When it comes to buying a new car, most people do not have enough cash to buy those shiny new wheels without getting vehicle financing. After you have made sure what you can afford and if you can put a deposit down, it is time to decide how to finance your vehicle. Here are the three main options to consider when it comes to vehicle financing:
- Instalment Sale: Before deciding to go the Instalment Sale route, it is important to do your research because not all deals are created equally. This option allows you to lower your monthly premium by taking a balloon payment at the end of the term, or taking a longer repayment term – but this will cost you more in the long run. The good thing about this option is that after the last instalment the vehicle is all yours and there is no limitation to vehicle use.
- Guaranteed Buy-Back: A ‘Guaranteed Buy-Back’ is where the bank and buyer agree on a value that the car can be ‘bought back’ for at the end of an agreed payment period. The benefit of using this option is that you can end up paying lower monthly payments than an instalment sale.
Iemas Financial Services offers affordable vehicle finance solutions at competitive interest rates. We can also assist you in finding the perfect car on your behalf with our vehicle sourcing service. In addition, you can use our convenient vehicle finance calculator to get an estimation of your monthly car repayment. For more information please call us on 060 043 627 or visit our vehicle financing page.
More blog articles on vehicle financing:
- What your car says about you
- How to manage your finances responsibly
- How to save even more money on fuel
- Ways to avoid car financing pitfalls
- Vehicle financing for beginners