As we bid farewell before she jets off to London, she has a few words of advise that is worth sharing for those that are considering buying a car, recently bought one or are in the processing of selling one. If you have not read her story, please (read it here).
- If you are looking for a car, seek advise from people who knows something about cars. There is a lot to know about a car but most importantly is how the car performed in terms of fuel consumption, affordability of the services as well as the residual value of the car if you do ever want to sell it.
- If you are looking for insurance as a new driver and considered a high risk factor client, you’ll probably get a high monthly premium. That is ok, but year on year, go back to the broker and tell them you are looking for a cheaper insurance as your risk profile reduces and the value of your car is also depreciating. For her case, she started off at N$2 300 a month but ended up with insurance of N$1 500. If you keep quite, no one will ever offer you a cheaper option.
- Be aware of how much excess your insurance will cost, as at the end of the day accidents are more common then you would like to think and the higher your excess amount, the more money you will have to pay toward repairs when you get bumped.
- If you are considering selling your car there are two ways, you either sell it to a dealer or do a private sale. The dealer is probably the best choice as they take care of all the admin and paper work and is much quicker. With a private sale, unless the client is buying the car cash, the process can take up to two weeks.
- To be able to sell the car, you will need your car registration documents as well as your spare keys. Without those you are doomed.
- If you are selling your car that is still under bank financing, you will need to notify the bank 3 months in advance in order to be able to minimize the cancellation/ early settlement fee. You will still be charged for paying off your car early as the bank is giving the interest they would have charge you if you had paid until the last year, so take this into consideration.
- Before deciding on the selling price, get the settlement letter from the bank that will tell you how much you owe then and what fees they are charging you for settling early. This way, you can negotiate with the buyers to at least buy the car for an amount above or at least equal to how much you owe the bank.
- Before you sell the car, see if you have dents or any bumps on the car that will need replacements. If so, take it in for repair while it still under insurance and just pay the excess. This will save you time because if you try to sell the car that has dent, the new buyer would want to get a quote of how much it will cost to fix that car as well as can possibly rip you off exaggerating the cost of this repair. Be mindful of this.
Above all, you will need your driver license and ID to buy or sell the car.
I hope that you learn a thing or two from this and you are in a better position before making your next move.