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The Citizen
a day ago
- Automotive
- The Citizen
Should you buy a new or second-hand car?
Whether buying new or used, South Africans consistently show a strong preference for value-for-money brands, such as Toyota, Volkswagen or Suzuki. Given the overall increase in financial pressures experienced by South African consumers, such as rising food and utility prices, it is important to stretch your rands as far as possible when buying a car. Ernest North, co-founder of Naked insurance, says one of the most important decisions you will make is whether to get a brand-new vehicle or buy a used car. 'Choosing between a new or used car isn't just about the retail price; it's about what will fit your financial plan and lifestyle the best.' New or used car? He adds that buying new and buying used both come with their trade-offs and benefits. Understanding the latest market trends and how the car will impact your finances is crucial for making informed choices. There are ups and downs in both scenarios of buying new or used. According to the National Association of Automobile Manufacturers (Naamsa), new vehicle sales decreased by 3% to around 516 000 units in 2024. The used car market has also had its ups and downs, but data suggests demand for second-hand vehicles is outpacing new models by more than two to one. Whether buying new or used, South Africans consistently show a strong preference for value-for-money brands, such as Toyota, Volkswagen or Suzuki. North highlights that the decision to buy a new or used car will depend on factors such as your budget, the length of time you plan to keep the car and the features you are looking for in the car. ALSO READ: Beware: the hidden costs of owning a car Buying a new car Pros of buying new North gives a few lists of the pros of buying a new car. • Reliability – No previous wear and tear. Covered by a full manufacturer's warranty. • Lower interest rates – Lenders offer better financing deals, as new cars are considered lower risk (although this depends on an individual's risk profile). • Latest features – Access to the newest tech, safety and fuel efficiency improvements. • Lower maintenance costs – No major repairs needed for the first few years. Downsides of buying new • Depreciation – Usually a car loses 20-30% of its value in the first year. • Higher insurance costs – Comprehensive coverage is required if financing is involved. • Expensive upfront – Even with lower interest rates, the total cost is higher. Buying a second-hand car Advantages of buying second-hand • Slower depreciation – The value of a car stabilises after the first few years. • Lower purchase price – You can pay less for an equivalent car than you would if buying new. That means you can save money or get something with better specs and features for the same price. Disadvantages of second-hand • Higher interest rates – Lenders often view used cars as riskier, which can result in slightly higher rates. • Potential maintenance costs – Older cars may require more frequent repairs and their warranties may be limited. • Unknown history – Unless certified pre-owned, previous maintenance and accidents could be a concern. ALSO READ: Buying a car from a private seller? Here are some tips Tips on how to get the best deal North offered eight tips on how to get a good deal. Conduct online research: When buying a used car, remember that factors such as mileage, the car's condition and its service history will all affect the price. Knowing what to pay will help you negotiate a better deal. Watch out for deals: Keep your eyes open for incentives such as cash back, trade-in assistance or low-interest financing. Promotions may help you get a better deal when dealers are struggling to move cars. Negotiate: You can often negotiate a better deal, depending on the dealership, the brand and the demand for the specific model. Be cautious of extras: Dealers will often try to include added extras when you buy a car. Some can be worthwhile, like smash-and-grab glass tinting and service plans. Others, such as paint protection or premium audio, are usually not worth the investment. Consider certified pre-owned (CPO): CPO used cars are popular because they come with manufacturer inspections and warranties, offering extra reassurance. Choose the right time to buy: Keep an eye on sales trends. When sales are down, dealerships may be more willing to negotiate. Obtain a vehicle history report: A vehicle history report from services like Dekra Automotive or the South African Insurance Association's online tool can flag any accidents or repairs the car has been involved in. Do not forget insurance: Whether you drive off in a brand-new car or used one, you need to protect it with insurance. NOW READ: Is it still worth buying a car?
The Citizen
18-05-2025
- Automotive
- The Citizen
Buying a car from a private seller? Here are some tips
The Consumer Protection Act does not cover a private sale, so you do not have an implied warranty to fall back on if the car has defects. Buying a car from a private seller can really be tempting, but you have heard so many stories about what happened to other people when they met a private seller and were robbed or even murdered. But what should you do if you find a really good deal from a legitimate private seller? You can usually save some money when you buy a used car from a private seller, but it also has some risks you will not face at a dealership, Ernest North, co-founder of Naked, a digital insurance platform, says. 'To ensure that you make a wise purchase, you must ask the right questions, ensure the paperwork is in order and take some common-sense precautions.' ALSO READ: Buying a car? Keep this in mind Keep these tips in mind when you buy a car privately North has these tips to keep in mind when you buy a car privately: #1: Do your homework on pricing Before you even phone the seller of a car that catches your eye, check the average price of similar models online (try sites like or AutoTrader). You should not only avoid cars that are too expensive, but you must also beware of cars that seem like a massive bargain. #2: Ask the right questions when you buy a car privately Before you even meet to view the car, collect some basic information about the car. It is a red flag if the seller is unwilling to answer questions on the phone and insists on interacting only through text messages or email. Some questions to ask include: How old is the car? How many previous owners did the car have and for how long did the most recent owner have the car? What is the current mileage and what was it when the seller bought the car? Was the car involved in an accident or have major repairs? Is there outstanding financing on the car? Does the seller have the service history logbook and a roadworthy certificate for the car? Why is the seller selling the car? ALSO READ: Here's why you should – and why you shouldn't – buy a new car #3: Meet in a public place If you buy the car from a stranger, the next step is to view the vehicle. Meet during the day in a public area to ensure you are safe. Avoid remote or private locations and always get the full address in advance. Also bring a friend or family member with you if you can, and let someone else know where you are or even drop them a live location on your phone. #4: Inspect the car Look for signs of wear and tear or damage to the exterior, interior and engine of the car, paying special attention to the tyres and brakes, lights and electrics, fluid levels and leaks and windscreen and wipers. Bonus tip: If you are not confident in your own car knowledge, you can pay for a professional inspection via a provider like DEKRA if you want to buy the car. ALSO READ: How much does mileage matter when buying a used car? #5: Take the car for a test drive If you consider making a serious offer for the car, ask to take it for a test drive and drive it for at least 20 minutes and pay attention to things such as braking (try a safe emergency stop), handling and steering response, gear changes and any strange noises like rattling from the engine or grinding from the brakes while the windows are down and the radio is off. Also turn the car off and restart it to test the ignition. Bring your driver's licence with you to show the seller. Also ask to see the seller's insurance details since you could be held liable if you have an accident and the car is not insured or if the insurance only covers the driver's named in the policy. #6: Confirm the car's documentation is in order Before any money changes hands, ask the seller for original copies of the registration documents in his or her name and ask to see his or her ID book, roadworthy certificate that is valid and current, proof of ownership and full service history. Also check that the vehicle identification number (VIN) and engine number match the documents and ask the police to confirm the car is not stolen. ALSO READ: Why is 2025 the perfect time to sell or trade your car? #7: Look out for signs of a potential scam Red flags include a price far below market value, a seller who avoids calls or insists on email messages or who pushes for a deposit before you have seen the car. Also beware of a seller who does not have the original paperwork or asks you to pay money into a foreign bank account. If anything feels off, walk away. #8: Payment and ownership transfer Avoid paying cash. Bank transfers are safer because you will have a paper trail. If the car still has outstanding finance, the seller must settle it before you make the full payment. Never hand over money without seeing the car and paperwork first. #9: Put it in writing Create a contract with detailed information about both parties, the car and the sale terms to protect both of you. Include details such as your ID numbers, full vehicle details (make, model, VIN, mileage, registration number) and terms and conditions (such as 'sold voetstoots' or 'seller agrees to fix faulty brake light before transfer of ownership'). ALSO READ: Car tips: How to change ownership when buying or selling privately #10: Register the car in your name After the sale, transfer ownership at your local traffic department. You will need the roadworthy certificate, sales agreement, proof of residence and a copy of the seller's ID. This step is essential because until you register it, you do not legally own the car. Also remember to get insurance before you get behind the wheel. This graphic sums up the advantages of buying a car from a private seller or dealership:
