Beware of adding too many extras to the amount to be financed, especially if the car is second-hand. The bank may refuse to finance the vehicle, and if it has to be sold early on in the contract the cost of the extras cannot be recouped.
Anything that does not add value to the vehicle should be paid for in cash, especially insurance and warranties, remember that you pay interest on these items. As with all purchases cash is king, it is the cheapest way to buy an item. If you can't pay it cash, put down the largest deposit you can afford and keep the term as short as possible.
If the car is more than three years old the bank will be reluctant to finance it for the maximum period, so make sure that you can afford to finance the vehicle over 24 or 36 months.
Always check your invoice and contract, sometimes things may have been added that you did not agree to. If the car is purchased from a private party, take it for an AA evaluation before you buy it. This may cost a few hundred bucks but better that than thousands for repairs the following month.
Have anything to add? Send us your comments in the box below.
Get the best in Soccer, News and Lifestyle content with SNL24 PLUS
For 14 free days, you can have access to the best from Soccer Laduma, KickOff, Daily Sun, TrueLove and Drum. Thereafter you will be billed R29 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.
