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BIB Finance

Private Car Financing

If you are looking for private car finance that you can rely on for transparency and reasonable interest rates, contact our team at BIB Finance. 

2019-02-01

3 Essential Steps When Making Use of Private Car Finance

We all need transport we can count on to get the kids to school, to travel to work, and to go on vacations every now and then. You need a vehicle you can rely on. It does, however, cost a lot to purchase a vehicle. Not many people have the cash available to purchase a vehicle outright, so people who wish to buy a car from a private seller will need private-car finance. If you are lucky enough to have a family member or parents who will lend you enough money to purchase a reliable vehicle, you are on a winning streak! More often than not, however, people have to rely on private-car finance to be able to purchase private vehicle second-hand. 

Let us provide you with some tips on purchasing a used private vehicle:

Check your credit: It does not matter how much you earn; if your credit check does not check out, you are not getting any private-car finance. This is why it is important to maintain a sound credit score. Check with the relevant South African credit bureaux (some of them are free) to see what your credit score is. If any debt is outstanding or if there are other problems, ensure that these are dealt with before engaging with a loan provider to provide you with private car finance.

Know what you can spend: Once you have your credit score, you can start to apply for private-car finance. Financial services providers all have their particular financing products. You have to analyse the deals offered and be sure that you can afford the repayments on the loan. This means that you have to be aware of what you can spend. Take their interest rates into consideration – often it means that you would have to pay off a vehicle over a period of five years or even more, and interest rates may not remain constant throughout the repayment period – ask about this. Make sure that you can afford any interest rate hikes in your instalments – interest rates usually increase by around 0,25 and 0,5 percentage points, depending on the economic outlook at the time.

Get Pre-Approval: Do not just storm into the nearest showroom and pick out a vehicle! You need to get pre-approved for finance from your private car finance company first. Before you get into the whole process of working yourself up to drive a new vehicle off the showroom floor, you also need to know that your finance company will allow you to purchase it. Ensure that you are pre-approved for a certain amount so that you know what you can spend, and then you can take all the time in the world to get excited about the vehicles within your pre-approved price range.

If you are looking for private car finance that you can rely on for transparency and reasonable interest rates, contact our team at BIB Finance. Our trained consultants will help you find the finance package that will best suit your lifestyle and income. Give us a call today if you need a new vehicle!