Beginner's Guide to Buying a Car in South Africa - Part 3

7. Insurance and Other Ownership Costs

We touched on insurance in budgeting, but it's worth reiterating: car insurance is essential. In South Africa, it's not legally required to have insurance if your car is fully paid, but if you financed the car, the bank will require comprehensive insurance (because technically, the car is their asset until you pay it off). Even if you bought the car cash, going without at least third-party insurance is a huge risk – if you cause an accident, you could face crippling financial liability. Comprehensive insurance, while more expensive, covers your car against accidents, theft, fire, and more, giving you peace of mind.

Shop around for insurance quotes on the specific model you're buying. Insurance premiums vary based on the car's value, your age, where you live, your driving record, and even whether the car has security features or is kept in a garage at night. Some insurers and comparison tools (like Hippo.co.za) can help you compare premiums. Also consider add-ons like credit shortfall cover (also known as gap cover) if you're financing – this covers the difference between the insurance payout and what you owe the bank if your car is stolen or written off. In a country with high car theft rates, this can be a lifesaver if, say, you still owe R150k on the car but it's only worth R120k at the time of loss – without shortfall cover you'd have to pay the bank the R30k difference out of pocket.

Other Recurring Costs

Aside from insurance, keep in mind other recurring costs:

• Fuel: As mentioned, fuel will likely be your biggest monthly running cost after the loan and insurance. Plan your fuel budget according to the car's consumption and your expected mileage.
• Maintenance & Repairs: After any included service plan expires, you'll be paying for maintenance. Regular servicing for most cars is every 10,000 to 15,000 km (or annually). Budget a few thousand rand for each service. Also be ready for wear-and-tear items: tyres need replacing every few years, brake pads perhaps every 20,000-40,000 km, battery every 3-5 years, etc.
• Vehicle License Renewal: Each year before the disc expires, you'll pay a license renewal fee. It's relatively small (hundreds of rand), but it must be done on time to avoid penalties.
• Toll fees: If you live in Gauteng, note that the controversial e-tolls system has been scrapped as of 2022. However, there are still traditional toll roads elsewhere – factor those costs in if you'll use those routes frequently.

8. Closing the Deal: Paperwork and Local Regulations

You've found the car, done the checks, and negotiated a price – now it's time to close the deal and handle the paperwork. South Africa has specific procedures to transfer ownership of a vehicle, so ensure you follow these steps:

Negotiation and Final Price

First, don't be shy to negotiate the price or ask for extras. Dealers often have a little wiggle room, especially on used cars. Even for new cars, you might not get a cash discount (margins are thin), but you could negotiate for extras – ask if they can throw in things like smash-and-grab window film, a tank of fuel, alloy wheels, or extended service plans at no extra cost. With private sellers, there's often room to haggle based on any issues you found during inspection. Settle on a price that both parties are happy with.

Read Before Signing

Whether you're signing a purchase agreement at a dealership or a simple receipt of sale from a private seller, read everything. At a dealership, you'll have a sale contract and, if financed, a separate finance agreement. These documents can be long, but pay attention to all terms. Look for any added admin fees, extended warranties, or insurance products you didn't explicitly ask for. Ensure any promises the salesperson made are written down in the contract. If you don't understand something, ask questions – it's their job to explain.

Transfer of Ownership

After purchase, the car must be transferred into your name at the licensing department. This is where the bureaucracy comes in. By law, you have 21 days to register the vehicle after the sale. For a dealer sale, the dealer usually handles the registration and gives you the new license disc and registration papers (often charging an admin fee for it). For a private sale, it's the buyer's responsibility.

You will need to submit: the Roadworthy Certificate (RWC) for the car, the existing registration paper of the car, a proof of purchase/payment, your ID document, your valid driver's license, and proof of address (like a utility bill). At the licensing office, you'll pay a registration fee (usually in the range of R500–R1000 depending on the vehicle). They will then update the system to show you as the owner.

Roadworthy Certificate (RWC)

In South Africa, a roadworthy test is required when a vehicle changes ownership. If you're buying used from a dealer, they typically provide a recent RWC for the car as part of the sale. For a private sale, the seller should provide you with a valid RWC. The RWC is issued by approved testing centers (e.g., DEKRA has many). It's basically a basic safety check – lights, brakes, suspension, bodywork, etc., to ensure the car is legally safe to drive. Make sure the RWC is not older than 2 months. Note: brand new cars are exempt from roadworthy at first registration, since they're obviously new.

9. Final Tips for New Car Owners

Buying a car is a big achievement, especially the first one. A few closing pieces of advice for beginners in South Africa:

• Take It Easy: With a new (or new-to-you) car, take some time to get used to it. Practice parking and emergency braking in a safe area so you know how the car handles. If it's second-hand, you might consider doing an oil change or service if the next service is not far off, just for peace of mind.
• Essential Accessories: Get some basics for your car – a phone mount (for navigation use, since using your phone in hand while driving is illegal), a decent tire pressure gauge and maybe a portable pump, jumper cables, and a first aid kit. Also, note that by law you're supposed to have a red warning triangle in your car for emergencies.
• Security: Unfortunately, car theft and break-ins are realities. If your car didn't come with an alarm or immobilizer, consider installing one or an anti-theft device. Always park in safe, well-lit areas. Never leave valuables visible in the car when parked. In some areas, smash-and-grab window tint film is popular – it makes the window harder to break and holds the glass if shattered.
• Drive Safely: South African roads can be challenging for newcomers – we drive on the left side, and traffic can get hectic. Be cautious at first and obey speed limits. Also, be mindful of minibus taxis; they have their own driving style. Keep a fair following distance and expect the unexpected.
• Enjoy the Freedom: Despite all the responsibilities and costs, owning your first car is an incredible feeling. South Africa has so much to explore – from coastal drives to mountain passes. With your own set of wheels, you have the freedom to hit the open road and go wherever you please. Just make sure to keep your car maintained and your paperwork up to date, and you'll have years of happy motoring ahead.

Recap

Buying a car involves a lot of steps, but by following this guide, you've covered the crucial points: budget wisely, understand your finance, do your research, inspect thoroughly, handle the paperwork, and drive responsibly. Welcome to the road, and happy driving!