Buying a car: The ultimate guide for first time car buyers

Buying a car is a major financial decision, usually the second biggest financial decision you’ll make after buying a home.

There’s a lot to think about: budgets, car types, running costs, and where to buy. With all the new terms and advice you’ll come across, and it’s easy to feel overwhelmed.

That’s why we’ve put together this guide, to help you plan, do your research, choose the right car, and handle inspection and registration with confidence.

Table of content

Planning & research

Before you even start browsing listings or visiting dealerships, take some time to plan. A little preparation will save you money, stress, and regret later.

Budget & running cost

Before you start shopping, set a realistic budget, one that fits your financial situation today and leaves you some breathing room for emergencies.

A common mistake new buyers make is focusing only on the purchase price or the monthly installment. The true cost of owning a car goes far beyond that.

When setting your budget, factor in all of the following:

• Fuel costs: Ongoing expenses that can add up quickly.
• Insurance: Premiums vary based on the car’s model, age, and your driving history.
• Maintenance and repairs: Routine services, tires, and the occasional replacement part.
• Cleaning and care: Small, regular costs that keep your car looking good.
• Depreciation: The silent cost. Cars lose value over time, especially in the first few years.

Understanding these costs upfront helps you know what you can really afford.

💡For a deeper dive, check out our guide: The Real Cost of Owning a Car.

Your need: What type of vehicle is right for you?

Once you’ve figured out your budget, it’s time to choose the kind of car that fits your lifestyle. Think of this step as matching the car’s purpose to your daily life.

Your shortlist will depend on how you live, where you drive, and what you value most in a vehicle, comfort, space, performance, or efficiency.

And remember: your life can change. If you plan to keep your car for more than five years, choose one that still fits your future plans.

Here’s what to think about when building your shortlist:

Passenger needs and luggage

Your car needs will differ depending on your stage of life. If you’re a single professional or recent graduate, a small hatchback may be perfect, easy to park, light on fuel, and affordable.

But a couple planning for a family will need more space: a compact SUV or minivan with five to seven seats and plenty of cargo room.

Fuel consumption

Fuel can make up as much as 40% of your total car expenses, so it’s worth paying attention to.

If you’re budget-conscious (or just hate wasting money at the pump), look for cars with good fuel economy and learn a few fuel-saving driving habits.

In South Africa, fuel consumption is measured in litres per 100 kilometres (L/100 km). For example, if a car’s rating is 8 L/100 km, it means you’ll use 8 litres of fuel to drive 100 kilometres.

The lower the number, the better for your wallet.

💡Learn more: How to calculate a car’s fuel consumption.

EV or Gas powered

If you’re conscious of your environmental footprint, you might be considering an electric vehicle (EV). While EV adoption is growing in South Africa and charging infrastructure is expanding, these cars are still relatively expensive.

EVs also work best if you live in a house with a garage or a reliable place to charge overnight. Relying on public charging stations can get costly and inconvenient.

Towing capacity

If your job or hobbies involve towing, say, trailers, boats, or campers, make sure your shortlist includes vehicles built for it. Contractors often need pickups or SUVs with high towing capacity.

Popular options include Toyota Hilux and Fortuner, Ford Ranger, RAM, GMC, and Chevrolet models.

Drivetrain

Your choice of drivetrain affects how your car handles and performs:

• Front-wheel drive (FWD): is very common and fuel-efficient. Great for city driving.
• Rear-wheel drive (RWD): is perfect for performance vehicles and towing vehicles. Offers a better driving feel but isn’t ideal for slippery roads.
• All-wheel drive (AWD): Is a good middle ground for mixed weather, gravel roads, or light off-roading.

Choose the system that fits how and where you drive.

Safety

Car safety doesn’t get enough attention, but it’s one of the most important factors to consider when you’re choosing a car. Just as important as fuel efficiency, performance and prices.

Most car makers and independent agencies test vehicles for crash safety and assign ratings from one to five stars.

They evaluate safety across four main areas:

• Adult occupant protection
• Child occupant protection
• Pedestrian and cyclist safety
• Safety-assist technology.

The more stars a car earns, the safer the car. The difference between three and five stars could mean walking away from a crash unharmed instead of suffering serious injury. Even more important when you have kids.

See our shortlists:

• Top fuel efficient cars in South africa in 2025
• Top fuel efficient SUVs under R450k in South Africa

Should you buy new or used? Understanding depreciation

Once you’ve narrowed down your shortlist, the next big question is whether to buy new or used.

Both have pros and cons, and understanding depreciation: how your car’s value drops over time, will help you make the smarter choice.

Buying New

Buying new means peace of mind. You’ll get a factory warranty, the latest technology, and that unbeatable new-car smell.

But there’s a trade-off: new cars lose value fast. Depreciation, the invisible cost of ownership, is steepest in the first five years. In fact, many cars lose 50 – 70% of their value during that time.

So while new cars feel great to drive, they aren’t always the best value for your money.

Buying Used

Buying used (or “pre-owned”) often gives you far better value. You avoid the sharpest depreciation hit and can usually afford a higher model or trim level for the same price as a new budget car.

The sweet spot is often a car that’s four to five years old, old enough to have taken most of its depreciation, but new enough to still have life and reliability left.

That said, buying used comes with responsibility. Always have a trusted mechanic inspect the vehicle before you pay. Look for cars with a full service history and avoid any with signs of serious accidents or poor maintenance.

Many major dealerships also sell certified pre-owned cars that come with limited warranties and inspection guarantees, a safer choice for first-time buyers.

How to Manage Depreciation

You can’t completely avoid depreciation, but you can manage it:

• Choose brands known for holding their value (like Toyota, Volkswagen, or Ford).
• Avoid cars with high fuel consumption or costly parts.
• Keep your own car well maintained and service it on time, resale value depends on it.

Understanding depreciation helps you think long-term, not just about the purchase price but about what your car will be worth when you’re ready to sell or trade it in.

Where to buy cars

Today, there are more ways than ever to buy a car. Each option: dealership, private sale, or auction, has its own pros and cons. Your choice will depend on your budget, confidence level, and how much risk you’re willing to take.

Buying from a Dealership

If you’re buying new, it’s best to buy directly from an authorized dealership. Dealers often offer financing options, maintenance plans, and factory warranties.

When buying used from a dealership, you’ll usually pay a bit more, but you’ll get more structure and protection. Dealers can handle the paperwork, change of ownership, registration and licensing for you, which saves time and stress.

You’re also covered by the Consumer Protection Act (CPA). That means if your car develops a major defect within six months, you can return it or have it repaired under the Act, a big advantage over private sales.

Many dealerships also issue a temporary license (valid for about two weeks) so you can drive legally while your registration and licensing are processed.

Buying Privately

Buying from a private seller can be cheaper, but it requires extra care and patience.
There’s no warranty and no legal protection under the CPA, so the responsibility to inspect and verify everything falls on you.

Here’s how to protect yourself when buying privately:

• Verify ownership and loan status: Ask for the seller’s ID and the vehicle’s NaTIS document to confirm the name matches. If the car was financed, request a settlement letter showing the loan has been paid off.

• Check the service history: Ask for the service booklet or a photo of the license disc. Look for maintenance stamps from authorized workshops, and make sure the mileage matches the current odometer reading.

• Run a VIN check: Use sites like Vindoc, Firstcheck or SAIA vin lookup. These reports reveal accident history, stolen status, and major repairs. If a report says “Salvage,” walk away immediately. (Some reports cost over R300, but it’s money well spent.)

• Inspect the vehicle: Patience pays off in private sales. If you’re patient and do your homework, you can find excellent deals, especially from sellers in a hurry to sell for cash.

How to carry out inspection on the car

To protect yourself, it’s advisable to bring a mechanic during inspection. This way you have someone that can find and diagnose any issues for you. If you don’t have access to a mechanic, here’s how to conduct inspection.

Even if a car looks great online or at first glance, a closer inspection can reveal hidden problems. If possible, bring a qualified mechanic with you, they’ll spot issues you might miss.

If that’s not an option, here’s how to carry out a basic inspection yourself.

• Inspect the body: Inspect the car in a well lit area. Avoid night-time or poorly lit garages, shadows can hide dents, scratches, or paint inconsistencies.
  • Look at the body for dents, rust spots and irregularities.
  • Look at the painting, is there a slight variation in color on different parts of the body?
  • When you check under the bonnet, does the paint there look like it has gotten a new coat? This could be possible evidence of accident repairs.

• Open the engine bay and look for:
  • Clean, dry surfaces (oil leaks or residue are red flags).
  • Corrosion around battery terminals.
  • Belts and hoses that look cracked or worn.
  • Pull out the engine oil dipstick and place a few drops on a clean white cloth. The oil should be light brown and clear, not thick or gritty.

• Listen and Feel During a Test Drive: If you can, always take the car for a test drive. Pay attention to how it feels and sounds:
  • Does the engine start easily and idle smoothly?
  • Any knocking, rattling, or unusual noises?
  • Does the steering feel stable, with no pulling to one side?
  • When braking, does the car stop in a straight line? (If not, it could mean misaligned wheels or brake issues.)
  • Does the gear shift feel natural and responsive?
  • Don’t be afraid to accelerate firmly, this helps you sense how the car responds under pressure.

• Use Diagnostic tools if possible: If you don’t have a mechanic, consider renting a scan tool or visiting a workshop that can plug one in. These tools read the car’s onboard computer and can reveal hidden engine faults or sensor errors.

• Be Patient and Thorough:  Take your time. If something feels off, or the seller seems impatient, trust your instincts. A careful inspection now can save you thousands of rands in repairs later.

And if you want a handy reference, download and use our car inspection checklist before you buy.

Car Inspection Checklist

Where can you find privately sold cars?

You can shop for cars easily online. Popular platforms include:

• AutoTrader.co.za
• Cars.co.za
• Gumtree.co.za
• Facebook Marketplace

Before you start sending inquiries, first browse these sites to compare prices, models, mileage and prices. It’s a great way to gauge the average market value of the car you want.

Once you’ve researched enough listings, you’ll get a sense of the fair price range.
Try to negotiate 10 – 15% below that average value, and if you go above it, don’t stretch too far.

Buying from a Car Auction

Car auctions can be a goldmine for experienced buyers, but they’re not ideal for beginners. Repossessed cars and fleet auctions often offer great deals, but they also come with more risk.

Here’s what to know before bidding:

• Registration: You must register with an auction house to bid. To register, you’ll need your ID, proof of address, and a deposit (usually between R5,000 and R25,000). Some auction houses may also ask for proof of affordability.

• Inspection: You can’t test-drive auction cars, but you can inspect them beforehand. Bring a mechanic if possible. Every car is sold voetstoots, meaning “as is.” Any problems you miss during inspection are your responsibility.

• Fees and Costs: The reserve price is the minimum bidding price set by the auctioneer, this is where the bids start from and each offer increases the price.
  The hammer price is the final accepted bid price, but isn’t your final cost in an auction. You’ll also pay:
  • Auctioneer’s commission (5–6% of the hammer price)
  • Documentation fees (up to R2,000) and,
  • VAT (15%)

Auctions can be a great way to save, but only if you know exactly what you’re doing.
If you’re new to buying cars, stick to dealerships or private sales until you gain more experience.

💡Learn more: How car auctions work

Financing or cash payment

Now that you’ve found the right car and done your inspection, it’s time to decide how you’ll pay for it. Will you pay cash or finance it through a loan?

Each option has its own benefits, the right choice depends on your financial situation and goals.

Paying Cash

If you can afford to pay cash, that’s usually the simplest and cheapest option. You own the car outright, avoid monthly payments, and don’t pay interest.

Cash purchases also give you more bargaining power. Sellers, especially private ones, often prefer cash buyers because the deal closes quickly.

The main drawback? It ties up a large amount of money all at once. If paying cash would drain your savings or leave you without an emergency fund, financing might make more sense.

Financing Your Car

Financing spreads out the cost of your car into manageable monthly payments. You can apply through your bank, a dealership, or a credit provider.

Dealership financing is convenient and often comes with extras like maintenance or service plans. But don’t just accept the first offer, shop around.

Compare interest rates, fees, and repayment terms from several lenders before signing anything.

Smart Financing Tips

Here’s how to make sure your financing plan works for you, not against you:

• Know your monthly budget: Choose a payment you can comfortably afford without stretching your finances.
• Avoid balloon payments: These large final payments might look appealing up front but can cause financial stress later.
• Pay a reasonable deposit: A larger deposit reduces both your monthly payments and total interest.
• Compare interest rates (APR): Even a small difference in rates can save you thousands over the life of the loan.
• Keep the loan term short: Longer terms mean you pay more in interest overall, even if the monthly payments seem smaller. So opt for loan terms below 5 years. Best if you can complete your payment in 3 years.

Vehicle registration and licensing

Once you’ve bought your car, you’ll need to register it in your name and get it licensed.
This step makes the car legally yours, and driving an unregistered vehicle can lead to fines or even seizure.

You must complete registration within 21 days of the sale to avoid penalties. Here’s how the process works in South Africa:

Complete the Necessary Forms

• NCO form: You and the seller must both complete this form to inform the Department of Transport of the sale. It officially transfers ownership from the seller to you.
• RLV form (Application for Licensing of Motor Vehicle): This form is used to apply for registration and licensing under your name.

Get a Roadworthy Certificate

Before you submit the forms, your new vehicle must pass a roadworthiness test at an official testing station. This ensures the vehicle is safe, compliant, and fit for public roads. If the car fails the test, the necessary repairs must be made before you can reapply.

Gather Your Personal Documents

Together with the forms and your roadworthy certificate, take the following to the licensing office:

• Your South African ID
• Proof of address (not older than three months)
• Proof of purchase or sales agreement
• The seller’s ID copy

Having everything ready will make the process quicker and smoother.

Pay the Registration and Licensing Fees

The fees will vary depending on your province, city, and the vehicle’s weight class. Once paid, you’ll receive your NaTIS document (official vehicle registration certificate) and a license disc.

The license disc is valid for 12 months and must be renewed every year.

Safeguard your documents

Store your NaTIS document and roadworthy certificate in a safe place. You’ll need them if you ever sell your car or renew the license.

Stick your license disc on the lower left corner of your windscreen where it’s clearly visible.

💡 If you bought your car through a dealership, they’ll often handle most of this paperwork for you. But if you purchased privately, you’ll need to do it yourself.

Read complete guide: How to register and license your vehicle

Vehicle maintenance: How to make your vehicle last longer

Buying a car is exciting, especially when it’s your first one. The fresh leather smell, the clean untouched interior and exterior and quiet purr of the engine that makes you wish it could stay that way forever.

And it can, if you take care of it:

If you’re like the average South African, you’ll probably keep your car for up to 6 years. Building good maintenance habits early will help your car run smoothly, hold its value, and save you money on repairs down the line.

Follow a Regular Maintenance Routine

Stick to your manufacturer’s service schedule, it’s designed to keep your car reliable and safe. Between those official services, you can do simple monthly checks yourself:

• Oil and coolant levels: Low fluids can cause serious engine damage.
• Air filter: A clean filter helps your engine breathe and saves fuel.
• Tyre pressure: Underinflated tyres wear faster and use more fuel.
• Battery: Check for corrosion on the terminals and make sure it’s holding charge.

These small tasks take minutes but prevent expensive problems later.

Do Seasonal and Annual Checks

Every few months, or at least once a year, schedule a more detailed inspection. Ask your mechanic to look at:

• Brake pads and discs
• Shock absorbers and suspension
• Transmission and brake fluids
• Tyre tread depth
• Spark plugs and wiper blades

Doing these checks regularly keeps your car in top condition and reduces the chance of sudden breakdowns.

Pro Tip

Keep a simple maintenance log, even a notebook or phone note works. Record service dates, oil changes, tyre replacements, and any repairs.

When it’s time to sell, that record can help you command a higher resale price and build buyer trust.

Earn with your car through carsharing on Tarlen

If you’re looking to turn your car from a fixed cost into a money-maker, you’ve got an exciting option: carsharing. Through Tarlen, you can use your vehicle to generate income while helping others get around.

Earn with your car on Tarlen

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