Applying for car finance from a bank is not an easy process. It can be daunting for those who have never applied for vehicle finance before, or for those who cannot afford to buy a car with cash savings. Car finance involves approaching a bank or other financial institution and applying for a loan. It is important to understand how this process works so that you are fully informed of what your options are when wanting to buy a car. So, what are the available types of car finance? And, should you rent-to-own? Here are important points to consider:
Can You Afford Car Finance?
On the way to the bank? Hang on! First, you’ll need to decide what you can afford and the type of car you would like to buy. Be realistic with your goals and establish whether you will be able to afford to pay the monthly expenses needed for the car of your choice, after your monthly deductions. These include fully comprehensive insurance, petrol, tyres, annual license, toll roads and maintenance costs. If you are buying a car from a dealership or a vehicle finance company, the respective finance and insurance (F&I) representatives may manage the application process on your behalf.
Don’t Forget Those Pesky Interest Rates
The interest rate is linked to the prime lending rate in South Africa. When the interest rate increases, your instalment will also increase. However, when it decreases, your instalment will decrease too.
If you are leasing a car, terms and conditions to the lease agreement will apply. These may include mileage limits, the condition of the car or amount of petrol in the tank when you return it. Rent-to-own is a great option if you need a quicker and more affordable way to get behind the wheel of a car.
Take Your Time
Car financing is a pretty big deal! You shouldn’t rush to take out a loan, even if you are really excited to buy your car. Take your time to compare options, so that you are completely aware of all your options and making a wise decision, as well as getting the best deal possible for you and your wallet.
Rent-to-Own With Earn-a-Car Easy Vehicle Finance Today!
As the first rent-to-own car company in South Africa, we have been in business for over 10 years and have helped more than 5 000 people get access to affordable vehicle finance with no hidden terms and conditions.
Want to hear more about our rent-to-own options? Contact us today!