Have you decided to buy a car?

Here are some things to keep in mind

Studies show that spending on a car is second only to spending on an apartment.

Since this is an expensive deal, it is worth giving thought not only to the type of vehicle that will serve us on the best side, but also to the financing plan that will win us the best deal.

Here are some details that must be known

In collaboration with Bank Hapoalim

20/06/2022

Monday, 20 June 2022, 16:57

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What are the payment options, how much is required to pay in advance, what part of the transaction is spread over payments and is it possible to defer part of the amount to the end? (Photo: ShutterStock)

Mazel Tov!

You have decided to buy a new car - first of all congratulations and best wishes for a good and safe trip.

But even before that, it's not an easy dilemma: should you buy an electric or regular car, family and spacious or small - which will both save on fuel expenses and also easily enter the parking lot?

And in general, of the payment options for the vehicle, whether to purchase or lease through leasing?

We will leave the principal decisions to you, the buyers, each according to his needs and taste, but regarding the financial decision, you should know the different routes: what are the payment options, how much is required to pay in advance, what part of the deal is spread over payments and can part of the amount be postponed?

There are many considerations in deciding whether to buy a new car or second-hand: a new car "from the nylons" brings with it peace of mind, especially in terms of major breakdowns and treatments.

A new vehicle also comes with an importer warranty for a number of years and does not require a licensing test in the first two years.

In addition, when buying a new car, you can control the level of finish and equipment it will come with, choose what you need and what you can give up, and thus even slightly reduce the cost of the car.

In contrast, a used car or one called a "second hand with zero kilometers" is a car that is cheaper and its big advantage is that "gain" the decrease in value of the car.

"It is important to note that recently we see an increase in demand for used cars "Mainly due to the low supply of new vehicles, due to the cessation of production during the Corona," says Ofir Ohana, director of retail banking at Bank Hapoalim.

New vehicle "from the nylons" brings peace of mind, especially in terms of major malfunctions and treatments (Photo: ShutterStock)

Leasing or purchasing?

Before approaching the dilemma, it is worthwhile to understand what leasing is.

"Leasing is actually a leasing method in which the customer pays for the vehicle a fixed and known monthly payment in advance," says Ofir.

"Usually the vehicle is not registered in the name of the lessee, but in the name of the leasing company - and this has implications when the vehicle is offered for sale at the end of the transaction period.

"

At the end of the leasing period, the vehicle owner can choose whether to purchase the vehicle and transfer it to his full ownership, return it to the leasing company, or continue the contract with it but switch to a new vehicle. "

" Not necessarily, the advantage of leasing is Period and get a new car.

The downside is more expensive costs and lack of vehicle ownership.

So in the end, the decision depends on the needs and abilities of the buyer. "

Ofir Ohana: "It should be taken into account that your monthly expense will not only be expressed in the amount of the monthly payment for the vehicle, mainly because it also includes ongoing maintenance costs of the vehicle (insurance, treatments, annual licensing, fuel, etc.)."

"First of all, you should check that we do have the ability to meet the monthly repayment we took on and that we do not exceed it, so a slight change in fixed income will not put pressure on the repayment.

" It is important to note that a monthly payment Over time.

Studies also show that spending on a car item is the second household expense after the housing item. "

"It is important to note that if there is a liquid budget source that is not intended for another purpose, you can try to bargain and get a discount at the time of purchase" (Photo: Inbal Marmari)

Loan or use of own resources?

"It is important to note that if there is a liquid budget source that is not intended for another purpose, you can try to bargain and get a discount at the time of purchase. However, if a loan is still required, a new car can receive financing of up to 100% "Moreover, the interest rate for the purchase of a new car is usually attractive. All of this, of course, is subject to an examination of an individual request and the customer's ability to repay."

"Wherever we are offered a car loan, it is important to check how much we pay in total, that is - what is the amount of the down payment required, what is the interest rate on the loan and of course - what is the amount of the monthly payment.

"You should know all the costs of the financing route: Are there any commissions, such as opening a portfolio? What is the interest to be paid on the payment schedule? What is the total cost of the vehicle before and after receiving the financing? Is there an arrangement between the importer and the bank? "All of these have a meaning that can reach thousands of shekels."

The bank has extensive experience and knowledge that allows it to tailor the right loan to the customer: "Bank Hapoalim offers a variety of financing routes on attractive terms, tailored to our needs and capabilities - not only the routes themselves, And in the branches. "

In other words, so that not only the driving will be safe and enjoyable, but also the way to purchase the car will be professional and affordable, it is worth checking the financing options offered by the banks, comparing them and making the decision that suits us best.

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• Buying a car

• Loan