CAR FINANCE

Installment Agreement

This is the most common car payment method. You pay the car off in monthly installments for up to six years (72 months) either with or without a deposit. The longer the term, the more interest you pay. Ideally, you should put down a sizable deposit and structure the loan over the shortest possible time.

If you have a windfall you can pay off the car early without penalty if your loan is less than R250 000, but a penalty will apply if it’s more than that.

The upside is that you will own the car outright after your last payment of the installment term. The downside to this is that interest is added to the car’s advertised price.

Residual purchase car finance

A Balloon payment – also referred to as a residual, is an agreed inflated final payment of a loan that is paid in full at the end of the loan agreement. So having paid installments for five or six years, you still have around 30% of the retail price to pay in a lump sum.

You can either choose to refinance the balloon payment or trade the car in, whereby the balloon payment is then settled and you can enter a new finance agreement. There is no set value for balloon amounts and they differ from every make and model.

The benefit is that your installment is much lower, you get to drive a car you really want.

Choose the finance option that is the best for you.

  • The finance option most suited for you.
  • The period of time you intend to keep the car.
  • The amount you would like to borrow.
  • Choose the bank that offers you the best deal.

Linked Interest rate

Linked interest rate means that as the prime interest rate goes up or down so does your rate. As such your monthly installments will go up or down too.

Fixed Interest rate

Your interest rate is fixed, so your repayments will always be the same throughout the agreement. Giving you the assurance you need.

Credit criteria

  • Clear and healthy credit record.
  • Valid South African driver’s license card
  • Valid South African identity document or identity card
  • Cannot finance a vehicle older than 10 years
  • Cannot finance a code 3 stolen, recovered or accident damage vehicle
  • Only vehicles registered in South Africa
  • Minimum monthly income of R7500 p/m

No Deposit

No deposit is needed in most cases; every effort will be made to structure your finance with no deposit basis should you wish.

DID YOU KNOW that depending on your salary date, that your first installment is only required in 60 days’?

  • We can get you the best interest rate
  • High approval rate
  • No deposit required
  • Quick, easy finance

Should you have any questions, please contact one of our FAIS accredited business managers.

Finance@carzonline.co.za

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