Tips for used car buyers

With many consumers feeling a pinch in their wallets, largely because of the ongoing pandemic and the economic uncertainties that come with it, WesBank has seen a fundamental shift from new car buyers looking to the used car market for their transport needs.

In August 2021, finance applications for used cars were more than double those received for new cars. In light of this, WesBank offers the following advice to prospective buyers on how to approach second-hand vehicle purchases, as well as some common pitfalls to avoid.

It is not always possible to find out every detail about a used car’s history, but building a profile that is as complete as possible helps minimise the risk of buying a lemon. This exercise can also help determine a car’s market value. Any combination of age, mileage, service history, condition and ownership history can affect the price of a used vehicle.

For example, a three-year-old car owned by one person and has 30 000km on the clock with a full-service history, is worth more than a similar car with patchy or no service history at all. Similarly, a car with higher mileage but in perfect condition can be worth more than one with lower mileage but with worn seats, dented body panels and general neglect for condition.

In order to budget properly, it is also important to know the replacement costs for wear and tear items such as tyres, brakes, clutches and scheduled services, which can be expensive while adding to the overall maintenance costs and upkeep of a car.

For example, higher-specification or sportier models often come with low-profile tyres which generally cost much more than the high-profile tyres on more entry level models. A few simple internet searches for the prices of replacement items on any particular car can help prepare you for these expenses further down the road.

Costs

There are also factors that affect affordability, so buyers are advised to consider costs that would affect their total monthly budget. These include costs for insurance, fuel and annual vehicle licensing fees. Contact your insurer for a quote on premiums ahead of purchases, and research what expected average fuel consumptions are for the car you’re looking at. Tally these costs and add them to your monthly budget for a clear picture of any vehicle’s total cost of ownership.

Think carefully before you make your purchase. Buying a vehicle from a recognised establishment can safeguard you from trouble if any issues arise shortly after you take delivery of a used car. The best form of recognition is to look for an establishment that is a member of the Retail Motor Industry Organisation, the National Automobile Dealers’ Association or a major car brand’s franchised dealership.

There are advantages to the consumer when purchasing a used vehicle in the franchised environment. These include formal manufacturer-approved used car programmes as well as manufacturer standards that have to be applied to a used car before it can be sold on the floor of a franchise. A consumer may not be provided with this when buying a vehicle from private sellers, other non-franchised environments. -MOTORPRESS