5 car-buyer mistakes

Being able to finally buy or upgrade a car can be a stressful experience with the potential to make expensive mistakes.

These are the five most common mistakes:

1. Not doing your research beforehand.

Compare options to see where you will get the best price, and find out about the different pricing and financing terms available to you.

2. Focusing on price at the expense of the financing terms.

While price is obviously a major factor, the price tag you see isn’t what you will actually pay in the long term – with interest and other costs like maintenance and service plans. Discuss all these factors with the dealer so that you know exactly what your monthly obligation will be, and ensure that you will be able to meet commitments.

3. Purchasing used vehicles

While you can usually get a better deal on a used vehicle, it is important that you do your research thoroughly beforehand and visit a reputable dealer.

Also be sure to check if the car is still on a motor plan, and if not, find out about what options are available to you and what they will cost over and above your monthly repayment.

4. Leasing versus buying

More South Africans are looking at leasing rather than buying because it allows them to enter a shorter contract usually at a lower rate and change their car when the contract ends.

However, while that may sound appealing, remember that you will never actually own the car and don’t have anything to show for it at the end of the contract.

There are also often limitations on usage of the car, including a maximum number of kilometres that you will be penalised for going over.

There are pros and cons to both options, but it is important to weigh up what will work best for your own needs.

5. Rushing into a decision.

Don’t go into the dealership feeling like you have to walk out the proud owner of a car.

It may include features that you don’t actually need that drive up the price over what you budgeted for or not be the exact model you are looking for.

Charl Potgieter is the head of Absa Vehicle and Asset Finance