Driving the car of your dreams doesn’t have to stay that – a dream! Thus, Absa Vehicle Finance have made it easy for you to apply for a loan to buy used cars. Financing your motor vehicle has never been easier. While other motor finance companies shun borrowers who opt to purchase used cars, Absa vehicle finance for used cars has cornered the market for themselves. They’re beating out the competition, while providing people like you and me the opportunity to own a car.
Big Red, which is now backed by the UK’s Barclay’s Bank is well-vested in making sure your interests are taken care of. Walking through what Absa offers borrowers, you’ll see the basic requirements of any vehicle finance company, like the need to have stable employment, be of legal age (that’s 18 years old in South Africa if you forgot), and other pros and cons. But what’s great about Absa, is that they’re involved with you in all the steps you need to take before and after applying for a loan to finance your vehicle. Absa has partnerships with many dealers who specialize in selling used cars. All of them are reputable businesses, which is not surprising since they’re working with a big bank.
So this is what you have to do to get car finance for your car: get the necessary documentation, for example, your South African identity document (ID) or passport, your proof of employment and regular income, and Absa itself can check your credit record for you. It would be awesome if it’s a clean record, because you could get lower interest rates on your repayments than you otherwise would do if it wasn’t clean.
Absa has two comprehensive vehicle finance options. There first one is what they call an Installment Sale Agreement, whereby at the end of your repayment term, you have full ownership of your car. This gives you the option to put up a upfront deposit, or make a balloon payment at the end of the repayment term. You will benefit depending on what you see best for yourself, but with either option, your monthly repayment amount will be less. There’s also another option, where you can get finance to lease a vehicle. By “renting” the car, you only pay for what you “use up”, and at the end of your term, you can either return the car to the bank or buy it. It’s not a bad deal to buy the car actually, because since its now a used car; it’s definitely cheaper than a new one.