You should explore all of your car financing options before you get to the stage that you want to avoid having to deal with the potential scams and high costs of financing through some car dealerships.
Prepare yourself with relevant information and know what your options are. With this you can make a much better and informed financial decision. So be warned not to let the excitement of driving out the car dealership in that new car warp your perspective and cloud your judgement. It&rsquos very clever because that&rsquos just what the car salesman wants to happen.
It&rsquos advised to shop for the money to actually buy the car before you even start shopping for the actual car. But first thing is that you have to figure out how much of a car payment you can really afford to pay each month. After you have determined how much you can afford, use one of the hundreds of online car payment calculators to find out what that total car purchase price can be. Find out the current average interest rates for car loans before you calculate this. You can visit an online banking site to see what the best interest rates are at the time of your car purchase.
For example You have worked out your budget and now know that you can afford a monthly car payment of R2100. You have found out that the current average interest rate is 6%. If you already know that you are able to pay that R2100 every month for the next five years, then, calculating backwards, you'll know to look at cars that cost around R91 000.
If you use this approach for your car finance shopping, you might not end up with the fantasy car you have been dreaming about, but you can land up with a car that you can afford. So this is the smart way to go about it.
So the point is that definitely don't wait until you're at the car dealership and talking with the salesperson, to figure out the total car price you can afford. This is of course exactly what they would like you to do. They only want you to think about that monthly payment, because then they can always stretch out the term of the loan to get close to the payment you want to make. Also a good tip to remember is that you as a buyer and the salesperson have very different perspectives when, as a buyer, you tell the salesman you want to make a monthly payment of around R2100 and definitely no higher than R2450, you know in your head that you are leaning toward the R2100. The salesman, on the other hand, hears only the high number.
Now you know why it's important to get a loan first.
Always start your car finance shopping at your own bank. Have a look at their rates and over-all loan costs, you already have a relationship there so therefore you may get the best deal as a result of that relationship.
Credit unions can be a good place to shop for loans. They usually have lower operating costs and therefore can offer lower interest rates as a result. However you may have to be a member and this is another process altogether.
Both of these institutions, the banks and credit unions, should be happy to go over the details of the loan to tell you whether or not the price you've been quoted is a good one or not and to give you an idea of the price you can afford. This is all very important information so take it to the car dealerships when you're shopping so that you can compare it to the offer that the car dealership&rsquos financing department offers you.
Always remember that if you are a homeowner, you may be able to get a home loan, or an extension on your current one, to buy your car with cash. This can be your best bet because you'll be able to deduct some of the interest you pay and may also get a better rate than you could on a car loan. Also you need to check online banking sources as reputable online lenders can often save you tons of money on your overall car purchase.
And yes, there can be a lot of pressure and maybe even some scams to watch out for when you finance through the dealership, but that doesn't mean you can never get a good deal there. Very often you can, you must just be on the watch out as to what they're really telling you (or not telling you) and make sure you're getting the deal you think that you are getting. Go for it if they cant beat the best car finance deal you can get elsewhere.
Search for good quality and reliable new, used and demo cars at www.imperialselect.co.za
Few things beat the pleasure of getting something new. There&rsquos just something about being the first to use or own something, and it&rsquos not without its practical benefits as well. In buying a new car for sale, you&rsquore getting one that&rsquos more or less guaranteed to give you years of hassle-free driving pleasure, free from wear and tear holding it back. It will also have the most advanced technology under the hood and inside its multimedia systems to create a smooth, fuel efficient, comfortable and entertaining driving experience. Of course, all these benefits come with a higher price tag. So how can you tell when you&rsquore ready to make the leap from used to new car owner? Ask yourself the following questions.
Is It Your First Car?
If you&rsquove recently gotten your license or are under 25 and are ready to get driving for the first time, you&rsquore probably excited to start shopping for a new vehicle and enjoy all the independence it will bring with it. However, if you intend on financing it yourself, you might find that your loan offers are on the high side based on your risk profile. This is something that could also bump up your insurance prices. As a result, you might end up paying more for your new car than it&rsquos worth. A better idea is to start with a demo or pre-owned vehicle while you build up your credit profile as a working adult and create a driving history that future lenders and insurers can use to give you favorable rates. Remember that this will mean you need to make sure you make your payments on time and that you avoid risky driving.
Will It Have Hidden Costs?
Most people know that a car shouldn&rsquot cost them more than a certain percentage of their salary. However, this is usually calculated on the car price itself and not on other costs that will arise during its ownership. You&rsquoll, of course, need to pay for petrol and insurance &ndash but this isn&rsquot all. If you have a baby for example, you might need to upgrade to include a compatible car seat and get window shades. Perhaps you didn&rsquot mind leaving your used car exposed to the elements, but with a new one you might be more concerned about maintaining its paintwork and keeping it secure, so you&rsquoll need to install a carport or car cover for parking. Then there&rsquos the cost of getting your car professionally cleaned every other week or even weekly. As you can see, you can expect to pay much more for a car than just this listed price. Keep this in mind when shopping.
Will I Want To Resell It/Trade It In?
Many people enjoy driving the latest vehicles, and so every few years they&rsquoll either trade their car in for a different but newer model or upgrade to the latest version of the model they currently drive. However, you&rsquoll need to remember that this value isn&rsquot fixed in stone, and its value can increase or decrease based on several factors you can&rsquot predict. For example, if a manufacturer decides to cease production of a particular model, this would negatively impact its value and therefore resale price. Make sure that you&rsquore prepared for the fact that you might not be able to benefit from a trade-in in the future, or make sure to choose a brand and model that is popular and unlikely to exit the market anytime soon. A Renault Clio is a good example of this.
By asking yourself the above questions before you begin car shopping, you&rsquoll be able to secure a new car for sale that more than meets your needs, without compromising on your finances or peace of mind. What&rsquos not to like?
What's the most significant difference between a new car and used or demo car for sale? It's simply that a used car has been driven before and has a history. It's this knowledge that tends to make people uncomfortable - as, after all, there's no way to know whether this history was positive or negative, and what it involved. However, there's a misconception on how vehicles like these are used before they end up for sale. If you've always wondered what brings a demo car to the showroom floor, here's a day in the life of the average vehicle of this nature.
From Factory To Floor
A demo car begins life as a beautiful, brand new vehicle that drives off the factory floor and prepares itself for transportation. However, unlike its brothers and sisters, it won't be going directly to dealerships to be purchased by excited owners looking to take a new car home. Instead, it will go to one of many showroom floors across the country. Here, it will act as a model for those looking to purchase a new car of the same make, model and year. It will be one that people can touch, smell and most importantly - drive.
By the time a potential buyer has selected a car to test drive, they've probably already considered its price and specs. It's the drive that will determine whether or not they want to buy it, depending on how it handles and how it feels to operate it.
A car that's covered in smudge marks and tracked-in dirt or has a malfunctioning air conditioning system isn't one that's going to leave a favorable impression - even on the shortest test drive. It will impact how people see the brand and car, whether you're looking at an affordable, entry-level demo Tata or an upscale, top of the range demo Renault Clio.
What Does This Mean For Me?
You're probably wondering what all of this means for you, and why you should consider purchasing a demo car because of it. Well, if you consider what the average day in the life of a demo car is like, it's easy to see why this option is one worth choosing.
Because there's no telling when a person might come in and request a test drive, a dealer will need to ensure that the car is constantly in a clean and polished state. It means that it will be arguably kept in better condition than most cars in the dealership, and reinspected from top to bottom after it ventures out for every test drive. This is especially important when it comes to off-road or heavy-duty working demos, like Mitsubishis.
When it comes to test drives, the car will either be driven by the dealer or salesperson or the person looking to buy the car. It means that it will either be driven by someone with better driving skills than the general population, or by someone who doesn't want to be held liable for damaging a car they don't own. In other words, they'll drive extra cautiously, with less braking and revving resulting in the car having significantly lower mileage and less wear and tear than most of its peers.
How You Benefit
By now you'll have seen why a demo car is considered a good purchase - ranging from it's low mileage to its superior maintenance. Add to this the fact that most demo cars will enter the market within a year or two of manufacture, meaning that with a KIA demo for sale (and most other automotive brands) you'll still be covered for the remainder of its year and mileage warranty.
In summary, you get to enjoy all the perks of a brand new vehicle with a significant discount on its usual price. It's an option well worth exploring if you haven't considered it before, so why not contact Imperial Select today to find one of your own?
Another day, another breakdown in peak traffic. Between this frustration and your car repeatedly failing to start in the morning, it's time for a new vehicle. While you're sad to be parting with your beloved car, you're also excited to finally get a new one that won't give you problems. Because of this, you've started paying attention to all those 'new cars for sale' billboards and television commercials. You've also started plotting what luxury features you'd like to have in it when you drive it off the lot. We don't blame you for feeling enthusiastic about getting a new ride - but have you stopped and thought about what you're getting into, financially?
Do You Need A Brand New Car?
While a new car does come with a clean bill of health, it also comes with a significantly higher price tag. You might think you can afford this, but you should remember that other expenses will contribute to your monthly repayments. The cost of fuel in South Africa is constantly on the increase, and if your car is financed, you're looking at paying for comprehensive insurance too - and that's not to mention any extended warranty or added extras you might have opted for.
If you factor in these costs and find that your total monthly repayment is still affordable, a new car purchase is possible. Unfortunately, if you're like most South Africans, it might work out to be beyond your means. Remember that most financial experts recommend that you don't spend more than a third of your annual salary on a vehicle and that your monthly costs shouldn't exceed more than 10% of your salary.
So does this mean you're relegated to driving your ancient car that has no creature comforts and that you're embarrassed to be seen driving in public? Of course not. A small but growing group of financially savvy South Africans are having their cake and eating too.
How? By buying used cars and shopping demo cars for sale.
Used Cars Are Not What They Used To Be
When most people think of used cars, they think of their worst nightmare - in other words, a problem-riddled, fuel-guzzling monster with a funny smell that leaves a trail of exhaust fumes in its wake. While you might find cars like this for sale in the deepest darkest corners of the internet - or a deal with a stranger that you conclude in a fuel-station parking lot - this isn't where you should be looking.
Respectable dealerships like Imperial Select have a range of handpicked, well maintained and attractive models for sale that happen to be used - but you'd never be able to tell by driving or looking at them! So how can you tell these vehicles are the real deal?
Where Do Used Cars Come From?
Many people shy away from buying used cars as they assume that most of them are lemons that have been freshened and up repackaged for sale at a higher price by unscrupulous salespeople. This might be true for backstreet dealerships and shady private buyers looking to make a quick buck, but it's certainly not for Imperial Select.
It's important to remember where most cars come from - and that not all of them are being sold because there's something wrong with them. Every day people sell or trade-in quality cars to dealerships because they need the money for an urgent expense, or because the car no longer meets the needs of their growing family. Others sell their car because they're relocating or retiring and some sell their car because they can't or don't want to deal with the maintenance required.
This means that when you choose Imperial Select, there are hundreds of almost brand new cars of every make, model and year available for you to purchase - and the only thing holding you back is your perception of what used cars are supposed to be!
Imperial Select Used Cars
It's understandable to be wary about purchasing a used car. After all, it's something you'll depend on to transport you and your family safely and securely every day. This is why we strongly recommend you join thousands of other smart South Africans and purchase a used car from us. Yes, there's the obvious benefit of paying less, but you also benefit in the following ways
Being financially savvy doesn't have to mean being cheap - or going without what you want. When you buy a used car or demo car for sale from Imperial Select, you can enjoy the best of both worlds, so what are you waiting for?
Like it or not, when looking at a used car that is being sold, the determining factor will usually be price. Whether you're looking at Hyundai used cars for your 18-year-old or a used SUV kitted out to finally make you King of the Bush, you're going to consider price before you consider what colour car you want or any other creature comfort that might make your life easier.
It's understandable to prioritise this, as the cost of living has never been higher, and we're all looking to cut costs where we can. This is why you might be tempted to go with a private vehicle for sale instead of one from a dealership, as these are often cheaper and seem to be a quicker route to getting a vehicle.
If you're currently considering this option however, there are several reasons why you're better off using a dealership to purchase a used car than going it alone in private. Here are just a few of them
South Africans can rely on the Consumer Protection Act to protect them from dodgy or unfair car sales agreements. However, this doesn't apply to private sales. This is the main reason why a used Mercedes for sale from a private dealer will usually be listed as much cheaper than one for sale at a dealership. If you want to ascertain whether the car is up to scratch or not, you'll need to fork out for a technical inspection. This is a thorough examination of a vehicle's mechanical and technical status and the only way you will be able to tell that no hidden defects or faults are lurking in the vehicle.
On the other hand, when you choose to purchase a car from a dealership like Imperial Select, you know that every car that we sell will be AA certified for your peace of mind - a privilege that you won't have to pay for either.
You cannot always trust strangers, and if you're a single woman, you might feel vulnerable meeting a seller in private or having them ride with you while you test drive a vehicle.
There's also the reality that they may assume you know nothing about cars and attempt to sweet talk you into accepting a less than perfect model. There's no reason to put up with this when you can use a dealership instead. Your first test drive should be exciting and fun - and not dominated by fears over your personal safety or that you're being spoken down to.
When you buy a car from someone, they'll be able to tell you everything about it - from its fuel consumption to how it handles the road during thunderstorms. You might find yourself agreeing to everything you hear and thinking it's perfect for you - when in fact there are other options out there that you don't even know about.
Salespeople working at a car dealership rarely specialise in just one type of car, and most have a broad knowledge of brands, makes, and models. Perhaps you have your heart set on a used Toyota you've seen for sale as it seems like the perfect fit for your needs. After a chat with a salesperson, you might discover that your budget, needs and personal tastes are better suited to a used KIA vehicle instead.
Car dealerships pride themselves on happy customers - so it's in their best interest to pair you with the perfect vehicle. Private sellers are under no such obligation.
When you've found a suitable car from a private seller, you'll need to check its V5C registration document and VIN. You'll also need to look at its mileage and service records. Any inconsistencies or oddities here could indicate that the car has been stolen and that the person you're buying it from isn't the original owner. It could also indicate that the vehicle is older or has more kilometres on the clock than you think.
Think that the hard work is over once you've checked the above and are ready to purchase and pay for it? With a private sale, it's just beginning. You'll still need to take care of registering the vehicle in your name and licensing it. Depending on how urgently you want to start driving your car, you might need to take a few days off work to make sure this happens correctly.
When you purchase a vehicle from a dealer, we take care of all this for you. All you need to do is sign on the dotted line and let us do the running around and heavy lifting.
Choose Imperial Select
Whether you're looking for a used Mercedes or any Hyundai used car for sale, Imperial Direct can help you find the car of your dreams with much less fuss, and complication than a private sale usually involves. It's a big financial decision to make - but that doesn't mean that the process of buying a used car can't be fun. By choosing a dealership over a private sale, it certainly will be!
Looking for a car is exciting - but nerve-wracking, too. You want something that has the bells and whistles your previous vehicle may not have had - but you aren't willing to compromise on quality, either. You could get a brand-new vehicle, but they're expensive and your budget at the moment might not allow for this sort of luxury. If you find yourself in this situation, we've got the perfect way to start your new vehicle search - by browsing the latest demo car specials from Imperial Select. Here's why you're likely to strike gold with a demo vehicle.
A demo car is a car that typically sits on a showroom floor or is used by a dealer to showcase a vehicle's capabilities to prospective buyers.
So why consider purchasing a demo car?
We all know that new cars lose some of their value as soon as they're driven off the lot - and most people are okay with this, as long as the mileage is reasonable. However, used cars reach the market after years of use, so you're unlikely to find a used model with low mileage that is still in excellent condition. Most demo cars are used only for short drives around the neighbourhood during test drives, and few models will exceed 5000 kms on the clock. This means that with a demo car, you could shave thousands off its regular asking price, without the usual accompanying mileage.
Car manufacturers are continuously releasing new and improved vehicle models as technology improves and becomes more readily available. Just think that a few short years ago, Bluetooth connectivity used to be considered an extra feature in vehicles - whereas today you can find it in almost every new car model as standard. Buying a demo means you're getting the latest and greatest features without having to pay an arm and a leg for them.
Ever shuddered to think about where a used car has been and what it's seen? We don't blame you. Most people don't keep their vehicle interiors and exteriors looking as good as they could. Because a demo car acts as a model all day, dealers are obligated to keep them spic and span 24/7 - on the inside and outside. Most even still have that new car smell!
Still not sure that you'll find the car of your dreams by looking at demo car specials? With Imperial Select offering everything from demo SUVs to demo hatchbacks, we'll be able to help you find what you're looking for. Start searching today for a demo car for sale.