New and Second hand vehicles
Buying a new or second hand vehicle can be challenging especially in these economic times. One can overcome this buy good vehicle research and knowing what you want in a vehicle.
In today’s economy, buying a new or used car is no easy feat.
The market trends in both the new and second-hand car markets are slowly on the rise after the global economic recession.
The petrol and diesel prices that are in constant flux also make consumers weary of their means of transport in the long run.
However, you can lessen the burden on your decision if you, as a consumer know what you need in a vehicle and what you can afford.
This knowledge together with doing your homework on the latest car trends and buying tips will allow you to purchase a vehicle with peace of mind and an informed decision.
Manager from a local new and used car dealership in Springs, Hennie Brits, says “it might not be a well-known fact that if you purchase a new vehicle or a specific car brand that is popular to a specific group of consumers, you will potentially have a better resale in comparison with its book value.”
A new car does lose value once it has been driven off the showroom floor, but if it is kept in a good condition for five years, and still has its warranty, or an extended warranty, you will possibly earn on its reselling or when trading it in.
According to Kevin van Vuuren, a sales consultant from a local used car dealership, “if the car is second-hand, consumers may be looking for a car with a reasonably low mileage and in a good condition, with a service plan and service history with its previous owner.”
In today’s market, the trend could be that people are down-scaling their vehicles to something smaller and more fuel efficient.
In both cases when buying a vehicle, its colour can play an important role in its reselling and general safety on the road.
“For example, popular car colours with consumers are generally lighter colours like white, silver, champagne, lighter blues, even yellow, as they are easier to see on a tarred surface at any time of day,” says Brits.
A car in a lighter shade shows fewer scratches on the vehicle.
This makes vehicles that are white, silver or a lighter shade in colour popular for reselling or trading in.
When purchasing a new vehicle, you know that you are the first owner of that vehicle, you will have received a comprehensive manufacturer warranty and often a full service plan with a capped mileage.
A new vehicle’s value depreciates the most by 25% to 30% in its first two to three years of ownership.
When purchasing a used vehicle, it can be significantly cheaper as the previous owner has absorbed the brunt of the depreciation cycle, there is no taxes payable for its purchase, and this may result in lower finance costs and insurance premiums.
When buying either a new or used vehicle it is advisable that you purchase it from a reputable Retail Motor Industry approved new or used vehicle dealership.
Buying tips
Brits gave these tips when wanting to purchase a new vehicle:
Visit numerous long standing reputable dealers and compare their prices.
Ask dealers what their most popular model, in terms of recent sales, is.
Test drive the vehicle.
Purchase motoring magazines to see what popular vehicle brands are presently on the market, or compare online.
Network with people you know who are knowledgeable about motor vehicles.
Purchase a new vehicle in the beginning of a new financial year, to avoid inflation of insurance premiums and vehicle’s automatic depreciation once purchased.
When you want to sell or trade in your vehicle, make sure it still has its warranty or extended warranty to gain a fairer price for the car from its book value.
Van Vuuren, gave these tips when you want to purchase a second hand vehicle:
Look at the all-round condition of the car.
Look at the vehicle’s service history.
Make sure the vehicle has gone through a roadworthy or Automobile Association (AA) test.
Check if the vehicle still has a warranty and service plan. If it has no service history, it is advisable that it has a full service in its first month on all its essentials like its gearbox, cam-belt, spark plugs, air filter and oil.
Do your homework; compare prices with your vehicle of choice online.
Compare prices of popular vehicle brands.
