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A first car is a huge milestone for many. Although exciting, you can get blindsided if you do not know what to expect. From the upfront cost to the underlying expenses, you should not find yourself in a position that makes you feel like you have made the wrong decision.
Find out which factors to consider when buying your first car
See what to expect after buying your first car
Find out the Cartrack must-have services that will keep your car safe
Key factors to consider when buying your first car
Buying a car without extensive research may result in you paying much more in the long run than anticipated. To avoid that, here are all the things you should consider to ensure you are making the right choice:
Setting your budget
The first thing to look at when buying a new car is your budget. The budget must be realistic and the only way to do so is by factoring in all the costs that come with owning a car. Here is a list of what to consider when forming your budget:
Upfront costs:
Purchase price The purchase price will be your biggest expense. Vehicle prices vary depending on the make and model. First, find out which vehicle models are within the price you are willing to pay.
Financing Most cars are bought through financing, which can be done through a bank or a dealership. If you are buying your car through financing, you first need a deposit. The deposit amount is usually 10–25% of the total cost. It also helps reduce your monthly instalments.
Some dealerships offer a reverse deposit option, but it comes with higher interest rates and a large amount of money that needs to be paid in cash at the end of your term. A typical car finance contract runs between 12 months and 72 months, so you must be able to pay for your car for that long.
Another thing you should know is that a good credit score will give you better financing terms when buying a car. So while you are on the hunt, ensure that all your other bills are paid on time.
Vehicle registration Your car must be registered in your name. If you are buying from a dealership then the vehicle registration cost will already be covered in your purchase price, as they do most of the paperwork to ensure the vehicle is ready for you as quickly as possible. However, when you buy a car privately, the seller needs to supply you with the vehicle’s registration document and inform the authorities of the change of ownership.
Ongoing costs:
Fuel costs It is no secret that fuel is expensive for most people. Prices always fluctuate due to international oil prices and the exchange rate. You need to check the fuel costs and determine the amount of fuel you can afford each month. The good news is that a lot of the new entry-level cars are fuel-efficient, which has proven to be very helpful.
Insurance costs In South Africa, car insurance is not compulsory but is a requirement for cars bought through the aid of financial institutions. With the high risk of road accidents and vehicle theft, it is certainly essential regardless of whether your vehicle purchase is being financed or not. Find out everything you need to know about insurance and get an estimate of monthly premiums for the car you want so you can include that in your overall budget.
Maintenance and repairs Regular maintenance is essential for ensuring optimal car performance. General maintenance checks typically include inspecting your brakes, wheel rotation, oil changes, and air filter replacements. The amount you pay for these routine checks will depend on the type of vehicle you choose.
Furthermore, you should have some money put aside for unexpected breakdowns. The cost of these sudden repairs can bring you greater issues if you do not already have the budget for it.
New vs. used cars
Are you getting a brand-new car or a preowned one? Both options have their pros and cons, so you should choose wisely.
New car: With a new car, you get benefits such as a manufacturer’s warranty, and the latest technological features, and you get customisation options such as choosing the colour. However, new cars are generally way more expensive, making them less accessible to buyers on a budget. Their value also depreciates rapidly with the first few months of ownership. This means if you want to sell the car within the first year or two, you will be losing a lot more than what you paid for initially. Due to the nature of the depreciation, a new car is not considered a wise investment.
Used cars: Generally more budget-friendly, and hold better value over time. The downside is that the car may not have a warranty, which means you will be responsible for all the repairs and maintenance fees after purchase. With a used car, you also won’t be able to specify the details you want in your car, such as the colour of the seats. Lastly, there might be some undisclosed problems that you cannot see at face value, that you will only discover after purchase. This leads us to our next point.
CPOs: Not all used cars are thoroughly inspected, which is why you should rather look for a certified preowned car (CPO). A CPO car is one that comes with manufacturer backing. CPO vehicles are usually inspected by a trusted mechanic and undergo any necessary repairs before they are sold. The requirements for CPOs differ for each company, but they usually include mileage and vehicle condition. The price of a CPO is usually higher than a regular used car, but not as much as a brand new car, making this option the middle ground.
Choosing the right type of car
Your lifestyle needs have a great impact on the type of car you should go for. For example, people who want cars for daily work commutes are more concerned about fuel economy compared to those who will only use their cars occasionally. A person living alone may require a smaller car compared to those living with family. To find out which vehicle model to go for, you first need to understand the different body types.
Common vehicle body types include hatchbacks, sedans, and SUVs. Here is the difference:
Hatchbacks are vehicles that are compact and typically folded at the back. They offer a good balance of passenger space and storage capacity. Ideal for those who often travel alone, driving in urban areas. They are also fuel-efficient.
Sedans are the classic four-door cars that have a more spacious interior compared to hatchbacks. They are known to be more practical, and comfortable, which makes them ideal for families and daily commuters.
SUVs come in various sizes some are compact, others are large. They are designed to handle both smooth and tough road conditions. Suitable for those who often travel out of town and come across rocky roads and gravel paths.
Fuel type is another important factor that you should pay attention to. Are you going for a petrol, diesel, hybrid, or electric car? Here’s what you should know about the different fuel options:
Cars with petrol engines are usually more affordable due to them being cheaper to manufacture compared to diesel, hybrid, and electric.
Diesel engines use less fuel per kilometre. They can stretch the fuel further, making them more suitable for long-distance travellers. In most cases, diesel costs less than petrol.
An electric vehicle is powered by an electric motor. The car does not use petrol or diesel but rather draws energy from a battery that can be charged from an external source.
A hybrid car combines a petrol or diesel engine and an electric motor. The two systems work together to keep the vehicle in motion. They are the most fuel-efficient compared to petrol and diesel.
Essential features and safety considerations
Modern vehicles come with many new and exciting features. Some enhance safety, while others are just there for convenience, so you do not really need them. Essential vehicle features include airbags, anti-lock braking systems, blind spot monitoring, and automatic emergency braking. While the nice-to-have features include reverse cameras, heated seats, and adaptive cruise control.
Researching and test driving
Do as much research as you can. Read reviews about how different vehicles hold up in the long run, as well as reviews about the dealership you are looking to get your car from. Once your research yields positive results, then it is time to go for a test drive.
Take an experienced driver or a mechanic with you to get a second opinion. Inspect the vehicle bodywork, check the interior, test out all the buttons, and find out about the service history. The test drive helps you evaluate the vehicle’s performance, so you can pick up any non-disclosed issues.
The buying process and paperwork
The paperwork becomes very easy once you know exactly what documents are required for the transaction. Here’s what you need:
ID document
Proof of residence
Proof of income
Read your contract thoroughly before you sign. Go through the return policies and warranty so have a clear understanding of what to expect. This is also where the registration and title transfers come in, which we touched on earlier.
A GPS tracking device also helps improve your driving habits by giving you detailed information on events such as speeding, and harsh braking. This further ensures that you are always cautious on the road which will help you avoid accidents and costly repairs. Moreover, tracking devices are a strict requirement for vehicles through financing, just like insurance.
What to expect after buying your first car
Once you are done making the big purchase, you need to ensure that you take care of your vehicle. This reduces the amount of times you will have to pay for repairs and it maintains the resale value.
Remember these few things to ensure your vehicle is always in good working order:
Always do regular services to keep your engine running smoothly. Set reminders for service dates and don’t forget the oil changes.
Clean your battery, ensure it is in good working order, and avoid leaving your car in extreme heat. This ensures minimal breakdowns and battery changes.
Skipping regular brake inspections may lead to reduced stopping power and potential brake system failures.Check for issues like worn out braking pads before they lead to costly repairs.
Keeping you and your car secure with Cartrack
Cartrack is one of the leading providers of vehicle security services, with over 2 million subscribers. Our solutions ensure that your vehicle is always safe and that you also feel protected. We make sure your daily trips and overall vehicle experience as a first-time car owner, are enjoyable. Here are some of our other services that will enhance your vehicle's safety and make your life easier:
Stolen Vehicle Recovery We are always ready to get your car back to you in the unfortunate event of theft. Cartrack has a vast network of highly trained recovery response teams throughout the country, along with police aid. This ensures that your vehicle is recovered as quickly as possible.
CarWatch Our Carwatch feature is a value-added service that ensures your car remains where you left it. All you need to do is activate it on the Cartrack mobile app after parking your car, and we will give you an alert if the car moves without permission.
Protector Cartrack Protector is a value-added service that ensures that you are never left stranded on the road. It provides roadside and medical assistance at the push of a button on our mobile app. Considering that we already have access to your location, it will be easier for us to quickly get to you.
Road Vision Give yourself a silent eye-witness with our Road Vision solution. This is a forward-facing dashcam that will help prove your innocence in accidents and cases of false insurance claims. The Road Vision Camera comes with cloud-based storage, giving you ample space, and clear videos and allowing you to download and live stream at any time.
Cartrack Insurance Agency As stated earlier, car insurance is essential. The Cartrack insurance agency simplifies the process for you by narrowing down the search and giving you quotes from top reputable insurance providers.
Limited Recovery Warranty* In the highly unlikely event that your car is not found. Cartrack offers you an up to R150 000 recovery warranty. Ts & Cs apply
Choose the most trusted vehicle tracking company for your first car
Our advanced innovations ensure that you get the best experience out of your first car. Join us today and drive with confidence.
Buying your first car? We have tips to help you know what expect so you don’t make any mistakes. Let us dive into it!
