Monday 17 May 2021
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Purchasing your vehicle via the Bank

Vehicles can convey status, personality, or even individuality with the decorations we place on them. Whether you are planning to buy your first car or your current car is already a few years old and you are thinking about a new one, you should know that buying a car can be very overwhelming, or equally a curse.

Almost every newly employed young graduate is cruising around in the latest wheels after a few months. It is exciting being mobile but it comes with a monthly price tag. Let’s face it, we all just want to get it done rather than spend time weighing all the options. How then do you about it?

Standard Bank’s new Business Manager in the Vehicle and Asset Finance Department Magreth Mengo, says that clients should first shop around for their dream car and quotations from the dealership. With the quotation and needed required documents like latest proof of income, ID, Driver’s Licence and latest proof of residence, they can then approach Standard Bank Vehicle and Asset Finance (VAF) team either through their VAF experienced team at Town Square on the first floor or through the F&I at the dealerships. “We will process the application and give feedback on your qualifying criteria’s once all required documents are received,” said Mengo.

Mengo adds that clients can visit the department any time as the qualifying amount is worked out based on their income and expenditure profile and also depends on their monthly earnings. “So whenever you ready, we are ready to make it happen for you.”

The latest growing trend of cars being pulled back from their initial owners due to difficulties to pay their monthly dues is however a red flag raiser on how cautious one should be before purchasing their dream car through the bank. Motorist have come out expressing how their heavy installments deductions leave them with almost nothing.

“In the third year, I couldn’t handle the deductions so I decided to turn my VW Polo into a taxi so that I brings in more money to pay it off,” said a young driver Jonas Hamukoto. Hamokoto added that his brother’s car was pulled back by the bank when he skipped a few instalments and it was auctioned.

“You do not want to buy a car through the bank if you know that after deductions, you will not have enough money for fuel, rent, food and to save. Many people do this mistake of buying cars just to impress their friend and live their lives in stagnation. Some can no longer afford to buy food at home or a bed to sleep,” said Sacky Nambadi, a financial adviser.

Responding to the auctioning trend Mengo said there are a lot of elements that causes this. “It is mostly affordability, decease without no credit life policy on the deal taken and also the economic situation that is impacting the financial situation of the consumers,” she said, adding that the bank offers advice on the eventuality on an individual basis or when they meet their clients face to face.

The crux of the matter is that, while it is exciting and easy to cruise in the latest car, are you ready for the monthly prices tag should you sign a deal with the bank? Make a well informed decision before looking good, or else face the low-light of finding your car being pulled back and auctioned because you can no longer afford the charges.

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