financing a car - do you buy or lease?

Many people are not informed regarding their options for financing, they believe that the bank is the only source f financing for a car, well, there is another option -leasing...

Financing through the banks:
you can finance a new car from 12 -- 72months and used cars vary from 12-60 months, depending on the age of the vehicle you are purchasing. The older the vehicle, the shorter the finance period.
When financing through any financial provider, it is extremely important to look at the long term and not just getting your car. For example, if you want a car that you can only afford if you take it over 60 months with a residual, you may be better off going or a less expensive vehicle, demo or pre-owned version of the car you are looking at purchasing. Why? Well here's the scenario, 3 or 4 yrs down the line you want to trade your car in, your settlement is almost 1 and 1/2 times what you are being offered, you are then stuck with a car that you no longer want as you don't have the extra money to cover the settlement.
What is a residual? A residual is explained as follows: If you are buying a car for R150 000 your installments over 72 months will be +- R2950.  That is out of your budget so you ask the finance consultant how you can decrease the installment, it is suggested that you take a residual of 25% over 72 months and your installment drops to +- R2500. So, what has happened is you have only financed 75% of the vehicle and once the initial amount has been paid off, you still owe that 25% (R37 500). This arrangement affects you down the line when you want to trade in your vehicle, many people who have taken residuals have been stuck with the vehicle until they have paid off the car in full as they have no way of getting out of the vehicle.
The fact is, a car depreciates in value every month, so f you are looking at buying a car and financing it, try and take it over the shortest period, that way you have a chance of being able to settle your car rather than having to pay in on the settlement.

This is where leasing is a solution: You can lease from 12 - 60 months. At the end of the leasing term, you hand your car back and owe nothing. You only get a penalty if you want to terminate the lease agreement.
There are 3 leasing options:
Operating lease - which is the basic rental of the vehicle of your choice
Maintenance Lease - This price includes the maintenance of the vehicle
Mainenance Lease incl tyres - This is as above and tyre maintenance.

he most important thing is to go with financing that suits you,make sure you look at all angles before making a decision and ask as many questions as you need to be fully informed.

Find My Ride provides all these services as well as keeping you informed and assisting you to make the best decision for each individual.

We hope this has helped keep you informed.

Till next week

The Find My Ride Team
We Find it you Drive it!
www.findmyride.co.za

Find My Ride

Have not posted for a couple of days as have been completely swamped with work. We have picked up stupendously and are thus being kept busy with what we do best, customer service and sourcing cars. We are also being kept busy as we are in the midst of expanding and are hoping to be boasting even more specials and more stock in our virtual showroom.

So, will write soon more tips for buyers and what Find My Ride is busy with.

Till Then...
Be good

Find My Ride Team
We Find it You Drive it...
www.findmyride.co.za