4 Reasons To Put A Deposit On Your Next Vehicle Purchase
Financing a vehicle is a big financial commitment whether done through the bank or individually. And to help make those monthly payments more affordable, saving for a vehicle deposit could help in getting you the best loan that you can afford as well as your dream car.
Putting down a minimum deposit of at least 10 percent on your vehicle finance can significantly reduce the cost of your loan and could save you a considerable amount of money in the long run. Here are our top 4 benefits of having a deposit on your next vehicle purchase.
1. Pay less interest
The more money you put in as a deposit, the less you need to borrow from the bank. With a smaller loan amount, you’ll pay interest on a lower balance, which means your total interest cost will be less, too.
2. Improve your chances of getting your vehicle loan approved by the bank
A deposit may help you to easily qualify for a vehicle loan, especially if you have a lower credit score. Without a deposit, the bank has more to lose if you don’t repay the loan.
3. Lower monthly payments
Having a deposit reduces the amount you need to borrow, therefore decreasing your monthly loan payment amount. Let’s say you buy a vehicle with no down payment.
4. Shortens your financing period
A deposit will effectively reduce the amount of the vehicle finance agreement and therefore allow you the ability to reduce the financing period. So, instead of reducing your monthly repayment, you could opt to reduce the time to pay off your vehicle.
Get up to *R50 000 Deal Assistance to use as a deposit on your next vehicle. Browse available vehicles today and chat with our sales consultants on how you can use deal assistance on your next vehicle.