A Fin24 user seeks advice about buying different models of the same car. He writes:
When a new car model is released, is it better to buy the old model at a large discount or buy the new model at little or no discount?
Wheels24 editor Les Stephenson responds:
If you’re not desperate for that “new car” smell and keen to save cash, buying a demonstration unit of the newest model from a reputable dealer is always a good idea.
It will be low-mileage, well maintained and come with a substantial discount as well as the balance of warranty and service plan.
Depending on the dealer, you can even order a demo model for delivery on a specific date and with a specified limit on the odometer and in a particular colour or equipment level.
A non-refundable deposit against the deal will be required by the dealer.
If you want to save more cash up-front, then a two or three-year-old vehicle (which could mean 50 000km or more on the clock) is viable provided it still has an original warranty and a complete service history from a dealer’s workshop.
Some brands come with a five-year manufacturer’s warranty, which will cover repair or replacement of most parts at no cost, provided the service intervals have been adhered to.
Eventually, it’s up to you: get prices for your trade-in, visit a number of dealers for quotes, check odo (kilometre readings) but, most of all, set yourself a budget for cash or finance and stick to it, no matter how pretty the car looks.
A spokesperson for Wesbank adds:
Kindly note that a discount is negotiated at each particular dealer. You would, therefore need to discuss this with the dealer you intend to buy your car from.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
When a new car model is released, is it better to buy the old model at a large discount or buy the new model at little or no discount?
Wheels24 editor Les Stephenson responds:
If you’re not desperate for that “new car” smell and keen to save cash, buying a demonstration unit of the newest model from a reputable dealer is always a good idea.
It will be low-mileage, well maintained and come with a substantial discount as well as the balance of warranty and service plan.
Depending on the dealer, you can even order a demo model for delivery on a specific date and with a specified limit on the odometer and in a particular colour or equipment level.
A non-refundable deposit against the deal will be required by the dealer.
If you want to save more cash up-front, then a two or three-year-old vehicle (which could mean 50 000km or more on the clock) is viable provided it still has an original warranty and a complete service history from a dealer’s workshop.
Some brands come with a five-year manufacturer’s warranty, which will cover repair or replacement of most parts at no cost, provided the service intervals have been adhered to.
Eventually, it’s up to you: get prices for your trade-in, visit a number of dealers for quotes, check odo (kilometre readings) but, most of all, set yourself a budget for cash or finance and stick to it, no matter how pretty the car looks.
A spokesperson for Wesbank adds:
Kindly note that a discount is negotiated at each particular dealer. You would, therefore need to discuss this with the dealer you intend to buy your car from.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.