Before heading off to your local car dealership, make sure that you read these hot tips so you are not taken for a ride!

 

Decision time

A hatchback, convertible, SUV or sedan? The choices are endless. When it comes to selecting a car, it is important to base your decision on what vehicle is most suited to your needs and budget. Buying a two-door convertible may not be practical if you have children or a top-of-the-range SUV that guzzles fuel is not ideal if you are on a shoestring budget.

 

Ask yourself:

• What is the primary use of the car?
• How does its overall performance compare to other cars in the same price range? 
• How much can you afford for the monthly repayments?

 

Know when to draw the line

Once you’ve decided on the car you want to buy, it’s a good idea to familiarise yourself with its price points. Most models have several trim levels with graduated pricing for standard and optional gear. It’s tempting to load a car with everything available (who doesn’t love a sunroof?), but you can literally double the sticker price in the process. Avoid being steered into a ‘terrific deal’ that’s actually more expensive, you can still get the car you want without overspending on extras you don’t need.

 

Getting finance

Purchasing a vehicle is often the second most expensive purchase after buying a home. Most of us don’t have wads of cash lying around to pay for a new car so getting assistance from a bank or vehicle finance company is probably your best bet. When applying for finance, it is very important to investigate which bank or vehicle finance company offers you the best prime lending rate, which is based on your current financial situation.

 

Tread carefully when deciding on residual lease agreements. In the beginning, it may seem like you are saving some cash, but you will remain liable for the payment of the excess amount at the end of the financing contract.

 

Comprehensive insurance

The next step is to insure your baby before driving it off the showroom floor. Comprehensive vehicle insurance is essential, providing cover for a stolen vehicle or accident damage to your vehicle or other parties and their property. Hippo can help you find the best insurance quotes for your car, so you are always protected against unexpected circumstances.

 

Hot tip: combining your vehicle and home contents insurance could save you money!

 

Secure your vehicle

Three hundred cars are stolen in South Africa every day. Therefore, insurance companies have various security requirements for motor vehicle policies. The most elementary ones are gear locks and steering locks. The more complex security devises include alarm systems, immobilisers, anti-hijacking systems and tracking systems. It is important to ensure that the security device mentioned on the insurance policy must be in place, locked or switched on at all times while you are not using the vehicle. If these security devises are not in use at the time of a theft, it may influence your claim.