Noticeboard

Youth Keyona: Thursday 19 July 2018

Date: Jul 16, 2018

Things to Consider Before Buying a Car

With the increasing rate of cars that are repossessed every day ,one of the main reasons is the lack of knowledge and understanding the process and all the technical terms that comes with the contracts on the buyers side, especially when buying your first car. Most of the time buyers focus on being approved by the bank than interrogating the agreement, as a result they end up committing into a contract they might fail to honour in the future and sometimes shift the blame to the sales person for failing to explain certain things. When it's time to buy a car, everyone wants to get a fair deal but we cannot deny the fact that some clients are unaware of their rights or the type of question they should ask to get clarity before they sign. The main objective of the show is to create awareness especially to first time buyers, and also encourage them to do research when they get to the stage of buying a car instead of relying on the sales person. Some of the decisions they make today might have future financial challenges as a result some cars get repossessed by the bank and get sold on auction.

 

Focus Points:

  1. Contract
  • The importance of reading and understanding your contract (Term of the contract-36,48,60 or 72)
  • After the bank approval is the client allowed to choose the term? In most cases we see clients taking whatever the bank give them.
  • Understanding the costs that come with the extras

 

  1. Deposit-
  • What is the Role of a deposit when buying a car.
  • How many percent will make a difference to the balance
  • Would you advise a client to pay deposit or pay it as a lump sum as the first instalment( Some they believe that’s the right way of doing it)

 

  1. Balloon Payment
  • What is balloon payment and how does it work?
  • How can a client use the balloon payment to their advantage ( Maybe pay the car until the end of the contract, or trade in after few years?
  • In your experience have you ever come across clients who came to understand balloon payment after the actual term of instalment came to an end?
  • Things to consider before taking a car on a balloon payment

 

  1. Compare prices.
  • Not everyone will afford to qualify or afford a new car-The importance of comparing prices and costs before deciding (sometime a demo with 5000 K’s on the clock will be 30-35000 less than a brand new car

 

People can save money for the future by making the right decisions when buying cars today.

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