It’s not advisable to rush out and buy a new car when you feel like it or because you ‘think’ it’s a good time to buy. It’s essential to read the whole car scenario and become aware of car launches and other car events that make specific bargains available. But first things first – do some research.1
You need to find out about car financing, evaluate local dealerships and pricing guides to get an idea of what it’s all about. And don’t forget to include the cost of car insurance.
Below are some opportunities you may find to get that bargain you are looking for.
Getting the latest model1
The largest US car manufacturers release their new cars in August / September of each year, whereas other manufacturers spread their launches over the entire year. There is pressure on dealerships to get rid of their old stock of new cars but not the latest. Because of this, some dealerships offer incentives such as good discounts, and that’s where the bargains can be obtained.
Which vehicles are likely to be bargains?1
Compact sedans and luxury vehicles are the most likely to be sold as bargains because SUVs and bakkies are more expensive.
Pressure to sell at the end of the month1
Because dealerships can be in line for a bonus if they exceed a certain sales target, they are prepared to lower car prices during those last 5 days. Similarly, the first week in each year can also provide great bargains as dealerships want to get rid of old stock.
The devastating effect of the pandemic2
The South African motor industry had its worst year in 18 years in 2020, when less than 156 163 vehicles were sold compared to 2019. For this reason, dealerships are most eager to get sales of new cars going in 2021 and would be prepared to offer lower prices to the customer.
Do you know about PMD’s comprehensive car insurance for your new car?3
You are so excited because you have just bought the latest model that has just landed in the country. South African law requires that your car be covered with comprehensive car insurance if it is being financed. This is where PMD comes into play, offering you 2 attractive benefits with their comprehensive car insurance product. No premiums increase* (*Ts and Cs apply) covers the first benefit, while a reduce to zero excess is the second. For third-party car accidents, you are covered for damage sustained to the other vehicle up to R1 million. Your vehicle is covered up to its full retail value regardless of claims for accidents, write-offs, theft, disaster, hijacking and fire. You are secure should your car break down with the 24-hour roadside assistance and towing service available to you. Bad weather or roads are not an issue because the car is covered for both glass and hail damage.
Disclaimer
This article must only be used as a source of information due to the complexity of car insurance. You need to consult a certified financial advisor for professional advice if you are interested in buying a car insurance product.
If you have your mind set on buying the latest 2021 model anytime soon, PMD will be able to provide you with all the information you need on their affordable comprehensive car insurance.
Sources:
2https://www.news24.com/wheels/news/guides_and_lists/how-to-navigate-buying-a-car-in-2021-20210123-2
3 https://prime.co.za/car-insurance/comprehensive-car-insurance/
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own. The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.