Purchasing a car is a big investment, which is why vehicle finance is so helpful in allowing one to have a safe and affordable experience whether they are buying or selling a vehicle. In this article, we look at 4 things which you should consider carefully before signing a vehicle finance contract.
Don’t rush it:
Vehicle finance is not something that should be rushed, so take your time and ask a lot of questions.Vehicle finance companies such as Wesbank Vehicle Finance, Bidvest Vehicle Finance and more, will give you quality advice but you need to make sure that all your questions are answered. Make sure that you are clear on everything and don’t rush the decision!
Choosing Fixed or Linked Interest Rate:
There are financial decisions which need to be considered, such as whether you want to choose a fixed or linked interest rate for your vehicle finance.
The difference between the two is as follows: a fixed rate protects you against interest rate fluctuations as you pay the same installment every month, whether the interest rate increases or decreases. A linked interest rate, however, means that your installments will depend on repo rate changes which are determined by the SA Reserve Bank’s Monetary Policy Committee.
Think about the length of your contract and keep in mind that the longer your contract, the more interest you pay.
You need to have documented proof of insurance, which can either be done privately or through a dealership. Don’t forget to use LikeMoney’s comparative platform to compare different car insurance options!
Understand all the extras:
Before signing anything, make sure that all extras are explained to you, such as any delivery, admin or licensing fees. There is also the option of value-added insurance products which will protect your vehicle finance. Make sure that everything you need is included.
We hope that these tips have helped. Good luck!