First-time buyer’s guide

7 steps to vehicle finance

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Image of a zebra


Are you thinking of buying a vehicle?

Next to property, buying a vehicle is one of the biggest purchases you will make. How do you finance a deal that’s both affordable and delivers a rewarding driving experience? Start the journey with these seven easy-to-follow steps. 

 

Watch the video

 
Selae Thobakgale hosts this episode of In conversation for young professionals. She is joined by Nokuhle Kumalo, Trainee Accountant, and Neo Mahlangu, National Banking Client Segment Head at Investec Private Banking.
step 2

New, demo or pre-owned vehicle?

  • Buying a new vehicle

    Pros

    • A service and maintenance plan is included, which will help avoid big bills when your vehicle is due for a service
    • Generally, it features the latest safety measures and fuel efficiency.

    Cons

    • Be aware of the vehicle’s depreciation – it may lose 40% or more of its value in the first year.

  • Buying a used vehicle

    Pros

    • It’s less expensive, so you might be able to get a nicer model.

    Cons

    • Might have to spend more time looking online and visiting dealerships to find the perfect fit
    • Make sure that you buy from reputable dealers who will know the vehicle’s service history
    • Full service plan and maintenance warranty may not be in place (ensure you budget for these extra costs). 

  • Buying a demo vehicle

    Pros

    • You might get a relatively newer vehicle, at a reduced price and with less mileage than a used vehicle
    • Service plan and maintenance warranty is included. 

    Cons

    • The vehicle will already have some mileage. 

 


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