Buying a car can be very costly, even if youre rolling in money. Sadly many of us dont have money to throw around and therefore its important that you take the cost of your purchase very seriously. Thankfully there are all sorts of options open to you that can make your new car more affordable.
Choosing Your Payment Method
Before you buy a car you need to work out how youre going to pay for it. If you have the cash you can avoid paying interest but not everyone can raise enough money in one go. You can make it easier to make a cash purchase by purchasing a used car but even then the amount you need could be more than you could afford. In this case you could consider approaching the bank for a loan or looking for a car to buy using finance. Finance is available in most cases, even if you want to buy a used vehicle from a dealer online through sites such as cars.co.za.
Before you make a decision to finance your car or to obtain a loan, work out how much its going to cost you. Consider the monthly outgoings as well as the overall cost, including the interest thats added on to the finance. You may also want to get some protection on the credit you take out so the payments are covered if you lose your job. Youll need to add in these extra costs and find out if theyre available and worth spending on.
Paying in Cash
The cheapest way to buy a car is by paying the whole price in cash. Sometimes its even possible to drive down the cost of the car if youre able to offer full cash payment. Therefore if you can raise the cash its often worth it. Buying a second hand car makes it easier to pay upfront as they are much cheaper. You also dont have to worry about losing a lot of money in the first year, which is something that affects everyone who buys a brand new car.
Finance Arrange by the Dealer
If the dealer of the new or used car offers finance you will be able to pay off the entire cost in monthly payments. In most cases you will still need to raise a sum of cash to use as a deposit, it may also be possible to trade in your current car as a part exchange deal, but youll need to check if this is possible with your dealer. Finance deals can offer you some protection for the future and they help you with budgeting so it could be a great choice if cash payments arent an option.
Find a Reputable Dealer
If you want to buy a car you need to find a decent dealer, such as the ones on cars.co.za. They will be able to provide you with payment options, so decide your budget, how youre going to fund it and you could be driving away in the perfect car youve always wanted.
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