Time to pay up
Here in South Africa, consumers have a number of choices when it comes to paying for a motor vehicle. Many are safe and straightforward while others may have a tinge of risk.
Related: 10 tips for getting the best new car deal
Let's take a look at some of the options available to SA consumers.
Vehicle finance
This is by far the easiest and most secure form of paying for your vehicle purchase. The in-house finance department will liaise with a finance house and take care of the sale. The finance house will then debit your account monthly, no hassle no fuss.
Bank Transfer
This is a secure method in which you ask your bank to pay the purchase funds to the seller's bank. The banks will confirm and ensure that all parties are who they say they are and If there is something untoward, you can ask the bank to reverse the transfer. This is usually done with larger sums of money as the associated charges are usually rather steep.
Rent to own
Caution needs to be kept in this instance as there are as many unscrupulous operators as there are upstanding ones in this sphere of business. In these types of deals, you will take ownership of the vehicle and pay a monthly installment and continue to pay until the vehicle is paid off. Some of the issues that we have come across are extremely high-interest rates, repossessions, and very little recourse for consumers in contracts
Cash
The final option here is paying cash money. Not only is this extremely dangerous but once the seller has your money and disappears, you have no recourse if the vehicle is not what you were looking for. This is also the sphere where you are most likely to encounter scammers and thieves, so if this is the only option you have, be extra vigilant and do your homework!
