Refinance your vehicle

Refinancing is securing a new loan with monthly payments that are lower than your existing loan. This difference can be achieved by obtaining a loan on a lower amount, or securing a lower interest rate. This savings puts extra money in your pocket by lowering monthly payments. This can make a big difference in your budget, and reduce the stress on your personal finances.

When you restructure your car loan, you can elect to benefit in several ways: 

• If you obtain a lower interest rate, you can use it to lower your monthly instalment and free up valuable cash flow.
• Alternatively, you can use it to reduce the term of your repayment period while keeping the monthly instalment the same.
• A third option is to extend your loan repayment period, which will also serve to lower your monthly instalment.

Here is an example of how refinancing can benefit you financially: 

If you had bought a 2008 double cab that had cost you R 200,000 your monthly instalment would be R 4,650 over 72 months at a 16% interest rate. Refinancing it over the same term at 12% interest would yield an R 2,950 instalment, which is a staggering saving of R 1,700 per month.