Nedbank helps consumers make informed car buying decisions
Nedbank is about more than simply providing financial resources. As a responsible lender, the bank continually strives to empower consumers with advice that will help them make informed financial decisions.
Amongst other initiatives, Nedbank sponsors the Car Magazine Top 12 Best Buys event through its Vehicle & Asset Finance division with the aim of empowering consumers to make more informed decisions about the cars they buy.
“From Nedbank’s perspective, it is about a simple truth: consumers want to know that the information they see in the media reasonably reflects what they will experience on the road," says Johann de Beer, Head: Nedbank Vehicle & Asset Finance.
CAR’s 2008 recommendations for the best value-for-money vehicle purchasing in 12 categories were announced at the annual Top 12 Best Buys awards function, which was held at the Nedbank Head Office in Sandown last night (12February 2008).
“Nedbank supports the Top 12 Best Buys because it is consistent with the drive to give consumers the skills and knowledge to function confidently, effectively and responsibly when buying goods and services,” says de Beer.
He adds: “Consumer education is especially critical now, considering the current market dynamics including the high interest rate environment and the National Credit Act.”
Buying a car is an emotional decision. You’ve done your homework and made some comparisons, but usually your final choice hangs on the way you feel about a car, not what you know about it.
“Now is not the time to let your heart rule your head,” says de Beer. “It’s more important than ever to make a choice that suits your motoring needs and your pocket.
“When you buy a car, you have a particular purpose in mind, and what you need is a thorough comparison of the cars that suit that purpose. If it’s a family sedan you need, it’s no use being told that the year’s best car is a two-seater convertible. There are more models than ever to choose from and you need help in focusing on the criteria that affect you most. That’s exactly what Car’s survey offers the public,” he says.
And this year there isn’t room to make an expensive mistake. “You have to buy right as the total cost of vehicle ownership is climbing. Buyers are under pressure from interest rates, general inflation, fuel costs, insurance and maintenance. All these factors eat away at disposable income and the result is a fall in demand for new vehicles. “We expect a drop of 5-10% in sales in 2008 with the first half of the year likely to be tougher than the second. Dealers are likely to be offering all kinds of packages as they can’t afford to have stock sitting on the showroom floor for too long a period,” says de Beer.
Understanding these deals and choosing the right finance is just as important as the car itself.
“Once you’ve made up your mind about what to buy, you want to make it happen then and there. You want to drive that car home and show it off,” says de Beer. “But take the time to understand the financial options on offer and the consequences of each decision.”
You can arrange to pay your car off over an extended period, without putting down any deposit, for example. That makes the monthly instalment lower, but you’ll be paying more interest than you would over a standard term. The total cost of the finance will be higher. Similarly, in a balloon or residual structure you pay a percentage of the capital as the last instalment: this reduces the monthly repayment but increases the interest payable. Skipping a payment may sometimes be unavoidable but it also works out to be more expensive over time.
“A Nedbank vehicle finance advisor will explain these options and make it easier for you to get the credit you need. The bank is there to help the buyer work out whether the vehicle is affordable and whether that picture might change in the future,” says de Beer.
