Earn-a-Car https://www.earnacar.co.za Rent to own a pre-owned car Fri, 13 Aug 2021 15:34:44 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.3 The hazards of public transportation https://www.earnacar.co.za/the-hazards-of-public-transportation/ Tue, 24 Aug 2021 06:00:57 +0000 https://www.earnacar.co.za/?p=107052 Millions of South Africans rely on public transportation for their daily commute. Public transport gets people to and from their homes and places of work, and drives the economy. However, it is also a risky way to travel. Most people use public transport because they generally can’t afford to buy their own vehicles, although there [...]

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Millions of South Africans rely on public transportation for their daily commute. Public transport gets people to and from their homes and places of work, and drives the economy. However, it is also a risky way to travel. Most people use public transport because they generally can’t afford to buy their own vehicles, although there are ways to work around this problem. Let’s take a look at some of the key risks involved with our various public transport systems.

The dangers of public transportation

For many South African commuters, buses and taxis are the main modes of transport. At the heart of the risks involved with these is the fact that each passenger puts their lives in the hands of a driver, who is hopefully fit for purpose. A taxi or bus driver has to deal with the stresses of driving continuously over the course of a long day, as well as passenger distractions, the boredom of monotonous routes, and the bending or breaking of road rules, which often comes with tight schedules to which they have to adhere. All of this can lead to driver fatigue, loss of concentration, and increased risks of accidents. Of course, the risk of crime at bus stops and taxi ranks must also be taken into account.

Illnesses

We are living in the age of COVID-19, which has added an extra dimension to the risks involved with commuting. Passengers are crowded into tight spaces, where they are at increased risk of catching the virus through the air or direct contact. COVID is the only thing to worry about. Travelling in such close confines can lead to a range of other infections as well.

How to protect yourself

As a passenger, you should always remain alert and aware of your surroundings. Observe the drivers and other passengers in a vehicle before getting in, and wear all the necessary protection against COVID-19 and other pathogens. The ideal is to find an alternative means of transport, such as your own car. This is not possible for many, but there are some who can join the ranks of the country’s vehicle owners, by way of rent-to-own vehicle financing. Then, as a driver, it is also very important to remain alert when driving near buses and taxis, as the risk of fatigue and loss of focus could cause an accident involving the surrounding vehicles.

Get out of public transport lines and into one of Earn-a-Cars new or pre-owned rent-to-own vehicles. With our rent-to-buy car finance option, you have the opportunity to get behind the wheel of a car you can afford! Instead of using public transportation, find an affordable way to drive your own car. Contact us for more information.

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Types of rental car insurance coverage https://www.earnacar.co.za/types-of-rental-car-insurance-coverage/ Tue, 17 Aug 2021 06:00:36 +0000 https://www.earnacar.co.za/?p=107049 When you rent a car - including a rent-to-own car - it is very important that you have the proper insurance coverage so that you are covered for all eventualities. There are several types of rental car insurance coverage, and you need to have all of them to keep you and the vehicle protected. Let’s [...]

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When you rent a car – including a rent-to-own car – it is very important that you have the proper insurance coverage so that you are covered for all eventualities. There are several types of rental car insurance coverage, and you need to have all of them to keep you and the vehicle protected. Let’s take a look at some of the most important ones.

Supplemental liability protection

Supplemental liability protection is offered at the time of rental and provides third-party liability protection for both the renter and the vehicle owner. The protection covers third-party claims for damage to property and medical costs in respect of the other party’s injuries.

Collision damage waiver

When you rent a car, your default position is that you are responsible for the full cost of any damages incurred while you are using the vehicle (except in cases where an accident is the responsibility of a third party, of course). When you opt for a collision damage waiver, you relieve yourself of this liability and will only be responsible for a minimum, specified amount if you should cause an accident while driving the car.

Personal effects coverage

Personal effects insurance is offered at the time of rental and protects the renter and members of their immediate family against loss or damage.

Earn-a-Car offers pre-owned and new vehicles in top condition to rent-to-own, with manageable monthly payments. With our rent-to-buy car finance option, you have the opportunity to get behind the wheel of a car you will eventually own! Instead of considering buying a new vehicle, come to Earn-a-Car for a rent-to-own option. To find out more about our offering, the vehicles we offer, our payment options and the various types of rental car insurance coverage, visit our website Rent to Own a Pre-owned Car in 3 Easy Steps (earnacar.co.za) or give us a call today.

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Why buying a new car is a bad investment https://www.earnacar.co.za/why-buying-a-new-car-is-a-bad-investment/ Tue, 10 Aug 2021 06:00:43 +0000 https://www.earnacar.co.za/?p=107042 While the appeal of driving off a dealership’s lot in a brand new, out-the-box car is attractive when it comes down to it, the prospect of buying a new car really isn’t all as glamorous as it’s made out to be. This makes buying a new car not particularly a good idea for most people. [...]

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While the appeal of driving off a dealership’s lot in a brand new, out-the-box car is attractive when it comes down to it, the prospect of buying a new car really isn’t all as glamorous as it’s made out to be. This makes buying a new car not particularly a good idea for most people. Car ownership is pretty much essential for many South Africans for both work and personal purposes, but there are better ways to get yourself in a new vehicle without taking on the costs and losses of buying a new car. Not only is purchasing a new vehicle a bad investment, it really isn’t an investment at all! Investments involve assets that appreciate over time. A car starts to lose value as soon as you drive it off the lot. In fact, cars lose about 16% of their value each year – and that’s if they are well maintained! Let’s consider the facts and see what you should be doing instead.

Lower monthly payments = longer, more expensive loans

Starting with the obvious: We all know that new cars are expensive, but the desirability of these vehicles means that people are willing to sign up for exorbitant long-term loans. Now, considering that a car is already losing value as soon as you buy it, it makes no sense to commit yourself to ongoing capital and interest payments, which you keep paying as the vehicle depreciates. Many fall into the trap of opting for lower monthly payments so they can manage the cost of their new cars, but this only increases the long-term cost of the loan.

Buying based on looks

One of the biggest mistakes people make is buying a car based on looks. We are visual creatures, and we are easily swayed by aesthetic appeal. When it comes to cars, however, this is often a serious mistake. You can very easily opt for a plain-looking vehicle, at half the price – and it may even end up being more reliable in the long run. When buying a car, be practical. Focus on a vehicle’s running costs and reliability and let appearance be a secondary factor.

Shopping based on monthly payments alone

One way that people approach buying a car is to look at the monthly repayment options and compare them to their monthly budgets. If you can manage the instalments on a month-to-month basis, you may as well go for it – right? Wrong! There is much more to consider here. Think about the overall cost of the car, as well as the interest you will be paying on it, then rethink whether those attractive monthly instalments are really a good idea. As we said before, low monthly instalments lead to higher costs in the long run.

Buying a new car has few long-term benefits, if any but that doesn’t mean you shouldn’t be driving a new vehicle. Earn-a-Car offers you the possibility of buckling up in a new car, without getting parked into the pressure of buying it. Instead of considering buying a new vehicle, come to Earn-a-Car for a 24 month rent-to-own option on our new vehicles. To find out more, view our rent to own on new vehicle options now https://www.earnacar.co.za/crazy-good-rentals/ or give us a call today.

Shopping based on monthly payments alone

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Rent-to-own vs buying a vehicle https://www.earnacar.co.za/rent-to-own-vs-buying-a-vehicle/ Tue, 03 Aug 2021 06:00:23 +0000 https://www.earnacar.co.za/?p=107038 It’s very exciting to buy a new car - until you consider the liabilities you have to take on in terms of payment and paperwork. Is it perhaps a better option to rent-to-buy vs buying a vehicle? Which of the two options will make the process of acquiring and owning a car easier? Let’s take [...]

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It’s very exciting to buy a new car – until you consider the liabilities you have to take on in terms of payment and paperwork. Is it perhaps a better option to rent-to-buy vs buying a vehicle? Which of the two options will make the process of acquiring and owning a car easier? Let’s take a look at the pros and cons.

Buying a car: pros and cons

Few South Africans consider leasing when they plan to acquire a car, because most of us want to own our vehicle. When you buy a car, the vehicle is your own from Day One (aside from the obligations you incur to your financial institution when you acquire vehicle financing). You don’t have to worry about mileage limits, or charges on your wear and tear, and if you decide to sell or trade, you are free to do so. On the downside, however, you will be faced with higher monthly repayments, and you will normally have to put down a sizeable deposit. Plus, having bought the car, the onus is on you to maintain it. Wear and tear, as well as all other costs, are on you. Finally, if you are having trouble getting credit, buying a car is probably not going to be an option for you, unless you have the capacity to pay in cash.

Long term car rental: pros and cons

Long-term rental is an increasingly popular solution to the problems that come with purchasing a car. You can get a very decent car at a lower monthly cost, often with no deposit required, and you get warranty protection for the full period of the lease. Your credit history may or may not be a problem, depending on the rental company in question. The downsides are mileage restrictions, the potential for extra fees, such as excess mileage, early termination, and a variety of other things often hidden in the fine print. You may also have to take out additional insurance coverage so that the rental company can rest assured that their asset is protected. Then, at the end of the lease, you have to get another car anyway. 

Renting vs buying: which is better?

As you can see from the pros and cons we’ve outlined, the benefits of buying vs selling are fairly well balanced. In the end, however, it is better to be able to own your car and take responsibility for its maintenance yourself. Then again, this is hard to do if you don’t have a large enough deposit, or have a bad credit history. The best thing is that you don’t have to choose one or the other. You can get the best of both worlds with a rent-to-own option. 

Earn-a-Car offers you the opportunity to enjoy the benefits of renting and buying, with a minimal deposit, and without your credit history being a factor. We make sure that your credit history and finances do not impact your chances of driving home in your own car. With our rent-to-buy car finance option, you have the opportunity to get behind the wheel of a car you will eventually own! There is no need to ponder whether to rent-to-own vs buying a vehicle. You can sign a rent-to-own agreement with the benefits of leasing, which will ultimately lead to you owning your car. To find out more, go to our website or give us a call today.

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Red flags while buying a pre-owned vehicle https://www.earnacar.co.za/red-flags-while-buying-a-pre-owned-vehicle/ Tue, 27 Jul 2021 06:00:19 +0000 https://www.earnacar.co.za/?p=104240 Getting a pre-owned vehicle as opposed to buying a brand new one can be a very rewarding decision. However, this decision should be coupled with a great deal of research, or you could face the risk of compromising on quality and efficiency. While most pre-owned cars may be fine, you don’t want to get stuck [...]

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Getting a pre-owned vehicle as opposed to buying a brand new one can be a very rewarding decision. However, this decision should be coupled with a great deal of research, or you could face the risk of compromising on quality and efficiency. While most pre-owned cars may be fine, you don’t want to get stuck with a faulty vehicle that causes you more issues than good. Earn-a-Car, a trusted rent-to-own pre-owned vehicle provider, provides you with some helpful tips on warning signs to guide this process:

Warning signs of a badly used vehicle

The first sign that should make you raise your eyebrows is the absence of a vehicle history report. It’s simple – if a seller has nothing to hide, there should be no hesitance in providing the report. A vehicle history report contains useful information such as previous repairs, accidents, mileage and more.

The next sign to look out for is mismatched or inconsistent upholstery. There are only a few reasons why a seller would change upholstery in a car they are selling. It could be due to water damage, accidents, mould etc.

Dirty interiors can be another red flag to look out for. This would mean that the car has not been cleaned properly or cared for by the seller over a period of time. More importantly, a dirty interior can also mean that the mechanical aspects of the car have also been ignored and neglected.

Finally, inconsistencies in vehicle listing i.e. models, prices, spec, are a huge no-no. If a dealership has displayed inaccurate information on their website and there are discrepancies when you get to the showroom, they have something to hide.

As a buyer, always be sceptical of unsettling business practices that could be looking to make a quick buck.

Thus, with red flags such as these, purchasing a pre-owned car can be a daunting task. However, renting-to-own a pre-owned vehicle eliminates these flags as you can own your vehicle in 54 months of renting it. Contact Earn-a-Car today to find out more about our rent-to-own cars and affordable vehicle financing.

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Importance of an independent mechanical inspection https://www.earnacar.co.za/importance-of-an-independent-mechanical-inspection/ Tue, 20 Jul 2021 06:00:08 +0000 https://www.earnacar.co.za/?p=104238 Found your dream pre-owned vehicle at a great price? That’s reason enough to celebrate. But have you done your due diligence by getting a qualified mechanic to conduct a thorough vehicle inspection? This step can save you thousands of Rands in the long run, while giving you the peace of mind that you have purchased [...]

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Found your dream pre-owned vehicle at a great price? That’s reason enough to celebrate. But have you done your due diligence by getting a qualified mechanic to conduct a thorough vehicle inspection? This step can save you thousands of Rands in the long run, while giving you the peace of mind that you have purchased a reliable and safe car for you and your family.

Protecting and empowering the buyer

The age-old mantra of ‘ Customer is King’ is as true as ever in the business of buying pre-owned vehicles. However, you must have the confidence and skills to ensure you are safeguarding yourself from any pitfalls that you may encounter. One of the most important steps is conducting an independent mechanical inspection so you are not taken for a ride, literally.

Knowing the Consumer Protection Act (CPA) is another tool to empower yourself as it ensures that consumers are provided with all the essential information while purchasing a pre-owned vehicle. The displayed cost price must also include all additional fees including licensing, road fees, VAT etc.

Check your receipt before leaving the dealership as it must contain the date of transaction, all details regarding the supplier, vehicle description etc.

Finally, check if the vehicle still retains its original engine and if not, request for a police clearance for assurance of the new engine in place.

At Earn-a-Car, we assure you with written proof of the vehicle’s original condition so there are no hidden costs involved later. This is further cemented as we offer excellent deals on renting our pre-owned vehicles, giving you the time and luxury to fully understand the vehicle before purchase.!

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When considering owning a pre-owned vehicle https://www.earnacar.co.za/when-considering-owning-a-pre-owned-vehicle/ Tue, 13 Jul 2021 06:00:42 +0000 https://www.earnacar.co.za/?p=104235 A competitive price is often a compelling deciding factor when looking at buying a pre-owned vehicle. While this may be a motivating factor, it is important to keep in mind the other factors that make up a value-for-money pre-owned vehicle offer. A great starting point to this process is asking the right questions, doing your [...]

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A competitive price is often a compelling deciding factor when looking at buying a pre-owned vehicle. While this may be a motivating factor, it is important to keep in mind the other factors that make up a value-for-money pre-owned vehicle offer. A great starting point to this process is asking the right questions, doing your due diligence, and checking service history to prevent making a financial decision that may end up costing you more in the long run.

Questions to keep in mind:

What is considered good kilometres

As a buyer, it is essential to understand how much mileage is too much when buying a pre-owned vehicle? First thing to keep in mind is that this car did have a previous owner. However, assessing the appearance of the car and the number of times it was driven are key components when deciphering if the car has been looked after or neglected.

Are there pre-owned vehicles to avoid?

When in the market for a pre-owned car, it may be tempting to be sold on any car with a great price. However, there are brands and models that you should steer clear of. Follow this link for more insights on brands to avoid:  https://www.consumerreports.org/used-cars/used-cars-to-avoid-buying/

How much will a dealership decrease the sales price

A professional car salesperson is an expert at negotiation. So, how much can you haggle with someone who is adept at vehicle financing and car purchases? One important thing to note here is this: the price on the car is NOT the actual price and you have the luxury of negotiating. So, what can you do?

Do your research, understand your budget, be upfront and don’t show your hand upfront. Do these with confidence and you may have a substantial chunk cut off on your preferred pre-owned vehicle.

What’s the best way to buy a pre-owned vehicle

Follow these steps to get the best deal on your pre-owned vehicle:

  1. Understand how much you can afford to pay
  2. Make a list of the car brands you are open to buying
  3. Use the internet to check, review and compare prices
  4. Find a dealership in your area
  5. Go through the logbook/service history of the car
  6. Test-drive
  7. Pay for a thorough multi-point inspection
  8. Negotiate, negotiate, negotiate
  9. Finalise the paperwork

Now that we have answered most of your FAQs on owning a pre-owned vehicle, we have some food for thought: why not contact Earn-a-Car to get the best deals on rent-to-own vehicles? This gives you the luxury of 54 months of getting familiar and understanding the vehicle thoroughly before taking the plunge.

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What to know before buying a pre-owned vehicle https://www.earnacar.co.za/what-to-know-before-buying-a-pre-owned-vehicle/ Tue, 06 Jul 2021 06:00:58 +0000 https://www.earnacar.co.za/?p=104233 Looking to buy a pre-owned vehicle that suits your family’s needs within a tight budget can be a daunting task. Once you have decided on a realistic buying budget, unforeseen expenses seem to trickle their way into the picture, almost always catching buyers off-guard. Which begs the question: why not get a dependable pre-owned vehicle [...]

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Looking to buy a pre-owned vehicle that suits your family’s needs within a tight budget can be a daunting task. Once you have decided on a realistic buying budget, unforeseen expenses seem to trickle their way into the picture, almost always catching buyers off-guard. Which begs the question: why not get a dependable pre-owned vehicle from a rent-to-own dealer, minimising the frustration that comes with purchasing a vehicle?

Why not go for the manufacturer-certified used cars

Rent-to-own vehicles do come with their own set of concerns. You might be asking: but wait – what about the security of warranty? Pre-owned cars are not covered by warranty, leaving potential customers feeling at risk. However, we ensure that we provide manufacturer-certified pre-owned (CPO) cars, giving you the luxury of a manufacturer-backed warranty along with the comfort of a used car budget. These cars are usually not-too-old low-mileage vehicles, backed with service records. Dealers retrieve them at the end of leases, after staff have driven them or once they have completed their ‘job’ as dealership service loaner vehicles.

Understand this about the certification

As a potential buyer, it is important to understand the advantages of these CPO cars. They are backed by manufacturer warranties and sometimes, are equipped with attractive trimmings like roadside assistance, complimentary loaners cars (if required) and trip interruption coverage.

How are they different from on-certified used cars? At the outset, they are thoroughly inspected and refurbished according to manufacturer-guidelines as soon as they arrive at Earn-a-Car. With perks such as these, CPO cars are usually more expensive than their counterpart non-certified partners. However, in the long run, these cars make you save more, especially during the warranty period.

Warranty Cover

Earn-a-Car also offers comprehensive warranty cover, maximum claims of which are limited to two options based on the how old the car is:

  • Benefit A: Cars not older than 4 years/13,000 kms at the time of the claim
  • Benefit B: Cars older than 4 years/13,000 kms at the time of the claim

Contact Earn-a-Car today to take advantage of the easiest way to own a pre-owned car with competitive vehicle financing. We are the first rent-to-own car company in South Africa. No hidden terms and conditions – just excellent customer service, tailor-made for you.

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Three different car dealership business models https://www.earnacar.co.za/three-different-car-dealership-business-models/ Tue, 22 Jun 2021 07:40:51 +0000 https://www.earnacar.co.za/?p=103952 At first glance, most car dealerships seem to function pretty much alike. They will have vehicles on display, salespeople on hand to show you the available options, and administrative staff in the background to keep paper trails up to date. However, the way they go about their business can be vastly different, which can have [...]

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At first glance, most car dealerships seem to function pretty much alike. They will have vehicles on display, salespeople on hand to show you the available options, and administrative staff in the background to keep paper trails up to date. However, the way they go about their business can be vastly different, which can have broader implications on your car-buying experience. Car dealerships operate on one of three different business models:

Dealer groups 

These are the big guns. Dealer groups are groups of dealerships, across brand names and all over the country, that are all controlled by a single parent company. These groups often span the magnitude of the car sales landscape, covering both new- and pre-owned sales channels, as well as service centres.

Franchise dealers 

Franchise dealers are “Original Equipment” (OEM) retailers. These dealerships have a distribution agreement with a manufacturer or importer. They sell new vehicles from premises with facilities specified by the OEM and usually have parts- and service departments and pre-owned vehicle outlets. However, there is not much difference in the car-buying experience between franchise dealers and dealer groups. As they have the same agreements with the OEMs, certain service- and presentation standards must be met in both cases.

Independent dealers

These dealers hold no affiliation with any manufacturer, which means they are not bound to the same standards as franchise dealers. Independent dealers are typically involved in the used-car market. However, some have secured distribution rights for privately imported vehicles. Where franchise dealers are bound by manufacturer standards, independent dealers have their own regulatory body to set standards applicable to their industry—die Independent Dealer Association. However, independent dealers are not compelled to join the IDA.

As the first rent-to-own car company in South Africa, Earn-a-Car has been in business for over nine years, helping over 5000 people get access to affordable vehicle finance with no hidden terms and conditions. For more information, contact us today.

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Benefits of paying off your vehicle finance early https://www.earnacar.co.za/benefits-of-paying-off-your-vehicle-finance-early/ Tue, 15 Jun 2021 06:35:36 +0000 https://www.earnacar.co.za/?p=103948 As with most loans, it is generally in your favour to pay it off sooner. Settling your vehicle financing sooner is always a good idea as you tend to save on interest charges over the long term. The National Credit Act permits you the right to increase your monthly premium. If you choose to pay [...]

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As with most loans, it is generally in your favour to pay it off sooner. Settling your vehicle financing sooner is always a good idea as you tend to save on interest charges over the long term. The National Credit Act permits you the right to increase your monthly premium. If you choose to pay in a lump sum, the credit provider must recalculate and allow you the benefit of smaller instalments or a shorter term. With most credit providers, you can settle the loan early. There may be conditions, but you will no longer be hit with a penalty fee for doing so. Paying off a car loan sooner saves you money on interest and boosts your credit rating. If the debit order for your car loan goes off on the 1st of the month, moving it closer to payday, which is the 25th for most South Africans, could save you a little extra.

Simple techniques for paying loans off sooner 

Anytime one is able to pay off debt earlier than the repayment period is a relief. However, if you do not have the money on hand, how can you eliminate your vehicle finance debt quicker? Here are a few simple techniques that can help you pay off your vehicle sooner:

1. Make extra payments

Occasionally you may find yourself in a financial position where you are able to pay a bit more than the agreed-upon repayment amount. Should this be the case, consider making bigger monthly repayments. However, make sure that the amount is feasible and will not land you in financial trouble in other areas.

2. Avoid the ‘skip payment option’

Often lenders or financiers will offer you the option to skip making your payment at some stage in the agreement. Sometimes it is at the beginning, which means you are exempt from making payments for the first two months. Lenders typically also allow for a payment break during the month of December. While the overt temptation is to take full advantage of these breathers, this only prolongs your loan in the long run. While this may not seem like the worst thing, it also means that interest is tacked on.

3. Make a bonus payment

In keeping with making extra payments, for many, this is not feasible during the year. However, for some who receive a bonus, making a sizable extra payment could be an option resulting in one additional payment a year and can help you pay off your financing a little earlier. 

While paying off any debt earlier requires discipline and careful financial strategy, it is not an impossible goal. When it comes to paying off one’s vehicle early, it is a worthwhile sacrifice as vehicle payments can typically lock you in for up to seven years, which is not ideal if you want to endeavour to take on another big debt such as a bond.If you need financial assistance in driving your dream car and want to apply for vehicle financing, get in touch with Earn-a-Car today to explore your options.

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