Purchasing your very first vehicle out of your own pocket is a huge milestone for anyone and it is something you should be extremely proud of. However, with every big milestone requires huge responsibilities more so because it is such a big financial step, therefore it's important that you make decisions carefully when purchasing your first vehicle.   Although having your own car is quite an achievement they are quite expensive so before you purchase your car, makes sure you know exactly what you’re getting. Read our five top things which you need to keep in mind when purchasing your first vehicle. 

The importance of saving up

If you’re planning on getting your first asset finance for your vehicle, the first thing you need to do is to put money away towards your deposit. Having a large sum saved up for your car is the first step in being responsible as it will lower the amount of money you borrow from authorised financial services. Another plus is that it will be easier for you to get pre-selected for financing if you have a deposit as they will see how serious you are about managing your debt.  Saving up for a deposit can allow you to settle your vehicle finance much faster than you had anticipated and it will also bring your monthly instalment down. Lenders now also offer graduate finance which you qualify for until three years after you have obtained your national diploma or degree.  This is great for people who just landed their first job after graduating and are looking into purchasing a vehicle. 

Purchase a good second-hand vehicle 

Many people in South Africa have started purchasing second-hand vehicles instead of newer cars. The reason being is that it is an affordable option, and you still get a car which is in good condition and can last for many years.  You’re even able to get the car of your dreams without having to pay the high price of that specific vehicle. With cars depreciating by 10 percent within the first year, it is rather financially savvy to purchase a used car as the first driver had already paid for the depreciated value. A key thing to note is that if you purchasing a second vehicle you should always test drive and inspect the vehicle first before purchasing. 

Think of the additional costs

When buying a car for the first time you might think the only cost you need to think about is the cost of the car. However that isn’t necessarily true, you need to think about all the added extras which you need to cover. Added extra’s could be things such as petrol, car insurance, and maintenance. You need to ensure that you have money each month set aside for petrol, insurance, and maintenance for every month.  You should always keep in mind how much you can afford. Living within your means is always a good thing to remember. When choosing a vehicle always make sure you purchase a car that is within your budget. This will help you settle the vehicle balance at a faster rate and will make the repayment period much more manageable. 

Think of the vehicle which you need

There are many vehicles which are available and it might be difficult for you to choose one. Make sure you choose a vehicle which will meet your requirements. Those requirements could be comfort, reliability, or ease. So make sure you do all the necessary research so you choose a vehicle which you’re happy with driving for many years.  Don’t choose a vehicle just because it is popular, think of why you need the car and what it can do for you. For example, if you live alone and don’t have a big family, then there is no reason for you to purchase a big family vehicle. However, you should always think of the future if you’re planning on starting a family in the next couple of years when choosing a two-door sports car won’t be an ideal car. Rather opt between a small and medium-sized vehicle which will be exactly what you need when you need it.

Compare prices

It’s best to always compare prices when you purchasing a vehicle. Many car dealerships or private sellers will have different prices. If you want a vehicle which is at a low price then you need to shop around and search them online. You should also shop around before making a final decision on the car of your choice.  Keep in mind to contact a dealer once you have been pre-selected for a vehicle that way you know which car is in your price range. Once you see a vehicle you really like, you should always negotiate a good deal.   

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