If you’re looking to get a vehicle, but don’t have enough cash on hand, then consider buying it with a car finance plan. This is especially true if you are trying to get the most out of your money because paying off your loan early can save you thousands of dollars. But what exactly is this type of contract? And why should you use one? Well, let me break down some basics so that by the end of this post, we’ll have an idea about everything that comes with buying a car in South Africa today.
Guaranteed future value plan,
- You will pay a fixed monthly instalment. This covers both the vehicle and the interest on the asset.
- You can choose to include maintenance in your monthly instalment, which can be beneficial for those who plan to keep their car for longer than one year. If you don’t want maintenance included, it’s possible to extend or refund your current contract if you need more time with your vehicle before buying another one.
However, some people prefer paying for these expenses upfront instead of having them deducted from their loan after every month so this option might not suit everyone!
What happens at the end of your GFV plan?
If you’ve decided to keep your car for another 12 months, then the next step is to decide whether you would like to extend your current contract with the same lender. This can be done by either contacting them directly or simply looking at their website. You should also consider whether there are any other offers available in your area—if there are, then it might be worth looking into those instead of extending with one provider.
If however, after a year and a half (or two years), your payments have been increasing steadily as they should be because they’re going towards paying off part of what you originally owed on top of interest charges every month; then what next? Well…
If you have met all terms and conditions set out by your car dealer, then returning your car is as easy as dropping it off at their dealership and they take care of everything else.
If you are not satisfied with the vehicle or if you dislike the terms of the contract, then returning it is an option for anyone who wants to buy another vehicle in South Africa.
