Junk status and your car: Buy, sell or repair?

<B>REPAIR AND KEEP?</B> With SA's junk status, perhaps its better to fix your car up and keep it for a while rather than buying a new one. <i>Image: iStock</i>
<B>REPAIR AND KEEP?</B> With SA's junk status, perhaps its better to fix your car up and keep it for a while rather than buying a new one. <i>Image: iStock</i>

Johannesburg - South Africans are starting to feel the pinch following the junk status downgrade.

Now is the time to be savvy about car purchases, says Vishal Premlall, director of the Motor Industry Workshop Association (MIWA): "Don’t commit to a new car unless you are sure you can afford the repayments, which will likely increase as interest rate hikes kick in,” he says. “Hold onto your assets i.e your car, and rather repair."

Should you sell or attempt to repair an old car?

He recommends getting a second or third opinion on the repair of your current car before considering purchasing a new car: "If you can avoid taking on additional debt at this time, that is first prize. By repairing rather than purchasing you invest short-term in your vehicle which could result in long term gain when you choose to sell at a later stage."

'New-car' smell

Most car purchases, says Premlall, are "emotional ones with buyers getting swept up in the ‘new-car’ smell, latest features, status associated with brands etc."

This can lead buyers to overextend themselves on monthly repayments.

Premlall said: "It’s at this point when you need to stop, recalculate, get opinions and make smart decisions. The reality is that the shine of a new car fades when the bills come in and you are overextended."

Buying new or used?

The guys at Rippah Australia  created a great infographic which highlights everything you need to know about buying new or used, what to look out for, how to go about dealing with the sales person, and, importantly, how depreciation affects the category you are buying in:

Infographic by Rippah Australia

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