Insurance And Your Used Car in South Africa

April 24, 2013 - PRLog -- The used car market in South Africa is fast becoming a burgeoning one as people are buying used more often in an economy that is less than perfect, and often used is more attractive than new for a variety of reasons. New can still be a choice option, but cars devalue with time, and belts are being tightened, therefore buying used as opposed to new is becoming an increasingly attractive alternative.

The price you pay for your used vehicle and the value you get are not necessarily one and the same. When you insure a used car in South Africa you might find that you have made a poor choice and been ripped off by the seller. No matter what price you paid for the car, most insurers will cover you for no more than the car’s retail value.

If you are looking to establish a fair price – take note that this has never and will never be an exact science especially when you are buying used cars for sale (http://www.cars.co.za/); a vehicle’s price is usually determined by a range of factors, and this includes anything from the make, model and mileage to the state of the car and the demand for it in the marketplace.

The CPA – otherwise known as the Consumer Protection Act entitles you the consumer to the fair pricing of goods and services, including those when buying used vehicles – therefore if you are charged an unreasonable or unfair or unjust price the National Consumer can impose a fine of up to 10% of its turnover on a supplier that charged an unfair price.

One way of finding out whether you have been charged a fair price or not is from the TransUnion Auto Dealers’ Guide when you are looking at how much your car is worth and prices (and when prices are set) for used cars – but this is a guide – nothing more and nothing less -  and certainly not cast in stone. It is common practice for the insurance industry to use this guide to determine the value of your car and for some insurers this guide is their “Bible” when it comes to valuing vehicles.

The used car market in South Africa is big business and when it comes to insuring your used car – it makes no difference at all what price you paid for it – most if not all insurance companies will insure our car for no more than the car’s retail value.