Top Revs found out more from Nedbank Vehicle Finance about the important considerations when buying a car, such as additional costs for repairs, maintenance, as well as those unforeseen costs that can easily disrupt your budget.
Nedbank advises that new car owners ask dealership sales people to provide a breakdown of costs that may soon escalate, like repairs, replacing tyres and vehicle services.
But buying a vehicle should never be a nightmare. The best advice is to buy a vehicle from a reputable dealer, especially when buying a pre-owned vehicle.
Banks also finance value added products that are not physical in nature but rather risk mitigating, such as insurance or service plans.
On the ‘extras’ like canopies, mag-wheels, window tinting, windscreen and paint protection, Nedbank recommends car owners always specify the physical extras in case of a loss or a vehicle being written off.
Nedbank also advises potential buyers to make use of finance and insurance managers to assist, since they are stationed at the majority of dealerships. Their tasks are to arrange bank financing, assist with insurance, as well as selling other value-added products. They act as agents between banks and dealerships for the convenience of prospective buyers.
When it comes to the balloon payment options, Nedbank advises clients that opt for this package to ensure they can afford the vehicle without the balloon payment, and not to use the option to ‘up-sell’ models.
A balloon payment is a percentage of the price of the vehicle payable at the end of the financing term.
The client will not pay the capital on this amount, but definitely the interest.
“Stick to what your finances can allow,” says Nedbank.
The only benefit to having a balloon payment is lower monthly repayments, but it is advisable to make sure you can afford the installment with the balloon benefit as well.
When applying for finance, ensure you bring the correct information, such as an ID card, valid passport, valid driving licence, (you can make copies, but the original documents are still needed for verification purposes).
Additional income like rental agreements can be calculated, as long as proof of income is provided and paid into a bank account. Your latest payslip, and in the case of overtime or commission-based work, the last six months’ payslips are needed for the bank to calculate an average. A marriage certificate is also required, and if married in community of property, the same documents for your spouse.
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