Buying a new car, whether it is out of the box or second hand, will require you to think about your vehicle financing options. It is important to budget for the expected monthly instalments and in some cases you might even need to budget for putting down an initial deposit.
If you are currently paying off a vehicle, you will have an idea of what you can afford each month. Just remember to check with your insurance provider what sort of implications a new vehicle will have with regards to your monthly premiums and excess amount. If you are financing a vehicle for the first time you will need to sit down and take a good look at your monthly expenses. Failing to pay your vehicle instalments could result in you being blacklisted –something you certainly need to avoid.
Tips on vehicle financing to consider
- Decide what your budget is – remember this is not only what you can afford in terms of monthly installments. You will need to factor in repairs, maintenance and running costs too.
- Understand the finance options available. Typically there are two types of vehicle financing options available:
- Lease sale agreements – this allows you to lease the vehicle for a certain period of time and then extends the opportunity for you to purchase it.
- Installment sale agreements – this means that you pay a monthly installment until the amount is settled. Until the vehicle is paid off it essentially belongs to the bank.
- Work out if you can afford to put down a deposit. This will reduce your monthly installments and help you to settle the vehicle cost sooner.
These are just a few vehicle financing tips for you to consider. At Earn-a-Car we can provide you with professional vehicle financing advice and assistance when purchasing a new vehicle. Take the time to chat to our consultants about your vehicle finance needs and options today.