The breakeven point is one of the most commonly overlooked factors in vehicle finance, and while it’s entirely possible to upgrade your car every few years without ever knowing the meaning of the term, a basic understanding of the concept could help you avoid financial trouble, says Lebogang Gaoaketse, head of marketing and communication at WesBank.
Rolling existing debt into a new car loan is also a potentially dangerous situation, as it will push the breakeven point of the new car even further out, said Gaoaketse.Breakeven points will differ on a case-by-case basis and are reliant on various factors such as respective deal structures, finance terms and deposit amounts.
There are, on the other hand, ways to negatively impact your breakeven point and these should be avoided where possible, said Gaoaketse.
Source: News Formal (newsformal.com)
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