Cnr Oxford and Eton, Ferndale
Buying a car at some point in time is a reality that we all have to face. We’ve compiled a list of several important car buying steps that you should follow. Heeding the advice in this article will help you save money, get the best deal, and hopefully, reduce the amount of stress involved with purchasing a vehicle.
1. Do Your Research
2. Look into Pre-financing Options
3. Buy a Car You Can Afford
4. Buy Based on Purchase Price, Not on Monthly Payments
5. Factor in Insurance Costs
6. Avoid Impulse Buying
7. Always Test Drive the Car
Paying cash for your car will reduce your time spent in a dealership, and you can avoid interest charges if the car you are buying does not offer 0% APR financing. However, paying cash will not necessarily guarantee you a better price.
Dealer-arranged financing works the same way as bank financing—the only difference is that the dealer is doing the work on your behalf. … In general, you can usually get lower interest rates on a new car through a dealer than on a used car.
Below are some of the best methods to pay off your car loan, credit cards, or any type of debt even faster.
1. Make Bi-Weekly Payments
Submit half the payments to your lender every two weeks instead of the regular monthly payment. This will accomplish three things:
Make sure to discuss this with your lender before making bi-weekly payments, because you might be penalized for any extra payments or paying off the loan balance early.
2. Round Up the Payments
Rounding up your payments is an effortless way to pay extra without even missing the funds. Just like making bi-weekly payments, you don’t need a lot of extra funds to knock a few months off the term of your loan.
3. Find Extra Money
Although the small amounts like R200 here and R120 there might not seem like a lot, they definitely add up. If you have a small part-time job on the side that pays an extra R1000 per month, put that toward the loan.
4. Make One Extra Payment
If you don’t have the cash flow to commit to bi-weekly payments, you can achieve the same result by making one extra payment per year. Use money from a tax refund or bonus from work to help pay down your loan faster.
5. Refinance Your Loan
This is one of the easiest ways to lower your payment, save interest, and pay off your loan in half the time (if you have semi-good credit, of course). Many local banks and credit unions are offering super-low interest rates on mortgage loans and car loans.
6. Take Advantage of Paperless
Sometimes additional discounts are offered when you sign up for auto payments and paperless statements. It saves the lender money by not having to follow up with paper billing and creates a seamless payment experience, so there are no late fees.