BIB Finance

Confidential, Secure Financing
BIB Finance

Car Finance Advise

Essential Car Finance Advice For First-Time Vehicle Buyers in South Africa

Buying a new or pre-owned vehicle is exciting, especially if it is your first vehicle. In most instances, you will require financing, unless you buy a vehicle that costs less than R45 000.

2017-12-19

However, there are many pitfalls to avoid and we advise you to seek car finance advice rather than jumping in head first. To get you started, we share basic car finance advice which, if followed, can help you to save money over the long term.

Don’t Be Shy with Your Questions

We advise you to not ignore the terms and conditions when you sign the finance agreement. If you have any questions, ask, rather than hoping for the best. Any financial institution awarding a loan must be registered with the National Credit Regulator. As such, whomever awards the car finance loan must provide you with enough information to make an informed decision. If you don’t understand the wording, terms and conditions, or repayment terms, ask for clarification. Once you sign the agreement, it is too late to ask questions.

Understand Car Finance

Your neighbour or brother may advise you to go with a residual loan. However, they don’t necessarily offer the best car finance advice. The Internet is your friend; use it to learn about car finance, and ask us how it works. For example, do you know the difference between fixed and linked interest rates? With a fixed interest rate, you pay more at first, but the interest rate remains the same throughout the loan period. With a linked interest rate, it is lower at first, and you thus get to save money on the loan. However, should the interest rate increase, your instalment will increase as well. So, both have advantages and disadvantages.

This is why it is important to seek car finance advice from trusted sources. As we will advise you, with a low fixed interest rate, there is no fluctuation in your car finance instalment, which gives you certainty. With a linked interest rate that stays low, you save a lot of money. With a fixed rate, you may have a higher monthly instalment. With linked, you don’t know whether you will end up with a higher monthly instalment than you can afford over the long term.

Where You Can Get Car Finance

We advise you to make use of our online application facility, whether you want to buy a vehicle or refinance your existing car loan. Also, be sure to read what is required, and don’t hesitate to ask if you need more information.


Apply for Car Finance.