Although many of our articles offer advice in the private-to-private car sales arena, today is about going back to basics. Getting started as a private buyer can be intimidating! However, in this quick yet comprehensive article, we’re going to take some of that fear away. By taking a few minutes to read through and become better informed, you know you can step towards your first purchase with confidence.
But, before you even approach a private seller, it’s important to do…
𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡
Market research, when done as a customer, is all about gathering info on:
- What you’re getting.
- What kind of person you’re dealing with.
As a buyer, your work here is brief compared to what a full business would need to do, but nonetheless it’s essential if you want a fair price. Before showing interest in any car, it’s important to look up:
- What a new version would sell for from a dealership (for perspective).
- What a used version would sell for from a dealership (for your upper limit).
- How much a dealership would pay to buy a used version off you (before they mark-up and re-sell).
Dealerships won’t all have the same prices, so look for general trends. Other than that, it’s good to find car ownership forums or communities. Find people who have experience with the model you’re interested in, and find out which parts tend to age/ fail the most.
Speaking of people, knowing who you’re dealing with is also important! A vintage car collector has different priorities to a single mom trying to finance her new house. Try find out if the seller already has an established reputation in this field. This can help any negotiations flow smoother from the start.
𝐈𝐧𝐬𝐩𝐞𝐜𝐭𝐢𝐨𝐧 𝐓𝐢𝐩𝐬
That said, negotiations shouldn’t start just yet! Getting a used yet problem-free car is a matter of care, not luck. In this matter, it’s crucial to:
- Check that the used car belongs to the seller.
- Go over the used vehicle’s ownership history and service records.
- See if the license disc is up to date.
- Ask about the used car’s mileage, and if it’s been in any accidents.
If what the seller tells you doesn’t match up with what you see, or if they withhold relevant information from you, then move on. Used vehicles and blatantly dishonest sellers aren’t a good combination. Otherwise, proceed with organizing a pre-purchase inspection.
Unless the seller’s asking price is extremely close to what you’d pay at a dealership, it’s both polite and considerate to pay for the inspection yourself: remember, you’re not the only buyer, so the seller would be ruined if they had to pay for each and every inspection.
As the seller might not know every issue with their vehicle, and as we don’t want to leave the inspection to amateur skill, it must always be carried out by a certified mechanic.
A roadworthiness certificate cannot stand in for a proper inspection: the former only tells you, “Yes, this car can legally go forward,” but doesn’t say much about underlying issues or future problems you may have to deal with.
Even if a pre-purchase inspection isn’t available, insist to see some thorough (and recent!) records drawn up by a qualified mechanic. If the car has any deal-breaking issues, you need to know. Although in some cases, an issue doesn’t have to be deal-breaking if you can get the seller to lower the price…
𝐍𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐧𝐠 𝐏𝐫𝐢𝐜𝐞
Here is where all your prior homework comes to a head. Negotiation is more of an art than a science, but there are still key pointers to keep in mind:
- If you know what your desired used car would cost when bought from a dealership, you know your initial maximum limit. Stay below this limit, as you shouldn’t be paying dealership prices when you aren’t getting dealership services.
- Subtract the cost of inspection and similar overheads from your initial maximum limit. This is your “true” limit. After all, if you’re paying near-dealership prices, and still have to pay for overheads, then you may as well have gone to the dealership. Make sure your “true” limit keeps these extra costs in mind.
- Knowing how much a dealership would pay for a used model, meanwhile, tells you the seller’s lower limit. Respect the seller’s time by staying above that limit.
When making your opening offer, keep it below what you’re actually willing to pay. For instance, let’s say your “true” limit for the car you want is R50,000. Here, you might want to start at around R40,000 and let yourself get talked up a bit.
It’s easier to open with a low offer and then let yourself get talked up, than it is to open high and then try arguing down. So long as you’re respectably above what a dealership would pay the seller, and you’re being serious about purchasing the vehicle, then all is well.
Just Remember:
Any worn out parts on a car need to be replaced. If the seller won’t replace them, then you will—often sooner than you think! To ensure you’re getting a good deal, your opening offer and true maximum should factor in any repair costs you’re likely to be saddled with in the near future.
If the deal you’re getting is unfavourable, don’t be afraid to walk. The used car market is currently brimming with options.
𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐢𝐧𝐠 𝐏𝐚𝐩𝐞𝐫𝐰𝐨𝐫𝐤
Now, if the deal’s gone well, you’ll need to sign some paperwork to keep everything above-board. This includes the sales agreement, which needs to accurately reflect the deal you have struck. Ask for the full meaning of any unknown terms you see.
Once the seller has signed and sent in the change of ownership form, you’ll need to obtain two documents:
- A roadworthy certificate.
- A vehicle registration certificate in your name.
As both documents are mired in bureaucracy, we recommend hiring a consultant to ensure you successfully obtain them on the first try. This might seem like an extra cost, but you’ll be saving a lot of time and money by getting direction from a professional in the field!
𝐅𝐨𝐫 𝐦𝐨𝐫𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧, 𝐩𝐥𝐞𝐚𝐬𝐞 𝐜𝐨𝐧𝐭𝐚𝐜𝐭 𝐢𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐂𝐚𝐫𝐬 𝐚𝐭 𝐡𝐭𝐭𝐩𝐬://𝐢𝐟𝐢𝐧𝐚𝐧𝐜𝐞𝐜𝐚𝐫𝐬.𝐜𝐨.𝐳𝐚/𝐜𝐨𝐧𝐭𝐚𝐜𝐭-𝐮𝐬/