In terms of the National Credit Act, there is no minimum cash deposit required on a vehicle purchased, whether new or used. However it is advisable to include a deposit towards the selling price of the vehicle. This can be in the form of a trade-in, should you want to replace an existing car, or in the form of cash.
This is one of the options in Auto Pedigree’s R50,000* vehicle Deal Assistance. The Deposit option can be used as a cash amount towards the price of the ‘new’ second hand vehicle you intend to purchase.
Advantages of a Vehicle Deposit
By making a deposit towards purchasing a vehicle using Deal Assistance:
1. You need not use your savings towards a deposit
2. The amount the bank will be financing will be lower
3. Therefore your monthly repayment amount will be lower
4. And you will pay less interest over the term of your loan
How much deposit you need depends on the length of the finance period, but a general guideline is that older vehicles should have a higher deposit with a shorter repayment term. Most of Auto Pedigree’s used cars on sale are late model vehicles that are no more than two years old.
Vehicle Buying Tips
When it comes to deciding on what to do with your Deal Assistance, much depends on your unique individual situation and needs. However, there are two simple tips to consider that may help make a decision:
1. Opt for a shorter repayment period.
2. Pay more upfront.
When you buy a used car from Auto Pedigree, you get quality, value, and choice from a wide variety of vehicles at 75 dealers countrywide. Contact your nearest branch today.
*Up to R50,000 on selected vehicles
Auto Pedigree and the authors make no representations as to the accuracy or completeness of any information on this site or by following any link on this site. Auto Pedigree and the authors will not be liable for any errors or omissions in this information nor for the availability of this information. Auto Pedigree and the authors will not be liable for any losses, injuries, or damages from the display or use of this information.