The five golden rules when buying a used car

With new-car prices accelerating out of the reach of many buyers, used vehicles can offer a better deal and more mod cons for less money, but they can be a riskier prospect.

With the assistance of WesBank, our motoring team offers five essential rules to avoid the pitfalls of buying pre-owned:

1. Know the car’s history

Gather as much information as possible about the car you have your eyes on, paying attention to factors such as the number of previous owners, mileage, vehicle age, possible accident and service histories. While it may not always be possible to obtain every detail, building a comprehensive profile helps minimise the risk of buying a problematic vehicle.

The FirstCheck smartphone app allows consumers to access information such as the market value of a car, its history and legal status, including whether it is still under finance or flagged as stolen.

Check whether the pre-owned car is still under warranty or within its maintenance or service plan period. If not, it is advisable to consider purchasing an extended warranty or service plan.

2. Know the market value

Assessing a pre-owned car’s market value is equally important and various factors such as age, mileage, service and ownership history can affect its price. For instance, a three-year-old car with 60,000km on the clock, a full service history and a single owner will generally be worth more than a similar car with no service history.

Consult the FirstCheck app or look for similar cars advertised on websites such as autotrader.co.za and cars.co.za to get an idea of a fair price for the model you’re interested in.

Be cautious of vehicles advertised at a price below their market value. Such instances might indicate issues like high mileage relative to the year model, previous accident damage or a history of serious mechanical problems.

3. Choose reputable dealers

To ensure a transparent and secure transaction, WesBank advises potential buyers to conduct business with reputable, approved dealers, preferably those with National Automobile Dealers’ Association (Nada) and bank approval. Such dealers are better positioned to provide reliable information about a vehicle's history, as well as aftersales support.

4. Avoid “code 3” cars

Another red flag for buyers is encountering a vehicle labelled “code 3”, an insurance term denoting a vehicle that has been accident damaged and rebuilt. Banks will also usually not finance these vehicles, regardless of the reason for their classification.

By the end of August, the South African Insurance Association (SAIA) will publish a vehicle salvage database (VSD) that will allow members of the public to see if the car they are considering buying has been in a serious collision and has been written off before. Access will be free, though the VSD only applies to the estimated 30% of vehicles in the country that have been insured.

5. Take a test drive

Take the vehicle for a test drive and examine it thoroughly, making sure all the functions and features work. If you don’t know much about cars, get a knowledgeable person to assess the vehicle. Getting a trusted mechanic to examine the car before finalising the purchase is also a wise move.