The main types of vehicle finance offered through FNB Cars include:
Instalment Sale Agreement
Repayment periods range from 12 to 72 months, while ownership of the car is passed on to you once you have paid the full amount. By opting for a balloon payment, your monthly instalments can be reduced.
Lease Sale Agreement
This option gives you the right to use the car for an agreed period. During the agreed period of the lease you are obliged to make payments for the use of the car as set out in the lease agreement. At the end of the lease, you can either extend the lease or take ownership of the car. Repayment terms range from 12 to 72 months.
During the car buying process, it’s important to keep in mind that reputable dealers will back up their sale by offering a warranty of some kind. In addition, FNB Cars provides finance in accordance with the National Credit Act =, so loans are only granted to individuals who can afford to make repayments,
If you are a first time buyer, you may need some form of surety to apply for finance from FNB Cars. In most cases, the car loan is secured against the actual car, so if you miss instalments, FNB may repossess the car.
When you are budgeting for car repayments you need to make considerations for insurance. Any car that is being finance through a financial institution must be comprehensively insured. In addition, you also need to take fuel costs, maintenance and security into account.
Before you start the process, it’s important to have a clear idea of the type of car you want and what you can afford.
By keeping a clear credit record you may be able to qualify for a favourable interest rate.