First time car Finance

T

travcaine

Senior Member
Joined
Nov 23, 2015
Messages
752
Reaction score
64
Location
Centurion
Hi there,

Hope I am posting in the right place.

I am test driving a car tomorrow that is selling for R124 500, I am 21 years old and have a credit card, clothing account and cell phone contract and with a credit score in the 900 (Transunion). I earn around 8000 p/m before deductions.

I am planning to put a R35 000 deposit down and then according to Wesbank online calculator the repayment will be around R1372.00, do you think I would be approved for finance? Also any tips for a first time (brand new) car buyer?
 
What interest rate they offering you on the finance? Have you shopped around with all the banks for finance, Wesbank, Mfc ect.
 
Greglsh said:
What interest rate they offering you on the finance? Have you shopped around with all the banks for finance, Wesbank, Mfc ect.
Click to expand...

The interest rate stated for the car is 11.35%. I have not no to be honest. Just used online calculators.
 
I used the calculator and it said it was R1800.37 over 72 months with rate of 11.25?
 
Be careful of Residual/balloon values, avoid at all cost, rather finance straight over a bit longer period. Unless you plan to change cars every 3 years, res/balloon values will bite you in the behind. I am sure you will get the finance.
 
As mentioned, careful of a balloon payment. And you absolutely HAVE to shop around for finance quotes - do not let the dealer do this - they get kick backs from specific banks and do not care about you at all
 
Agree with Werfie and Pakka do not do any balloon or residual on the car. If you can't afford to finance without the balloon payment then rather don't do the deal. Friend works in the second hand car market and plenty people get nailed by the balloon at the end.
 
travcaine said:
Hi there,

Hope I am posting in the right place.

I am test driving a car tomorrow that is selling for R124 500, I am 21 years old and have a credit card, clothing account and cell phone contract and with a credit score in the 900 (Transunion). I earn around 8000 p/m before deductions.

I am planning to put a R35 000 deposit down and then according to Wesbank online calculator the repayment will be around R1372.00, do you think I would be approved for finance? Also any tips for a first time (brand new) car buyer?
Click to expand...

Besides the finance aspect maybe we can help you decide if the car is worth it in the first place,what car is it?
 
travcaine said:
Also any tips for a first time (brand new) car buyer?
Click to expand...

Yes - don't. A car is a bad investment at the best of times, but terrible when you're young. Does your income depend on it? If not, you don't need it. Put R 30 000 into a TFSA and start an RA with the rest if you don't have one already.
 
Why such an expensive car?

I earn at least 4 times your salary and drive a car worth R40k.
It's maintained well and doesn't cost me an arm and a leg.
It's so cheap that I only have 3rd party, fire, theft insurance for R105pm!
Absolutely not worth it for full comprehensive cover on a car this cheap.

So again why such an expensive car?

(Which car is it btw?)
 
TheBadMadMan said:
Why such an expensive car?

I earn at least 4 times your salary and drive a car worth R40k.
It's maintained well and doesn't cost me an arm and a leg.
It's so cheap that I only have 3rd party, fire, theft insurance for R105pm!
Absolutely not worth it for full comprehensive cover on a car this cheap.

So again why such an expensive car?

(Which car is it btw?)
Click to expand...

Hopefully he is doing it for the right reasons, which should be safety first.

Most of the older cars, does not have a 5 star EURO NCAP safety rating.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X