Paying a lower price for used versus new when buying a car is an obvious reason to shop in the used vehicle market, but there are other advantages as well.
Jason White, Head of InspectaCar Financial Services, says: “A new car typically depreciates about 20 percent when driven off the dealership floor. Most cars will lose another 10 percent in value during the first year. That’s a 30-percent loss in value during the initial year of ownership. A R300 000 car loses roughly R90 000 in value during that period.”
According to White, depreciation flattens out, usually after a car’s third year before increasing again around year five.
Reducing insurance costs
White says a key factor in determining car insurance premiums is the value of the car. Because a used car has less value than a newer version, the cost of insurance should be less.
Getting more bang for your buck
Stretching your car-buying Rand is another benefit of buying used. You can buy more car by purchasing used rather than new. You may not be able to afford that new luxury car you’ve yearned for, but one that’s two or three years old may fit your budget and offer the same features and style.
When you decide to purchase a car, bakkie, or SUV from a used car dealership, you’ve made a pragmatic decision. Shopping from a trusted dealership such as InspectaCar ensures that you’ll obtain a high-quality vehicle that has met the standards of an organisation specialising in the sale of used cars.
“We’ve been in business since 2002, and this type of assurance can never be obtained from an individual or private seller,” says Pertunia Sibanyoni, CEO of InspectaCar.
Now in its 16th year of operation, InspectaCar was born out of a vision to uplift and professionalise the used car market. The main emphasis has been to dispel the notion that buying a used car is buying someone else’s headaches.
“We have created a unique experience for our customers. A one-stop-shop to complete the buying journey, from the online experience, the well checked car, transparency, dealing with professional and trustworthy staff, to the value-added products,” says Sibanyoni, adding that “we are changing the used-car dealer landscape.”
“In addition to selling cars, our dealerships provide finance, insurance, as well as other value-add essentials within the buying journey, creating a one-stop-shop and convenience for the customer. Our focus is on making it easy for the customer to deal with us. Our franchisees are driven to deliver quality second-hand vehicles customers can trust,” adds Sibanyoni.
InspectaCar is the only second-hand vehicle franchise certified by WesBank. “Having a partner, the calibre of WesBank, also speaks volumes about us, because it is one of the leading asset finance institutions in South Africa,” concludes Sibanyoni.