Whether you are making a purchase for the first time or upgrading from your current vehicle, the process of buying a car can be quite daunting. Sometimes as scary as load shedding on a Friday night, there are many things to consider if you choose to go down the avenue of financing. From the massive instalments to what seems like endless terms and conditions, it can quickly become very overwhelming. Thankfully, we are your knight in shining armour, here to save you from total confusion.
When it comes to car financing, we recommend you focus on these 5 factors:
1. Term: This is the amount of time you are going to spend paying the loan on the car you have purchased. Basically, you own the car on the condition that you pay the instalments. You miss payments, and you can say goodbye to your new-found love.
2. Instalment: This is the amount you will pay every month for the period of time stipulated for the loan you financed your car with. This will likely be affected by the length of your loan, the rate, and the amount.
3. Rate: It varies per car and can be a fixed or linked rate. A fixed-rate will stay the same throughout the term of the loan, while the linked rate can change based on the prime lending rate.
4. Deposit: This is the amount you would need to pay upfront when buying a car. This varies per dealer and car selected.
5. Balloon: This is an amount of money that is due at the end of the loan term. It can help lower the instalments and lower the value of your car in the end, but you will pay additional interest and fees. You can extend it at the end of the term, but it will gain extra interest.
Thankfully, with the Hatfield Motor Group, you have a wide range of vehicles from dealerships all over South Africa, including new, pre-owned or demo vehicles. Let us remove stress from your life, give us a call for expert advice.
