First-time buyer guide to vehicle finance #Finance

welcome to the absa first time buyer guide to vehicle Finance start your journey to vehicle ownership with our street smart series supported by cars.cosa you’ll

need to consider your monthly budget the amount of money you saved up the cost of the car and affordability depending on the car you’re interested in if you decide to none;">Finance your car through the bank you’ll probably try and use a Finance calculator to see how much you can afford based on your

Income your monthly Income less expenses will equal the remaining Income that can be used towards a vehicle that disposable Income becomes an estimate of the installment you can afford monthly and gives you a better idea of the

vehicle price you can realistically afford banks will also look at how you’ve been managing your other financial obligations when deciding your affordability and this will influence that decisions on the Credit amount you can’t get a free Credit report

from a reputable Credit bureau to check your Credit score which should help you pick up issues that will have a negative impact when the financial application has been assessed the Credit score provides an indication of how likely you are to repair

your financial applications many customers are declined for Finance because of the affordability which is affected by their Income expenses and how

they’ve been servicing their existing Debts once you’ve looked at your budget Savings and Credit score you can decide exactly how to text-decoration: none;">Finance your car there are a few options available you can either pay a deposit or take a balance payment both options will influence your Cash Flow deciding to pay a deposit towards your car will likely mean delaying the car purchase until

you’ve saved enough money the bannon payment is a lump sum payment that’s paid at the end of your car Finance contractor an upfront deposit means we borrow less

money from the bank however the balloon payment will attract more interest and fees a lump sum payment is required at the end of the Finance term to settle the

Loan it may also take longer to reach your break-even position where the value of the car is equal the total outstanding balance on your Loan this could also be carried over to a new vehicle if you trade in the vehicle before reaching the break-even position the

question to ask yourself is how you will pay for the balloon amount when it comes to you one option is to save towards a pardon amount a linked interest rate fluctuates as the reserve bank’s money should police the committee decides to change the report rate the monthly repayment amount will

change as the rate changes Interest Rates can be expected to change quarterly or can remain flat for some time the lower the ripple rate the better the interest rate the bank will charge you the fixed interest rate may be higher but it remains constant throughout the vehicle

Finance contractor meaning the installment amount is always will always remain the same a minimum term of 24 months or up to 72 months can be chosen to repay the

Loan the term of the Loan affects the monthly repayment amount the more popular ways to Finance a car is through a car

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Financed Loan or through a personal Loan paying cash for the car will give you full ownership of the car immediately you pay no interest to the bank

and is generally a quicker process a personal load option attracts a higher interest rate because the Loan is unsecured and the term differs from the car Loan a car Loan is secured there’s lower interest rate and some banks do

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance for longer terms a car Loan will give you more vehicle options depending on your affordability so when looking at that new car also consider that you will need

to have the car insured through a comprehensive Insurance from an Insurance provider you need to budget for petrol and your license disk renewal and regular service and maintenance on that vehicle buying and owning a vehicle is a long-term decision and we want to

help ensure that you make an informed one thanks very much for watching and look out for the next CashNews.cos in this series carson