With the year quickly drawing to a close, are you planning to refinance your car? The South African economy has not been growing as fast as you may want it to grow, and it’s possible you may be among a large number of people experiencing financial challenges, and unable to pay for your vehicle loan. Refinancing your car may be the best course of action.
4 Reasons Why Car Refinancing Is A Good Decision
- It’s The Easier Option
Unlike the property loan or mortgage where equity and value are important, car refinance companies are only interested in the balance left on your car loan and your current credit score. If the loan rate is high, the lender may also look at the value of your car versus the amount you are seeking. It might be easier to refinance your car than getting another loan.
- The Rates Have Been Going Down
If you took your auto loan three or so years ago, chances are the interest rates were higher than they are today. Any extra percentage point in the interest could mean thousands of Rands in the entire life of the loan. If you refinance your car, you take advantage of lower interest rates that would be reflected in your monthly repayments.
- Your Dealer May Have Overcharged You
Dealer organised financing can be significantly more expensive than other vehicle loans. The dealers usually take a commission from the lender on bringing in a new client hence the extra percentage. If you refinance your car, you are going to take advantage of lower rates and make good savings.
- Refinance Your Car To Buy Off The Lease
If you have leased a car for a given period, check with the leasing company for the option of buying the car. Most leasing contracts give one the option of buying the car. Moreover, if you have been stuck in an expensive lease, refinancing your vehicle would open up your road to owning the car.
Feeling The Pinch? Kick Start The New Year With Cash
If your financial situation has deteriorated over the last few months, you need to think of a way of redeeming the situation. One possibility is to refinance your car. You can either get a longer duration of payment or a lower rate – both ways free up some cash for other obligations.
It is in your best interests to request car refinancing from the experts at Carfin. The process is done online and only takes a few minutes. Make the burden of your car loan easier to bear and make it a happy and prosperous New Year by refinancing.