Surety on a car.

Inn3rs3lf

Inn3rs3lf

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Hi there guys.

I am new to mybroadband.co.za, so a big hello!!!

I am in desperate need here. I have applied for finance for a car through Standard bank and got a pre-approval for R53 900. Now, when I found a car, I faxed them the details and what not, standard banl called me and told me my internal score was too low, so they needed a deposit of around R10 000. Then they would still have to motivate the guys in the credit department. So what I did is apply through nedbank auto loans for a loan of R30 000, same thing. score too low. Now I understand that if you apply too often, the score decreases everytime. What I want to know is, how does surety work? Can I basically go and get any car for a reasonable price as in R40 000 then get say my father to sign surety on it? How much does my score affect that happening? I dont earn much, actually nothing to be honest, R 6900 nett, and well, in the past I have really just blown my cash because I only have an edgars account (always paid on time, and over pay some months) Its only the past couple of months where I have been keeping cash in my account and not going dilly with it.

So, yeah, was just wondering how the surety thing works. i am in dire need of a car. DIRE NEED!!!! I need it in around 2 months or so (starting another job). nd I know this is not enough time to build my score. The bank said I must re-apply in 6 months. I dont have 6 months.

Any help will be so appreciated guys.
Thanks in advance
 
My best advice on sureties is DONT SIGN ONE.
Sureties with banks are generally open ended and have no limits besides the 3 parties involved in them, the bank, the debtor (you) and the surety. At ANY time, even 20 years from now when the car is paid off LONG ago, if you default on a R1000 loan from that bank they can take your dads house/car/lounge suites/whatever, sell it for R20, then come take something else til there's nothing left (all legally). If you absolutely have to then modify the standard surety they give you, preferably through an attorney (but that will cost).

Rather ask your dad to buy the car for you and then you pay him monthly etc.
Don't forget insurance payments, petrol, maintenance, licensing fees, etc in your budgeting.
 
Well there is also other options available to you hey............pm me and I will fill u in
 
rorz0r said:
My best advice on sureties is DONT SIGN ONE.
Sureties with banks are generally open ended and have no limits besides the 3 parties involved in them, the bank, the debtor (you) and the surety. At ANY time, even 20 years from now when the car is paid off LONG ago, if you default on a R1000 loan from that bank they can take your dads house/car/lounge suites/whatever, sell it for R20, then come take something else til there's nothing left (all legally). If you absolutely have to then modify the standard surety they give you, preferably through an attorney (but that will cost).

Rather ask your dad to buy the car for you and then you pay him monthly etc.
Don't forget insurance payments, petrol, maintenance, licensing fees, etc in your budgeting.
Click to expand...

Gonna have to call bull**** on that one. Whoever told you that is either lying through their teeth or they are talking about some dodgy microlender and not a bank. I have many years experience both working for and dealing with banks and the surety is based on a single transaction and falls away after the asset is completely paid for. This is a requirement by law.

@ the OP. If the bank will accept surety from your father then you could go that route. They will need to do a full credit worthyness check on your father to though, almost like he is applying for the loan outright. Good luck with getting your wheels.
 
I bought my first car with surety signed by my dad. Absolutely no hassle at all. And it does only last until the car is paid off.

Also bought a flat with a good friend signing surety...also no problem.
 
So they will only look at his credit record and not mine? am i correct in saying this? I can easily afford it.......its just my score. So I have no paranoia that I will fall in arrears. And thanks MadMailMan. Giving me a little hope here. Just have to ask daddy dearest.
 
Inn3rs3lf said:
So they will only look at his credit record and not mine? am i correct in saying this? I can easily afford it.......its just my score. So I have no paranoia that I will fall in arrears. And thanks MadMailMan. Giving me a little hope here. Just have to ask daddy dearest.
Click to expand...

Nope! They will look at both scores. Don't forget if something goes pearshaped and you can't pay it is extra PT and that means money for the bank to try get their money back from your dad. So both scores count. Just having your oldman signing surity gives the bank a bit more security i.e. improves your chance of getting the loan.
 
Bought my first car and house with my old man as surety - also helped secure a much better interest rate. When I settled the car my old man left the picture completely and when I sold the house the same thing happened.

If your dad is willing to sign surety then go this route. This first credit transaction will also kitckstart your credit history and as long as you stick to your repayments, your future scores will improve and you can buy the next car on your own.
 
rorz0r said:
My best advice on sureties is DONT SIGN ONE.
Sureties with banks are generally open ended and have no limits besides the 3 parties involved in them, the bank, the debtor (you) and the surety. At ANY time, even 20 years from now when the car is paid off LONG ago, if you default on a R1000 loan from that bank they can take your dads house/car/lounge suites/whatever, sell it for R20, then come take something else til there's nothing left (all legally). If you absolutely have to then modify the standard surety they give you, preferably through an attorney (but that will cost).

Rather ask your dad to buy the car for you and then you pay him monthly etc.
Don't forget insurance payments, petrol, maintenance, licensing fees, etc in your budgeting.
Click to expand...

I also think this is the case. If you renege on your promise, get yourself into debt for years i THINK they can hold whoever signs surety responsible.
 
My dad "Son you never sign surety for anyone - not even family. Got that?"

For a minor amount I could see some parents accepting it though...
 
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