Imagine how expensive it would be to replace cars every few months. It’s something the typical South African can only dream about. For most, renting a car is the most cost-effective method of regularly swapping cars. Even then, you’ll be stuck using second hand vehicles, not new ones. Unless you’re super-rich, driving the latest model cars is almost impossible.
Or is it?
In this post, we explore who may be in the market to change cars on a regular basis, why you may want to do the same, things to consider, and the alternatives at your disposal.
Who Wants to Drive a New Car Every Few Months?
Theoretically speaking, changing your car every few months sounds like a fantastic idea. But seeing as we like to think of ourselves as realists, we think you should be asking yourself these questions instead: Is it realistic to aspire to frequently drive a new car? Is it practical, especially when it comes to affordability?
What You Need to Consider Before Swapping Cars
When factors such as depreciation, taxes, and more are considered, changing to a different brand new car on a regular basis will cost a fortune. Here are some things to think about:
1. Loan Settlement
Think you’ll be saving money with an early loan settlement? Think again. If you decide to pay off your loan early, your bank or loan provider will typically charge you 20% of the interest rebate plus a 1% fee on the whole amount that’s financed.
2. Depreciation
Over the length of ownership, a car steadily depreciates in value on a monthly basis. In fact, as soon as your car leaves the showroom, it depreciates, at minimum, 10% of the price you paid for it. That means you will be losing, at the very least, 20% of whatever you spent if you buy a new car every six months. Yikes.
3. Selling Your Car
If you’ve ever tried to sell your car, you probably know how hard it can be to get a good price. And don’t think this will be any different, because your wheels are fresh out of the show room.
The first 6 months are the hardest to sell an automobile. If your old car’s pricing is comparable to a new one, people will buy the new one. So you’ll need to price it lower than what you spent.
And that’s not all. There’s a long list of additional factors to consider before you can even think about buying into the fantasy of financing a new car twice a year.
FlexClub: Your Answer to Driving How and When You Want
In South Africa, swapping cars is almost unheard of. Because of the associated costs, hardly anyone ever does it, because of the amount of money they’ll be losing every few months. Even for the wealthy, it’s not really worth it. But there’s a new, budget-friendly way for South Africans to swap cars.
FlexClub is South Africa’s leading car subscription platform that allows members to shop for cars online, in the most flexible manner possible.
Members get to drive their chosen vehicle, hassle-free, simply paying an all-inclusive monthly fee that eliminates the need for insurance or maintenance. Vehicle subscriptions provide the most flexibility, enabling members to easily return or change vehicles.
For more information and answers to your most frequently asked questions, visit the FAQ Page.
