Getting used car finance is fairly easy as long as you have a good credit record and haven’t defaulted on any previous payments. However, one must remember that in the current economic climate you sometimes have to be an extremely exciting candidate to qualify for a secured loan from your bank. If you do qualify you should approach a number of banks to ascertain which creditor gives you the best interest rate. In South Africa the major banks are FNB, Nedbank, ABSA and Standard Bank. Each one has its own perks and it’s sometimes best to try a different bank from the one that you have your existing accounts with because they specialise in particular types of finance. It all depends on you and how quickly you need cash for vehicle finance.
When you consult the bank about getting used car finance, or any secured loan, your first questions should be about the interest rate that they can give you and whether this will be fixed or will vary over the length of your loan. Ideally a fixed interest rate is best, because it allows you to calculate exactly what you’ll be paying in the long run. However, sometimes this can be to your disadvantage. If the interest rate is high to start with then you can end up paying more than someone who opted for flexibility. It depends on whether you bank with FNB, Nedbank, ABSA or Standard Bank and whether or not you need flexibility, or to know how much cash is required to borrow for the vehicle you need.
Cash for vehicle loans is a great way to allow yourself the space to save whilst you spend. A car is great for mobility but not all of us can afford to pay up front. If this is you, then chat with your bank about getting a secured loan, or even getting finance for a bank repossessed vehicle.