10 August 2022: New versus pre-owned? This is the query all of us ponder on throughout our lives for all method of things. However, it appears much more pertinent when contemplating shopping for your first automotive. Perhaps you’re a latest graduate, have entered the office and are beginning to make your mark. Becoming financially impartial offers you the liberty to make buying selections to enhance your high quality of life. Owning your personal automotive actually ticks all of the bins and provides you freedom of motion.
But now, the query is what to purchase: a brand new automotive or a pre-owned automotive that has been cared for and nicely maintained by its earlier proprietor? Apart from the price implications, there are benefits to proudly owning both a brand new or used automotive.
“A new car comes with no prior history which means you are in full control of how well it’s driven and maintained. You’ll also have options such as maintenance plans and warranties from the manufacturer – a definite plus for managing costs and risk, but you need to do your homework and understand what these plans include and exclude.”
Kutlwano Mogatusi, WesBank Communications Specialist
“Used cars, on the other hand, already have a driving history. Look for a used car where the previous owner has kept a detailed service history, and ask questions about the current condition of the car – are there any issues you should be aware of, or has the car been involved 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 buy in the long term.”
New versus pre-owned budgeting and finance
Applying for WesBank finance on a used automotive is the straightforward half. The exhausting half is deciding on the correct automotive. Ultimately, that call lies with you. The following concerns can go an extended technique to serving to you determine. As a primary time purchaser, there are lots of issues to contemplate when making this budget-impacting, huge ticket itemt buying choice.
Affordability could also be an important issue to contemplate when deciding what automotive to purchase, and the truth of adulting is that it’s good to purchase inside your budget. Using the affordablity calculator on the WesBank App or web site is fast and simple, taking the guesswork out of figuring out what youcan afford on your month-to-month budget.
Another hurdle you may encounter is the shortage of credit score historical past when you have solely not too long ago entered the job market. Under regular circumstances, this may very well be a detrimental consideration when making use of for automobile finance to purchase your chosen automotive.
“With the WesBank Graduate Finance providing nevertheless, your credit score rating is one much less factor to fret about. The utility course of to examine affordability and get approval for a automobile finance deal may be executed on-line, and it solely takes a couple of minutes’” says Mogatusi.
More value concerns
You additionally must keep in mind that there are extra prices concerned when shopping for your first automotive than the month-to-month repayments. While the correct time to purchase your first automotive may very well be now, affordability is key. Make certain you contemplate all of the bills that include impartial mobility and act responsibly when making the monetary dedication.
If you’ll be able to afford to purchase a brand new automotive, ensure you get the best worth on the automobile for your hard-earned money – as such, it is beneficial to purchase your automotive from a licensed and WesBank-approved dealership. This consists of not compromising on security options equivalent to ABS brakes and airbags and your wants relating to house and add-on extras. Make certain that you simply perceive the small print of the contract and ask questions if something is unclear – when you signal on the dotted line, the contract is binding.
If you purchase your new or pre-owned automobile by a good seller, you might be more likely to be provided an prolonged motor plan, service plan or guarantee as a part of the acquisition settlement. These are insurance-related merchandise to guard you from unexpected prices down the road, and it is advisable to contemplate together with such plans, budget allowing, for additional peace of thoughts. These choices also can take some burden off your pockets when the time involves pay for the automotive’s companies and basic automobile upkeep when the usual maintenace plan or guarantee expires.
“Remember to include other recurring costs apart from the agreed monthly installment. The cost of fuel is at an all-time high so look for a car that is fuel efficient. Comprehensive insurance cover on the vehicle is a 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 additional security measure – it comes with a monthly payment but it could also mean a reduction in insurance premiums. All these costs need to be managed and included in your budget,” says Mogatusi.
If you determine on a pre-owned automotive in good situation, WesBank presents the next recommendation:
- Check the service historical past of the automotive: pre-owned vehicles ought to include a full-service historical past (FSH) that displays the true situation of the automotive. A automotive with no recorded service historical past could come at a decreased value, however may very well be dangerous in the long term.
- The Vehicle Identity Number (VIN) serves because the fingerprint of the automotive: the VIN on the license disc should match the one on the automotive (often stamped the place the windscreen meets the dashboard).
- Find out if the automotive has been concerned in a serious accident: the results of a serious accident may lead to mechanical injury to the automobile that would current expensive issues down the road.
- Test drive the automotive (ideally with somebody who is knowledgable about automobiles) to get really feel for the automotive’s driving dynamics, options and luxury ranges. A take a look at drive doesn’t include any dedication to buy, so don’t really feel pressured to make a proposal to buy – take time to suppose it over.
“While there is something special about the smell of a new car, there is nothing wrong with the smell of a perfectly valeted pre-owned car that fits your budget more comfortably. Ultimately, the choice is yours but, either way, take your time, do your homework thoroughly and ask as many questions as possible. How you tackle this big budget decision-making process will set the course to determine the overall experience of buying and owning your very first set of wheels – enjoy the ride!” concludes Mogatusi.
Posted by WesBank on Motorpress
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