By Emsie Martin
No matter what profession you’re in, you need transport to get to work. And in the past few months the sale of second-hand vehicles has shot up due to the impact of Covid-19 on the economy. Second-hand vehicles have suddenly started looking like a good option, but it comes with various considerations regarding insurance.
Before you buy
- First of all, establish if the vehicle was in an accident. Don’t just accept it if the agent or salesperson tells you the vehicle is accident-free, as this will cause you enormous problems later on.
- Make sure you buy from a reputable dealer and be extra careful when buying a vehicle online. Unfortunately, fraud is a reality.
- When buying from a dealer, you can ask for an e-Natis document to establish whether it might be a stolen car.
- Whatever you decide, it is extremely important to consider all the costs of the transaction before signing anything.
- Second-hand vehicles might not be as expensive as new ones, but keep in mind that they might need more regular repair work.
- The second-hand vehicle might have extras that were installed after purchase. Make sure these are included in your insurance, for example an expensive sound system. If not specified in your insurance, you aren’t covered.
First make your sums
- It may be general practice to include a maintenance plan when you buy a new car, but will most probably not be part of the package when you buy a second-hand vehicle.
- You have to calculate the cost of the vehicle thoroughly, including services, parts that might have to be replaced, tyres, license etc.
- You might think a second-hand family car will be less of a target for criminals than a brand-new sports car, but the risk of being involved in an accident is not excluded, and without insurance this could turn out to be an expensive affair. Any vehicle is a target when criminals want to use it to commit a crime.
- To upgrade your insurance can be a wise decision; make sure what you need, as this could influence your instalment.
- The sales value of your vehicle must also be discussed, as you might qualify for a smaller instalment based on the vehicle model.
- All vehicles must be maintained so that mechanical problems don’t occur later on. It therefore is important to obtain a service record of the second-hand vehicle, if possible.
- Remember to have the vehicle serviced regularly, even it you don’t travel a lot – every 15 000 km or once per year is a good guideline. Don’t skip any of the services – it could cause serious problems later on.
- Make sure the tyres are rotated regularly and replace if necessary.
Don’t forget these important changes
Your second-hand vehicle must be added to your insurance in a proper manner. Make sure your advisor knows your routine and where the vehicle will be, so that the correct information is included in your insurance policy.
Many of us relocate or work from home, and might forget to update this information. Make sure the address where your vehicle is parked is the same as the one indicated in the policy document.
The Solidarity Guild for Financial Careers is a community that focuses on putting professionals who offer financial services in contact with one another, giving young people the opportunity of a career in the profession, and being the watch dog that tackles thorny issues in the profession with workable solutions. Visit https://solidariteit.co.za/en/solidarity-occupational-guilds/ for more information about the guild.
Bertus Visser, Chief Executive of Distribution at PSG Insure