Vehicle Refinance Option
Vehicle Refinance Loan Option
Two reasons for you to consider a vehicle refinance loan if you own a car.
- You can refinance your vehicle to get a better interest rate and pay a lower monthly premium.
- If you are in need of some cash and need a loan.
Option 1: Refinance Your Car If you Still Paying It Off
You find yourself under financial stress. Consider refinancing your vehicle.
- They will offer you a better interest rate.
- Your monthly installments can be lower.
- You might be able to pay the loan off quicker.
- The title of your vehicle will be transferred to a new lender.
There are some disadvantages of vehicle refinancing
- Additional finance fees.
- Applying for refinancing can affect your credit score.
- If there is nothing wrong with your current vehicle finance loan then refinancing might not be for you.
To Qualify For Vehicle Refinance
- The value of your vehicle must be more than R45 000.
- The vehicle must not be older than 2002.
- Your vehicle must not rebuild, stolen, or recovered.
- You must earn more than R6500 pm.
- Have a valid South African drivers license.
Option 2: Make a Loan By Refinancing Your Vehicle
- You actually take out a loan against the trade in value of your vehicle.
- If your vehicle is paid up and the trade-in value is R80 000 then you will get the full R80 000 out.
- But if your car trade-in value is R80 000. You still owe the bank R50 000 you will only get the cash of R30 000.
Where To Apply For Vehicle Refinance
5 websites where you can make an application online for vehicle refinance.
The Risk
Make sure you understand the risk and processes of refinancing your vehicle or refinancing your vehicle for a loan. Failure to pay back your loan can result in you losing your vehicle.
Application For A Loan
Always make sure that you can afford by taking out a loan by calculating your budget.
Recommended Reading: Refinance An Auto Loan
