From choosing the right car to getting the right finance, there are five important things you can do to make sure you get the best deal on your next car purchase.

1. Buy used

   The appeal of a new car smell — the fresh leather, knowing that you are the only owner and that no-one will look after this car better than you. It’s an entirely emotional decision, however hard we try to justify it to ourselves with logical reasons. As soon as you drive that new car off the showroom floor it loses 10 to 15 percent of its value. That’s R20 000 to R30 000 on an average, middle-of-the-road car. Why should you be the sucker that takes that punch in the gut? Leave that to someone who is not as savvy as you are.

2. Research prices online

   With the internet buyers now have the upper hand. Go online and research the prices and features. If you can’t go online, Auto Trader is very good source of information. Get hold of a blue book — Mead & Mc Grouther — that gives you the book value and retail price and other relevant information. Only after you’ve done this research should you visit the dealerships, armed with your impressive knowledge. That way, when that under-educated, lying, deceiving second-hand car salesman tells you something that simply is not true, you can put him in his place promptly.

3. Ask for an AA check up

   You need to know if the car you want is in sound mechanical condition, right? And you can’t rely on your grade 11 metal work classes to determine this or the friend that offers to come with you because he has changed their spark plugs successfully several times. For a small fee the Automobile Association (AA) will give you a 40 point check that will give you some peace of mind that the car is in good condition. It’s worth spending the money.

4. Check your credit record

   There can be nothing more disappointing than finding the car of your dreams, applying for finance and being declined because you omitted to pay your TV license and judgment has been taken against you. Make sure you check your credit record ahead of finalizing the deal so that there will be no surprises. If your credit record is less than good, ensure that you work on improving it for a few months before you make your purchase.

   You can check your consolidated credit record at www.credithealth.co.za.

5. Save on financing

   The cheapest way to buy a car (or anything, for that matter) is using cash. However, cars in South Africa have a reputation for being expensive and it is likely that you will need to finance it (if you have a choice between a car of R90 000 that you can pay cash for and another of R250 000 for which you'll need finance, guess which option we would advise).

   Shop around for car finance and get the best deal. We tend to be very trusting of advisers and 'experts', including the car salesman, who says this is the 'best deal' he can get you. It pays to shop around. Most finance will be quoted as a fixed or a variable rate linked to the prime rate of interest. You are doing well if you get a rate better than the prime rate of interest — currently 14 percent per annum. Anything above prime plus one percent is expensive.

These five tips can help you save thousands of Rands on your next car purchase. Take control of the car buying process and save money.