Confidential, Secure and Reliable Financing
BIB Finance

Motor Vehicle Finance Pitalls

The most important part of obtaining motor vehicle finance is that you know exactly what you are getting, what you are paying for, how much you are paying, and for how long. There should be no surprise expenses and all the fine print should be explained to you.

2019-05-21

Motor Vehicle Finance Pitfalls to Avoid

Purchasing a vehicle is often an emotional decision. One of the situations in which people can take advantage of others is where “information asymmetry” occurs. The term refers to a situation where one person has a lot more knowledge about a certain subject than another. This asymmetry is very typical when it comes to car sales. The person who loves the vehicle is ready and excited to buy it and the car salesperson is very familiar with the features and shortcomings of the vehicle – and the finance products. They are in a perfect position to take advantage of the prospective buyer’s impulsivity. So, in order to make the sale, the vehicle salesperson may make it seem easier and cheaper to buy the vehicle than it really is. This is where you need a responsible, established motor vehicle finance company.

A vehicle salesperson may show you a specific model of the vehicle range that you are interested in – even if you are still just looking around casually and have not made up your mind. Once they have provided you with enough positive information about that particular vehicle, they are often quite ready to close the deal and make you sign on the dotted line. Impulse buying may happen at this stage – where the positive reinforcements and apparent affordability make a buyer buckle under the pressure and commit to the purchase. This is one of the greatest mistakes you can make. Unless you have previous knowledge of the vehicle dealer, you have no idea about the motor vehicle finance products they offer, or about the repayment terms and interest rates that are available to you. 

The best thing to do is to research the type of vehicle you want to purchase, the exact prices of all the models and their extras, and whether you can afford to purchase the vehicle. Many online repayment calculators can make the calculations for you. If you have a sound credit record, you can arrange motor vehicle finance with virtually any financial services provider. Many showrooms have their own F&I (finance and insurance) agents that may only tell you half the story if you arrive uninformed, so educate yourself beforehand!

Be sure that if you apply for motor vehicle finance with a recognised financial services provider that is recognised by the financial-sector regulators in the country. Some may offer better deals than others, or perhaps lower interest rates or payment holidays. The most important part of obtaining motor vehicle finance is that you know exactly what you are getting, what you are paying for, how much you are paying, and for how long. There should be no surprise expenses and all the fine print should be explained to you.

At BIB Finance, we deal with a range of reputable banks and vehicle-finance providers. If you are looking for a great deal on motor vehicle finance that will be affordable, straightforward, and devoid of any unpleasant surprises, give us a call today and we will help you to find the most suitable motor vehicle finance for the car of your dreams.