A lot of foreigners staying in South Africa for over 3 months will buy a car to enjoy all the beautiful places this country has to offer. Buying a used car, you need to be fully informed about transfer of ownership, roadworthy and licensing.
Buying a used car can be as daunting a process as it can be exciting; owing to the large amount of used cars that are on the market today and the fact that many cars may not always be as well looked after as it may seem on the surface.
As always, when buying a car, exercise caution. A car salesmen will always exaggerate the good and downplay the bad, so be sure to keep your eyes open and check all the facts before signing on the dotted line. Also make sure the car dealer is in possession of the papers for the car. Many dubious car dealers sell cars to cash buyers, which still belong to the bank.
Finding a good second-hand car may be time-consuming, but is usually worth the effort. If you’re lucky, you could find a reasonable car for as little as R20 000, but a range of R90 000 to R110 000 is more likely for a reliable vehicle. Second hand luxury vehicles and 4×4’s will be likely to come with a price tag of about R200 000 and more.
Most expats and foreign language speakers seem to prefer looking for a vehicle on Gumtree or Junkmail, but do not limit yourself to them, also consider the AA, car magazine and wheels24.com.
Here some tips to make the process smoother:
Where to find a used car?
Remember to always choose a car that fits your daily needs as well as your bank account, are you going to be doing long distances of up to 150km a day or are you going to use it to drive short distances?
When budgeting for a car, don’t forget to factor in your insurance and servicing needs, as well as the likely economy of the car and its depreciation over time. Narrow down your options to keep the list short.
Websites such as from the AA, car magazine and wheels24.com are the most effective at finding out what is on the market in terms of availability, production year and price. It will provide you with the most up-to-date information compared with automotive magazines.
How to inspect a used car
Always check that the vehicle not only looks good, but works well, too. By law, a used vehicle must be certified as ‘roadworthy’, indicating the sound state of the vehicle’s mechanical and electrical system, brakes and tyres. If the seller of the car cannot provide you with a roadworthy certificate, you can take the car to a vehicle inspection unit for a comprehensive test. The Automobile Association (AA) charges R800 for passenger car and small pickup truck inspections.
- If you know what you are doing then make a thorough inspection yourself or employ the services of an independent professional to do it for you
- Always take the vehicle for a test-drive making sure you verify all the electrical items along the way
- Listen out for any suspicious noises or rattles
- Check your rear view mirror for excessive exhaust smoke
- Test-drive more than one vehicle so that you have a point of reference which you can make comparisons against
It is never recommended to buy a car just because it is a bargain price. There are reasons why it is inexpensive and these will be the same reasons that will cause you massive expense in the not so distant future. We suggest looking at cars that are between three and five years old. They are more likely to have a few more trouble-free years in them provided they haven’t been in any major accidents that have been disguised through exceptional panel beating work.
How to asses a second hand vehicles history
To be completely sure that the vehicle you would like to buy has not been stolen, and is not attached to any outstanding loans, we recommend that you have it cleared by the Automobile Association Autocheck Service. For only R125 they will do the necessary research on your behalf. Contact AA Autocheck on 0861-601-601 to make an appointment.
Make sure to bring:
- vehicle registration number (VIN) and the 17-digit chassis number
- engine number
- R125
Avoid buying a vehicle that doesn’t have a history report with it. If you fail to check the history of the vehicle you are buying it could have troubling consequences, it could be stolen or it could still have outstanding payments on it which could become your responsibility.
Always have the vehicles VIN (Vehicle Identification Number) and chassis number handy. The AA is also able to help you with a comprehensive physical inspection of the vehicle and a qualified inspector is able to conclude whether or not the vehicle is roadworthy.
Drivers Licences in South Africa
Though not essential, getting an International Driver’s Licence can be a good idea. Whilst overseas licenses can be used here, traffic authorities are not always clued up on exact legalities for each one. International Driver’s Licences are available at AA outlets for around R250 per year.
Vehicle Registration in South Africa
When you buy a motor vehicle anywhere in South Africa, you must register and licence it in your name within twenty-one days of purchase. To prepare for registering a new vehicle, you must have in your possession:
- your passport
- registration and licensing form
- manufacturer’s certificate containing all relevant details about the vehicle
- roadworthy certificate
- R69 fee
In South Africa, a newly purchased motor vehicle must be registered and licensed in your name within twenty-one days of taking ownership. When readying to register your new vehicle, remember to have the following in hand:
- vehicle’s registration certificate (in the seller’s name)
- valid motor vehicle license
Licensing your newly acquired vehicle
Once a vehicle has been registered, you will need to obtain a licence. In order to do so, any outstanding fees attached to the vehicle must be settled. Licence fees in South Africa vary according to the weight and tare of the vehicle.
- For Licensing Offices and Testing Stations in Johannesburg and area visit the City of Johannesburg website .
- For Licensing Offices and Testing Stations in Cape Town and area visit the Cape Town government website.
- For Licensing Offices and Testing Stations across South Africa and for additional motor vehicle registration issues visit the South African Services website.
Protecting your car
It is to your advantage if the car you have purchased already has an immobiliser (method of theft prevention), but other or additional deterrents include a steering wheel lock (available from hypermarkets and Game stores) or the more secure gear lock (a mechanic will need to install this for you, at a cost of between R500 and R1 000). An alarm system is also a good idea (R500-R1 500): the cost can be recovered when the car is finally sold on.
Car Insurance in South Africa
Vehicle insurance is not mandatory in South Africa – which is precisely why it’s so highly recommended! Once you have successfully bought and registered your vehicle you will need to consider car insurance which you can get from companies such as Outsurance, Dial Direct, Budget and many more. You have a choice between Comprehensive and 3rd party insurance. It is important to consider whether your car will be automatically insured for hail damage, theft or damage when taking out insurance as this will greatly affect your monthly premiums.
Selling your old car
Selling a car can take time, so if you are leaving the country, be sure not to leave this process until the last minute. Classified ads are a great way to find potential buyers, enabling you to sell the car before you have to depart.
Most publications offer free ads for cars under R20 000. When deciding on a selling price, start with the price you paid for the vehicle initially. If you have no takers, or are running out of time, make it lower and see how it goes.
Before setting a price, be sure to add up all the costs incurred and factor those into your starting price. And, be careful to state that your car is being sold ‘voetstoots’, meaning ‘as is’, and include this detail into any contracts drawn up for the sale.
Should you have any questions with regard to buying a car in South Africa or immigrating to South Africa please feel free to contact one of our experienced immigration consultants.
