5-tips for buying the best new car
The South African vehicle market is still depressed and vehicle manufacturers have acknowledged this by only slightly raising prices on new vehicles despite increases in their costs including an emission’s tax increase of R10 per gram of CO2 above 120g/km and a five percent rise in the maximum ad valorem excise duty for imported vehicles.
TransUnion recently released their Vehicle Pricing Index for 2018’s first quarter. It showed, over the past year, a dramatic drop in new car price increases from 8.8% to 2.3%.
So what are some tips for getting the best out of your purchase process?
- First things first – don’t bring your old car into the sale as trade-in value. By all means, trade-in your old car to offset the cost of the new one but get the best price for your new car first. This makes it impossible for dealers to hide the risk factor they account for on the trade in into the pricing of the new car. Most dealers will leave money on the table if they know there is a potential trade-in, to cover themselves for the risk of taking ownership of a used car. The customer then has no way to know how much was left on the table.
- Try to arrange your financing beforehand yourself. This certainly gives you an upper hand in your negotiation and also helps with your budgeting.
- Research, research, research – if you don’t have all the information at your fingertips you will be at a disadvantage. Information like exactly what you are looking for in a vehicle and what your ‘deal-breakers’ are is powerful to have in a negotiation.
- Don’t believe what the salesman says. Sales tools like ‘high sales figures’ on certain models can be manipulated and misrepresented due to outside factors like fleet or rental purchases. They are not necessarily a sign of a good car.
- Shopping online means you are no longer bound by geography and time limits. Platforms like Beat the Price allow you to negotiate with multiple dealers across the country to find exactly the car that you want, at the best possible price. Bottom line is – your purchase power gives you the upper hand, so find a tool that allows you to speak to multiple sellers and get them to bid for your hard-earned cash.
Find out more about Beat the Price at www.beattheprice.co.za.
Congratulations to Mev. Witbooi who got a great deal on her new Hyundai i120!