'Don't overspend on a car purchase - smaller and cheaper equals better value!'

There seem to be lots of good reasons to buy that new car at the moment - trade-in assistance, guaranteed buybacks, balloon payments, low interest rates...
But how big a role should any of these factors play in your decision?
Bruce Whitfield gets valuable pointers from Warren Ingram, personal financial adviser and executive director of Galileo Capital.
RELATED: 'Used car prices are plummeting. Sellers are desperate and willing to negotiate'
One key piece of advice: Always try to buy secondhand or at least older demo cars.
And when it comes to financing, even if you take a low interest rate deal, ensure that you pay a big deposit.
RELATED: Best 2nd-hand car to buy for less than R80 000
Ingram admits that's he's just taken on a financing deal himself to buy a car, but at a rate below inflation.
The calculation I do in my head... is can I do better with that money without taking excessive risk over the same time frame because if I can, then I should keep that money and invest it. But if I can't... then I should definitely pay off the car with cash.
Warren Ingram, Personal financial adviser and executive director - Galileo Capital
I'm fairly confident in my ability to do a bit better than 1.5% a year over the next few years, and that was the reason for financing the car.
Warren Ingram, Personal financial adviser and executive director - Galileo Capital
Having said that, I didn't do any of the other fancy stuff that these car companies offer... I definitely didn't take a new car... I definitely didn't do balloon payments or any of those things where they give me payment holidays or guaranteed value...
Warren Ingram, Personal financial adviser and executive director - Galileo Capital
He says those options create a false sense that the buyer is getting a car relatively cheaply, while in fact they'd be overpaying.
Listen to Ingram's money-saving advice in the audio below:

Source : https://www.123rf.com/photo_31097573_closeup-of-piggy-bank-and-key-on-car-hood.html?term=save%2Bfuel&vti=mlhqnvuxigvsgp5158-2-2
More from Personal Finance with Warren Ingram

Economy in 2021: 'Expect a better year for South African assets'
An economist expects China growth at 9.5%, US money-printing, rising metal prices and trade- and current-account surpluses in SA.
Read More
Retirement funds in SA are changing – new laws come into effect on 1 March 2021
Bruce Whitfield asks personal finance advisor Warren Ingram to explain in detail the new laws affecting provident funds.
Read More
How to buy your very first share – even if you have mere cents to invest
You can buy R1 (or even one cent) worth of shares. "The key to getting started is to get started," says Charles Savage.
Read More
Buying a new car may be possible – even if you can’t afford the monthly payments
Need new wheels? WesBank’s Lebogang Goaaketse discusses a popular method for making repayments more affordable.
Read More
Make your retirement savings last longer
Personal finance advisor Warren Ingram on ensuring you don’t run out of money before you run out of life.
Read More
Yes, money can 'buy' you happiness! But invest in experiences, not things
There's also a magic number beyond which more money doesn't equate to more happiness, says personal finance guru Warren Ingram.
Read More
Stressed out? Playing for time when you have a home loan but no income
Warren Ingram explores the options, focusing on case study of guest house owner whose investments equal outstanding bond amount.
Read More
Feel you've missed the money boat? Don't fall into the FOMO investment trap!
Bruce Whitfield and personal finance expert Warren Ingram get to grips with why perhaps you shouldn't, if you didn't...
Read More
What does the contentious Regulation 28 mean for your retirement funds?
On The Money Show, finance expert Warren Ingram explains why he believes the pros of the regulation outweigh the cons.
Read More
Supersaver Julia has changed lives, and she can change yours! – Bruce Whitfield
Need the inspiration to save? The Money Show’s Bruce Whitfield interviews “Supersaver Julia” at around 7:15 pm tonight.
Read More