Aspects to consider when deciding on motor finance

03 Apr 2012

The interest rate remains unchanged again. That means that it is a good time to buy yourself a repossessed car.
However, you need to make reasonable decisions regarding financing for a repossessed vehicle. Some good guidelines in order to buy a repossessed vehicle include:
1. Buffer
Make sure there is a buffer in place. Do not use all the money you earn from your salary. This is done incase the interest rate increases, and will help you to repay your vehicle financing in such a case.
2. Vehicle costs
These expenses include maintenance, fuel and insurance. Will you be able to pay for new tyres when needed? Also make sure of repair- and service costs on cars, since many people are sometimes caught off guard with the affordability of parts.
3. Clean credit record
Pay your creditors on time, as this will help you to get a better interest rate when applying for vehicle finance. The lower the interest rate, the less you will need to repay the bank monthly.
When visiting and searching for repossessed vehicles, keep these guidelines in mind. They will help you to make logical decisions regarding vehicle finance and affordability.