Car finance question

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BaTouSai

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I can get a very good deal on a Toyota Tazz 2006 130 XE (95000km on the clock) for R48 000

I am struggling to get finance for the car.

I currently clear R4900 p/m.

I tried ABSA but they told me if you are not buying from a dealer they only finance cars from 2008 upwards.

I then applied for a personal loan at Nedbank and I only qualified for R 31000 @ 27.5% interest over a period of 60 months with a monthly payment of R1400 p.m.

I see on Wesbank's site as well as Carfin's one of the requirements is a monthly salary of R 6500 p.m

I don't want to let this car slip through my fingers because I know the owner and how good the car was treated.

Are there any other options left?
 
If you clear R4900 you shouldn't be far off from Wesbank's R6500 requirement, which will be Gross earnings. Apply with them, they do finance private deals, and each application gets evaluated on its own merit.
 
I bought a car privately last year and did the financing through the dealer where a traded in my old car. I think I paid R1900 for them to organise the financing, registration and plates.

See if you can get a dealer to organise the financing for you. I must mention that I've got a history with the dealer that I used, traded in my 2 previous cars with them. Bought a car from them as well.
 
Ares said:
If you clear R4900 you shouldn't be far off from Wesbank's R6500 requirement, which will be Gross earnings. Apply with them, they do finance private deals, and each application gets evaluated on its own merit.
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Gross is R5000 p/m after tax nett is R4900 p/m.
 
Well u can also try and get an Absa personal loan thats the easiest way and I think the give the most when it comes to personal lending?
 
BaTouSai said:
I tried ABSA but they told me if you are not buying from a dealer they only finance cars from 2008 upwards
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november last year I bought a car privately, was a 2003 honda accord. Got it financed with no deposit required (although I gave 10% in any case) over 60 months. All that absa wanted was to slap on a R5k 2 year warranty and charges for the licencing and registration, they even arrange for the roadworthy. All I had to was sign on the dotted line!
 
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Mr G said:
november last year I bought a car privately, was a 2003 honda accord. Got it financed with no deposit required (although I gave 10% in any case) over 60 months. All that absa wanted was to slap on a R5k 2 year warranty and charges for the licencing and registration, they even arrange for the roadworthy. All I had to was sign on the dotted line!
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I phoned the Hotline and lady asked if I am buying from a dealer or private.

As soon as I told her private and 2006 Tazz she said she can't assist me as they will only finance vehicles from 2008 and newer if it is private sale :(
 
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Pearson6 said:
Well u can also try and get an Absa personal loan thats the easiest way and I think the give the most when it comes to personal lending?
Click to expand...

Won't the interest also be very high like Nedbank's 27.5% ?
 
BaTouSai said:
Won't the interest also be very high like Nedbank's 27.5% ?
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You must have a massive risk profile at that interest rate. I recently got offered 10.5%. At 27.5% you should rather take the loan via a third parties bond. There are guys offering this service. Just search a bit.
 
try wesbank for private finance. but yeah 27.5% is ridiculous, that is the kind of interest rate on short term loans.

I also heard about a product fnb has for buying cars under R100 000, interest rate will be higher but could help you.

i know they dont like financing cars over 5 years old but some do so shop around.
 
D3x! said:
try wesbank for private finance. but yeah 27.5% is ridiculous, that is the kind of interest rate on short term loans.

I also heard about a product fnb has for buying cars under R100 000, interest rate will be higher but could help you.

i know they dont like financing cars over 5 years old but some do so shop around.
Click to expand...

I tried FNB but they have the same qualifying criteria - Earn R6000 p.m or more.
 
D3x! said:
and wesbank?

also i hope you have factored in paying insurance?
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I clear R4900 p.m and my disposable income average per month R2300 p.m - R2500 p.m

Wesbank also told me I don't meet the qualifying criteria because of the R 6000 p.m issue.

Surely there are some that earn R6000 p.m but have less disposable income because of rent and transport.
 
BaTouSai said:
I clear R4900 p.m and my disposable income average per month R2300 p.m - R2500 p.m

Wesbank also told me I don't meet the qualifying criteria because of the R 6000 p.m issue.

Surely there are some that earn R6000 p.m but have less disposable income because of rent and transport.
Click to expand...

you dont have a family member that could take the loan out in their name?
 
Car cash price 48000. Assume 10% deposit and R1000 initial fees and reg costs, you're looking at a gross loan amount of about 44000. Over 60 months, your monthly repayments are R950. Capital + interest = 44000+12700=56700.
The figures may vary but if your NET income is only R2800 after other deductions, after car repayments you'll have 1850 to live on. You're earning too little for a loan of any kind. The national credit act says credit providers must assess the credit worthiness and ability of clients to repay the loan.
Mainstream banks won't touch it, i'm afraid and micro credit lenders, if they do lend to a person with your income, could charge interest rates of 30% (finance costs 40K) making the total loan more than the car is worth (after 5 years the Tazz would be valued at R20-25000).
 
Tigerman said:
Car cash price 48000. Assume 10% deposit and R1000 initial fees and reg costs, you're looking at a gross loan amount of about 44000. Over 60 months, your monthly repayments are R950. Capital + interest = 44000+12700=56700.
The figures may vary but if your NET income is only R2800 after other deductions, after car repayments you'll have 1850 to live on. You're earning too little for a loan of any kind. The national credit act says credit providers must assess the credit worthiness and ability of clients to repay the loan.
Mainstream banks won't touch it, i'm afraid and micro credit lenders, if they do lend to a person with your income, could charge interest rates of 30% (finance costs 40K) making the total loan more than the car is worth (after 5 years the Tazz would be valued at R20-25000).
Click to expand...

Gross is R5000 p.m after deductions I have R4900 p.m

R4900 minus my living expenses leaves me with R2300-R2500 p.m disposable money.
Which at the moment I either spent on Friday nights or on games :)
 
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