Are you looking to buy a car at a wholesale price? Then consider Absa vehicle and finance repossession centers as your next option.
At this point you might think this is not a great idea at all. You might think that the cars might be old, tired and likely to become scrap rather than staying out on the road. But consider the current economic climate. Many people have over-extended themselves and are now in financial trouble. The banks are owed money, people cannot pay their monthly car installments, so the vehicle is repossessed by the bank. And, this means that a perfectly good vehicle is available and not at full retail value.
So what is the next step?
It’s very simple – all you need to do is find out where your nearest Absa repossession centre is, and when they are having their next auction. By visiting www.absa.co.za you will find a very simple table that indicates which centres are having auctions. Taking it one step further, you can click on the catalogue for each centre to determine what cars are on auction so you can determine ahead of time if it is worth it. This is fantastic as you can browse from the comfort of your home and see if it is worth making a fuss about or not.
When you are at an Absa vehicle finance repossession centre, you have a few options available to you in terms of financing the vehicle:
1. Installment Sale
This option is simple in that Absa will loan you the money for the car. You can determine the payback period, based on FICA requirements and your financial status. As soon as you have paid the loan off, over the designated period, then the car becomes your very own property.
2. Lease Agreement
This option allows you a little more freedom, especially if you like changing cars. Here, you can have one car for a period of time and then change to another without too much effort. Plus you can fix the costs of your lease agreement with Absa. Finally, you can look to buy the vehicle at the end of the lease agreement.
3. Rental Agreement
Upfront you and Absa will agree on a period of time which you will rent the car from them. At no stage will you own the car, but then you do not need to worry about some of the pitfalls that come with ownership. At the end of the period of the agreement, you can renegotiate a further term, you can consider buying the vehicle, or simply hand it back to Absa.
The above 3 opportunities are very different so you will need to take care when considering your options. The opportunity to own is attractive but do not forget that a car should never be seen as an asset, because is depreciates annually and the returns are small if any. Of course, once the car is paid off, then it’s yours. And should you take special care of the vehicle, it could last many years to come and save you at the same time. Renting seems like a handy option, but then are you paying a premium for this rental, when you could in fact be saving? But then you do not have to concern yourself with ownership issues. Leasing poses similar questions to that of renting, although you do appear to have a little more flexibility with Absa with this option.
The best part though, is that Absa vehicle and finance repossession centres offer you the chance to cash in on someone else’s negligence and get a great deal.