At Easy Car Loans, we aim to make the process of purchasing or refinancing a vehicle a simplified and effortless process. To do this, we partner with reputable South African banks to guarantee the best rate for you. This is done using a Hire Purchase agreement, commonly referred to as an HP agreement.
A Hire Purchase Agreement is a contract signed into via a buyer and bank or lender, for the buyer to purchase their dream asset without having the funds needed to do so, as the bank or lender will then loan the buyer what is needed. After which the balance owed will be paid off by the buyer in regular monthly instalments over an agreed period. The buyer can include a deposit too, to reduce monthly repayments.
HR Agreements are one of the most popular ways of buying a vehicle. Not only is it more affordable with fixed monthly instalments over a set period but the monthly repayments mean you can buy what you need, now, with lower interest rates!
While the bank will keep the certificate of ownership up until you finish paying the instalments over the agreed period, you are not restricted in the use of the vehicle,i.e. you'll have unlimited mileage, and ownership will revert to you as soon as the loan is paid in full. Furthermore, you can choose to settle your payment early should you want to pay off the outstanding balance of the loan before the end of the agreed period.
The only disadvantages you might encounter would be if you choose a shorter payment period. The monthly instalment would then be higher compared to other finance options. Furthermore, the bank will own your vehicle until you finish paying it off, and if you fail to make regular monthly payments, your vehicle may be repossessed. This also means that you cannot sell your vehicle until you've paid the balance in full.
There will always be disadvantages to every agreement, but with Easy Car Loans we aim to expose you to as few as possible, by guiding you through the loan process and facilitating the best deal for you with an improved interest rate, as well as, an affordable monthly payment option with the added benefit of signing all the necessary documentation within the comfort of your own home or office.
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