Everything You Need To Know About Financing Your Car In SA

Car Financing in South Africa

 

For most South Africans, buying a car is a big financial decision. Because most people aren’t able to pay for a vehicle upfront, they tend to turn to financiers to help finance their vehicle. There are several car finance options available which allow buyers to choose what best suits their needs.

Leasing.

One option to consider when financing your car is leasing. This is essentially renting a vehicle over a longer time period. This usually requires an initial rental payment or fee, which is followed by monthly payments. This is a popular option because your car is still under manufacturer warranty and some leasing options might even include a maintenance plan. After the lease period, the car is returned or the lease could be renewed.

Personal Loan.

In this case, you lend a large sum of money from your choice of financier to pay for the vehicle and own it immediately. You then pay off the loan over an agreed period of time at an agreed interest rate. This usually requires an incredible credit history. This is a popular option for people who are selling their previous cars but want a new car immediately. They could then use the money received from selling their previous cars to pay off their loan as soon as they find a buyer.

Hire Purchase (HP).

This option requires a full payment for the vehicle upfront. This is paid by a financier who then owns your car until you’ve paid off the amount owed. This usually requires a deposit followed by monthly installments. The general rule of thumb with HP’s is that the higher the deposit is, the lower your monthly installments will be.

Personal Contract Purchase (PCP).

This option also requires a full payment for the vehicle upfront. This is very similar to an HP. The difference between a normal HP and a PCP is that a PCP usually includes lower monthly installments, but a large sum of money paid at the end of your contract. When you reach the end of your contract, you can either decide to pay off the aptly named “balloon” payment, or give the car back. If you choose to pay the balloon payment, the car will then officially belong to you.

Of course, every option has its own extensive list of pros and cons.  If you’re unsure of which option might be best for you, you can also approach a trustworthy car dealership to help you choose the best finance option for your budget/lifestyle. This usually involves presenting personal details and documents like a copy of your ID, previous bank statements and proof of residence. The dealership you choose should have a comprehensive list of required documents found on their website or available at request.

It’s Time To Sell Your Car If…

 

Buying a new car is exhilarating and terrifying at the same time. You might wonder whether you’ve made the right decision or just wasted a fortune on the wrong one. Whatever the case may be, that excitement unfortunately wears off eventually and oftentimes it might be replaced by apprehension. Although you might feel that you’ll never need another car in your entire life, that usually isn’t the case. People sell their cars for a multitude of different reasons and not all of them are negative. Here are a few signs that it might be time to sell your car.

It might be time to sell your car if…

It’s not road-worthy or safe anymore.

While you might not get a fortune for it or trade it in for a sports car, you can still sell a damaged car in a variety of different ways. Many people opt to sell their cars piece by piece if they’ve been damaged beyond repair. Another option is to contact a reputable junk car buyer that will often evaluate, buy, and tow your vehicle after the sale. This of course all depends on the degree of damage that the car has and whether it runs at all. The best advice is to contact a professional that can inspect your car and help you decide on the best course of action.

You can’t afford it anymore.

Times are tough on almost everyone these days and we’re all compromising to still make ends meet. But if your car is contributing to sleepless nights worrying about its ridiculously high fuel consumption or monthly down-payment, then it might be time to consider going for a more affordable method of transportation. Regardless of whether that means buying a cheaper car or making use of public transport instead, selling your car might give you a bit more financial freedom.

Your lifestyle has changed.

You might have recently had a child and you need space for a car seat, or maybe you’ve moved into an apartment with a tiny garage and your SUV just won’t fit. Maybe you’re moving across the world and you’ve finally realised fitting your “perfect” car on the plane just isn’t going to happen. Your lifestyle has a huge impact on your mobility and vice versa. The one changes with the other and when it’s time to make your decision, make sure you’re considering its long-term implications as well.

 

That being said, this article isn’t meant to encourage you to sell your car immediately. In the end, you’re the only person that can decide when and if you’re ready to part with your car despite its impracticality. If you’re still unsure or wary about whether or not you’re ready to sell your car, contact us at Mobility-Online for in-depth, professional automotive advice. Regardless of why, you should rather focus on how you’re going to sell your car. Check out some of our other articles on how to sell, trade in and auction off your car in South Africa. Who knows? You might be making your best decision yet.

Digital Disruption in the Automotive Industry

Digital disruption is a mindset that ultimately leads to a way of behaving”

 James McQuivey, Digital Disruption: Unleashing the Next Wave of Innovation

Everything is connected today – phones, computers, and even cars. Because digital technology is constantly advancing and changing the way we interact with the world around us, industry experts are ceaselessly trying to find new ways to stay abreast. It seems impossible to plan for the future when not even the automotive industry is exempt from the disruption caused by the dawn of the digital age.

Why does digital disruption matter to the automotive industry?

Traditional marketing strategies have been turned upside-down by the influx of companies like Uber and Lyft. An increasing amount of media platforms are also advocating for more sustainable means of living, which includes cutting down on pollution caused by heavy traffic. Cities like Cape Town and Johannesburg have started sustainable transport initiatives like the MyCiti BRT System and the Gautrain, respectively.  This social connectivity offered by today’s technology means that more and more people are relying on alternative means of transportation. This gives rise to using apps like Uber or finding what IBM calls ‘the car of the future’.

What exactly is the car of the future?

This car would be fuel-efficient, eco-friendly and most importantly, connected. Automotive manufacturers are not only expected to follow this trend of ‘connecting’ their vehicles through means of in-vehicle navigation, Bluetooth, etc., but also make sure that their vehicles are ‘upgradeable’. According to Deloitte, technology advances so quickly that auto manufacturers need to speed up their design process to keep up. Unlike mobile devices and software that are updated as often as every year, vehicles can take up to 6 or 7 years to be designed and manufactured. This means that these vehicles need to still be compatible with technology that evolves much faster than the vehicle itself does. IBM has called this problem the ‘battle between […] the dumb car and the smartphone’.

Why should I care?

Digital disruption not only changes the cars we buy, but also how we choose to buy them. Instead of working with a dealership to find a suitable vehicle, people are now relying on online sources and reviews to help them decide for themselves. This often eliminates the need for in-person communication and customers often only meet once they’ve decided on exactly what they’d like to buy. This forces automotive dealers to digitize their customer services and have a user-friendly interface that allows clients to choose between browsing vehicle options and speaking directly to an adviser. Those companies that fail to keep their customers engaged and do not provide information platforms run the risk of falling behind.

Keeping up with perpetually advancing technology is a daunting task and businesses cannot have a fixed plan for the future when the future is constantly changing. That being said, a fluid market and unfixed future also gives one the opportunity to test and develop products that have never been seen before. Digital disruption could simultaneously be a threat and an opportunity and its impact differs from industry to industry.

Fashion in the Automotive Industry

Fashion in the Automotive Industry

Taking Runways by Storm

When we think of the high-fashion community, the likes of Gucci, Versace, and Louis Vuitton almost always come to mind. If we had to guess what these fashion giants drive, we would probably suggest cars like Rolls-Royces, Ferraris, Lamborghinis and more. It’s no coincidence that we associate these high-end, luxury cars with fashion. Both the automotive and fashion industries specialise in using the best materials to create designs that both protect us and show our unique sense of style – and it’s no surprise that the elite work side by side.

Fashion designers and auto manufacturers have worked hand-in-hand for decades. Take the Gucci Fiat 500 for example – while you might not jump at the chance to own this fashionable car, thousands of pre-orders came flooding in as soon as it was set to be released. Studies show that buyers are more likely to spend more than they initially bargained for if a vehicle suits their style needs.

Automotive design is not merely about what looks good, although that is an important aspect of the process. It also takes practicality and efficiency into consideration. A car needed to transport a family of five, on the one hand, would focus on spaciousness, durability, and safety. The interior will likely have child lock, stain and scratch-resistant materials and strategically placed airbags. A luxury sports car, on the other hand, would be built for speed, luxury, and style. While some of these manufacturing aspects don’t seem to relate to design, it still takes a keen eye and mind to meet customer needs while still being stylish.

We as consumers choose products based on what would fit not only our budgets, but also the identities we’ve created for ourselves. Even if you might not be a fashion magnate jetting off to Milan, your style is an extension of yourself that others use to determine who you are and should never be compromised.