Buying a new or pre-owned car can be an extremely exciting process but it can also be a daunting prospect as dealership sales staff and banks throw around technical terms that can be confusing. Understanding what these terms related to the car buying process mean will allow motorists to make a much more informed decision around the intricacies of the car buying process.

Credit check

When applying to buy a car via a loan or leasing agreement the financial institution will do a credit check. This check is done to determine a few things including the level of risk they are taking by entering into the agreement with the motorist, how good you are at servicing existing credit agreements as well your affordability.

Loan agreement

A loan agreement allows motorists to buy a car and pay it over a number of years, which can range from four to six years. At the end of this period, once all payments are made, the car becomes your property.

Lease agreement

A lease agreement allows you to pay a monthly fee and to drive a car for a certain period of time and is often referred to as a long-term rental. At the end of that period you will need to return the car to the leasing company in a pre-agreed condition. The advantage of such an agreement includes lower monthly payments but the disadvantage is that the car will never become your property.

Deposit

A deposit is the cash amount that you pay upfront when financing a car and will be subtracted from the total price of the car. The balance will then be paid off via a repayment agreement. Not all financing institutions require a deposit, and this requirement can depend on your credit rating. However, the bigger your deposit, the less your monthly payments will be and the less interest you will pay over the contract period.

Monthly payment

Your monthly payment is the agreed amount that you need to pay back every month for the period agreed upon in your loan or leasing agreement. This amount will include interest, admin fees as well as a portion that goes towards repaying the capital amount.

Interest rate

The interest rate is the amount that the financial institution charges to loan you the money and is added to your repayment on a monthly basis. The interest rate is determined by your credit rating. Interest rates are either fixed for the entire term or can change along with the prime lending rate if you opt for that option.

Residual value or balloon payment

A residual value allows motorists to only finance a certain percentage of the car, for example 60% and pay a lower monthly instalment. At the end of the contract period the remaining 40% will still be due and this will need to be paid off via a new finance arrangement or by selling or trading in the car and using the proceeds from that transaction to settle the outstanding debt. While lower monthly payments are attractive to many motorists, a big disadvantage of a balloon payment is that it takes much longer to pay off the car, which means you will pay more interest over the contract period.

Comprehensive insurance

Comprehensive insurance protects motorists against loss or damage to their vehicle. Comprehensive insurance will replace your vehicle in the event of theft or replace or repair a vehicle should it be involved in an accident. Financing institutions will require insurance as the car remains the property of the financing institution until it is fully paid for.

Service plan

A service plan covers regular service items such as oil and filters at manufacturer determined service intervals with work carried out in an OEM manufacturers workshop. A service plan will be valid for a predetermined period of time and mileage, such as five-years/75 000km and will expire once one of those parameters are met.

Maintenance plan

A maintenance plan covers service items as well as wear and tear items such as brake pads, tyres and shock absorbers,  with work carried out in an OEM manufacturers workshop. A maintenance plan means that motorists will not need to spend any additional money on maintaining their vehicle for the period of the plan. A maintenance plan will be valid for a predetermined period of time and mileage, such as five-years/75 000km and will expire once one of those parameters are met.

On the road fees

On the road fees are the financing charges applied for getting the car ready for delivery. This includes a pre delivery inspection, registering the vehicle into your name, licensing and the fitment of numberplates if required.

We live in an era of online shopping where almost everything we want, and need can be found online. The same goes for cars. Long gone are the days of driving from dealership to dealership looking for the car that suits your criteria and pocket, these days internet searches have simplified that process entirely.

It is even possible to complete the entire car buying process online and while that does offer numerous advantages, a physical test drive should still form part of that process. A vehicle might seem perfect for your needs, but a test drive could reveal shortcomings in areas that are important to you such as performance, a lack of features or even ergonomic issues such as a seating position that doesn't accommodate your body shape comfortably.

Test driving a car before buying is a crucial part of the process as it is the only way to truly get a feel for the car and whether it is right for your needs and usage requirements. These tips will help you get the most out of the test drive experience.

Is it the right car for me?

A test drive is a great opportunity to gauge aspects of a car in a real-world environment such as whether it has enough performance, if the interior is large enough for your family and whether the boot or load capacity is ample for your requirements. Being seated comfortably is crucial to driver safety and enjoyment and a test drive is the only way to determine which car fits your body type best.

How does the car perform?

Judging a cars driving characteristics is about more than just outright performance. A test drive gives you an opportunity to feel what the car steers and brakes like, how heavy the clutch is and how smooth it shifts gears. It is also a great way to get a feel for how the controls and systems like the infotainment system work.

Drive more than one car

If you are undecided on an exact model a test drive is a great way to compare different vehicles and get a better feel for the options. If you are shopping in the pre-owned market, driving more than one example of the same model will allow you to compare vehicles with the aim of determining if the particular vehicle you are considering is a good example.

Check for damage

While the test drive process is important when shopping for a new car it is critical when shopping for a pre-owned vehicle. A test drive is a great opportunity to inspect a vehicle for any signs of abnormal wear and tear or serious damage that has been repaired. While accidents do happen, vehicles that have been badly repaired and show signs thereof, with misaligned panels and mismatched paint should be carefully considered. A test drive is a great opportunity to listen out for any potential issues under the skin. Strange noises and rattles could hint at outstanding maintenance issues. While driving listen out for any strange sounds, especially when turning, driving over bumps or while braking and accelerating.

Don't skip the test drive

The age old saying which goes, “The proof of the pudding is in the eating”, is said to mean that one can only judge the quality of something after you have tried, used or experienced it. This is particularly true when it comes to car shopping, whether that be for a new or pre-owned model. The only way to truly know if a car is right for you is to get behind the wheel.

The South African car market has experienced a significant downscaling trend in recent years. This trend continues as motorists seek out more affordable vehicles that are lighter on fuel and cheaper to maintain in a tough economic climate. However motorists need to determine the best time to trade in their car in order to avoid losing significantly by trading in their car at the wrong time and by doing so negating any potential savings that come with downsizing. The following factors need to be considered when determining the best time to trade in a car.

Wait for the break-even point

The break-even point is when your settlement amount, which is the amount still owed, is less than what the vehicle is worth, or the trade in amount.

The break-even point is when it becomes most cost effective to trade in a vehicle and enter into a new finance agreement. If you trade in too soon, when you owe more than the car is worth, that difference will need to be settled out of your pocket, before you can finance your next car.

The break-even point of your finance agreement depends on a variety of factors including the way your vehicle was financed. Factors such as financing a vehicle without a deposit or with a balloon payment will mean that it will take longer to reach a break-even point, and you will need to wait longer before trading in your vehicle. Different vehicles depreciate at different rates which will also affect the specific break-even rate of your vehicle paired with your finance agreement, so it is important to do your calculations carefully before deciding to trade in your vehicle for a new model.

In the last three months of the year

As with many things in life, timing is everything. If possible, trade your car in during the last part of the year, before it turns one year older in terms of the model year. Vehicle valuation tools utilise the year in which the car was built to determine the value of the car and waiting until the new year to trade in your car could cost you significantly in terms of the trade in price. However motorists need to keep in mind that buying a new car in the last part of the year is also not a good idea for the same reason. It is therefore pertinent to try find a balance between the two transactions, this could mean renting a car for a few months between trading in and buying.

Before the warranty or service plan expires

The warranty or service plan on a vehicle is mileage and time based and is transferable to a subsequent owner. Trading in your vehicle before either of these expires will positively affect the trade in value as the car will be more valuable to subsequent buyers, as they will know that the car has been serviced in line with manufacturers guidelines and they will also get the peace of mind that comes with having a valid service plan and warranty in place.

Before a new or replacement model is launched

Motor manufacturers introduce new models every seven to 10 years and trading in your car before a new or replacement model of the same nameplate is launched is a good idea. Once a new model is launched your car will be seen as a previous generation model and could be less appealing to buyers. It is a good idea to keep an eye on the media and to try and pre-empt this in order to secure the best trade in value.

Every moment counts when you’re a young professional racing towards ambition in this fast-paced world. Be it navigating traffic to your morning meeting or presenting to the board at 5 p.m., efficiency and style are important. Meet the ideal car for the go-getter lifestyle: the Renault Kiger for sale. A suave, sporty SUV that blends economy and elegance with ease. 

This vehicle is a top-notch option to meet all your needs as a modern professional, and here’s why:

Comfortably Compact 

The Renault Kiger offers a spacious interior with cool exteriors as a subcompact crossover SUV. While you need flexibility for all your needs as an executive, an SUV that easily slips into the tightest of parking spots in the city is still key. 

Whether it’s space for client presentation boards or carting around additional merchandise for live promotions, you need a car that can deliver. Luckily, the Kiger does just that. Storage compartments can be found throughout the cabin, amounting to an astounding 29 litres of useful storage space. The boot can carry up to 405 litres of luggage. 

Functionality On The Move

Time waits for no one, especially when there’s a deadline to be met. You need functional features that can help you stay connected while on the road. You also need convenient systems that save you time safely and efficiently. 

The Renault Kiger will check all the boxes with its tech-forward cabin. With smartphone integration, hands-free calling, and an informative display touchscreen, you have all the tools needed to succeed on the go as you navigate your dynamic field. 

Supportive Safety

When it comes to busy intersections, bad weather, growing potholes, and heavy traffic, you need a car that prioritises your safety above all else. Standard features such as front-side airbags, coupled with ABS (Anti-Lock Braking System) and a rear parking camera on the latest models, will provide you with peace of mind. 

Despite its smaller silhouette, the Kiger comfortably outperforms others in the segment without breaking a sweat. Make the smart choice for your success with this more than capable city-sleek SUV.

Get behind the wheel of one of Motus Select’s stylishly efficient Renault Kigers for sale today. 

When it comes to performance that you can rely on, our Fords for sale should undoubtedly come to mind. The brand has cemented itself in the South African market by producing incredibly innovative vehicles. From the mighty Mustang to its raring Ranger, Ford is a powerhouse. 

Take the Ford Everest, a thrilling SUV (Sports Utility Vehicle) that is more than capable on the roads less travelled. It stands tall in the large SUV segment, ready to take on any challenge, and here’s why:

Powered Performance

Second-hand models of the Ford Everest are available in four options. Engine options varied from 2.0 litres to a whopping 3.0 litres. It pushes out an average of 500 Nm, 1750–2000 rpm horsepower on low-end models.

Interestingly enough, the newest lineup comes only with a 10-speed automated transmission gearbox. But our pre-owned range here is available in both manual and automated options for your choosing. The SUV is available in 4x2 and 4x4 drivetrains, which is worth considering depending on your lifestyle needs. 

Comfort Redefined 

Cabin comfort hinges on convenience, driver support, and the overall experience. The Ford Everest, in our opinion, checks all the boxes. It has prioritised not just the driver but also the passengers. Depending on the model, you can find practical features throughout the cabin to enhance the convenience factor of this SUV. Its lengthy list includes wireless charging, USB ports, and smartphone integration, for starters. 

Further, its seven seating dynamics are accented with soft-touch leather throughout the cabin. Embossed touches can be found on the latest models, which adds an elevated look to the SUV. 

Streamlined Safety 

From a safety perspective, you need a comprehensive suite for peace of mind, and the Ford Everest does not disappoint. Standard features include ABS (Anti-Lock Braking System), EBD (Electronic Brake-Force Distribution), and front airbags. Drivers are accommodated with its rain-sensing wipers, reverse parking sensors, cross-traffic alert, and cruise control.

Now that you're familiar with the rugged Ford Everest, conquering any terrain with confidence behind the wheel of this exceptional SUV is easy. Whether you prioritise performance, comfort, or technology, there's undoubtedly a Ford Everest for you.

Get guaranteed quality when you look at Motus Select's Ford for sale portfolio. From the adventurous Everest to the reliable Ranger, discover superiority in every drive.