Earn-a-Car https://www.earnacar.co.za Rent to own a pre-owned car Mon, 15 Oct 2018 04:00:22 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 It’s Hail Season! Here’s How to Protect Your Car: https://www.earnacar.co.za/its-hail-season-heres-how-to-protect-your-car/ Mon, 15 Oct 2018 04:00:22 +0000 https://www.earnacar.co.za/?p=54472 If you live in the Highveld, you’re aware of the stormy summer rains which means you need to be aware of the weather when you are on the road and protect your car from hail damage. Here are a few tips to protect your car from hail: Pay Attention to where you Park your Car [...]

The post It’s Hail Season! Here’s How to Protect Your Car: appeared first on Earn-a-Car.

]]>
If you live in the Highveld, you’re aware of the stormy summer rains which means you need to be aware of the weather when you are on the road and protect your car from hail damage. Here are a few tips to protect your car from hail:

  • Pay Attention to where you Park your Car

It is so easy to leave your car outside and avoid the hassle of paying a parking fee under cover or getting out of your car to open the garage door. Figure out where you will park your car ahead of time to ensure there is adequate coverage in case it hails.

  • Last Resort: Thick Blankets

If there is not any undercover parking available at your home or place of employment, take a few thick blankets with you so that you can cover your car. This is not the ideal solution for obvious reasons, but the damage that can be avoided by protecting your car in this manner far outweighs the inconvenience or embarrassment you may feel when covering your car with blankets.

A car is one of the most expensive items you own and it is also one of the hardest to protect from hail. Hail damage on a car can amount to thousands of Rands in damage and even if your insurance company will pay for the repairs, you will still be responsible for the excess payment to the insurance company. You could be further inconvenienced by not having a rental vehicle while your car is being repaired, or having to pay a fee for a rental vehicle if your car needs hail damage repairs. When it comes to hail protection, prevention is always best.

Are you interested in rent-to-own vehicle financing? Then get in touch with Earn-a-Car today.

The post It’s Hail Season! Here’s How to Protect Your Car: appeared first on Earn-a-Car.

]]>
Easy Vehicle Finance – How to Work Out Your Car Budget https://www.earnacar.co.za/easy-vehicle-finance-how-to-work-out-your-car-budget/ Mon, 08 Oct 2018 04:00:49 +0000 https://www.earnacar.co.za/?p=54469 Whether you are opting for traditional financing from banks or a rent-to-own vehicle finance plan, it can be hard to determine your available budget for a car. Most experts say that you should not be spending more than 20% of your monthly net income on your vehicle. The 20% of your income ballpark figure should [...]

The post Easy Vehicle Finance – How to Work Out Your Car Budget appeared first on Earn-a-Car.

]]>
Whether you are opting for traditional financing from banks or a rent-to-own vehicle finance plan, it can be hard to determine your available budget for a car. Most experts say that you should not be spending more than 20% of your monthly net income on your vehicle.

The 20% of your income ballpark figure should include payments on all of the vehicles you own, whether you own one or more cars. Also remember, this figure applies to the amount of money you have in your pocket after tax, not your gross income.

Now, you need to calculate what your car payments will be. If you have just seen the car of your dreams and the price tag of this car, you need to know what the monthly installment is going to be, so that you can determine whether you can afford the car or not.

Step 1:

Determine the interest rate by dividing the number by 100.

Step 2:

Divide the interest rate on your car loan by 12. Write this number on a piece of paper.

Step 3:

Multiply the number by the loan’s principal amount (the total amount of your car loan). Write this number down as it will be used in your final calculation. Remember to subtract your down payment from the price of the car to establish the principal amount that you will pay.

Step 4:

Recall the number you got from dividing the interest rate by 12 in step 2. Add 1 to this number.

Step 5:

Take the sum from step four to the power of the number of months included in the terms of your loan. For example, if you are going to be making 36 monthly payments, multiply the sum from step 4 by 36.

Step 6:

Calculate 1 divided by the result from step 5. Round this number to the nearest hundredth place to make it easier to work with.

Step 7:

Subtract this number from 1 for use in your final calculation.

Step 8:

Divide the number from step 3 by the number from step 7 for your final monthly car payment.

You can avoid the math by using an online car payment calculator, which can be found on many of the auto dealers’ and many banking websites.

Remember to include the costs associated with owning your car, namely vehicle insurance, maintenance, tyres and roadside assistance.

Rent-to-own vehicle finance is an easy way to get a reliable set of wheels without having to pay the monthly interest rate levied by the banks. For more information about easy vehicle finance, contact Earn-a-Car today.

The post Easy Vehicle Finance – How to Work Out Your Car Budget appeared first on Earn-a-Car.

]]>
5 Reasons South Africans are Choosing to Rent-to-Own Their Car https://www.earnacar.co.za/5-reasons-south-africans-are-choosing-to-rent-to-own-their-car/ Mon, 24 Sep 2018 07:00:54 +0000 https://www.earnacar.co.za/?p=52854 Rent-to-own car financing is an easy type of financing and appeals to many people. Here are the top five reasons why South Africans are choosing to rent-to-own their car: Easier Access to Car Financing Vehicle financing, like any other type of loan, is meant to help everyone in getting the things they need. The problem [...]

The post 5 Reasons South Africans are Choosing to Rent-to-Own Their Car appeared first on Earn-a-Car.

]]>
Rent-to-own car financing is an easy type of financing and appeals to many people. Here are the top five reasons why South Africans are choosing to rent-to-own their car:

  1. Easier Access to Car Financing

Vehicle financing, like any other type of loan, is meant to help everyone in getting the things they need. The problem is that banks are clamping down on the amount of credit they are willing to extend to consumers due to uncertainty in the economy and fears regarding consumers’ affordability to repay the loans. Rent-to-own financing is offering many South Africans easier access to vehicle financing.

  1. Cheaper Compared to buying a New Car

Many rent-to-own vehicle companies have a range of new and second-hand cars. If you are looking for a quality used car, then you will be able to find a good deal at a rent-to-own vehicle-financing company. Second-hand cars are much cheaper compared to the new cars that you would find at a dealership.

  1. Less Paper Work

If you have applied for a car loan from a bank and have been turned down, then you will probably find the process of being approved for a rent-to-own vehicle a lot easier and faster.

  1. Option to Buy

After a few short years of renting your vehicle, you will own it. You can also choose to opt for another car and keep renting if that suits you better. This type of flexibility appeals to many prospective vehicle owners.

  1. Avoid Interest Rates

Banks charge high-interest rates on car loans. Instead of being stuck in a four or five-year car repayment loan with high-interest rates, you can avoid that altogether with rent-to-buy financing.

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

The post 5 Reasons South Africans are Choosing to Rent-to-Own Their Car appeared first on Earn-a-Car.

]]>
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 [...]

The post How to get the most Value on a Car Trade-In appeared first on Earn-a-Car.

]]>
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.

The post How to get the most Value on a Car Trade-In appeared first on Earn-a-Car.

]]>
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 [...]

The post SA Banks are Making Car Loans even more Difficult to get appeared first on Earn-a-Car.

]]>
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.

The post SA Banks are Making Car Loans even more Difficult to get appeared first on Earn-a-Car.

]]>
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 [...]

The post Rent-To-Own: Save Instead of Having a Car Loan! appeared first on Earn-a-Car.

]]>
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.

The post Rent-To-Own: Save Instead of Having a Car Loan! appeared first on Earn-a-Car.

]]>
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 [...]

The post The Pros and the Cons of a Rent-to-Own Car Finance Option appeared first on Earn-a-Car.

]]>
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.

The post The Pros and the Cons of a Rent-to-Own Car Finance Option appeared first on Earn-a-Car.

]]>
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 [...]

The post How Traditional Car Financing Can Become Unaffordable appeared first on Earn-a-Car.

]]>
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.

The post How Traditional Car Financing Can Become Unaffordable appeared first on Earn-a-Car.

]]>
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 [...]

The post Increasing Inflation and Petrol in South Africa- Make sure your Car Installments don’t Increase too. appeared first on Earn-a-Car.

]]>
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.

The post Increasing Inflation and Petrol in South Africa- Make sure your Car Installments don’t Increase too. appeared first on Earn-a-Car.

]]>
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 [...]

The post What to Consider when Choosing Car Insurance appeared first on Earn-a-Car.

]]>
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.

The post What to Consider when Choosing Car Insurance appeared first on Earn-a-Car.

]]>