New car help.

copacetic

copacetic

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I don't know the first thing about cars.

I don't even know the tenth thing about cars.

I know someone who wants to buy a car, who probably knows less than I do.

Perhaps one of you could suggest a car?

Not expensive, not crap, not heavy on petrol, safe, etc, etc.

It's going to be a roundabout the city car basically.

Thanks.

:o
 
First things first... what's their budget. Need some sort of basis to start off on.

EDIT: satanboy beat me to it
 
copacetic said:
Budget? Not more than R1500 p/m over however long it takes to pay it off.

Does that make any sense? :p
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Does he/she have a deposit to pay? I'd also recommend to stay clear of residual/balloon payments.
 
MartyMarts said:
R1500 p/m excl. or incl. insurance?
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When you say insurance, what do you mean?

BCO said:
Does he/she have a deposit to pay? I'd also recommend to stay clear of residual/balloon payments.
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It will be a trade in with their previous car, probably not worth much ('88 Opel Rekord, I think).

Residual/balloon payments?

Please pardon my ignorance, I have a second hand car which I got given, so all of this is black magic to me.
 
copacetic said:
When you say insurance, what do you mean?
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You're kidding, right? Gotta budget about R500p/m for insurance.

copacetic said:
It will be a trade in with their previous car, probably not worth much ('88 Opel Rekord, I think).
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So maybe a R5k-R10k deposit then.


copacetic said:
Residual/balloon payments?

Please pardon my ignorance, I have a second hand car which I got given, so all of this is black magic to me.
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A residual is an amount still owing on the vehicle after the payment period has come to an end. So a 25% residual on a R100k car means you'd have to pay in R25k at the end of the 5 year (or whatever) payback period. On the plus side, it lowers the monthly amount you have to pay.
 
Well is your budget of R1500 inclusive of car insurance. as that could be as much as R1000 alone.
 
Ok new or second hand?
Does the 1.5k a month include her car insurance or will she be willing to pay another X amount for insurance ontop of the 1.5k/month for the car?

How old is your friend?
 
copacetic said:
When you say insurance, what do you mean?
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You have to take into account insurance on the car. Your base car payment might be R1500 per month but depending on the model/make of the car, the driver's age and where they live etc. your insurance could be anything between a couple of hundred rand to close to R1000 pm.
 
Car insurance not included in the R1500.

Car can be new or second hand.

Basically, they want to get rid of old car and finance the new one at not more than R1500, excluding car insurance.
 
They were looking at a Polo Vivo 1.6, which they seem to like. (just an indication of the sort of car they are looking at)
 
MartyMarts said:
You have to take into account insurance on the car. Your base car payment might be R1500 per month but depending on the model/make of the car, the driver's age and where they live etc. your insurance could be anything between a couple of hundred rand to close to R1000 pm.
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Sorry, I was being horribly obtuse initially.
 
copa is that really you or did your myBB account get compromised lol

R1500 is really budget when looking at a car. Just don't think you've hit the jackpot with places like Just Group Africa. You'll regret ever doing dealings with them.

If she's a female, get insurance from First For Women (almost always cheaper) or Auto & General (if she's a senior - no excess on certain things).
If she's really on a tight month to month budget, you also wouldn't want nasty surprises. Parts can be quite pricey, e.g. my brothers Honda, although the car was quite a deal, everytime something went bye bye so did another R1k to R1.5k to fix it.

One thing to look into: I'm not sure if it still applies, but certain banks, i.e ABSA a while ago had lower interest rates on personal loans than on vehicle finance. Not sure if its still the same or if the two change enough to waver up and down past each other, and also depends on whether she's getting car insurance for a R100 000 vehicle and if they'd give her a R100 000 personal loan. Guess that also depends on the collateral she has.

Don't quote me on anything though ...
 
Mantis said:
copa is that really you or did your myBB account get compromised lol
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It's me. :o

R1500 is really budget when looking at a car. Just don't think you've hit the jackpot with places like Just Group Africa. You'll regret ever doing dealings with them.
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Budget it may be, but it is what it is.

Regarding the insurance, it's not an issue. :)
 
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