September 23, 2013 by admin
Purchasing a vehicle or refinancing a vehicle is not something that we do every day. When entering into a new financial contract you must ensure that you consider all of your options and that you are informed as to how this type of finance or loan works. Ensuring that your best interests are considered and taken care of is vitally important, and something that your chosen financial institution should be able to offer you. At Auto Refin we have taken the time to compile some pointers on the 5 things you need to know about vehicle finance before you get yourself too invested or signed into a contract:
Be careful of special offers such as zero interest or payments for one year. This is often just the way the contract is structured and you may end up paying higher instalments in order to pay the vehicle off in s a shorter space of time after the first “free” year. If you find a vehicle with this sort of offer attached, find out how your contract will differ if you start paying off the vehicle instalments from the start and with a fixed interest rate attached.
Watch out for extended warrantees. While these can sometimes be beneficial to you, you will need to choose very wisely in order for this to be the case. Some dealerships may encourage you to add this to your finance when in reality the general warranty should be more than enough until you trade in or replace your vehicle in the future.
Hidden fees should be watched out for. Some refinancing and general finance companies may sneak in an admin fee, application fee or similar when processing your loan application. Seek out a company that is able to offer competitive rates, a value added service and a transparent contract or agreement.
Your credit rating or score will directly affect your chances of a loan being granted to you and what the interest rate is set at. It is often wise to check out your credit rating before you start shopping, but with the assistance of a professional financial company, you should receive your credit rating report at a small fee. Obtaining vehicle finance if you are already blacklisted or under administration will not be possible.
The advertised price is not the bottom line. If you are financing a car you are going to want to get it at the lowest possible rate as you will still need to take into account the interest that you will be paying on your loan. Most dealerships will be negotiable on a price of the vehicle and the best way to ensure that you obtain access to that price is to speak directly to the decision maker at the dealership. Obtain quotes on similar vehicles from at least 4 different dealerships in order to back up your negotiations.
These are just 5 things that you should know about vehicle finance if you want to ensure that you get the very best deal possible. Of course there are many more things to look out for and we at Auto Refin will gladly guide you through the process to ensure that you are provided with a finance contract that is affordable and fair and that you are able to afford your monthly instalments with ease.
At Auto Refin you can easily apply for financial aid by applying via our website. When making your online application you will note that you will also need to supply us with supporting documentation such as a copy of your identity document, proof of address that is no more than 3 months old, a copy of your most recent pay slip, proof of any over time or extra income earned, a list of all of your monthly expenses or budget and any certificates that prove that you and your partner (if you are married) or married in community of property or not.
We hope that these 5 things that you should know about vehicle finance are helpful. For more tips, advice and guidance we encourage you to be in touch with us at Auto Refin. We will ensure that your every need and requirement is taken care of.