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The new car, fridge or TV you've got your eye on is exactly what you need! But it comes with a price tag that you just can’t afford. We've got a plan! Our smart money hacks will save you mega bucks on four big ticket items so that you can buy the perfect home, car, appliance or tech without busting your bank balance.
Save money when you buy a vehicle
New wheels always cost a bit of money, but you don’t have to go into financial distress to get the vehicle you need! You can save hundreds of thousands of rands on the new car purchase price if you do one or more of the following:
Buy a used vehicle
We compared purchase prices for new vehicles with pre-owned (no older than five years) for the cheapest models of two SA top sellers – the Toyota Hilux (double cab) and VW Polo Vivo.
Hilux
- New: R528 800
- Used: R359 900
- Savings if you buy used: R168 900
Polo
- New: R266 600
- Used: R179 900
- Savings if you buy used: R86 700
The savings are substantial. You won't have a brand new out-the box vehicle if you buy pre-owned, but you also won't be overspending! Keep in mind that when you buy a new car it loses value of around 9 to 11% the minute you put your foot down and drive it, so even your new Hilux would be worth R52 000 less in a few minutes!
Worried about buying second hand? Look for a reputable dealer, have the car sent for a roadworthy test, such as with DEKRA, and take your time to view and test drive the car. These tips from Arrive Alive will also help you buy a reliable and roadworthy used car.
Save for a large deposit or pay cash upfront
The lower the amount you have to finance for your vehicle purchase, the lower your interest charges, and the lower your total cost. Using a 5-year repayment term and interest rate of 10.5%, this is how much you can save on your Polo with a new car price of R266 600 if you put down a deposit:
- Finance the full purchase price and pay: R 5 730 per month, or R343 816 in total
- Pay R60 000 as a deposit, finance R206 600 and pay: R4 441 per month, or R326 438 in total
- Savings if you put down a R60 000 deposit: R1 289 per month, or R17 378 in total
We used 1Life Insurance’s car finance calculator to work out these savings.
Buy what you need
You don’t need to keep up with the Khumalo's! New gadgets, features and styles are tempting, but they come at a price. Be ruthless about what you really need and buy only that. And when the shiny new models tempt you, think of what else you could do with half a million rand, the difference between the cheapest and most expensive Hilux! How about a holiday overseas for the family, a deposit on a second home, even another car, for the soon to be 18-year old!
Save when you buy an appliance
Your fridge, freezer or washing machine have seen better days! When you know it’s time to replace you can save money by:
Saving the purchase price or putting down a deposit
A 250l fridge freezer costs around R7 500 to buy new. Pay it off over 12 months, at an 11% interest rate, and spend a lot, or put down a deposit and save a lot!
- Purchase price for a cash payment: R7 500
- Finance the full amount and pay: R 815 per month, R9 780 in total
- Pay a deposit of R3 750 and finance R3 750, and pay: R445 per month, R9 090 in total
Finance all or half the purchase price and you spend at least R1 500 more than the purchase price because you are paying interest! Unless it is a real emergency, save up for the full purchase price.
Buy second hand
You can save money if you buy a second-hand fridge/freezer, but you need to be sure of the quality. Inspect in person before you buy.
You can find good deals at stores such as Cash Crusaders and Cash Converters. Browse Facebook Marketplace and keep an eye on neighbourhood WhatsApp groups for second-hand appliances on sale.
Save when you buy tech
Save for the purchase price
Want that new model big screen TV? It’s R20 000 on special. Save up for that (R2 000 a month for 10 months) and pay no interest, or:
Finance R20 000 at 11% for 12 months and pay: R1 943 per month, a total of R23 316
Saving for the full purchase price saves you R3 316 in interest and fees. That’s not a bad amount for an end of year party with your fully paid for TV taking centre stage!
Buy second hand
Tech geeks love the latest models of their favourite TVs and phones! They buy when the newest model is in stock and sell their previous model. Which means you can get second hand tech at a reasonable price and of reasonable quality, but always remember to inspect before you buy!
We found a big screen TV for sale at R14 000, versus the new price of R20 000. Stores such as Cash Crusaders and Cash Converters are also good options for good quality used tech items and you can browse WhatsApp groups and Facebook Marketplace for more bargains.
Buy what you need
If you don’t have the funds for the 75 inch TV but really want a TV today, buy a smaller model and save for an upgrade. You may be able to save enough for the latest model with new features, which will more than make up for a smaller screen for a few months.
Save money when you buy a home
A beautiful new home can be within your budget, if you have the patience and discipline to:
Save, as much as you can, for a deposit
The more you put down as a deposit upfront, the lower your home loan amount, which means a more affordable monthly repayment. Saving a large amount for a deposit, such as R100 000, will take time but the difference it makes to your finances is significant! Here’s the calculation for a home costing R1.3 million, assuming a 20-year home loan at 10.5% interest:
Finance on the full purchase price of R1.3 million
- Monthly repayment: R12 979
- Total paid after 20 years: R3.1 million
Save R100 000 for a deposit and take a home loan for R1.2 million
- Monthly repayment: R11 981
- Total paid after 20 years: R2.875 million
- Savings compared to a home loan of R1.3m: R998 per month on repayments, R225 000 in total
Other ways to save
The minute you start thinking about one way to save, you often come up with another. Here are some more options to save you money.
Negotiate: prices and interest rates. You may just get a good deal on the purchase price, especially if you have cash in hand! And it is always in your best interest to see how you can qualify for a lower interest rate.
Trade in used cars and tech for new: unless you buy privately, a car trade-in is a good way to reduce the full purchase price of a new car. And retailers of many tech items regularly offer trade in deals that will also save you money!
Ask for demo models: retailers all use demo models to show potential buyers how good the product is, ask for these demo models that always come at a discount but are in good condition!
Track special offers: the big ticket items we researched had some special offers, even the cars (not the homes!). Be patient and wait for these and you can save even more!
Shorten the repayment period: Your payments may be higher, but you will save on interest charges! Just make sure there are no penalties if you change midway through the contract term.
Go to auctions: Auctions can be a great place to pick up bargains. Look for auctions of household items and you could find the bargain of the year!
Make Black Friday a bonus day: Got your eye on something? Save now and look out for a Black Friday specials to save even more!
Add up your savings
Using just one of the ways to save money can put an extra few thousand rands in your pocket. Why not try a few the next time you need to buy, or are planning to buy a big ticket item? It could be just the budget bonus you need!