Finance. Should be a simple task, you apply, you get approved or declined. Well, I'm here to tell you it's not that simple. The banks look at a few things when an applicant comes across them:
1. Credit History
2. Affordability
3. Amount of applications applicant has sent in.
4. Work history
So what is Credit History? Well, you create a history every time you get credit, cellphone contract, clothing account, car finance, credit cards, home loans,personal loans etc. If you are a diligent payer and do not miss a single payment, your credit history will be spotless, you have nothing to worry about and your negotiations to lower your interest rate are strengthened. If you have missed a payment or two and have caught up and been a diligent payer thereafter, your credit scoring will be lower, however, you will still be likely to get credit. If you have lost your job, missed many payments and are playing catch up with your payments, your credit score will not allow you to get finance.
Everything you get on credit, every payment you make is recorded and when your details are searched when looking for finance your payment history will come up, either giving you a great chance, a good chance or no chance at getting finance. At this time,I would also like to point out that if an expat comes looking for finance, they would also more than likely be declined as they would have no credit history at all. So if you are looking to finance a car/house, start with building your credit history with accounts. Now, I think it is only fair for me to point out that, if you do not get finance a at bank, you will not get finance anywhere else. I have had many people call into my business thinking that I can work miracles, unfortunately I can't, one would need to clear their name first and build up their score again.
Affordability, well, either you can afford it or you can't. I have had many applications where a client believes if they earn R7000, they can afford to pay R3000 a month for a car. Unfortunately, the banks do not work like that, they take into account insurance that still need to go off, and any other unforseeable extras one might find themselves needing through the month. So,perhaps look at a max of 25% of your salary after monthly payments going towards your monthly instalments for a car. Don't forget though, if you are already paying a monthly instalment on car that you are planning to trade in, to take that amount off your expenses and add it to your surplus.
Applications, well, many people do not realize that if you apply for a car at every dealership your credit score decreases. Banks look at this and then will decline you eventually. When buying a car, make sure you know what you are looking for, and once you have viewed the car and any others that you are interested in, make a decision and apply.
Work history, if you have worked at 3 different places, for example, in a year, the banks will not really consider your application. They want people who are grounded and stable with their income.
Well, I hope this has helped to keep you informed, once again, Find My Ride can help you with all of this just send your details to us and we'll do the rest. www.findmyride.co.za.
The Find My Ride Team
Tuesday, January 25, 2011
Monday, January 24, 2011
buying a new car - tips for a buyer
So, you've decided the time has come for you to change over your current car and you have a few cars in mind, what now. Well, if you really want to purchase a 'new' car, make sure that you have the following thoughts in mind:
When getting a quote, remember negotiations are allowed, never go for the first price unless you see they have given you a discount. Negotiate the license, registration and admin costs as well. Cost for Liscensing a vehicle is between R550 and R900, the extra charges for admin can be negotiated as well, if the dealership is not willing, are they really worth your business? When getting a trade in price, remember to ask what trade and retail is, trade is what a dealership can pay up to for your car if it is in very good condition, retail is what they can an will resell for. Make sure you are getting the best deal possible.
Ok, New vs Demo, When you purchase a new car, you lose a great % of it's value once you drive out with the car. So,consider looking at a demo vehicle. Demo's are great value for money, as you can many times save between R10 000 and R40 000 (depending on make and model) of the purchase price.
Finance, remember, finance is also, always negotiable, banks often just give a prime +3 rate in the hope the client knows no better, but now you do, so ask the finance advisor assisting you to negotiate a better rate, 9 times out of ten you will get a better rate. If you have a bad credit rating or are a first time buer this is a 50/50 chance you have to better your interest rate, try anyway! But,if you come to Find My Ride, we will negotiate all of this for you anyway!!! I hope this gives you some insight into the car buying world we will be posting much more info and advice.
Future posts will include:
Finance - do's and don'ts
Insurance - what you need to know
Trade ins - sell privately or not
Finance - is HPyour only option?
Any topics you would like discussed - let me know...
Till next time
Find My Ride
www.findmyride.co.za
When getting a quote, remember negotiations are allowed, never go for the first price unless you see they have given you a discount. Negotiate the license, registration and admin costs as well. Cost for Liscensing a vehicle is between R550 and R900, the extra charges for admin can be negotiated as well, if the dealership is not willing, are they really worth your business? When getting a trade in price, remember to ask what trade and retail is, trade is what a dealership can pay up to for your car if it is in very good condition, retail is what they can an will resell for. Make sure you are getting the best deal possible.
Ok, New vs Demo, When you purchase a new car, you lose a great % of it's value once you drive out with the car. So,consider looking at a demo vehicle. Demo's are great value for money, as you can many times save between R10 000 and R40 000 (depending on make and model) of the purchase price.
Finance, remember, finance is also, always negotiable, banks often just give a prime +3 rate in the hope the client knows no better, but now you do, so ask the finance advisor assisting you to negotiate a better rate, 9 times out of ten you will get a better rate. If you have a bad credit rating or are a first time buer this is a 50/50 chance you have to better your interest rate, try anyway! But,if you come to Find My Ride, we will negotiate all of this for you anyway!!! I hope this gives you some insight into the car buying world we will be posting much more info and advice.
Future posts will include:
Finance - do's and don'ts
Insurance - what you need to know
Trade ins - sell privately or not
Finance - is HPyour only option?
Any topics you would like discussed - let me know...
Till next time
Find My Ride
www.findmyride.co.za
About Find My Ride - new and used cars
Hi there,
So, I suppose I should introduce myself and tell you what the point of this blog is. Well, first off, Find My Ride is a virtual dealership where you can go to if you are looking for a new and used car. www.findmyride.co.za will give you a new car quote online, it has a virtual pre-owned showroom, where you can browse all cars that are available. If we don't have it, we can source it for you. We know that in this day and age, time is precious, so we want to take the hard work of buying a new car away from you. Firstly, if you get a quote off of our website, we then have your contact details, we contact you, get all the details of what you are looking for, if you have a trade in we arrange for a price subject to viewing. Test drives, yes, we do that. We will bring you the car you are interested in viewing/test driving to you, be it at work, home or anywhere else. Finance, yes we arrange finance for you too. We will send you the finance forms, all you need to do is complete them send them back and with in 2 hours we will have an answer for you. We arrange insurance as well. The only time you would have to leave your house/office would be to sign your contract and take delivery of your new car. We also, due to our strong relationships with the dealerships we work with, are able to give you the best pricing available and negotiate that you do not have to pay the rediculous admin, lic + reg fees that so many dealerships are charging now days.
So, getting back to why we are blogging, well, we want you to know we are here. We want to be able to answer any questions you might have regarding buying a new -pre-owned car and we want you to save time and money when buying your new car.
We will also keep you updated on all upcoming events, all new vehicle launches, new specials, finance news and anything else you would like to hear about.
Remember...We find it, You drive it
Have a good one, till next time
Find My Ride
http://www.findmyride.co.za
So, I suppose I should introduce myself and tell you what the point of this blog is. Well, first off, Find My Ride is a virtual dealership where you can go to if you are looking for a new and used car. www.findmyride.co.za will give you a new car quote online, it has a virtual pre-owned showroom, where you can browse all cars that are available. If we don't have it, we can source it for you. We know that in this day and age, time is precious, so we want to take the hard work of buying a new car away from you. Firstly, if you get a quote off of our website, we then have your contact details, we contact you, get all the details of what you are looking for, if you have a trade in we arrange for a price subject to viewing. Test drives, yes, we do that. We will bring you the car you are interested in viewing/test driving to you, be it at work, home or anywhere else. Finance, yes we arrange finance for you too. We will send you the finance forms, all you need to do is complete them send them back and with in 2 hours we will have an answer for you. We arrange insurance as well. The only time you would have to leave your house/office would be to sign your contract and take delivery of your new car. We also, due to our strong relationships with the dealerships we work with, are able to give you the best pricing available and negotiate that you do not have to pay the rediculous admin, lic + reg fees that so many dealerships are charging now days.
So, getting back to why we are blogging, well, we want you to know we are here. We want to be able to answer any questions you might have regarding buying a new -pre-owned car and we want you to save time and money when buying your new car.
We will also keep you updated on all upcoming events, all new vehicle launches, new specials, finance news and anything else you would like to hear about.
Remember...We find it, You drive it
Have a good one, till next time
Find My Ride
http://www.findmyride.co.za
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