You may want to restructure your budget with vehicle refinance as a solution to your personal cash flow shortage. It could be the best way to take your old unworkable household budget and create a new spending plan.
Your first step is to go to the Carfin website and use our financial calculator to discover how much you could save on your car payment each month with a vehicle refinance.
An Example of Vehicle Refinance
You bought a new car two years ago and financed R250 000 for 36 months at 10%. Your current payment is R8 066,80 each month. You have been making the payments for 24 months and the amount you now owe is R193 603,20.
If you refinanced that balance for 36 months at the same 10% interest, your repayment would be R1 819,77 each month. You will have successfully freed up R6 247 every month and this can make a significant difference to your monthly budget.
That is just an example of how to make use of your asset. The numbers will be different, depending on individual circumstances but the point is that your car is an asset you can draw upon in time of need.
How You Qualify for Refinance
There are qualifications for successful vehicle refinance of which you should be aware.
- You should have a valid RSA ID Book.
- Your income should be at least R6 500 per month.
- You need a clear ITC record.
- The vehicle should be less than ten years old.
- You will need a valid driver’s license.
- If your car is still financed instead of owned outright, you will need two years of payment history.
Can You Refinance Your Motorcycle?
The answer is yes! Vehicle refinance is for any type of vehicle, including cars, trucks, motorcycles, and caravans. They are all assets and you may have cash locked up in any one of them.
You Think You Will Have to Sell Your Vehicle
If you financed your vehicle and now you’re suddenly finding that the high monthly payments are difficult to make, you may think selling is the only option. However, selling can be a hardship on you and your family.
You will no longer have a family car of which your kids can be proud when you transport them and their friends to activities. You need a nice looking truck to promote your business. Customers will not look as favourably on a business owner arriving in an old junky truck.
If you give up your caravan, you give up the family camping trips. Since camping is what your family does on vacation, you may all end up sitting at home for two weeks.
It may be that you have one treasure for just yourself and that is your motorcycle. You should keep it for your own joy and because it is more fuel-efficient transportation than anything except your bicycle.
Vehicle refinance means you keep your vehicle and use it for your benefit. At the same time, you can lower your monthly vehicle payments to make some breathing room in the family budget. Refinance your vehicle with Carfin.