BIB Finance

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BIB Finance

Current Vehicle Loan Refinancing

When refinancing a car, you extend the repayment period and will, therefore, no longer pay off the car in the period you once would have. 

2019-11-26

Refinancing Your Current Vehicle Loan

 

Buying a new car in South Africa is expensive and requires a vehicle loan from one of the major financial-services providers (FSPs). These are WesBank, MFC, Absa, and Standard Bank. By securing a loan, you have the means to buy a vehicle on credit and pay off the FSP monthly. But life happens and these payments may become burdensome, leading to difficulty keeping up with them. Rather than missing a payment, we offer the feasible solution of refinancing your car loan. This can reduce your monthly instalment by spreading the outstanding amount over a longer loan term. This will give you some breathing space in terms of cash flow.

 

While this might be just the solution to alleviate your financial problems, keep in mind that, when refinancing a car, you extend the repayment period and will, therefore, no longer pay off the car in the period you once would have. This also influences the settlement fee, which refers to the outstanding amount due to settle the loan in its entirety. The closer you get to paying off such a loan, the smaller that amount will be. The approved major FSPs in South Africa do not assist people who are blacklisted. However, if you have a good credit score, your chances of getting approved for a loan will be very good indeed. Each person’s credit score is unique to them and their financial situation. Therefore, each application will be judged on merit.

 

Our Solutions

 

When buying a car, one of the most stressful parts is securing that loan in order to clinch the deal. This process is mostly taken care of after you have decided which vehicle you want to buy. In many cases, people face disappointment as no FSP is willing to assist. This can be due to a bad credit score or simply a finance amount above your affordability bracket. We turn this process around by giving you the option to secure your loan beforehand. By applying for a car loan through us, you can specify which vehicle you are interested in, and we can process your application to find the best possible loan structure before you buy your vehicle. We also offer refinancing solutions for when your car payment becomes too much to handle.

 

By securing a loan before you go shopping for your ideal vehicle, you will be sure of exactly how much you can afford even before you start shopping. Cars are expensive and a real drag to finance on your own. Our solutions can spare you countless headaches and give you the necessary information to make an informed decision when financing or refinancing a vehicle. Again, your credit score comes into play as a determining factor regarding a loan. Most people are unaware of how important part of their financial standing this is. They think that missing a few payments will have no serious impact on their creditworthiness. Although an FSP will not repossess a vehicle without due procedure, missing a payment will certainly affect your credit score.

 

Your successful refinancing of a car loan will depend on your current credit score and several other considerations that are taken into account before such a loan can be approved. Your credit score is determined by various factors that extend beyond your monthly payments. The ratio between your monthly income and current debt is also a factor. If you have racked up multiple loans and are sinking under their weight, it will directly affect your credit score. By showing that your current debt is aligned with your current income, and that you can easily maintain your monthly payments, you are much more likely to qualify for refinancing your car. With a reduction in the monthly instalments, you can put that saved money towards filling other financial gaps in your life. This can also be useful when buying a new vehicle while still owning money on the previous one.

 

BIB Finance is your solution for securing a loan before you go shopping for your ideal vehicle. We can also assist in refinancing a car to reduce the monthly instalments of your current loan. For more on how we can assist you, peruse our website for details. Choose us today for all your needs regarding vehicle and leisure finance.