Why save up for a deposit?

Save for a deposit because it's a smart move

The bigger the chunk of cash you can put down as a deposit, the better. Here are three reasons why:

It could help you get your car loan approved

If you have a deposit, you’re decreasing the amount of money that a bank has to finance, meaning you’ll be applying for a slightly smaller loan. You’re also showing that you can handle your money wisely.

Your monthly instalments will be lower

This is also because the amount you need to finance is slightly less. This is a much wiser way to decrease your instalments than having a balloon payment or choosing a longer finance period.

You pay less interest in the long run

Again, a lower amount that needs to be financed means less money to pay interest on.

 

So, although it’s frustrating to wait until you’ve saved up for a deposit, it’s worth the effort because it can really help you get a better finance deal.

 
 

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