Are you thinking about buying your first car or replacing your current vehicle? If you are about to purchase a new or pre-owned car, you might be worried about starting the vehicle financing process as well as getting the right vehicle finance to suit your pocket. At Iemas, we understand that buying a vehicle is not an easy decision or a simple process, thus we highlight a few pitfalls to be aware of when you buy a vehicle:
- Know your credit score: Your credit score is the first thing your vehicle finance provider will look at when you apply for vehicle finance. Therefore, it is always a good idea to get this information before you even start the vehicle finance application process. If it turns out that you have a low credit score, then rather put the purchase on hold and ensure that your outstanding debts are settled and that you pay your instalments on time. Remember, a low credit score can prevent you from getting a better interest rate as well as the loan itself.
- List the features you are looking for as well as how much you can afford:
- Do your research:
- Get the help you need to get the car you have always wanted:
Buying a car is probably one of the most expensive purchases you will ever make. Thus, it is important to make sure that you can afford all the costs associated with buying a vehicle and still have enough money left over to cover all your other monthly expenses. Make a list of all the features you are looking in a car and set the budget you can afford to spend on a vehicle with these features. A good rule of thumb is to spend no more than 20% of your monthly income. Access our convenient vehicle finance calculator tool to assist you with estimating your monthly instalment.
Take the time to do your research and understand current interest rates as well as the price range for the features that are important to you. By doing your research ahead of time, knowing what you want and what you can afford to pay will put you in a better position to purchase the car you want without running into any pitfalls that could cost you big in the long run.
Iemas has agreements with over 600 employers across South Africa. This means that we can offer our wide range of products and services to the employees employed at these employer groups. This includes our comprehensive vehicle finance solutions. From sourcing a car to financing your vehicle at a competitive interest rate to making sure that your vehicle is adequately insured – we are your go-to partner to give you the helping hand you need to drive away in your dream ride. Contact us on: 0861 043 627 or visit our vehicle finance page.
Adapted from: https://www.streetdirectory.com/travel_guide/36765/auto_finance/how_to_avoid_car_financing_pitfalls.html
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