Compare the best loans of South Africa and find the lowest rate
One of the biggest wishes a person can have in their life has to do with the possibility of buying the vehicle of their dreams. Which is why, if you are looking for vehicle financing and you reside in South Africa, let me tell you this is the right place to start with. Absa, which is one of the leading banking companies in South Africa, has incorporated a set of ways to finance the vehicle you have always wanted.
In this post, I will first focus on the different ways through which you can finance a loan, so that you need beforehand whether you are capable of completing the financing of their program before applying. Then, I will give you all the information regarding the different vehicle loans Absa offers its clients. So, stay with me.
WAYS OF FINANCING A VEHICLE LOAN WITH ABSA:
1)Making or putting down a deposit with the bank: this is one of the alternatives most frequently chosen, as it comes along with plenty of benefits:
-Clients will lower the payments they make each month
-The interest rates will decrease as the time goes by
-Clients can have access to any type of car without a previous deposit. This applies as long as Absa has found you are eligible for the loan
-You can choose to buy a second hand car or a new one
-You can negotiate with the seller or dealer the terms of the purchase
-You will be explained in detail each of the terms of the program so there are no doubts regarding financing periods and rates
2)Making use of your vehicle before you purchase new wheels:
- You have the chance of trading your car whenever you would like to purchase the new one from a dealer shop
-You don’t need to search for a private car seller, which is an advantage in comparison to selling your vehicle privately.
-You get a valuation of your old car without extra charges
-Your vehicle will be kept in perfect conditions
-You will get knowledge as to what is the settlement amount of money needed
3)Balloon Payments: this is a payment that the bank, in this case Absa, will need to finance at the end of the lending program, once the client has finished making all the monthly payments. This will have a positive effect on the total amount of money you will pay for your vehicle loan. How is that a benefit? You will pay less for the same loan, you won’t need to make a deposit before applying for the loan and you will be able to sell your vehicle once the loan has finished.
However, there are some disadvantages of this type of payment you need to consider:
-The interest rate can sometime fluctuate and even increase, so you end up paying more at the end of the loan
- You will need to make extra payments so as not to pay more money after the repayment period has finished.
Okay, now let’s see the different Vehicle Loans Absa offers and its features:
INSTALLMENT SALE AGREEMENT
-You can become the owner of the car at the same time you are completing its financing. This means that once you have finances the whole loan, the vehicle is yours.
-You can choose between balloon payments or putting down deposits in order to make less payments each month
-Every monthly payment will be adapted to your needs and budget
-The interest rates can be variable or fixed, that is completely up to you
-Absa offers its clients refinancing programs, that can range from 2 years to 5 years
-Absa will grant you a program called Credit Protection Plan in order to establish a balance whenever there is a disease, incapacity or an accident that affects the client
-By operating with Absa you will have the chance of controlling your vehicle loan from the bank´s website or app
However, if you are trying to purchase a vehicle that is older than five years, you should be granted another type of loan, a Personal Loan.
Let’s take a look at its characteristics:
-Clients will need to pay a fixed fee at the beginning of the loan
-The client is able to drive the car during the lease stage
-The client can also finance the loan through balloon payments or deposits
-Financing terms go from 24 to 72 months, which makes it a very convenient lending program
-Once the lease has finished, the customer can purchase the car in order to be the owner of it
-Interest rates will be variable or fixed, always based on your income and needs
-Clients will have access to Credit Protection Plan, which was explained in the previous loan. This program will provide protection to those clients whose health has suffered and can no longer continue with the loan
-Clients can manage their program from home. How? Through Absa´s website and online app.
-Clients will be asked to pay an upfront deposit at the beginning of the program
-Clients will be able to make monthly payments that are fixed by the bank. This means that the fee will not change with the passing of time
-Financing periods range from 12 months to 72 months, so that clients are able to complete the financing on time
-Clients can select the vehicle they want, regardless if it is a new or old car
-Access to Credit Protection Plan in cases of accidents or serious health conditions
ISLAMIC VEHICLE FINANCE: this program allows clients to start driving the vehicle they want for the period of time they wish and for a fixed fee. Regarding the financing terms, Absa gives clients the chance of making monthly payments that are sometimes lowered when you pay on time. The interest rates can be either fixed or variable, which means that drivers get to choose that. Once the lease has come to an end, clients have the possibility of purchasing the vehicle at a good price.
This loan comes along with further benefits:
-Getting an insurance for drivers
-Managing your program from the comfort of your home(online)
-Taxes can be lowered by the bank
If you are interested in any of these vehicle loan, please do not hesitate to contact Absa by phoning on 0860 669 669 or 0860 000 786.