sale. You’re presented with two options; using a private owner or car dealerships. However, each option has its pros and cons. Your main goal is to get a car that suits your lifestyle and financial needs. So, when shopping around explore all avenues.

Draw up a budget 

As a person who recently joined the job market, chances are you haven’t done a full and thorough budget before. You’ll learn as you draw up one that it isn’t difficult at all. Plus, there are many budget tools and apps available to help you with your budget set up.  More importantly, drawing up a budget will help you get an overview of your expenses, and figure out how you can fit in a car’s monthly repayments. But you don’t have to trust guesswork. You’ll know exactly what you will be paying towards your car. This includes car maintenance costs, insurance, petrol, and any other additional costs such as repair costs.  That’s where a car finance calculator comes in handy. It does the exact calculations for you, so you can get a realistic outlook of how much your monthly payments will cost. Once this is clear, draw up a shortlist of possible options.

Explore your shortlist options and ask specific questions

At this point, you’re looking to iron out the finer details. Use your shortlist to gain more knowledge of cars. Have consultations with the private owner or dealership, where you ask the specific questions about each car. Ask about the car’s service history and its vehicle identification number (VIN). This gives you an opportunity to check with a reputable information bureau for any signs of fraud. Ask about accident history and find out if the car ever experienced serious damage. 

Go on a test drive 

Once you’re satisfied with the information provided, take the car for a spin. By doing so, you get a feel of the car and get to learn about its condition first hand. If possible, have someone who is more experienced with you, and do the following during your test session:

Check the exterior of the car for:

• Windscreen cracks.
• Gaps between the body panels or inconsistent paintwork.
• Paint on the underside of the bonnet? (this is a sign of repairs).
• The state of the tyres.

Check the interior of the car for:

• A realistic odometer reading.
• Fully functional electronics.
• Working lights, doors, windows.
• The condition of the seatbelt.
• Whether the car has a spare tyre, jack and wheel spanner.

Check the engine for:

• Possible leaks.
• Wear and tear on hoses and fan belts.
• Corrosion on the battery terminal.
• Drops of clear liquid on the stick when testing oil? 

(It could be a sign that the engine gasket needs to be replaced).

• An engine number that isn’t tempered with.

Try to do the test drive on both the highway and suburb roads to gauge the car’s performance. Additionally, during the test drive, keep the windows open and the radio off, so you can hear any unusual sounds. Listen to hear if the engine idles smoothly and check for blue or black smoke coming out of the exhaust when you rev the engine. Lastly, do an emergency stop (safely, on an empty road) and check the handbrake on a slope. 

Apply for graduate vehicle finance

At this stage, you’ll have found one or two possible cars that you’re comfortable buying. The next move is to apply for vehicle finance from a reputable lender. Make sure to research the requirements and the documents you’ll need to provide with your application. 

Final thoughts 

The road to buying your first car can be overwhelming and lengthy. But the freedom that owning a car provides you is worth it. And, fortunately, it’s possible to find affordable cars in South Africa. With vehicle finance, you’re going to find a set of wheels you’ll be happy with.