10 Top financing tips
First time buyers normally need someone to stand surety for them; this means someone
who agrees to pay your debt if you can’t, usually a parent or legal guardian.
out if you need someone beforehand.
Insurance is essential – we won’t finance without it, take a look at our Insurance
Research prices online – use the website to research prices and features.
If you can't go online, the Auto Trader is very good source of information.
Get hold of Mead & Mc Grouther - the book that gives you the book value and
retail price and other relevant information.
– Don’t be disappointed because you forgot to pay your TV
license and judgment has been taken against you.
If your credit record
is less than good, work on improving it for a few months before you make your purchase. You can
check your consolidated credit record on www.credithealth.co.za
Most finance will be quoted as a fixed or a variable rate, linked to the prime rate
Know the jargon:
A rate - is what you pay monthly on borrowed money, it is expressed as a percentage
of the borrowed sum.
A fixed rate – is a rate of interest that stays the same and never fluctuates.
A variable rate - is a rate of interest that is linked to the prime interest rate,
it fluctuates or is adjusted periodically in accordance with prevailing market conditions,
which affect the prime rate.
The Prime Rate - this is the minimum interest rate charged by a commercial bank
on short-term business loans to best rated customers or corporations.
Only after you've done all your research should you visit the dealership, armed
with your impressive knowledge.