If you are in the market for a vehicle, then you are probably considering all of the easy vehicle finance options that are available to you. It is not always easy to calculate which option will cost you more in the long run because many financing institutions highlight certain low-deposit offers or cash back deals that can cloud your judgement.
Here are a few tips to keep in mind if you want to save money on your car:
- Consider a Pre-Owned Vehicle
Many rent-to-buy companies offer a wide range of used vehicles. If you partner with a company like Earn-a-Car for example, you can rest assured that the pre-owned vehicles have all been inspected by qualified professionals. We never compromise on safety, which is why all our vehicles are roadworthy and rented in the best possible condition. For your own protection, as well as ours, we will provide you with proof of your vehicle’s original condition upfront in your contract. New cars lose value very quickly, some as mush as 35% in the first year. If you want to retain a higher value of your car, then second-hand vehicles are a good option.
- Consider the Down-Payment
How much do you have for a deposit for your set of wheels? At Earn-a-Car, you will be required to put down a minimum R16 500 initiation fee. Many times, you will need a larger deposit if you are getting vehicle finance from a bank or other type of traditional financial institutions.
- Will you be Able to Trade down?
If saving money is your top priority, then you need to consider that your financial situation may change in the future. With Earn-a-Car, you can trade down if you can no longer afford your car repayments. This gives you the flexibility to opt for a different vehicle that is in your price range should your financial situation change.