WeBuyCars Germiston – we buy cars midstream centurion
Cars.co.za grew quickly from a start-up company founded in Johannesburg in 2009, to become South Africa’s leading automotive platform, and one of the most respected, recognisable brands in the automotive market. Cars.co.za offers more vehicle listings, greater reach, and the biggest social media following (across all platforms) of any motoring classifieds or media brand in South Africa. We achieved this as bootstrapped business with a purposefully small, dedicated team that shares a vision of empowering consumers and transforming the local motor industry for the better.
At the heart of Cars.co.za
We pride ourselves on being a tech company, first and foremost. Online search has assumed an ever-increasing role in buying behaviour in the past decade, bridging the gap between buyers and retailers. Our rapid growth in this environment is attributed to implementing technology early and effectively in what was a conservative vehicle retail market, as well as investing in measures that helped us to gain optimal online visibility from an early stage.
Technology and automation will continue to play an increasing role in the vehicle retail business and we are committed to being at the forefront of tech innovation in the motor industry.
Car insurance – Tips to help you save
Insurance companies calculate your monthly car insurance premiums based on your specific risk profile. How the car insurance company rates your risk will determine what you pay. Our online application form above allows you to obtain insurance quotes from our list of recommended insurance providers. Comparing insurance quotes has never been so easy, see how much the competition varies for your used car!
Increase your car insurance excess
Increasing excess on your car insurance policy will decrease your monthly premium. Just make sure that you have the means to cover the excess you choose in the event of a car accident.
Drive your car safely
An accident free driving history will mean your risk profile decreases and will reduce the insurance premium on your car. Driving defensively is the best way to avoid accidents.
Choose your car carefully
Some used cars carry higher risks because they are prime hijack or theft targets as well as high performance cars which are accident risks. Statistically drivers of flashy high performance vehicles drive more recklessly and therefore car insurance premiums are significantly higher. Choosing a low insurance risk vehicle will greatly reduce your monthly insurance premiums.
Keep your car locked up
Parking your car in a secure area both at work and at home will likely decrease your risk. This can in turn greatly reduce the insurance premium on your vehicle.
Install Alarm, anti-hijack and satellite tracking
When getting an insurance quote, get advice from your car insurance provider on how different security devices will affect your monthly insurance premium. Depending on the value and type of car, fitting extra security measures can be well worthwhile to enhance the safety of your car as well as reduce the monthly insurance premiums.
Enquire about discounts
Discounts or specials may apply if you have multiple policies with the same insurance provider. These insurance discounts can equate to a lot of money saved in the long run, you also get the added value of only having to deal with one insurance company.
Car finance – Tips to help you save
You may know all about that set of wheels that’s stolen your heart, but if you’re not clued up about car financing, you could well be in for a bumpy ride.
The industry relies largely on the Transunion Auto Dealers Guide to determine the current value of specific vehicles, and you’re very much on the back foot if you don’t have access to that information.
Luckily there’s a way to get it: R10 will buy you a Transunion Car Value report on a specific vehicle make and model year, which will indicate whether or not your trade-in offer is fair, and whether or not the car you want to buy has been overpriced.
STEP 2 – Verify the car
STEP 3 – Interrogate the Offer to Purchase document
Once the purchase and/or trade-in price has been agreed, don’t sit back and leave it to the F&I (finance and insurance) manager in a dealership to “sort out” the paperwork for you.
It pays to interrogate every line of the Offer to Purchase document.
- If you traded in a car, check that the trade-in amount you agreed on has been accurately reflected.
- The F&I person will do their best to up-sell you a host of add-ons to pad the deal; products such as paint protection, fabric protection, rust-proofing, dent-and-scratch policy, maintenance plan. If you do really want one or more of those, you’ll probably be able to get a better deal on them yourself.
- Look for the big add-on, the “delivery/dealership/on the road” fee which is several thousand Rand. Paying extra for number plates, a tank of fuel and for licensing and registration – plus having the dealership deal with the schlep of getting it done – is perfectly justifiable, but anything over that is not; it’s just the industry’s way of bumping up the purchase price of the vehicle. So refuse to pay it, or at least negotiate a substantial reduction.
The Payment Options
If you don’t have the full purchase price in cash, but you do have “fat” in your home loan, you’ll pay a lot less in interest if you fund the balance out of your home loan.
- Upside: The car will cost you less, thanks to you being spared paying a whack of interest.
- Downside: “What discount do I get for cash?” doesn’t work with motor dealerships. They make more money out of you if the deal is financed.
- Tip: Don’t tell the salesman you intend to pay cash because the dealership might not be as moveable on purchase price if they know upfront that they aren’t going to make any money off you from financing.
This is the most common car payment method. You pay off the car in monthly instalments for up to six years (72 months) either with or without a deposit. The longer the term, the more interest you pay. Ideally you should put down a sizeable deposit and structure the loan over the shortest possible time – that way you pay the least interest.
Use our Finance Cost calculator to see what you could end up paying per month.
If you get a windfall you can pay off the car early without penalty if your loan is less than R250 000, but a penalty will apply if it’s more than that.
- Upside: You own the car outright after your last payment of the instalment term, unlike with a balloon payment or lease deal.
- Downside: Interest adds a whack to the car’s advertised price and if your circumstances change over the five or six years of the finance deal, you could battle or fail to keep up with the payments. If the value of your car has depreciated significantly, selling it or, worse, having it repossessed and auctioned by the bank could leave you without wheels and still owing money to the bank.
- Tip: Don’t leave it entirely to the F&I to arrange the finance for you, and then focus only on the monthly repayment, without interrogating how many years the deal is structured over or what the interest rate is. Before you go into the dealership to sign the deal, phone around and get your own quote, negotiating the lowest possible interest rate. Then it’s up to the dealer to beat your pre-approved loan quote.
Instalment with Balloon Payment
A balloon payment – also referred to as a residual – is “an agreed inflated final payment of a loan that is paid in full at the end of the loan agreement”. So having paid instalments for five or six years, you still have around 30% of the retail price to pay in a lump sum. You can either choose to refinance the balloon payment, or trade in the car, whereby the balloon payment is then settled and you can enter a new finance agreement. Wesbank’s Rudolf Mahoney says that, “there is no set value for balloon amounts and they differ from every make and model. A very popular car such as a Polo can even be done on a 50 % balloon. It’s all about supply and demand dynamics,” he says.
Use our Finance Cost calculator to see what you could end up paying per month.
- Upside: You get to drive a car you can’t really afford.
- Downside: You get to drive a car you can’t really afford. After paying that instalment for all those years, the car is still not yours – that big amount which was carved off to lower your instalment to something you could afford, is now due. A lot can happen in five or six years – you could not longer qualify for credit when your balloon payment is due, in which case you’d be forced to sell or trade-in the car to pay that big residual amount still owing.
- Tip: This is really not a good car financing option. If it’s the only way you can afford to finance a car, you can’t afford it: rather opt for something cheaper.
Almost a third of new cars in the US are leased, but leasing remains a relatively new concept in South Africa. The lease agreement gives you the right to use the vehicle as your own, without actually owning it.
- Upside: You can drive a new car every two to four years and enjoy the benefits of a latest model’s improved fuel economy, performance and technological enhancements. When the lease expires you don’t have to worry about selling or trading in the car – or settling any outstanding money owed to your bank. Monthly repayments are more affordable, and there are no service and maintenance costs, these being covered by the service and maintenance contracts.
- Downside: You don’t get to pay off the car and own it, opting to keep it and enjoy not having the financial burden of a monthly repayment.
- Tip: Lease agreements have strict limitations and penalties if you fail to get the car serviced at the specified intervals, repaired by approved repairers and if you don’t adhere to the mileage limits.
These tend to be structured at 36-month terms with 60% residual value. At 36 months, provided you have…
- a) kept within your annual mileage limits (usually 15 000 to 20 000 kilometers per year);
- b) honoured your service and insurance commitments;
- c) not damaged the vehicle; and
- d) agreed to replace your car with a car from the same manufacturer (this is a common condition)
… the car manufacturer guarantees to pay you the full value of the 60% owing under the lease or rental or installment-sale agreement.
- Upside: You get a new car every three years at similar instalment.
- Downside: You get locked into one manufacturer and need to stick to the commitments listed above. Those who don’t read the small print could unwittingly breach the contract.
- Tip: Not advisable for higher-mileage drivers.
The National Credit Act does not allow a person to simply take over someone else’s debt without a proper credit assessment and financial health check. In other words, it’s illegal. “MFC/Nedbank doesn’t condone it or knowingly allow it without cancellation of existing contract and re-entering a new one with the new finance applicant,” said MFC managing executive Trevor Browse. Similarly, Rudolf Mahoney, Wesbank Marketing’s head of brand and communications, warned that take-overs are a really bad idea. “A client will be in breach of his finance contract if he participates in such a scheme,” he said. “The person who is interested in taking over the car must settle the finance deal, either by means of a private vehicle finance deal or in cash. The bank will then release the eNatis documents.
“In my experience, these are usually scamsters operating in the classified pages. Usually these cars disappear over the borders. Worst of all is that the insurance companies normally do not pay out claims where the car was voluntarily handed over to a third party, so the client is left paying for a car.”
- Upside: It’s a way for someone with a bad credit score to pay off a car. Can work within a close family set-up.
- Downside: It’s illegal. And it’s extremely high risk to allow someone else to pay your instalments, because if the person who takes over the instalments reneges, you will still contractually bound to pay the bank. For the person who takes over the lease, the “seller” could decide they want their car back, resulting in a messy dispute.