Whether you are buying your first or fiftieth car, there is no other feeling quite like getting behind the wheel and realising it’s all yours. With an Instalment Sale Agreement from Absa you can experience the joys of immediate ownership and purchase the vehicle of your choice with a loan that you pay off over an agreed period of time
Once you’ve chosen the vehicle or other asset you want, the next step is to agree on an interest rate, monthly repayment amount and repayment period. Not only does ownership of the vehicle automatically transfer to you once the loan has been repaid, but this option affords you a degree of convenience and flexibility. For example, you can decide to reduce your monthly payments by building in a balloon payment at the end of the repayment term or electing to make a deposit upfront.
Not right for you? Perhaps renting or leasing will suit you better.
An Instalment Sale Agreement could be the right choice if you:
- Want the car to belong to you once the loan amount has been paid
- Would like to enjoy benefits of ownership during the repayment period
- Would like a customised repayment plan, with options to pay the loan off between 24 and 72 months
- An asset that becomes entirely yours at the end of the contractual period and once all monies have been paid
- Fixed or variable interest rates
- A financing solution that allows for early settlement without penalties
- The option of lower monthly repayments through a balloon payment or a residual value payment at the end of the repayment period
- The flexibility of choosing a repayment period of 24, 36, 48, 60 or 72 months
- If you are registered for Absa Internet Banking, link this account to your profile and be able to view the financing details, and monitor the outstanding balance and transaction history.
- Compulsory comprehensive car insurance on the financed vehicle
- An initiation fee and a monthly service fee charged on all new contracts
- Your instalment sale agreement may require you to pay an initial deposit
- Affordable Credit Protection Plan to settle the outstanding balance in the case of death, disability or retrenchment