Minimum salary for car finance?

Thanks guys. Well, I was optimistic I guess. Anyways, calculating from that 33%, I net around R3400, so I'd qualify for R1100. But guess some sound advice I take; and let my father handle it for me, and highly likely he's going to get cheaper interest. But will try to find something less expensive, like for R45K.

But now how do I stand against insurance? Heard tht financing through parent can be a huge drawback.

What's this cheap "3rd party" you guys on about?
 
Techno5 said:
Hi guys. Nice informative forum.

I just want to ask what is the mimumun salary one must earn in order to qualify for car finance?

I dnot earn much, I've been working for round about a year and-a-half permanently, I do clear R3000 p/m monthly at the least for now, highly likely for me to be bumped up in salary in 5 months time.
With my deposit I've calculated via wesbank that I'd pay around R1000 (15% p/a) + R500 (random insurance figure; I'm 22 btw).

P.S the car I'm looking at is a 2007 Hyundai Getz.So essentially I'm looking to spend round about half my income on finance.
Would be there be a hindrance for me not qualifying for finance? I dnot have a credit card or accounts and stuff
I still live with my folks, so running/maintanance/service costs and fuel they are to help.
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My first car I bought on my Dad's name. He signed I paid the installment. This is the easiest and safest way to do it.
If you can't get it on your own name, ask your folks. Later in life you can buy hundreds of cars on your own name.

O and the first car you buy on your own name requires a 20% deposit not 10%
 
Techno5 said:
Thanks guys. Well, I was optimistic I guess. Anyways, calculating from that 33%, I net around R3400, so I'd qualify for R1100. But guess some sound advice I take; and let my father handle it for me, and highly likely he's going to get cheaper interest. But will try to find something less expensive, like for R45K.

But now how do I stand against insurance? Heard tht financing through parent can be a huge drawback.

What's this cheap "3rd party" you guys on about?
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If you buy a cheap car, chances are that maintenance and parts will be cheap, and it wouldn't cost you a fortune to fix in a few minor accidents. So you don't need comprehensive insurance.

3rd party insurance will basically only cover the damage to the other vehicle(s) if you're involved in an accident.
 
Also if the car is financed, it will be a requirement that it has fully comprehensive insurance.
 
You will just go on your dads insurance as the regular driver, will also work out cheaper assuming he hasn't had a horible history.
 
D3x! said:
dude you are being bent over and screwed, let me guess, outsurance?
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Nope miway I phoned around best price I could get problem I can get complete home insurance for the same price but I live in a commune so no one is willing to ensure me
 
Techno5 said:
Hi guys. Nice informative forum.

I just want to ask what is the mimumun salary one must earn in order to qualify for car finance?

I dnot earn much, I've been working for round about a year and-a-half permanently, I do clear R3000 p/m monthly at the least for now, highly likely for me to be bumped up in salary in 5 months time.
With my deposit I've calculated via wesbank that I'd pay around R1000 (15% p/a) + R500 (random insurance figure; I'm 22 btw).

P.S the car I'm looking at is a 2007 Hyundai Getz.So essentially I'm looking to spend round about half my income on finance.
Would be there be a hindrance for me not qualifying for finance? I dnot have a credit card or accounts and stuff
I still live with my folks, so running/maintanance/service costs and fuel they are to help.
Click to expand...

Shop around for interrest rates and ask your dealership for the bank reference number for the application, contact them directly and tell them a competitor is giving a better rate and you expect them to match or beat it. In general the smaller the finance amount the higher the interest rate. I managed to get prime (9% - was supposed to be Prime + 1 but finance guy helped me out) on a R127 000 loan (I put down a R80 000 deposit which was paid to the dealership not the bank).

Shop around for insurance, please take comprehensive and draw up a shortlist of insurers and ask them for the details of teh cover, not all comprehensive cover is comprehensive. Ask the dealership to get qoutes for you as well as they have a special relationship with the bank.

lastly: when you walk in to buy remember you are the customer (and within certain common sense limits) its the salesmans job to sell you the car which includes adding extras or discouts. Also be rasonable as well. If second hand ask for full history and log book and if a non- car owned dealership (eg dealership not owned by bank or car company like toyota etc) than consider getting your own mechanic to test the car.

IMO 15 % to high. You should easily get Prime + 3.5 (which is 12.5%) or at best prime + 2.5.

Also let the dealership know that you are really interested in the car if you have shortlisted it and want to purchase it as than they will negotiate to get better rates form the bank. remember banks will always reduce their initial interest rate offer as they want the business cos a serious buyer will buy a car , just question of whether they will get business.

Invarible the bank associated with the dealership will beat all other rates offered.

lastly :) if your dad insures the car and nominates you as a driver than there will be an excess if an accident occurs while you are driving which is usually a percentage of the cars value)
 
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Just got a quote of R294.30 to comprehensively insure a brand new Kia Picanto 1.0 Auto (R110 000 retail), with no excess.
The nominated driver will be my mother-in-law (70).

So, insurance depends on A LOT of different factors.
 
D3x! said:
why? i am 22 and sure as hell can get insurance for under R500 on a say R100k car
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Bud, I'm 24 turning 25 in 1 month and the cheapest insurance I could get on a i20 1.6 was R700p/m for comprehensive insurance and I only got it down to that because I work for said insurance company. You'll likely pay around R500 - R700p/m. Best I got quoted by other insurers was R950p/m, most weren't willing to insure me. Note I have no accidents and I've driven for more than 5 years with full insurance history.

Below 25 with a car on your name, jy gan kak en betaal. If it is on your parents name, and your are elected the primary driver, you'll pay much less.

For example, I currently drive a Corsa Lite which has the value, R53 800 trade and R60 000 retail. It is ensured for retail value and I pay R300 a month because it is on my Mom's name, for comprehensive insurance.

Make sure to try Hippo, Outsurance, Momentum, Discovery, etc.
 
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TheGuy said:
Nope miway I phoned around best price I could get problem I can get complete home insurance for the same price but I live in a commune so no one is willing to ensure me
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i know what my insurance broker would charge me because they have explained to me how they work it out, your profile gets a percentage, so say 5-15% or whatever, then they take retail price x (that percentage) and divide that sum by 12.

obviously your percentage can make a huge difference and that is based on your profile.

Mier said:
Just got a quote of R294.30 to comprehensively insure a brand new Kia Picanto 1.0 Auto (R110 000 retail), with no excess.
The nominated driver will be my mother-in-law (70).

So, insurance depends on A LOT of different factors.
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wow that is insane actually :eek:

Gnome said:
Bud, I'm 24 turning 25 in 1 month and the cheapest insurance I could get on a i20 1.6 was R700p/m for comprehensive insurance and I only got it down to that because I work for said insurance company. You'll likely pay around R500 - R700p/m. Best I got quoted by other insurers was R950p/m, most weren't willing to insure me. Note I have no accidents and I've driven for more than 5 years with full insurance history.

Below 25 with a car on your name, jy gan kak en betaal. If it is on your parents name, and your are elected the primary driver, you'll pay much less.

For example, I currently drive a Corsa Lite which has the value, R53 800 trade and R60 000 retail. It is ensured for retail value and I pay R300 a month because it is on my Mom's name, for comprehensive insurance.

Make sure to try Hippo, Outsurance, Momentum, Discovery, etc.
Click to expand...

i currently have a 1.6 i20 and it is insured above retail as there were extra's and i pay R800 :cool: on top of that i took the option for car rental in event of an accident and that is R50 per month.
 
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@Mier - where did you get that insurance price?

and is that normal excess or high excess?
 
D3x! said:
i currently have a 1.6 i20 and it is insured above retail as there were extra's and i pay R800 :cool: on top of that i took the option for car rental in event of an accident and that is R50 per month.
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Wait so you want to go from a Hyundai i20 to a Getz? Why?

Also is the Hyundai in your name? Makes all the difference ;)
 
D3x! said:
What, no I love my car, where u get that?

Indeed it is in my name ;)
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LOL, confused you with the OP :p My bad.

What is your age? And whom insured you? Maybe I should call around some more :p

Only got 1 extra on my car, smash and grab but it only added R4 to my premium.
 
Gnome said:
LOL, confused you with the OP :p My bad.

What is your age? And whom insured you? Maybe I should call around some more :p

Only got 1 extra on my car, smash and grab but it only added R4 to my premium.
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22, i am with a broker and the insurance is auto and general, decent excess, good premium, car rental option, personal service
 
D3x! said:
@Mier - where did you get that insurance price?

and is that normal excess or high excess?
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My broker is Securitas (Telno. 012 - 990 5000), been with them for years. I get comparative quotes every year or so.
 
Make your mother the prefered driver of the vehicle or buy a cheapie and do 3rd party.
 
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