Deposit Question

[medicnick83]

What is a good deposit to have for your first vehicle if you looking at say... a R50 000 car...

Something, realistically achievable in 3 months...

 

[werner]

50k?

that way you pay the correct amount for the vehicle, aka "fast depreciating asset"

if, after 3 months you are short of your target 50k, and only have e.g. 20k, then you can take two possible actions
1) buy the 20k car
2) extend your savings period until you have 50k

the credit junkies will suggest 20% of 50k.

 

[medicnick83]

20% of R50,000 ??

Geezuz!

 

[ToxicBunny]

for a R50k car... minimum R20k i would think...

But i'd go with werner on this, if you only want to spend R50k on a car.. then either by the R20k car.. or keep saving for the R50k one.. don't put it on credit if you don't have to.

(of course take this with a pinch of salt considering i'm contemplating buying a brand new car atm)

 

[Fern9do]

I's say 10k...that way you can pay it off over 2 or 3 years. But that's just my opinion.

 

[adamr]

the way i look at finance always is like this ... if i loose my job tomorrow, can i easily settle the debt or sell the car easily for the finance amount owing on it ... so i would buy cash or finance an amount on the car, that if ever i am in trouble it will be easy to sell the car and get out of the position ... but thats me ...

 

[EvoBunny]

20% of R50,000 ??

Geezuz!

That's the quotes amount, but effective will be more like 22% if it's quoted at 20% compound interest is a biatch.

 

[medicnick83]

I was looking through the CapeAds now and Dart Motors want R20 000 for a R49,990 car.

So, geez! I'm going to have to work hard and save or just see how things go.

 

[JK8]

I put 50k on my Velo, paid it off in 2 years... was quite easy I think my monthly payments were R1300 incl insurance.

 

[medicnick83]

R1300 is alot for me... I'm hoping to get away with R900-R1000 a month...

 

[JK8]

R1300 is alot for me... I'm hoping to get away with R900-R1000 a month...

Well then you need to buy the right car, with low insurance premiums and also low fuel consumption. If your finances are tight, I would rather you try and put a bigger deposit or buy the car cash so you dont have added worries every month.
Something to think about.