::Barloworld ::Car finance conditions and types

There are different types of car finance options and each have unique car finance conditions and features that one must be cognisant of before taking a decision which to choose.

Here are a few examples of types of car finance and their car finance conditons:

• Instalment sale.  This is preferred when the buyer wants to retain ownership of the car.  Most buyers are private individuals or car allowance users.  The repayment period and deposit can be structured according to the needs of the buyer.  The car becomes the property of the buyer once the repayment term is over and all instalments had been paid in full.  Comprehensive insurance is compulsory, all VAT is capitalised upfront and the interest rate is linked to the Prime Lending Rate.
• True rental agreement.  The client pays to use the car and ownership never passes to the client.  The client does not lease or buy the car with the view of owning it at the end of the agreement.  At the end of the agreement, the car must be returned to the financier in accordance with set condition and mileage restrictions and parameters.  Penalties can be charged if restrictions are not adhered to.
• Lease agreement.  Under the terms of a lease agreement, the client leases the car with a view to either return it at the end of the agreement or to take ownership on the conditions set out in the agreement, and once all amounts due had been paid in full.  Alternatively, the client may decide to lease the car for an additional period.  The lease is well suited to equipment, aircraft, yellow metal or to a business that has to replace goods at regular intervals; it also works well for car allowance users.  Monthly rentals (instalments) are tax deductible and the deposit and repayment period can be structured according to the client’s needs.  The repayment period can range from six to 72 months, the car must be comprehensively insured and the interest rate is linked to the Prime Lending rate.

Depending on the needs of the buyer, their will be a type of car finance that meets them, with car finance conditions that will not only suit your budget but will also comply with your coverage needs.

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