Financing a Car When Self Employed! Shoooo

beans100 said:
Wait, you have about R2000 left after expenses? You wanna buy a 2008 BMW 116i? With no deposit, you're looking at an installment of over R2000. Does your expenses include petrol and insurance?
How much deposit are you willing to give? Seems like you're aiming a little high.
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There is a deposit chap, R50 000 - R60 000 I'm willing to part with. I don't go over R2 000 in expenses (unbelievable I know, you learn to sacrifice a lot sadly when u run ur own business)
 
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I think it might also have to do with how transparent your business is to the bank.

I was with FNB for as long as I can remember. Never had problems buying cars and house. Became self employed and from there could never get financing. Everything was cash from there on.

Years later I moved my local account to Standard Bank as my wife banked there and it just made things easier as its also the closest bank to me. About a year after that I moved my company account from HSBC to their [SB's] offshore division and linked it to my local account.

Have not made use of any financing since but have asked and had no problems getting a pre-approved bond and vehicle financing at good rates.
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Yup I think you hit the nail on the head with that one.

The financing I'm doing with others banks while my business is under Nedbank.

Wesbank are the only guys who are now willing to look at my offer. But I'm glad there is hope eventually. I think the thing that pisses me off is the lack of support for SMME owners when they are within their first 5 years. You become extremely high risk, while if you were an employee they would have processed any of your credit applications with a smile by just looking at a payslip and calling up your workplace. Up till today I have been buying my things cash, but I can't run away from credit just because "I'm higher risk", I will need to purchase a home and avoiding credit now will catch up with me later on, even if their terms r daylight robbery!
 
What I learnt when doing the same is just saying I work for company X. I ddidnt tell them I was company X.
 
xrapidx said:
What I learnt when doing the same is just saying I work for company X. I ddidnt tell them I was company X.
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Don't know about the other banks, but Nedbank application forms now include a "percentage of company owned" block below your company details and if >10% they automatically consider you self employed.
 
Now we getting into Phase 3 of this thread. Finance sorted and I even found 2 Audi A3's, a BMW 118i and a Ford Focus 1.6 Si, all at at the same price funny enough (busy negotiating with the dealers now).

The terms are utter bullocks:sick:, I am trying to get the price lower for all (around 2-3k) to push down the interest I'll have paid after this long term. Only good thing about the terms is that naturally my monthly instalments are lower (which the difference + the extra I wanted to pay, I want to save separately and then pay as a capital reduction later on). My interest will be fixed over the period as well so no nasties down the line :wtf:

The one dealer has said I am allowed 3 capital reduction payments over the finance period, and this could bring down the terms (while another thread here said it only brings down the balance owed, terms remain the same), so which is it? Isn't the recalculation going to give me an either or scenario with the bank going forward? Because it could mean I can knock off as much as 12-18 months should the dealers understanding on this be correct, while paying the same to finish it off (which is fine by me).
 
purpleonlineadmin said:
The one dealer has said I am allowed 3 capital reduction payments over the finance period, and this could bring down the terms (while another thread here said it only brings down the balance owed, terms remain the same), so which is it? Isn't the recalculation going to give me an either or scenario with the bank going forward? Because it could mean I can knock off as much as 12-18 months should the dealers understanding on this be correct, while paying the same to finish it off (which is fine by me).
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Wait a minute. That doesn't sound right. It seems they are flaunting the NCA. If I recall, you are allowed to pay off your debt quicker. The period is not allowed to be fixed by the lender.
 
creeper said:
Wait a minute. That doesn't sound right. It seems they are flaunting the NCA. If I recall, you are allowed to pay off your debt quicker. The period is not allowed to be fixed by the lender.
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Yeah they're taking a chance.

I paid mine off 15 months ahead of time - all I did was walk into the bank, phoned the credit bureau and asked for the settlement figure, made a deposit on the same day and it was cleared.
 
creeper said:
Wait a minute. That doesn't sound right. It seems they are flaunting the NCA. If I recall, you are allowed to pay off your debt quicker. The period is not allowed to be fixed by the lender.
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Apologies let me clarify as I did type all that while on the phone. The dealer is the one who confirmed that the period can be shortened with the capital payments. The myBB thread is the one that confused me as someone stated it's not affected (and the bank rep didn't clarify or expand on this as well). Just wanted to get some clarification as you can't even trust dealers nowadays, but by what you just said that means it can be shortened so I'll start haggling the price, throw the diff + additional payment I was going to pay into an account and then make a capital payment, then just settle the vehicle when getting another one.
 
i have a small business and now to buy big items I use my credit card budget account I have over R100k limit on budget. It is more expensive, but there is no monthly admin and it is easy to pay off quickly. And you can eft out of budget just ask your bank. To me the only box it doesn't tick is interest rate. That is why you you pay it off quickly.
 
Ianf1 said:
i have a small business and now to buy big items I use my credit card budget account I have over R100k limit on budget. It is more expensive, but there is no monthly admin and it is easy to pay off quickly. And you can eft out of budget just ask your bank. To me the only box it doesn't tick is interest rate. That is why you you pay it off quickly.
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Thanks for the feedback Ianf1, what is sad about this is it's not a unique incident, we all seem to fall in the same category, we can afford ABC, yet because of some archaic system we are treated tremendously bad, all this when even this useless gov is trying to push the youth towards entrepreneurship. With that type of credit Ianf1, you are in a way better position TBH, but we can't run away from large credit cos down the line it is required, that's why I gave up and tried to look at way to keep a nicey nicey credit record while paying a little extra per month.

The price we sadly pay!
 
Deal done, invoiced and now waiting on delivery.

What an experience. Almost 2 months later I found a BMW 116i with some rare features and some sacrifices (will post pics next week). Cleared everything with BMW and the dealer and everything good on it. Test drive felt perfect and they need to replace the windscreen and tyres (which they have ordered)

There are things I want to replace on it eventually, like a new armrest (anyone know the cost as I want to add a diff one to this car), and the rims (I think the ones on it are the Std Radial Spoke 139, and I want the Star Spoke 140 or 142 rims (or something flashier perhaps in future) and some darker tint.

Got prime + 3 eventually, better than nothing I suppose!
 
purpleonlineadmin said:
Deal done, invoiced and now waiting on delivery.

What an experience. Almost 2 months later I found a BMW 116i with some rare features and some sacrifices (will post pics next week). Cleared everything with BMW and the dealer and everything good on it. Test drive felt perfect and they need to replace the windscreen and tyres (which they have ordered)

There are things I want to replace on it eventually, like a new armrest (anyone know the cost as I want to add a diff one to this car), and the rims (I think the ones on it are the Std Radial Spoke 139, and I want the Star Spoke 140 or 142 rims (or something flashier perhaps in future) and some darker tint.

Got prime + 3 eventually, better than nothing I suppose!
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Since it's a beemer, you mght have to give up either a kidney, a lung or a testicle. :p Just kidding. Congrats on the wheels...
 
garp said:
This is not foolproof as they now usually have a field on the application forms asking if you own a share of the company that employs you and AFAIK if the share is > 10% they consider you self-employed. I took this one step further and started a trust which in turn became the sole shareholder in a CC which is your employer. So as I technically don't own a bean of the CC, I am not considered self employed and life is a LOT easier. Financial institutions seldom put two and two together and since they don't ask, I don't volunteer.
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Hi @garp , this is very interesting. Mind sharing how you do the PAYE etc in this method? Are you still doing it this way? When I googled, I happen to notice that all trust owned companies are liable to 28% income tax even if they are small businesses. I am thinking of buying a house but as I am recently self-employed, I don't think I will get a loan. I haven't registered the company yet. I think your method might of great help.
 
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