What not to do when financing a vehicle

//What not to do when financing a vehicle

What not to do when financing a vehicle

Cars cost a lot of money, there’s no doubt about it. Buying a car, be it old or new is going to set you back by thousands of dollars – the kind of money that a lot of kiwi families won’t often have lying around! When you need a car now, and you don’t have time to put a savings plan together, you can rely on Car Finance New Zealand to help get you on the road sooner rather than later.

A car loan financed by Car Finance New Zealand is an extremely low-risk option, resulting in a convenient car and easy, affordable repayments over a decent period of time. Funding your new vehicle through Car Finance would seem the most logical route to take for kiwis, but unfortunately many uninformed folk have resorted to less-than-ideal means of sourcing the money for their new sets of wheels. The best way you can avoid getting yourself into a sticky financial situation on behalf of a car is to stay informed about risks of taking other financial pathways. Today’s blog will list a few for your consideration.

 

Adding to your mortgage for a car

Adding a few thousand dollars to your mortgage to finance your car might sound like a smart move, but adding even a small amount to your home loan can be more of a struggle than its worth. Paying off any short-term debt over a long period of time is going to cost you dearly in the long run when you take interest into consideration. Therefore, a small loan paid over a smaller amount of time is your best bet – something fully achievable with Car Finance New Zealand.

 

Borrowing from family

As you most likely know, mixing family or friends with finance is never a good combo. When you hit a rough patch and can’t make a payment, a professional loan company such as Car Finance can have a reasonable discussion with you and sort out a mercy-term before you get back on track with your payments. There’s no awkwardness between you and your loan provider because we respect your circumstances and can afford a few ‘bad times’ for our customers. Your family and friends, however, can be a lot less concrete.

Money puts a huge strain on otherwise stable relationships. Every time you see that friend or family member, the debt that you owe will nag at you and make the interaction awkward, especially if it’s been a while since you’ve been able to make a payment. In extreme cases, some friends or family members will abuse the financial aid that they’ve given and use it as leverage to manipulate you: ‘I gave you money for your car, the least you could do is give me a lift’ for example.

Avoid such awkwardness and appreciate the professionalism of a carefully-constructed payment plan with Car Finance

 

Keep an eye out next month for another blog instalment on this topic, where we’ll continue to keep you informed about the alternative means by which you can finance your car, and their various risks.

2018-08-07T19:39:32+00:0010 August 2018|