Buying a car: Things to know;

If you don’t know Finance, you are a good customer to the bank, car dealer and the insurance guys.

A thread:

When you buy a car, you typically buy 3 things. The process is made to seem like one transaction. This is made to make your ignorance profitable..

The three things are:
1. The car
2. The finance
3. The insurance

The trick is to pay bare minimum on all three. The dealership will ensure you pay maximum on all.

Negotiate a good price on the car before you go to the bank. There are many dealerships in SA capable of giving you a good price. They want your purchase.

Get one quotation and get four dealerships to beat it..at least 3 times.

It’s a tedious process but it’s made worse by ho phapha because you want to drive away into debt.

Be sober and patient, you can easily lose R300 000 to your impatience.

Go to the banks yourself and apply for funding. Get the best rate. A basis point is a huge thing in finance. Negotiate!

Never put a deposit upfront! Negotiate the best prices first then you can pay the deposit after signing the best deal.

Never tell your dealer or banker how much you willing to pay! When they ask, don’t answer! Your answer should be “the lowest price”!

Be careful of extras! Cars in the showroom have extras you may not find value in... dealers are praying you fall into the trap...buy what you want not what they explain to you...always take an experienced friend with...

Never sign up for the extra financial services as well ! Things like tyre insurance are a scam!

Scratches and dents insurance can be a big scam too!

Shop around for the best insurance! If you can’t do it before pick up, do it soon after and change insurance month end...insurance works on monthly contracts...

After about six months of no insurance claim, call and demand a reduction in insurance premiums. If you don’t they won’t give it to you. If they don’t want to give a reduction, port to another company.

Like with all debts, pay a little extra on your installment whenever you can. It goes a long way.

Drive carefully! Otherwise your expenses will just escalate.