TL;DR - Our version of "I'm not reading all that, *SparkNotes pls."
- Start with a Budget: Your budget is your roadmap—set it first to avoid getting lost in the car-buying process.
- Research Like a Pro: Dive deep into car options like you’re binge-watching your favorite series. Compare models, features, and prices to find your perfect match.
- Check Your Credit: Think of your credit score as your secret weapon—it can unlock better financing deals, so make sure it’s strong.
- Test Drive and Inspect: Don’t just judge a book by its cover—take the car for a spin and get it inspected to ensure it’s the real deal.
- Prepare for Ownership Costs: Owning a car isn’t just about the purchase. Factor in insurance, maintenance, and fuel—like packing all the essentials for a road trip.
No matter how much time passes, you always remember your first time.
Apprehension, excitement, nervousness, anticipation and maybe even a bit of stress all wrapped up in one giant knot in the pit of your stomach.
And if you’re someone who has yet to have the experience, well, don’t say we didn’t warn you.
Buying your first car is a major milestone; you deserve to celebrate it accordingly.
The sobering reality, however, is that it’s not all fun in the sun.
You could face challenges like securing finance, researching vehicle options, negotiating prices, considering additional costs, and understanding the paperwork involved.
It can all seem very daunting.
Thankfully, we’ve got you covered; think of this as your helpful guide.
We’re here to offer the best tips and tricks for a successful car purchasing journey.
You’ll walk away knowing how to determine your budget, consider which vehicle suits your needs and lifestyle, research your options, finance and insure your car, do the test drive and inspection, and get tips on closing the deal.
Determine Your Budget
Step one is your budget.
Buying your first car is a considerable financial commitment. So, determining a budget will help you avoid losing track of how much you’re spending.
A budget helps you determine what you can and can’t afford; this way, you avoid falling in love with a car outside your financial comfort zone.
Doing so also prevents future financial strain and the stress that comes with it.
Buying a car also means dealing with repairs, maintenance, fuel, and insurance. Planning around these costs will help you spend wisely when buying your four-wheeled baby.
A bonus of budgeting is that you’ll have a stronger position if you have to negotiate prices.
This’ll allow you to resist pressure from pushy salespeople hoping to sell you a pricer ride than you can afford.
This will make searching for your dream car much easier, saving you time and energy.
Here are a few tips to help you budget like a pro:
- Assess your income.
- Analyse your expenses.
- Consider your credit score.
- Plan for additional costs.
- Save for a deposit.
Be sure to use online tools, such as online calculators, to help you figure out what you can afford.
These tools can factor in interest rates, loan duration, deposit and other variables to give you an idea of your monthly payment.
Rather err on the side of caution and choose a car that comfortably fits your budget than spread yourself financially thin.
Afterwards, you’ll also need to factor in expenses like car insurance and vehicle maintenance.
The aim is to get a clear idea of the total cost of owning and operating a car.
Insurance premiums, for example, differ based on the insurance provider and factors that make up your risk profile (the car's make and model, your driving record, where you live, and your age).
Contact insurers directly to get an estimate of how much an insurance policy will set you back for the type of car you’re thinking of getting.
Just a friendly reminder, the more expensive the vehicle, the higher the premium price.
Next to inquire about are the repair and maintenance costs.
Every car requires regular maintenance, like oil changes, tyre rotations, and brake checks. The cost varies depending on the car’s make and model.
Try to research typical maintenance costs for the model you’re interested in, and include a reasonable monthly amount in your budget.
Also, set aside some money for unexpected repairs and unforeseen expenses.
Consider Your Needs and Lifestyle
Your lifestyle and daily activity greatly influence the type of vehicle you need.
Someone with a large family or an avid outdoor enthusiast will likely need a bigger car, either a minivan or an SUV, to comfortably seat everyone and their luggage.
On the other hand, a single professional commuting to work in the city might do better with a smaller, more compact car.
Additionally, driving habits like the amount of time spent on the road and the type of driving also influence the vehicle you need.
For example, someone who spends a lot of time on the highway will need a comfortable, fuel-efficient vehicle. At the same time, a city dweller would do well with a compact car, given the difficulty parking poses and other challenges like navigating narrow streets.
When buying a car, the hope is to have it for a good while.
That’s why ensuring your vehicle can serve both present and future purposes is essential.
Ask yourself, “What changes could happen during my years of owning the car?”
It could be starting a family (meaning you’ll need more space) or starting a new job (which requires a longer commute), meaning fuel efficiency will be your biggest concern.
Additionally, finances should also play a crucial role in informing your decision.
Are you in a position to afford a more luxurious vehicle that comes with a higher price tag?
Also, take into account additional costs like insurance, maintenance and repairs.
Select the size, fuel efficiency, and most essential features to determine which vehicle best suits your lifestyle and needs.
Contrary to popular belief, size does matter.
How big or small your dream vehicle should be will depend on your typical passenger load, the cargo you carry, and the type of roads you’ll be driving on.
Regarding the vehicle’s features, list those you absolutely need and can’t compromise on.
These could be safety features (automatic emergency braking), comfort features (heated seats), driving features (manual transmission) or tech features (touchscreen display).
A list will make your search for the perfect car that much easier.
Research Your Options
Researching before pulling the trigger ensures you get the best vehicle to suit your needs.
Research helps you avoid picking a vehicle that fails to meet your requirements or costs more to maintain than you’re willing to pay.
Doing some homework also helps you understand the car’s fair market value.
That way, you know whether you’re getting a good deal or overpaying for the vehicle.
Researching different dealerships is a must because each has its unique reputation, customer service standards and pricing strategies.
Studying these beforehand lets you avoid dealerships with poor customer service or shady business practices.
Additionally, you can find other dealerships that offer competitive prices or special cost-cutting promotions.
A few resources at your disposal that’ll assist you with finding reliable info on different car models are:
- Car websites like AutoTrader, Auto Pedigree and Cars.co.za provide comprehensive information on almost every car make and model, including specifications, features and reviews.
- Websites like Reddit and other online forums have many car-related spaces where users can discuss their experiences.
- Manufacturer websites will also have the most up-to-date information about current models, including available features and the manufacturer’s suggested retail price (MSRP).
For dealerships, consider sites like Google, Hellopeter and BizReview which allow customers to leave reviews of businesses.
Car dealerships aren’t exempt from this scrutiny.
Another place to check is the dealership’s social media pages.
Specifics to look out for are how the dealership interacts with customers and the reviews left by said customers.
And if all else fails, you can always look to family, friends and even colleagues to offer some much-needed guidance and recommendations.
Comparing prices is relatively straightforward; most dealerships have their prices listed online, so a simple internet search is all it takes to determine the cost.
You can also use resources such as the TransUnion Auto dealer’s guide, which contains retail and trade values of every make and model on the market.
Remember that prices depend on the region, so comparing cars in your local area is best.
Now comes the tricky part; negotiations.
Negotiating a fair price with a dealer might be challenging; there’s no telling how negotiations will go and what you’ll face.
But these following five tips can help in almost any situation.
- Be prepared by knowing the market price.
- Don’t solely focus on monthly premiums; pay attention to the total price.
- Don't be afraid to walk away if you’re unsatisfied with the deal.
- Negotiate other aspects like additional features and financing fees.
- Don’t feel pressured to decide on the spot; take your time.
Financing Your Car
You’re one step closer to sealing the deal on your vehicle purchase, but there’s still the matter of financing.
As a first-time buyer, you’ll need to look for financing options.
The good news is that many car dealerships offer financing options through financial services or partnerships with external lenders.
Getting a loan from a bank is another standard method of financing a car.
A good relationship with your bank can almost always secure a loan with favourable terms.
Leasing a vehicle is a third option you might want to consider.
It enables you to rent the vehicle for a period, typically 2 to 3 years. Once the lease is up, you can buy or return the car.
After that, you can start a new lease with a different car.
Ultimately, the best finance will depend on your financial situation and credit score.
It’s crucial to compare the total cost of the loan, including interest and any outstanding fees, not just the monthly payment.
Once again, here are five tips to assist you with financing:
- Establish your affordability. This exercise gives you a clear picture of what you can spend on monthly expenses.
- Check your credit score before contacting any dealerships. A good credit score allows you to benefit from favourable interest rates.
- Keep the loan term as short as you can afford. Although this might mean paying more upfront, it minimises your overall cost.
- Shop around. Don’t jump to accept the first financing option that comes your way; instead, compare multiple options and see which deal works best for you.
- Negotiate. Like the above, once you’ve chosen your financier, see if you can negotiate a slightly better deal. There is no harm in asking!
Insuring Your Car
Car insurance will always be a worthwhile investment, especially for a newbie car owner looking to protect their newly acquired asset.
Insurance offers protection against any accidents and unforeseen events that result in damage.
It also protects you against financial ruin should you need to pay out to fix any damages to your car, another motorist’s vehicle and property damage.
Call up any insurance provider, and most will offer you three policy options:
- Third-party liability (basic and inexpensive, doesn’t cover your vehicle),
- Third-party, fire and theft (pretty self-explanatory) and
- Fully comprehensive coverage (collision and non-collision related accidents, regardless of who’s at fault – your car’s also covered).
For the best insurance coverage for your car, start by identifying your needs.
Understanding your needs will help you find the best policy in half the time it’d take you if you had no idea where to start your search.
Next, get quotes from multiple insurers and compare each to see which monthly premiums and benefits appeal most to you.
This practice may sound daunting and time-consuming, but comparison websites like Hippo are there to help you save time.
Check for any discounts, such as usage-based discounts, and see if you’d benefit from a policy of this nature.
And suppose the cheapest policy is still too pricey.
In that case, the next best thing is to choose a higher excess amount to guarantee a lower monthly premium.
Test Drive and Inspection
You might’ve looked at the features and specs of a car and decided it was perfect for you, but the only way to know for sure is to take the vehicle out for a spin.
The test drive and inspection are the most essential parts of buying a car.
It’s a critical step that you should not overlook.
The test drive and inspection ensure you’re making a good investment and that the car will meet your expectations.
Use the test drive to assess the vehicle’s ergonomics and performance to see if it ticks all the right boxes.
Also, use it to see how the car handles conditions like city streets, highways and rough roads.
Inspecting the car exposes you to potential issues like weird noises and vibrations, wear and tear, the conditions of the tyres and any leaks that shouldn’t be there.
On a test drive, it’s essential to check the brakes and how the car handles and to test features like windshield wipers, turn signals, air conditioning and navigation.
And during an inspection, be sure to check the exterior and interior of the car.
You’re looking for scratches, dents or rust, wear and tear, and any warning lights after the car’s switched on and all the dashboard lights are working.
You can even go the extra mile by getting a mechanic to perform the inspection for you.
Once the mechanic’s done, they’ll hand you the inspection report, which you need to ensure you understand.
The report will detail any problems found, the severity and an estimate of the repairs.
Identify any deal-breakers and walk away from the car.
If the issues aren’t significant, discuss them with the dealership and ask them to make any necessary repairs before you purchase the car.
You might be able to argue for a lower price based on the cost of repairs.
Consider this in your negotiation if the dealership is unwilling to make the repairs or adjust the price.
The goal isn’t just to get the lowest price but to ensure the vehicle’s in mint condition and will be reliable.
Closing the Deal
Just when you’ve conquered the evil that is the pushy and impatient salesperson, the final boss is waiting in the back for their turn – the Finance and Insurance (F&I) manager.
Negotiations with the F&I person usually involve:
- The price of the new car
- The terms of your financing
- Any extras like extended warranties or dealer-installed options.
Products and services charged in the F&I room vary between dealerships.
These products tend to be overpriced, and truthfully speaking; you’ll do well to avoid buying them.
Don’t be fooled by the fancier title, a Finance and Insurance manager is just another salesperson looking to make a profit.
During your time in the F&I office, you’ll also be gearing up to sign the contract.
The document will detail everything you need to know about the sale, including the cost of the car plus any extras, your deposit amount, and the finance terms (interest rate and monthly payment).
Despite feeling eager to get the entire buying process over with, it’s of the utmost importance to thoroughly read through the contract and look out for any possible additional fees that weren’t agreed to.
Take your time, and make sure you understand everything before you sign.
Feel free to ask questions if something doesn't feel right or if you need help understanding something.
If the F&I can’t explain any fee or amount in the contract, ask them to remove it.
Once everything in the contract is correct, the paperwork will be your signature's next place.
By paperwork, we’re referring to the sales contract, the financing agreement if you're getting a loan, the title transfer documents, and any other paperwork required to finalise the sale.
The best way to protect yourself from scams or unfair practices is by reading everything carefully, avoiding high-pressure sales tactics and staying weary of too-good-to-be-true deals.
By now, you should’ve already researched the dealer’s reputation and have done the pre-purchase inspection.
So the other way to avoid scams and unfair practices is by familiarising yourself with consumer protection laws that can protect you and give you recourse should the sale go wrong.
Final Word
Whether your first time buying a car will be a smooth ride or you’ll experience a few false starts, one thing’s certain: it’s sure to be a memorable experience.
You’ll budget as you’ve never done, consider your needs and lifestyle in ways you never have, and become a pro at conducting in-depth research.
After that, you’ll receive lessons in financing and insuring a vehicle, and all that goes into a test drive and car inspection.
So it’s safe to say that your new car and hefty monthly payments aren’t the only things you’ll be walking away with.
All the knowledge you’ve gained and the skills you’ve attained will also stick with you for life.
Remember, this car will belong to you and is your investment. Don't allow anyone to pressure you into an uncomfortable decision.
You’ll be driving the car and making the monthly payments, so make sure the vehicle is one you can afford and that it’ll bring you happiness.
Like the tortoise that won against the hare, so too will you so long as you remember that slow and steady wins the race.
Patience can lead to better deals and allows you time to think through your decisions carefully.
Throughout this journey, the most important thing is that you can still find enjoyment.
Allow yourself to celebrate milestone victories and look forward to the freedom, fun and opportunities your new car will bring.
And to ensure your new ride runs smoothly for years, regular inspection and maintenance, responsible driving and keeping the car squeaky clean will help.
Last but most importantly, maintain proper insurance coverage – it's not a legal requirement, at least not in South Africa.
Still, it will save you a lifetime of hassle and headaches.
(P.S. Insurance is also crucial for your financial protection.)
One last thing… Your hero get-up isn’t complete without the ultimate shield of protection; Pineapple’s comprehensive car insurance! Free 24-hour flat battery and flat tyre assistance, windscreen/window repair, and lost key assistance.
And that’s only the tip of the iceberg.
We hate to be a tease (just kidding, not really), but find out more by getting a quick 90-second quote today!
Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice.
Pineapple (FSP 48650) is underwritten by Old Mutual Insure, a licensed FSP and non-life insurer. T&Cs apply. Premium is risk profile dependent.
Team Pineapple
Team Pineapple comprises our company’s top talents, who are dedicated to creating clear, high-quality content on essential vehicle insurance topics. This diverse group, including actuaries, accountants, data scientists, and insurance professionals across South Africa, collaborates to produce enlightening and empowering articles.
Each piece is thoroughly researched, factually accurate, and rigorously reviewed to ensure quality.
*We say they’re the finest because we want them to keep writing for us!
