Earn-a-Car https://www.earnacar.co.za Rent to own a pre-owned car Mon, 17 Sep 2018 07:00:16 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 How to get the most Value on a Car Trade-In https://www.earnacar.co.za/how-to-get-the-most-value-on-a-car-trade-in/ Mon, 17 Sep 2018 07:00:16 +0000 https://www.earnacar.co.za/?p=52851 At one point or another, car owners will question whether they should trade their car in for a newer model or whether they should sell it privately. If you are planning to trade in your car, then you need to make sure you know what it is worth. Here is how to get the most [...]

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At one point or another, car owners will question whether they should trade their car in for a newer model or whether they should sell it privately. If you are planning to trade in your car, then you need to make sure you know what it is worth. Here is how to get the most value on your car’s trade-in:

  • Step 1: Be Honest about the Condition of your Car

Take a walk around your car and inspect it for dents and scratches. Also, check the interior of your car for any obvious faults. Pretend that this is the first time you are seeing your car and you are inspecting it as if you want to buy it from somebody else. Does it need to be repainted, does it need panel beating, and does it need maintenance work?  How much thread is left on the tires?  All of these aspects will make a difference in the amount of Rand’s you will be able to get in your car when you sell or trade it in.

  • Step 2: Research your Vehicle in the Private Market

You will need to know the year, make, model and mileage of your car. You will also need a general condition analysis, like the one that you did in step 1, to get an idea of what you can expect for your car. Seeing what other private buyers expect to pay for a vehicle can help you make a ballpark estimation on what a dealership will offer you. Write the range of prices down for cars with the same year, make, model, mileage and conditional level as well as the average prices.

  • Step 3: Contact Car Dealerships for an Appraisal

Call at least three car dealerships and ask them for an estimated phone appraisal. Car dealers will try to get you to bring the car in but insist on an estimation over the phone. Ask to speak to the used car manager and tell them you have inspected your car inside and out so that they know you have an idea of what you are talking about. Write down the amount that is given to you by the three car dealerships.

After completing these three steps, you will have a good idea of what your car is worth in its current condition.  If you are not satisfied with the amount offered, carefully weigh the costs of making improvements to your car so that you can possibly fetch a higher asking price.

Are you in the market for a new or used car? Then consider rent-to-own vehicle financing from Earn-a-Car. Contact us for more information today.

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SA Banks are Making Car Loans even more Difficult to get https://www.earnacar.co.za/sa-banks-are-making-car-loans-even-more-difficult-to-get/ Mon, 10 Sep 2018 07:00:28 +0000 https://www.earnacar.co.za/?p=52844 Many banks in South Africa are cutting back on credit extensions. Johan Burger, CEO of FirstRand, attributes consumer affordability issues to the dilemma. Last year, more South Africans took on mortgages, but unsecured lending in the form of personal loans and credit cards were declined. Burger said that credit extension is going to be low [...]

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Many banks in South Africa are cutting back on credit extensions. Johan Burger, CEO of FirstRand, attributes consumer affordability issues to the dilemma. Last year, more South Africans took on mortgages, but unsecured lending in the form of personal loans and credit cards were declined.

Burger said that credit extension is going to be low for the next few years unless South Africa sees some real recovery in economic growth. Banks want to be able to lend, but the affordability levels of consumers are decreasing which increases a bank’s risk of getting their money back.

This phenomenon isn’t a South African issue. According to Business Insider, banks have started to tighten lending standards for prime and sub-prime borrowers as well as their lending standards for prime and sub-prime car loans. This trend started in 2016 when banks became too lax in their underwriting terms, which boosted sales of new and used cars to record levels. This increased their risk, and sub-prime car loans soon started running into trouble and banks began to tighten their lending standards.

With consumers increasingly struggling to get bank loans for cars, many people are opting for rent-to-own vehicle finance. With this type of car financing, vehicle-financing companies don’t research your credit history and you don’t have to take out a new line of debt. If you have been blacklisted in the past or denied a car loan from a bank, then it is worthwhile to contact a rent-to-own vehicle-financing company such as Earn-a-Car. By following a few simple steps, you could be driving away with a new set of wheels in no time. Contact Earn-a-Car for more information today.

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Rent-To-Own: Save Instead of Having a Car Loan! https://www.earnacar.co.za/rent-to-own-save-instead-of-having-a-car-loan/ Mon, 03 Sep 2018 07:00:28 +0000 https://www.earnacar.co.za/?p=52839 So, you need a car but you’re not sure whether you should buy a car or opt for rent-to-own vehicle financing. Most vehicle owners have been ‘purchasers’ in the past and while they know about rent-to-own car financing, they’re not quite sure if that’s a better option for them. The way people rationalise buying a [...]

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So, you need a car but you’re not sure whether you should buy a car or opt for rent-to-own vehicle financing. Most vehicle owners have been ‘purchasers’ in the past and while they know about rent-to-own car financing, they’re not quite sure if that’s a better option for them.

The way people rationalise buying a car is that they like the feeling of owning something. Once they have paid off their car loan from the bank, they know that the car is theirs.

Interestingly, as soon as you drive a car off the dealership’s lot, it starts depreciating. When you buy a new car, you also own this decrease in value over time. Selling a car privately also comes with a different set of risks:

  • There are many fraudsters in the industry,
  • You will be responsible for finding prospective buyers, and
  • You will be responsible for making sure that they are legitimate buyers.

It is less hassle to take the car that you are selling into a dealership for a trade-in. However, if you really want to get every Rand that your car could reel in, then selling it privately is usually a better option.

You can avoid all these struggles, including the high-interest rates that banks charge on car loans if you opt for rent-to-own vehicle financing. Rent-to-own companies like Earn-A-Car offer a wide range of vehicles that have been checked by accredited mechanics. When you opt for rent-to-own, you will also save time because the approval process is quick and easy.

Need more information about rent-to-own vehicle finance from Earn-a-Car? Then contact us today.

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The Pros and the Cons of a Rent-to-Own Car Finance Option https://www.earnacar.co.za/the-pros-and-the-cons-of-a-rent-to-own-car-finance-option/ Mon, 27 Aug 2018 07:00:22 +0000 https://www.earnacar.co.za/?p=50064 Rent-to-own car finance is becoming increasingly popular both across the globe and in South Africa. If you are looking for easy vehicle finance, then you need to seriously consider a rent-to-own option. Here are a few pros and cons you need to know: The Pros No Loans from a Bank: Traditional vehicle finance from a [...]

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Rent-to-own car finance is becoming increasingly popular both across the globe and in South Africa. If you are looking for easy vehicle finance, then you need to seriously consider a rent-to-own option. Here are a few pros and cons you need to know:

The Pros

  • No Loans from a Bank:

Traditional vehicle finance from a bank is linked to the country’s interest rate. If the interest rate increases, so too do your monthly repayments. Banks generally charge much higher interest rates for car loans than for most other loans, especially if compared to home loans. With a rent-to-own car finance option, you will be paying a fixed, interest-free payment each month for the duration of your contract.

  • No Lengthy Approval Process:

A poor credit profile can limit your chances of getting a car loan from a bank. With rent-to-own car financing, the only factors that are considered are whether you can afford the monthly installment and the upfront admin fee.

  • Access to high-quality Pre-owned Cars:

At Earn-a-Car, all our vehicles are thoroughly checked by qualified mechanics.

  • Affordability:

You’ll get to own your car at the end of the rental period with a nominal buy-out fee, factoring in the upfront administration fee that you paid at the beginning of the contract period, making it a cost-effective option for most people.

  • Flexibility:

With rent-to-buy vehicle financing, you can terminate your contract at any time by giving one calendar month written notice.

The Cons

  • Personal Finance Review:

If banks or other traditional financial institutions don’t approve your car loan application, it may be because the purchase of the car would leave you with too little monthly disposable income. Carefully consider your monthly expenses and overall budget to make sure you can, in fact, afford the monthly car repayments.

  • Risk of Repossession:

Similar to the terms and conditions of a bank, your car will be repossessed if you do not pay the monthly installments.

  • Capped Mileage:

Some rent-to-own car companies cap the amount of mileage you may travel. So, if you want to use the car for business purposes then you need to ensure the monthly distance you travel is factored in,  in your lease agreement.

Want to find out more about rent-to-own vehicle financing? Then get in touch with Earn-a-Car today.

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How Traditional Car Financing Can Become Unaffordable https://www.earnacar.co.za/how-traditional-car-financing-can-become-unaffordable/ Mon, 20 Aug 2018 07:00:53 +0000 https://www.earnacar.co.za/?p=50061 Walking through one of the many auto cities and the shopping centre’s in South Africa, it is hard not to notice the eye-catching vehicle displays and advertising that makes you wish you owned that brand new vehicle. Car manufacturers spend millions advertising the latest models with luxurious features, and financing companies are increasingly offering alternate [...]

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Walking through one of the many auto cities and the shopping centre’s in South Africa, it is hard not to notice the eye-catching vehicle displays and advertising that makes you wish you owned that brand new vehicle. Car manufacturers spend millions advertising the latest models with luxurious features, and financing companies are increasingly offering alternate finance options that make it a lot easier for you to drive away in a brand new vehicle within an hour.

Financers are now offering deposit-free car payment plans and lower monthly premiums with a higher balloon payment and increasing the contract period of the vehicle over many more months. Personal loans and credit card debt are contributing to the national debt crisis, so too is vehicle finance debt.

When buying a new vehicle, you need to consider the maintenance and insurance costs involved, especially the fuel consumption. Not only do luxurious cars need to be serviced by manufacture approved dealerships, but the parts can be more expensive too, especially when imported. Most often, a new vehicle with a high retail value will incur a higher insurance premium than a pre-owned car with a lower market value.

Another consideration is that if banks increase interest rates, the monthly installment you are currently paying will also increase, which can quickly make your existing car finance agreement, unaffordable.

The solution?  A rent-to-own vehicle finance plan, where your monthly installment is fixed for the duration of the contract period and does not change in line with inflation.

At Earn-a-Car, you’re able to choose from a wide range of high-quality pre-owned cars at affordable prices. If you have a poor credit record, we’re able to help you too.  Whether you are looking for car finance or simply want a more affordable car financing solution, get in touch with Earn-a-Car today.

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Increasing Inflation and Petrol in South Africa- Make sure your Car Installments don’t Increase too. https://www.earnacar.co.za/increasing-inflation-and-petrol-in-south-africa-make-sure-your-car-installments-dont-increase-too/ Mon, 13 Aug 2018 07:00:56 +0000 https://www.earnacar.co.za/?p=50056 The petrol price in South Africa reached a record high at the beginning of July 2018, with 95 Octane now costing R16.02 inland and R15.43 in coastal regions. Petrol rose to 82 cents a litre for both 93 and 95 octane fuel and the diesel price increased between 85 and 87 cents per litre, with [...]

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The petrol price in South Africa reached a record high at the beginning of July 2018, with 95 Octane now costing R16.02 inland and R15.43 in coastal regions. Petrol rose to 82 cents a litre for both 93 and 95 octane fuel and the diesel price increased between 85 and 87 cents per litre, with illuminating paraffin shooting up by 82 cents.  It’s hard to believe that in July 2017, just one year ago, 95 Octane cost R12.86 per litre inland.

One of the contributing factors to the fuel increase is the depreciation of the rand to the US dollar because the Crude oil used in petrol is purchased using US dollar.   From 25 April to 31 May 2018 the exchange rate was R12,50/1$ compared to R11,97 the previous month. According to the Department of Energy, this led to a higher contribution to the Basic Fuel Prices on the various fuel types that are used in South Africa.

Unfortunately, if market conditions continue on the current path, vehicle owners need to anticipate more petrol price increases.

Fuel is not the only price hike that South Africans are worried about. In April 2018, the Pietermaritzburg Agency for Community Social Action published its Food Barometer, which showed the impact of the 15% VAT hike on food prices. According to the organisation, the increase led to a 6,5% jump in the VAT paid on the group’s nutritional basket, which consists of food items that an adult would need for a nutritionally complete diet.

Many people simply cannot afford these price increases and are not finding relief anywhere. When the price of petrol increases, the price of food and the general cost of living, increases too.

To lessen the burden of increasing price hikes, invest in a rent-to-own car finance plan, where, Instead of accumulating more debt, you have a small, reliable and fuel efficient vehicle from Earn-a-Car.

If you are interested in rent-to-own vehicle finance, then contact Earn-a-Car today.

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What to Consider when Choosing Car Insurance https://www.earnacar.co.za/what-to-consider-when-choosing-car-insurance/ Mon, 06 Aug 2018 07:00:35 +0000 https://www.earnacar.co.za/?p=50053 With so many companies selling car insurance, it’s tough to know which one to go for. Should you opt for the company with the lowest premium, the one with the most add-on benefits, or the one spending money on fixing potholes and helping direct traffic? In our latest blog post, our easy vehicle finance company [...]

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With so many companies selling car insurance, it’s tough to know which one to go for. Should you opt for the company with the lowest premium, the one with the most add-on benefits, or the one spending money on fixing potholes and helping direct traffic? In our latest blog post, our easy vehicle finance company lists the options you should consider when choosing car insurance:

  • Voluntary Excess

Many people only consider the monthly insurance premium without paying enough attention to the excess they will have to pay if they make a claim. Insurance companies offer a ‘voluntary excess’ which means that clients can choose how much excess they are willing to pay if they make a claim. The higher your voluntary excess, the lower your monthly premium should be. While many people opt for a lower monthly premium and higher excess,  it is very important to carefully consider whether you will be able to afford the excess if you are in an accident and need to claim. Make sure you have the excess amount available in a savings account each month so that you do not have to go into debt if you need to claim and pay for your excess.

  • Retail Value vs. Market Value 

You can insure your car for its market value or its retail value. Your monthly insurance premium will be lower if you opt for the market value, but this is not a wise choice because if your car is written off and you are only reimbursed for the market value, then you will not be able to afford to replace the vehicle for the one you had as the retail value is usually higher than the market value.

  • Insuring Secondary Drivers

If other people will be driving your car, especially your spouse or other family members with valid drivers licenses, make sure that they are nominated as secondary drivers. Also, be sure to ask if your insurance premium will change if the secondary driver is a 21-year old versus a 45-year old, for example.

These are only some of the options to consider when choosing car insurance. If you are interested in rent-to-own vehicle finance, then contact Earn-a-Car today.

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Where Is The Best Place In SA To Buy A Used Car? https://www.earnacar.co.za/where-is-the-best-place-in-sa-to-buy-a-used-car/ Mon, 23 Jul 2018 07:00:31 +0000 https://www.earnacar.co.za/?p=48589 Looking for a used car in South Africa? Here are a few places that you can check out to get the best deal possible: Online Forums And E-Commerce Websites You can buy a used car directly from a seller on e-commerce websites and online forums. The benefit of this is that you can negotiate the [...]

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Looking for a used car in South Africa? Here are a few places that you can check out to get the best deal possible:

  • Online Forums And E-Commerce Websites

You can buy a used car directly from a seller on e-commerce websites and online forums. The benefit of this is that you can negotiate the price with the seller, but the drawback is that you may not be getting a good deal as the seller would be inclined to hide faults on the car. Another drawback is that a private seller won’t be able to give you vehicle finance, so this is something you will have to negotiate with a bank yourself.

  • Used Car Dealerships

Used car dealerships offer a wide variety of cars and they can usually arrange vehicle finance with the banks for you. The drawback of this is that you will have to pay the high-interest rates that go hand-in-hand with car loans from banks. If you have a poor credit history, then a bank may decline your loan application.

  • Rent-To-Buy Car Finance Companies

Earn-a-Car offers rent-to-buy car financing. When you complete the online approval form, we will contact you to finalise the agreement and you will be able to pick up your car within 24 hours.

We have a wide range of reliable second-hand cars for you to choose from, and all of the vehicles are roadworthy. Our experienced mechanics check all of the cars we sell to make sure you will have many safe miles. What you will need when you apply:

  • Upfront admin fee plus first month’s pro-rata rental – R16 500
  • Proof of income
  • South African citizenship
  • Proof of identification
  • Valid driver’s license

We service Gauteng and Witbank. Some of the benefits of getting a second-hand car from Earn-a-Car include the following:

  • Comprehensive accident cover
  • Vehicle Tracking
  • Comprehensive vehicle warranty cover to give you peace of mind
  • Vehicle breakdown and roadside assistance
  • Fixed rental payment
  • No hidden costs
  • Ability to terminate your rental agreement with only a one month’s notice period
  • Part of the monthly rental is a cash portion, which may be paid back to you to spend as you like if your account is up to date
  • An amount of your monthly rental will be kept aside to assist you to service and maintain your vehicle

Contact us for more information today.

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Easy Ways in Which You Can Become a Safer Driver https://www.earnacar.co.za/easy-ways-in-which-you-can-become-a-safer-driver/ Mon, 16 Jul 2018 07:00:38 +0000 https://www.earnacar.co.za/?p=48586 With millions of cars on the road, we’re faced with bad drivers, poor decisions and potential hazards with every turn of the steering wheel. That’s why it’s crucial that we, as car lovers, stick to good driving practices to make sure that we keep our cars – one of the biggest investments we can make [...]

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With millions of cars on the road, we’re faced with bad drivers, poor decisions and potential hazards with every turn of the steering wheel. That’s why it’s crucial that we, as car lovers, stick to good driving practices to make sure that we keep our cars – one of the biggest investments we can make – safe on the road. Here are a few easy ways in which you can become a safer driver:

  • Look Ahead When You Are Taking A Turn On The Road

This technique used to be common in driver education courses, but people either forget or never got the memo. Looking ahead when taking corners will help you judge the corner better so you can make a nice, smooth turn instead of weaving and over controlling your car.

  • Look Ahead At Cars In The Distance

We tend to focus on our immediate surroundings on the road, especially if traffic is heavy. While this is important, you should also make a point of watching what’s happening in the distance. Noticing brake lights a few kilometers in front of you, for example, can provide you with precious seconds of reaction time that could keep you out of danger.

  • Get Up To Speed When Merging With Traffic

Highways have entrance ramps which are designed to allow motorists room to accelerate – so use it. You should be at the same speed as traffic by the end of the lane to make merging into traffic much easier and safer.

Earn-a-Car offers rent-to-buy financing in South Africa. If you need a new set of wheels, get in touch with us today.

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Want Car Financing? Your Credit Score Matters to Banks https://www.earnacar.co.za/want-car-financing-your-credit-score-matters-to-banks/ Mon, 09 Jul 2018 07:00:30 +0000 https://www.earnacar.co.za/?p=48583 Credit bureaus empower people to know the intricacies of applying for a loan, having it approved, and fulfilling their obligation – all of which translate to financial responsibility. These determine the creditworthiness of an individual. While a bank will have information about the debt that you owe their institution specifically, the information that a bank [...]

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Credit bureaus empower people to know the intricacies of applying for a loan, having it approved, and fulfilling their obligation – all of which translate to financial responsibility. These determine the creditworthiness of an individual.

While a bank will have information about the debt that you owe their institution specifically, the information that a bank has is limited to what they have in their portfolio. A bank would know that you have a personal loan with their establishment, for example, but they wouldn’t be aware of other lines of credit that you may have, such as clothing accounts, a cell phone contract, a microloan, or other lines of debt.

Credit bureaus are trying to widen the scope of information that banks have at their disposal. A bank will have a good idea of the income that gets paid into your bank, but they can’t determine how much you are able to pay if you were to take on additional lines of credit with them. It is for this reason that they use credit bureaus to find out what an individual’s credit score is before they decide whether they should extend more credit to the person or not.

With car financing, a bank may not be willing to finance your new vehicle if you have a poor credit score. If you have been blacklisted or have a poor credit score, you could consider rent-to-buy car financing such as that offered by Earn-a-Car. With this type of financing, your credit score won’t be investigated and you only have to meet a few minimum criteria to qualify.

Need more information about rent-to-buy car financing? Contact us for more information today.

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