What to Do Before Buying a Second-Hand Vehicle

Whether you’re a first-time buyer or simply looking to upgrade to another vehicle in the pre-owned car market, there are a lot of things you may not know. So, before signing those papers and entering bank details, take a look at the checklist we’ve compiled to safely navigate you through your car shopping journey. 

Buying a used car? Use this checklist first

Not many people can afford to buy a brand-new car these days, and understandably so. It’s also quite challenging to buy a car with confidence. Some cars may have hidden issues that aren’t immediately apparent, especially when buying privately rather than through a dealership.

Don’t despair, there are a few things you can do to mitigate the risks that come with buying a second-hand vehicle. 

Create a budget 

Most times, people will get carried away with buying a car that they forget there are costs attached to it, regardless if it is pre-owned and priced at a good deal. Think about things like monthly instalments, fuel consumption, car maintenance and upkeep, insurance, etc – A.K.A total cost of ownership. 

Know what you can afford.

  Opt for a private sale or dealership

Sometimes you’d just want to get the purchase over with so you might think a private sale is better. However, keep an open mind when it comes to buying a pre-owned car from both. There are pros and cons to each, but the one you choose should be carefully considered.

While private sales offer better bargains and have no strings attached, dealerships offer credibility and reassurance.

For private sales, you can always use DEKRA Automotive to inspect the second-hand vehicle so that you know you’re getting your money's worth without paying extra for repairs or replacements.

Determine if the used car is worth the seller's price

Commonly known as the ‘book value’, the depreciation value of the car is subtracted from the retail value. Comparing prices of the same model is probably the best way to go, taking other factors into account like age, mileage, condition, etc. Once you’ve considered that, relook at what the trade-in value would be should you sell it later on. 

Ask for documentation 

Another factor to consider is if the owner has evidence that he or she has any outstanding finance left on the vehicle if the full amount has not been paid off, you run the risk of being held liable by the financial institution for any outstanding payments, or worst case scenario, it could be repossessed. If you’re unsure or suspicious of the documentation provided, contact the finance house directly.

It is your right as a potential buyer to question the origin of a used vehicle. Whether the seller is a dealer or an individual, if they’re unwilling to provide information or documentation, you should simply walk away.

Consider the total cost of ownership

As previously mentioned, the cost of ownership needs to be considered in your total purchase. What costs you now won’t cost the same later on, even if you’ve paid off the vehicle in full. 

Here’s what you should look at while drafting your budget:

  • Check how many kilometres the car has covered – the higher the mileage, the more services and more money down the line from wear and tear.
  • Ask if the previous owner has the service book with all the services recorded and if there were any accidents or repairs noted from the past.
  • Consider vehicle licensing fees each year and any other driving-related costs that would apply to you, like tolls or regular parking.
  • Find out the average costs of maintenance and service costs that are in line with the car. You should also consider buying an Extended Warranty for future repairs and replacements.
  • Compare your fuel consumption with your driving habits to get a monthly estimate of fuel costs.
  • You can ask the owner if the car has a DEKRA certificate. This ensures that they’ve had the vehicle inspected by professionals and is certified as roadworthy. It will also tell you about any other issues, should you need to fix them later on. 

To determine your chances for finance approval, MotorHappy allows users to use the affordability calculator run by MFC, a division of Nedbank. 

 

  Check that the car isn’t stolen

It’s also a possibility that some sellers, especially if you decide to go the private route, might end up with a wanted vehicle, and not in a good way. There’s a way you can check that the car you’re buying is or isn’t stolen. 

Here’s what The Automobile Association (AA) suggest:

How to check if a vehicle is stolen

One way to check is to run a background check on a car, for example: The SAPS or the Metro Police will have the resources to determine if it’s a stolen vehicle. They’ll look at the VIN/chassis and engine numbers and make sure that they match the vehicle’s registration documents. 

Another proven method you can use online is TransUnion. Their system allows you to verify the VIN, year, make, model, and variant of a vehicle. The report will also indicate if the vehicle has been listed as stolen by the SAPS.

Enjoy your pre-owned car experience

The car shopping experience isn’t all doom and gloom, but we’d rather prepare you for unexpected situations so that you don’t get into legal or financial trouble. There are many viable sellers that do want to sell their vehicle to a good owner, it’s the approach you take that makes a world of a difference.

Should you decide to buy second-hand, MotorHappy offers all kinds of services to ensure your car journey is handled with ease and helps you find the best quotes for professional Service Plans and Extended Warranties. With each motor plan, not only will your car get its spoils, but you’ll have access to amazing rewards and benefits with MotorHappy DRIVE that add meaningful value to your daily life. 

MotorHappy has your car and wallet’s best interest at heart.

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