Buying your first car or even the 10th is always going to be exciting. Nothing beats that feeling of going to your dealer and seeing your new baby wrapped in a ribbon ready for you to take those exciting pictures and finally take it out for a spin.
Imagine not having to take taxis anymore. I am sure like most you will miss the taxi drama though. We have to admit, that is always very interesting and funny. But buying a car is not cheap. We do not all have 250k in our bank accounts. Vehicle finance is the solution!
While it is almost always a good idea to buy cash. With assets such as cars, you might want to get them on credit. One because you might not have the kind of money your dream car wants laying around and two to build your credit score.
Vehicle finance (or a car loan) is a type of debt that enables customers to pay for an automobile in monthly instalments rather than all at once. As a result, owning a car is more accessible and economical.
However, you need to make sure your personal finances can support it before submitting an application for vehicle financing. To reduce your monthly payments throughout the course of the loan, you might also think about making a higher down payment.
Here is a list of some of the best vehicle finance providers with affordable interest rates:
1. FNB
FNB’s vehicle finance allows you to borrow up to R30,000 for any dealership-purchased vehicle up to 10 years old. For a car that is up to 20 years old, private vehicle financing enables you to borrow up to R30,000 as well. Alternatively, you can obtain up to R200 000 in leisure financing. With durations ranging from 160 days to 72 months, interest rates start at 10.25%.
2. Wesbank
At Wesbank you can enjoy vehicle finance with a repayment term of 12 to 96 months. They provide you with a rate of interest that ranges from 7,00% to 17,00%. So, if you purchase a car from Wesbank for R80,000 with no down payment and no balloon payment, you can anticipate paying back the following:
- Vehicle price – R80,000
- Repayment term – 72 months
- Interest rate – 13,00%
The interest, costs and fees will add to R36,164.59 over the payment term and the total repayment amount will be R122,340.09. Your monthly instalment will be R1,699.17.
3. Absa
Absa offers vehicle finance to you so you can drive away in the car of your dreams. The bank, which is a member of Barclay’s Group, has a strong presence in the financial markets of both South Africa and other African nations.
Instalment sales, leases, direct sales through dealerships, and private sales can all be financed with ABSA auto loans. They provide a 9.25% interest rate with a 24 to 72-month repayment period.
4. Nedbank
Nedbank’s MFC is prepared to offer you the vehicle financing you require, whether you’re looking to buy a new or used car. MFC provides you with a variety of financing choices, including instalment agreements, balloon payments, linked rates, fixed-rate options, and more!
You have between 12 and 96 months to pay back the loan, and the interest rate starts from 7.25 percent.
5. Investec
Investec, especially to long-term customers, offers extremely competitive interest rates on vehicle financing in terms of affordability. The loans’ special features enable you to save money in a variety of ways. Borrowers who have negative credit might take advantage of unique offers and bargains as well as specific benefits.
Having a car is no longer a luxury but a necessity. Sure, not being a part of an unreliable transport system sounds attractive but having transport to take care of your family’s medical emergencies sounds more like a need instead of a want. It might be time for you to get that vehicle, just make sure you choose a financial institution that caters to your needs.