How to Properly Finance a Vehicle in South Africa

How to Properly Finance a Vehicle in South Africa 2018-05-07T15:24:32+00:00

Figuring out the details for a vehicle finance in South Africa can often be a difficult task to take on: there are buyer responsibilities to be aware of, bank and institution regulations, finance limits, and all other sorts of matters that may have you scratching your head. However, it’s not that hard to properly finance a vehicle if you know the proper steps to follow and how to go about finding a car that will suit your needs.

A vehicle finance loan in South Africa can come from any bank of which you may be a member, and the first place to start would be the experts and bankers at the financial institution of your choice. If you have never completed a finance application for an automobile, though, these are some tips that you’ll definitely want to keep in mind so that you’ll be able to get a great deal on your next vehicle finance.

Find the Car First!

There are two options for starting out when trying to get approved for a car finance amount. The first is to find the automobile that you would like to purchase. When you have the particular vehicle in mind, all the details of that automobile will be at your disposal so that you can go to the bank with that information. Keep in mind, however, that there are many financial institutions and banks that have requirements as far as the age of the car goes and it would be best to check with the specific bank before car hunting. For example, many banks will not allow vehicle finance for a car over 5 years old. In addition, 3 years old for an automobile is the maximum at some stricter banks.

The second option that one has is to get pre-approved at a bank for a specific car finance amount. However, once this option is in play it may be more difficult to find the perfect car that you want because you’ll be limited to how much money you will get to spend.

Negotiating Price

When at the car dealership, there are a few other important tips to keep in mind when getting approved and negotiating a vehicle finance amount. First, one should never tell the dealer how much he or she is willing to pay for monthly payments on an automobile. Doing so will increase the overall car finance amount that you will end up paying for the car.

Second, one should be prepared to negotiate with the dealer on the vehicle finance rate. In most situations, a bank will offer a Finance or Buy Rate for the specific chosen car, but the dealer will usually increase that to make a profit. Asking to see the finance rate quote from the bank would be a good idea to know just how much the bank is offering and how much it was increased by the dealer so that you can negotiate more efficiently.

As you can see, getting approved for vehicle finance in South Africa does not have to be all that difficult. Keeping in mind that you should first locate a car that you want to finance, and then remembering negotiating tips for a vehicle finance amount, should help you successfully obtain the new vehicle that you want!

If you are blacklisted and need a car urgently then you should contact Earn-a-car today! They could have you on the road as quick as within 24 hours of meeting the criteria.

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