When you are looking for vehicle finance it’s important to make sure that you do your research thoroughly. There are a range of factors to take into consideration when you are looking for the suitable vehicle finance providers.
Vehicle finance, according to Arrive Alive, can be defined as “an agreement between a bank and a customer which enables the person to take delivery of a car and then pay the bank back for the vehicle over an agreed period of time”.
What you need to look for:
Consider using an online financing originator or the financing consultant at the dealer.
Paying a deposit reduces your monthly repayment.
You can opt for either a fixed or linked interest rate.
Keep in mind that a longer contract period reduces the monthly instalments but it attracts more interest.
Balloon payments reduce your monthly repayment but they also attract more interest.
It’s important to choose according to your needs and budget and to find the finance method that suits your needs. The instalments that you pay as well as how much you can afford will be largely dependent on your personal credit portfolio. Vehicle finance providers look at each application on an individual basis. Rates depend on a customer’s credit record, risk profile and repayment history on previous loans.
Some vehicle finance providers have online processes which allow customers to do a self-assessment and to calculate what the financial costs of a loan could be. All vehicle finance providers have to comply with legal requirements and there are also initiation costs to consider.
Generally, banks don’t finance cars that are older than 10 years and most vehicle finance providers offer a repayment term of up to 72 months.
You need to check the service history and to make sure that the chassis number of the car corresponds to the papers.
Documentation required by vehicle finance providers may include:
- Valid ID
- Drivers licence
- Latest 2 months’ bank statements or payslips
- Proof of car insurance