How To Buy a Car From a Car Dealership in Pretoria
Buying a new car is a big step and a lot of research needs to be done before finally being able to drive off with your car. When deciding to buy from a car dealership in Pretoria, four steps are to be taken which will allow for the best deal for you and make sure that all the car needs you have set out have been taken care of.
Select the car dealership in Pretoria
Now that you have chosen the car of your dreams, the dealership from which you will purchase this new car should be decided on. The car dealership in Pretoria you ultimately decide on should form part of the Retail Motor Industry (RMI) or the Independent Dealer Association (IDA). These are accredited associations with certain rules and codes of conduct, and they all must abide by certain laws which are in place to protect the buyer of the car. Before going to a car dealership in Pretoria, find out if the dealership forms part of these associations.
The salesperson should know all the ins and outs of the car you are interested in. So, always go with questions on extras, warranties, car services and anything else that is important to you in a new car. Always ask for a test drive of the car, and have the test drive on as many road conditions as possible to ensure your car can keep you safe. External roadworthy tests are also within your rights as a consumer. When purchasing a pre-owned car from a car dealership in Pretoria, remember to ask for the warranty, service plan and maintenance plan which will be offered by the dealership.
Financing for your new car
When purchasing a new car, you will not always be able to pay the full amount for it, and that’s where financing comes in. To apply for finance, you fill in an application at your bank requesting the amount you will need to buy a new car. All loans which are approved are in accordance with the National Credit Act. Once your loan has been approved, the bank provides you with the following:
- Your approved loan amount
- Your payable deposit
- The contract terms
- The interest rate on the loan amount (usually a fixed/linked-rates option)
- All payable fees (the maximum fee by the NCA is R1140, including VAT, and the maximum monthly fee is R57, including VAT)
- The cost of credit over the term of credit
This is simply a quote from the bank, and you still need to consider if you will be able to pay back the entire amount in the allotted time frame. This quote is usually valid for 30 days.
Signing the contract
The quote is usually valid for 30 days. If you decide to accept the quote in that time frame, the contract will be drawn up by the bank. You, as the person buying a car, need to have the following documents available:
- A good credit history
- A valid driver’s licence
- Proof of insurance
- If you have the car delivered, you should sign the contract beforehand the delivery is made.
- Remember to only sign the contract if you are happy with the content of it.
- A signed delivery note from you is as good as cash to the car dealership. The bank is not allowed to withhold payment to the car dealership in Pretoria if the client has signed the contract.
Your finance agreement checklist
When buying a car from a car dealership in Pretoria, the following needs to be checked off if you have a finance agreement:
- The loan amount
- The deposit amount
- The extras and accessories amount
- The terms of the contract
- The interest rate
- The monthly repayments
- The residual value/ balloon payment structure
Do’s and don’ts when buying from a car dealership in Pretoria
- Take the car for a test drive and make sure there are no niggles with the car.
- Refuse the deal if the price decided on is changed at any time after you and the dealer have agreed on terms.
- Do not try to get good deals on multiple extras at once.
- Black out anything in the contract you did not agree to.
- Bring a calculator. It helps with the process of adding and subtracting everything before signing any documents.
- Drive the car home before all the paperwork is signed at the car dealership in Pretoria.
- It is not your responsibility to have any repairs done on the car before the sale has gone through.
- Spend too much money on extras which you can get at a later stage.
- Go during special sale events; usually the dealer makes more profit from these events, as you are likely to pay much more than you would normally.