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Vehicle Finance – The Finance Process

In our last article we examined some how to evaluate whether or not you could afford to finance a vehicle as well as a couple of finance options available to the South African public. In this article we’ll examine what you’re going to need to actually apply for finance in the country.

Yes, you guessed it, in this article we’re going to have a look at what documentation and the process you’ll need to follow to get your vehicle financed.

How does financing work

The first thing that happens when you’re financing a motor vehicle is that you’ll be asked to sign an offer to purchase a vehicle. This allows the car dealer to finalise the sale and draw up an invoice for the sale.

The dealer should list the vehicle’s details on the invoice in accordance with your offer to purchase. Once this step has been completed the dealer then typically faxes the order to purchase to the organisation who will finance the car.

Once the organisation has received the invoice they’ll draft a credit agreement which you will be required to sign. The agreement should outline your monthly repayments, the amount of interest you’ll be paying, as well as clearly outlining any penalties which may be incurred for late payments.

The contract will be drawn up in accordance with the information you provided the financing institution with. Whatever you do, don’t fabricate any of the information on the application form if you do you’ll be breaking the law and may be looking at some serious repercussions.

Once you’ve signed the contract you’ll need to provide the organisation financing your vehicle with the following documentation:

A valid driver’s license – yes, if you’re buying a car you will need to prove that you are legally allowed to drive it
Proof of salary – what you’ll need here is payslips. You may also be required to prove that you have worked with your employer for a period of at least six months
A utility bill – this could be anything from an electricity bill from Eskom to a telephone bill from Telkom – what the financer is actually looking for is proof of residence
Your ID document and a certified copy of it. Believe it or not, there are people out there who attempt to finance vehicles using fake credentials. Your financier will need to confirm that you are who you say you are.
Okay, so once you’ve supplied all of the required documentation you’re almost ready to finalise your purchase.

Your financier will provide you with an authority to release form to pass on to the person/dealer who sold you the vehicle. You’ll need to sign the document, which confirms that you have taken delivery of the vehicle, so that your financier can pay the dealer.

The Best Financing Options For Consumers

There are many ways in which a consumer’s purchasing power can be boosted to have value without many risks. There are different providers that offered different instant credit that can be used as they shop at different stores. In some cases, customers are allowed to get a loan and then pay in installments over a period of time that is predetermined.

Financing without risks is something that most people are interested in. Customers can enjoy pay later options in a secure and safe way. It is a risk-free kind of arrangement for both the buyer and the seller. It is important to accept the fact that most shoppers would not make purchases without financing available. The value of orders goes up incredibly with financing.

In the past, only the big retailers got financing, but advancement in payment methods has made it possible for all kinds of businesses to offer consumers great financing options at costs that are affordable. There are some things that you should keep in mind before settling for a provider and they include:

Impact on the consumers
Price is a big determinant whether a customer makes a purchase or not. When a lump sum is broken down into installments, then it becomes more palatable. The behavior can be leveraged when you show the monthly financing available alongside the purchase price to show the buyer that he could very well fit the item into his or her budget.
The interest that is charged is also something that many people will think about. There are different terms of payments regarding how often they will make charges. Other things considered are the use of credit cards, flat fees, and so on. It is important to deal with a provider who offers rates that are favorable.

One of the things that the people look out for is how easy it is to make an application. There are options where you have to fill out pages of paperwork and can take many days to complete. Some only require very little information and only some minutes to approve.
This kind of financing is aimed at increasing your sales and therefore the application should not be made complicated. If it takes too long, then most people will just give up and try to purchase somewhere else.

Most of the financing options also require the buyers to have smartphones where they can get authentication codes. Though it is a minor step, there is the assumption that everyone has a smartphone. It is therefore important to ensure that your buyers can use the option easily depending on the target group.

Flexibility in branding and marketing
When you are planning to offer to finance your clients, it should fit very well on the website as well as an online store. Consider marketing flexibility as well as branding that is offered by the different companies.
You need a provider who offers flexibility that allows you to white label the option. This means that you can brand the option as if it were your own. When you change the message, then the buyers will feel confident taking it from you instead of a third party. This allows the finance option to fit with the brand and image.

Why Early-Stage Startup Companies Should Hire a Lawyer

Many startup companies believe that they do not need a lawyer to help them with their business dealings. In the early stages, this may be true. However, as time goes on and your company grows, you will find yourself in situations where it is necessary to hire a business lawyer and begin to understand all the many benefits that come with hiring a lawyer for your legal needs.

The most straightforward approach to avoid any future legal issues is to employ a startup lawyer who is well-versed in your state’s company regulations and best practices. In addition, working with an attorney can help you better understand small company law. So, how can a startup lawyer help you in ensuring that your company’s launch runs smoothly?

They Know What’s Best for You

Lawyers that have experience with startups usually have worked in prestigious law firms, and as general counsel for significant corporations.

Their strategy creates more efficient, responsive, and, ultimately, more successful solutions – relies heavily on this high degree of broad legal and commercial knowledge.

They prioritize learning about a clients’ businesses and interests and obtaining the necessary outcomes as quickly as feasible.

Also, they provide an insider’s viewpoint and an intelligent methodology to produce agile, creative solutions for their clients, based on their many years of expertise as attorneys and experience dealing with corporations.

They Contribute to the Increase in the Value of Your Business

Startup attorneys help represent a wide range of entrepreneurs, operating companies, venture capital firms, and financiers in the education, fashion, finance, health care, internet, social media, technology, real estate, and television sectors.

They specialize in mergers and acquisitions as well as working with companies that have newly entered a market. They also can manage real estate, securities offerings, and SEC compliance, technology transactions, financing, employment, entertainment and media, and commercial contracts, among other things.

Focusing on success must include delivering the highest levels of representation in resolving the legal and business difficulties confronting clients now, tomorrow, and in the future, based on an unwavering dedication to the firm’s fundamental principles of quality, responsiveness, and business-centric service.

Wrapping Up

All in all, introducing a startup business can be overwhelming. You’re already charged with a host of responsibilities in which you’re untrained as a business owner. Legal problems are notoriously difficult to solve, and interpreting “legalese” is sometimes required. Experienced business lawyers know these complexities and can help you navigate them to avoid stumbling blocks.

Although many company owners wait until the last minute to deal with legal issues, they would benefit or profit greatly from hiring an experienced startup lawyer even before they begin. Reputable startup lawyers can give essential legal guidance, assist entrepreneurs in avoiding legal hazards, and improve their prospects of becoming a successful company.