This question seems even more relevant when considering buying your first car. Becoming financially independent gives you the freedom to make purchasing choices to improve your quality of life. Owning your own car certainly ticks all the boxes and gives you freedom of movement.
But now the question is what to buy: a new car or a neat and well-maintained used car from its previous owner?
Besides the financial implications, there are benefits to owning a new or used vehicle.
“A new car comes with no history, meaning you have complete control over how well it is driven and maintained. You’ll also have options such as maintenance plans and manufacturer’s warranties – a definite plus for managing claims. costs and risks, but you need to do your homework and understand what these plans include and exclude,” explained Kutlwano Mogatusi, communications specialist at WesBank.
“Used cars, on the other hand, already have a driving history. Look for a used car whose previous owner has kept a detailed maintenance history and ask about the current condition of the vehicle – is- Are there any issues you should be aware of or has the car been in an accident If the vehicle is in good condition and the mileage is reasonable for its age, a used car could be a very good long term buy.
Applying for WesBank financing on a used car is the easy part. The hardest part is choosing the right car. Ultimately, that decision is up to you.
The following considerations can greatly help you make a decision. As a first-time buyer, there are many things to consider when making that decision to buy an expensive, budget-impacting item.
Affordability may be the most important factor to consider when deciding which car to buy, and the reality of adulthood is that you need to buy within your budget. Using the affordability calculator on the WesBank app or website is quick and easy, taking the guesswork out of what you can afford with your monthly budget.
Another hurdle you might encounter is a lack of credit history if you’ve only recently entered the workforce. Under normal circumstances, this could be a negative consideration when applying for vehicle finance to purchase your chosen car.
“With the WesBank Graduate Finance offering, however, your credit score is one less thing to worry about. The application process to check affordability and get approved for a vehicle finance deal can be done in online, and it only takes a few minutes,” Mogatusi said.
You should also remember that buying your first car entails more costs than monthly payments. Although the right time to buy your first car may be now, affordability is key. Be sure to consider all independent mobility expenses and act responsibly when committing financially.
If you can afford to buy a new car, make sure you get the best value on the vehicle for your hard-earned money – as such, it is recommended that you buy your car from an authorized dealer and approved by WesBank. This includes not compromising on safety features such as ABS brakes and airbags and your needs for extra space and extras. Make sure you understand the details of the contract and ask questions if anything is unclear – once you’ve signed on the dotted line, the contract is binding.
If you buy your new or used vehicle through a reputable dealership, you’re likely to be offered an extended engine plan, maintenance plan, or warranty as part of the purchase agreement. . These are insurance-linked products to protect you from unexpected costs down the line, and it’s a good idea to consider including such plans, budget permitting, for added peace of mind. These options can also lighten your wallet when it comes to paying for car services and general vehicle maintenance when the standard maintenance plan or warranty expires.
Don’t forget to include other recurring costs outside of the agreed monthly payment. The cost of fuel is at an all time high so look for a fuel efficient car. All risk insurance cover on the vehicle is non-negotiable. Premiums vary depending on the car and service provider you choose, so do some research before signing an agreement. Installing a vehicle tracking device is an added security measure – it comes with a monthly payment, but it can also mean lower insurance premiums. All of these costs need to be managed and included in your budget,” Mogatusi said.
If you opt for a used car in good condition, WesBank offers the following advice:
• Check the car’s maintenance history: Used cars should come with a full maintenance history that reflects the actual condition of the car. A car without a recorded maintenance history can have a reduced cost, but can be risky in the long run.
• The Vehicle Identification Number (VIN) serves as the fingerprint of the car: the VIN on the registration disc must match the one on the car (usually stamped where the windshield meets the dashboard board).
• Find out if the car has been involved in a major accident: The effects of a major accident could lead to mechanical damage to the vehicle which could lead to costly problems down the line.
• Test drive the car (preferably with someone familiar with vehicles) to get a good idea of the car’s driving dynamics, features and comfort levels. A test drive doesn’t come with a commitment to buy, so don’t feel pressured to make an offer to buy – take some time to think about it.
“While there is something special about the smell of a new car, there is nothing wrong with the smell of a perfectly maintained used car that fits more comfortably in your How you approach this big budget decision making process will determine the overall experience of buying and owning your very first set of wheels – enjoy the ride!” concluded Mogatusi.
Source: Motor Press