Financially Trapped

S

Semisane

Well-Known Member
Joined
Jan 21, 2017
Messages
109
Reaction score
1
Good morning friends here is the situation my friend bought first generation KIA Picanto last year she bought it cash for R65 000. She took a loan of R95 000 at Capitec Bank with the remaining amount, she did renovations the Kia Picanto run alright nothing wrong with it.

Here is the problem my friend wants to upgrade to something new, personally I think it's a bad idea to buy a brand new or demo car. She is paying Capitec Bank R3 500 for the loan I suggested she finish paying Capitec Bank that is when she can think of getting a new car. She feels the Kia Picanto is old and updated but at least it move her from point A to B.

Can car finance give her a loan if she has other debts I don't know her other debts but I know she earn R10.000
 
If she took a loan from Capitec then she did not buy it cash.

As long as the car works, live with it. If she can't afford to pay off the loan, then she can't afford the new car.
 
Chevron said:
If she took a loan from Capitec then she did not buy it cash.

As long as the car works, live with it. If she can't afford to pay off the loan, then she can't afford the new car.
Click to expand...

+10 on both points.

If he/she cont on this path they will only get into a deeper whole. R10k pm is not exactly a lot of money these + paying R3500 for the existing loan.

If the Picanto is running fine keep it at the very least until its 100% paid off.
 
There is absolutely no point of getting another car if the one she has is running.My advice would be to drive the car and pay it off asap, really to make more debt for a vehicle is not worth it, i am not sure of the position she is in, but if she has property put all into that. I am talking from experience, to get to a stage of 0 debt is possible, just don't keep up with the Jones because soon they will trying to keep up with you.
 
She's already spent too much on her car...35% of her salary on what's effectively a car repayment is too big a portion.

Buying another car is just going to increase that hole she's already dug.
 
Did she buy it cash or did she take a loan to pay for it?

If she took a loan that is not paying cash.

She clearly does not understand that money lent to her has to be paid back. It isn't a gift.
 
Good advice I told her if she feel like the car is old she can update it herself new radio system maybe get a new bumper with fog lights if it's possible. But for her getting a new car it's a big NO maybe if the was something wrong with Kia Picanto.
 
Why did she take a personal loan in the first place? It suggests to me that she did not qualify for car finance in the first place. This should have been the first warning sign.
+1 to all advice above-mentioned
 
I have been burning my whole salary and all other income for the last 3 months to finish my CC and car. On payday I will have a total of R2400 debt.

I'm almost there. and I have to fight with all my will not to buy the new Honda Civic.
 
I really hope that all the advice given will be taken into consideration by OP's friend but unfortunately I think she is at that stage where she is busy convincing herself that her decision is very rational and not at all that bad, good luck to OP trying to convince her otherwise.
 
nicbst said:
If it helps, it's overpriced with body fit issues on the showroom. I wanted one too. :(
Click to expand...

I know. I was setting on buying a new Accord. Then It got discontinued. I don't like Turbo engines. It doesn't fit my driving style. And Honda engines are under-powered. I need displacement and torque.
 
She took a loan because by the time she bought the car she only had learner driver licence, no car finance would agree to borrow her money. But now she has RSA driving licence yeah you guys made good points I will show her this thread. I think by 2019 she will be done with the loan that is when she can get a new car. But if the Kia Picanto still run perfectly why should she get a new car even when she finish the loan. Cars are like cellphones every day the is new model with a bit of changes there and there.
 
Run for the hills. This friend is going to go down in a financial ball of flames and she will be asking you to bail her out.
 
Speaking of all this, in relation to rather, your friend does have insurance for the car she is driving - right? :erm:
 
Paying R3500 a month on a R10k salary is already illegal.

So one has to wonder how she managed to get that loan or if she's talking **** about that anyway.
 
r4nd0m said:
Speaking of all this, in relation to rather, your friend does have insurance for the car she is driving - right? :erm:
Click to expand...

Probably not because there isn't vehicle finance involved that would have mandated it.

Personal loan also probably at a ridiculous interest rate and therefore the high instalment.
 
Semisane said:
She took a loan because by the time she bought the car she only had learner driver licence, no car finance would agree to borrow her money. But now she has RSA driving licence yeah you guys made good points I will show her this thread. I think by 2019 she will be done with the loan that is when she can get a new car. But if the Kia Picanto still run perfectly why should she get a new car even when she finish the loan. Cars are like cellphones every day the is new model with a bit of changes there and there.
Click to expand...

So how long did she drive it illegally then?

Definitely no insurance.

Your friend is an idiot.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X