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Friday, January 18, 2008
In times where we’re not too keen on using public transport to get around anymore due to safety risks, many people have opted to invest in personal vehicles. Financial situations are not always easy, and therefore, one has to know what route to take and how best to finance their vehicle. There are a few financial institutions that will be more than willing to help out.
Ford Credit claims to offer “a wide variety of vehicle finance and insurance products” that are tailored to individual requirements. According to the company, the minimum contract term is six months, and the law allows the maximum contract period to be 54 months. Ford Credit requests a deposit of 10 per cent and no book value is allowed. The vehicle will belong to Ford Credit until the final payment is made. After that, the vehicle will belong fully to the client.
For new contracts, Absa Vehicle and Asset Finance will charge an initiation fee as well as a monthly service fee. Unlike Ford Credit, a deposit isn’t always necessary, but may be required depending on the credit risk assessment of the transaction. The kind of sale where a customer pays monthly instalments and gets full ownership after the last instalment is called an Instalment Sale. Absa also offers Lease Agreement (the customer can use the vehicle and have the option of owning the vehicle or terminating the contract), and Rental Agreement (using the vehicle without the option of owning it eventually).
These are just two of the many financial institutions that offer vehicle finance. Other options include vehicle finance schemes from such organizations as Standard Bank, Wesbank or Nedbank. All of the above mentioned institutions are reputable and more information about each is available in their respective websites.
Source: http://www.cartoday.com/
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