DIY car finance application or outsourcing to a dealer?
It’s a known fact, especially in South Africa, that owning a vehicle remains a necessity for most commuters due to the generally poor public transport system in many parts of the country, despite the proliferation of e-hailing services.
Given the relatively higher prices of cars in South Africa, many individuals who aspire to own a vehicle often turn to vehicle financing to fulfill their mobility dreams. However, in this context, a significant question arises: identifying the most advantageous approach to initiating the vehicle finance application process. This begs the question: Is it preferable to apply with the vehicle dealership's help or to approach the bank directly? Despite the advantages and disadvantages of both options, the bank ultimately receives the application.
Let’s start with the former, which is the more convenient and hassle-free route, especially for first-time car buyers who might find the application process daunting. All you need to do is give the car dealer all the needed papers, and then the dealer’s finance team will handle all the paperwork for your car finance application. That said, they will approach different finance houses to help you find the best deal, as well as provide options for insurance coverage.
In comparison, the direct option might lack the convenience of the dealership’s assistance, but the applicant gets full control of the entire application process. Therefore, pre-approved applicants are less likely to succumb to the temptation of purchasing a car beyond the approved or budgeted amount, as they can negotiate the price of their desired car within the approved loan amount.
For those who choose to deal with the process directly, finance institutions such as WesBank offer useful tools that aid in the car finance application process by making use of the online finance calculator. The system allows applicants to calculate the estimated monthly repayment or installment by altering the variables that influence the payment, such as the vehicle purchase price, deposit amount, and payment term.
Not only that, but applicants can also utilise the WesBank FastApp, a customised affordability tool that requires only five required data fields to qualify and get finance pre-approval in a matter of minutes. With all that done, there is a wide range of online vehicle listing sites that provide access to thousands of new and used cars available for sale from dealers, private sellers, or auction houses across the country.
Once you've found your dream car, you can apply for financing online. If your application receives approval, you can then complete and sign the finance agreement online. This makes it easy for anyone to handle their car loan process and get the car of their dreams.
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