Dear Mabs
I came across this column two weeks ago and got excited that we have a safe space to ask a lady expert about cars. I am confident that I will get the right answer here. I am actively looking for a bakkie to take my side hustle to a greater level. Although the business is doing well and has a loyal customer base, I am nervous about taking on huge debt and I would like to save where possible. I am looking at a used bakkie that is no more than 3 years old. I will be employing a fulltime driver to run the delivery service. However, my cousin has cautioned me against buying a used car citing possible breakdowns and insurance cover, especially since it is for business. He is suggesting that I buy a new vehicle. What are the pros and cons of buying a used vehicle? Can I still get vehicle finance to buy a used car for business? Also, would it be easy to get insurance considering that a driver, and not me, will be driving the car?
Welcome to Xploreza family and I sincerely hope you will find the information shared here empowering.
Congratulations on taking your side business to the next level during such tough economic times, and I wish you the very best.
As I mentioned, the economy is experiencing a strain and sadly this has significantly slowed down the number of new vehicles sold in South Africa in recent months.
Wesbank vehicle finance says they have financed almost 10% less new vehicles compared to the beginning of 2021, when the industry was recovering from Covid-19. This simply means more and more people, such as yourself, are looking into the used car market where they can pick up bargains for significantly less than a new car. You will definitely get finance options provided you qualify for it and that the vehicle you are looking to buy is from an approved previously owned dealership or source. With a car that is less than three years, you should not experience any hurdles. However, beware of the fact that you might be buying a vehicle with faults that have not been declared by the previous owner. This often causes headaches. Take a mechanic or someone who is more knowledgeable to the dealership to test drive the vehicle and diagnose it on your behalf before you sign on the dotted line. Furthermore, ensure that you top up the bakkie’s maintenance plan should any issues arise.
Also, I don’t foresee you having issues with getting short-term insurance as long as you are fully honest and let them know that the vehicle will be used for, and declare its regular driver. Insurance for business vehicle tends to cost much more than one for personal use, so please shop around carefully and open your eyes. My advice to you is that you should shop around and not take any hasty decisions. Don’t jump at the deals that are too good to be true, because they can cost you a whole lot in the end. Good luck.
