TL;DR - Our version of "I'm not reading all that, SparkNotes* pls.”
- Buying cars online is becoming more popular due to its convenience and variety, but beware of scams (such as phishing tactics, fake gift cards, and deals “too good to be true”).
- Cyber Monday, initially for tech deals, now includes items like cars, with dealerships offering discounts to clear stock.
- When buying a car online, use reputable sites, research prices and sellers, and stay wary of ghost brokers for insurance.
- Comprehensive car insurance, like Pineapple’s, covers accidents, theft, and damage—even if issues arise before you receive the car.
Mark your calendar; the 2nd of December 2024 isn’t just another start to the week.
It’s Cyber Monday, otherwise known as Black Friday-lite. Since its inception in 2005 in the United States by the National Retail Federation (NRF), Cyber Monday has become a lucrative day for retail sales worldwide. In 2023, global sales increased by 5%.
During this shopping frenzy, consumers typically buy electronics, apparel, and toys. But what about big boy (and girl, and everyone else) toys?
In addition to small tech deals, high-value purchases, like vehicles, have seen a marked uptick in sales during this time of year. This is because car dealerships typically offer more discounts in anticipation of next year’s new supply.
So, can buying an automobile be an online journey? And if so, what risks are involved?
Read on to discover the pros and cons of buying a vehicle online this festive season and avoid falling victim to fraudulent scams during 2024’s Cyber Monday celebrations.
Already brought your car? Click here to get a quote.
Cyber Monday: A Brief History and Its Role in Big-Ticket Purchases
Noticing that people continued their holiday shopping online while at work on the Monday after Thanksgiving and Black Friday, the NRF coined ‘Cyber Monday’. This online savings event meant shoppers could still access holiday sales without the chaos of savage Black Friday crowds.
And while not the most traditional item associated with Cyber Monday sales, big-ticket items like cars also enjoy discounted price tags.
Dealerships typically offer motorists a chance to purchase their dream vehicle at highly discounted prices. This is because they want to meet their annual sales quotas and make room for the coming year’s new car models.
The best time to buy a car in South Africa is October and December.
Vehicles are most affordable from October to December, with December sales specifically seeing an average discount of 6.1% off the manufacturer's suggested retail price (MSRP).
That, along with deeper price cuts on models that are selling slowly or are about to be redesigned or discontinued, can mean significant savings. Especially if you don’t care about the bells and whistles and simply want a vehicle that’ll get you from point A to B.
However, consider why a vehicle is selling poorly or has been discontinued. For example, Ford recalled close to 140,000 EcoBoost cars with engine failure issues.
The Growth of Online Car Shopping: How to Find the Best Cyber Monday Deals on Cars
Shopping for a car online may become the new normal. The convenience and practicality are well suited for 21st-century buyers with money but insufficient time.
Manufacturers like Hyundai and Volkswagen and platforms like Autotrader, Weelee, Cars.co.za, and more have made buying a car online possible and easy.
You can browse their selection of vehicles on our website, compare models, or filter the options based on your preferences (maximum mileage, minimum-maximum price, location, and more).
With various options, competitive prices and easy comparative tools, it's no wonder motorists are flocking online to find their next best ride.
But be careful you aren’t getting taken for a ride. Cybercriminals are notorious for stalking the digital streets for their latest victim.
Common scams to look out for during the Black Friday/Cyber Monday include:
- Your order didn’t go through.
This typical phishing tactic gets you to provide scammers with key financial information, bank account information, or credit card numbers.
- The fake delivery notification.
Links in text or email will take you to a website requesting personal information such as your address or even your ID number.
- Bogus gift cards and coupons.
Fraudsters are said to set up fake stores and request payment via popular gift cards, like Apple, Takealot or Visa prepaid cards.
- Non-traditional payment option.
Similar to the above, a seller who only accepts non-traditional payment methods, like payment apps (PayPal) or cryptocurrencies, may be trying to scam you. These methods are usually harder to trace or refund. Most banks have account verification systems that help curb fraud and inspire confidence in your transaction; ask your bank about the process of confirming the ownership and validity of a bank account.
- Deals that are “too good to be true”.
Clicking on attention-grabbing ads on Facebook or Instagram, which are responsible for 40% of social media scams, with shockingly low prices, could lead you to a spam website selling knockoffs or a fake store that steals your personal information.
Something else to watch out for is the website’s domain name; if it changes at any point, that’s a red flag you don’t want to ignore.
If you’re dealing with a secondhand vehicle, ask yourself who the seller is and if they’re an accredited reseller. Also, do they have records of the car’s service history to ensure it’s been well maintained?
Still, finding good online car deals and not falling victim to scammers during Cyber Monday is possible. Remember, as much as you don't want to get scammed, dealerships don't want to experience that either.
If you’re purchasing your vehicle from a private seller, the standard safety rules apply: Meet in a public place, preferably during the day, and never alone.
Start by setting a realistic budget and researching the make and model of the vehicle you’d like. This will allow you to stay focused on the purchase and help you avoid getting dazzled by irrelevant discounts and deals.
There’s nothing worse than hidden fees or extra costs that can turn a good deal into a pricy purchase!
Also, keep your search limited to trusted platforms like Autotrader and well-known dealership websites. Even then, conduct your research by consulting reviews via Hellopeter or Google reviews.
These should help you determine other shoppers’ experiences and give insight into the dealership or marketplace’s customer service.
Plus, you’ll get an idea of what your purchasing process may look like.
Pros and Cons of Buying a Car Online
The pros of buying a car online during Cyber Monday are:
- Convenience. Speed and convenience are guaranteed should you decide to go the virtual route when seeking your next whip (as the kids would say; apparently, it means car).
- More options and competitive pricing. Buying online means you're spoiled for choice when it comes to car options and price offerings.
- Cyber Monday deals. To incentivise you more, look out for dealerships offering (genuine) discounts. These could be zero-rand deposits or cashback deals.
The cons of buying a car online during Cyber Monday are:
- No physical inspection or test drive. Thankfully, online car sellers typically offer test drives based on your availability. But if you’re buying the car from another province, that may be a challenge. Some dealerships offer to deliver the car, which means no test drives, and you're obliged to accept the car, no matter the condition.
- The risk of a lack of transparency. When buying a car online, you risk hidden fees, limited information, or not knowing the car’s condition. You also run the risk of being catfished (the act of using images and information to create a phoney online persona), where the reality of the car falls short of your expectations. Kind of like ordering from Shein and getting a Temu-quality product.
- No negotiations. Sure, you may receive a decent discount on your dream car. But negotiation gives you even more wiggle room and savings opportunities. Sadly, this option may not always be viable online.
To mitigate these cons, stick to those reputable dealerships and marketplaces we’d previously mentioned. This will ensure a safer buying experience.
When you finally decide on a vehicle, look out for these 8 things to consider when buying a car.
Next, ask for as much information on the car’s condition as possible, preferably in writing. Having a paper trail may come in handy should the deal go sour to the point of requiring legal action. Pictures and video evidence count, too—you'd be amazed what a little Photoshop can do.
And finally, ensure you insure.
There’s no greater threat to your new car, the investment you’ve poured into it, plus your financial (mental and emotional) well-being than a catastrophic accident that results in a hefty repair bill.
Don't Forget Insurance: Protecting Your Online Car Purchase with Pineapple
Society has made great strides in allowing consumers to purchase a vehicle online. However, the need for an in-person buying experience is still relevant.
That’s why having options is necessary, like Pineapple’s all-channel approach to insurance.
You can get a quote and buy insurance whichever way you'd prefer:
- online via our website (www.pineapple.co.za)
- using our highly-rated app
- or telephonically
Our comprehensive car insurance is so affordable you won’t even need Black Friday specials or Cyber Monday deals. Premiums start from as little as R19-ish a day—less than R600 a month on car cover!
But, beyond being budget-friendly, our comprehensive policy protects you against financial losses from single-vehicle accidents, third-party collisions and weather-related damage.
Plus, should your car be damaged en route, having an active car insurance policy means you won’t have to pay for repairs out of pocket, especially before you’ve even gotten a chance to get behind the wheel.
Within 5 minutes or less, you can comprehensively insure your vehicle for its total retail value (the price a dealer usually sells it for and is also the closest to the car’s actual worth).
Just watch out for ghost brokers! These are unlicensed brokers posing as insurance agents who may lead you astray or, worse, run off with your money.
Like how you must be vigilant when buying your car online, the same goes for insurance.
Luckily, Pineapple’s AI-powered quote process is tailor-made for a seamless and safe experience. With just a few clicks, you can protect your new possession even before you park it at your home.
Interested? Get a quick 90-second insurance quote with Pineapple here.
Conclusion
From small gadgets to big-ticket items, Cyber Monday deals can be the gift that keeps giving. However, to truly relish the discounts and savings, avoid getting swept up in the hype.
If a deal seems too good to be true, it might be. Luckily, some of us (literally us, Pineapple) don't need discounts, we keep it lean and clean all year round.
So, approach each Cyber Monday offer cautiously and do as much research as possible. This will help you avoid missing out on great deals or falling victim to scams.
And, of course, insurance.
Protect your car the Pineapple way, which is to say, comprehensively!
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 Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply.
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!
