Vehicle Finance + Debt

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longhorn

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I need some suggestion/advice here.... I currently have R50k in debt and I want to buy a car for about R100k... is it possible to get a vehicle finance for R150k, buy a car for R100k and settle my debt with the R50k... or is there any alternatives in this regard.

Eventually I'd like to settle my debt and only pay for the car.

Any advice will be appreciated

Thanks
 
longhorn said:
I need some suggestion/advice here.... I currently have R50k in debt and I want to buy a car for about R100k... is it possible to get a vehicle finance for R150k, buy a car for R100k and settle my debt with the R50k... or is there any alternatives in this regard.
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Boet, you are already in debt and you want to add more to that? Craziness...

Pay off your debt first, then buy a car.
 
Naks said:
Boet, you are already in debt and you want to add more to that? Craziness...

Pay off your debt first, then buy a car.
Click to expand...

if the car is absolutely necessary rather get one for R50K and take out a R100k loan.
Then pay it off quicker.

youll be debt free in no time and then you can consider getting a R100k car.
 
Naks said:
Boet, you are already in debt and you want to add more to that? Craziness...

Pay off your debt first, then buy a car.
Click to expand...

i second that, its always easy to get urself into a lot of debt... rather take out debt for something you really need or leave the option for when that day comes. personally i stay away from debt as much as i can even though it can bring me a nice new car
 
Naks said:
Boet, you are already in debt and you want to add more to that? Craziness...

Pay off your debt first, then buy a car.
Click to expand...

+1. Buy a scooter for R5000 if you have to, but avoid buying a car on credit until you have paid off all your debt.
 
Your car loan usually has a lower interest than a personal loan. Your better off keeping the two separate. Keep in mind that a R100K will be about R2300 per month over 6yrs with 0% residual.

If you cannot afford that then don't consider the car yet.

I understand your situation and had to go without a car for many years till I could afford it and my current debt payments.
 
longhorn said:
I need some suggestion/advice here.... I currently have R50k in debt and I want to buy a car for about R100k... is it possible to get a vehicle finance for R150k, buy a car for R100k and settle my debt with the R50k... or is there any alternatives in this regard.

Eventually I'd like to settle my debt and only pay for the car.

Any advice will be appreciated

Thanks
Click to expand...

Not possible UNLESS
car is worth R150k and you apply for a R150k loan and get the owner to return R50k after the sale. This I think is illegal if not then at least frowned upon by banks.
 
yup, no bank will finance a car for more than it is worth.... you find a lot of dealerships selling cars and offering cash back, thats properly your only option if you want it that way. I was on new road in Midrand the other day to see a client and saw a Mazda cx-7 which is around R350K and you get R90k cash back...

but pay off your debt first, it just snowballs out of control...
 
i'm about to buy a car for 3K with insurance included. is 3K p/m to much or not. what salary bracket should you be in to afford a 3K car.
 
KOPITE said:
i'm about to buy a car for 3K with insurance included. is 3K p/m to much or not. what salary bracket should you be in to afford a 3K car.
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It's not about the bracket, surely you take your income - whatever you have to pay = do i have enough :D.

I would imagine around 15k mark perhaps slightly less depending on your expenses. If you earn 6k and your expenses are only 2k for whatever reason then may come right.
 
Take it from me - I fell into the debt trap with cars - pay debt first or you'll be living on rice n veggies :)
 
banks wont give you a loan for something that will cost you more than 30% of your nett income (could be gross to, not entirely sure).

thus, R3k should means you should have R9k (nett or gross).... give or take.

I stand to be corrected.

However there are other factors, ie your credit rating and any other deductions/debts impact it as well.
 
Toitjie said:
banks wont give you a loan for something that will cost you more than 30% of your nett income (could be gross to, not entirely sure).

thus, R3k should means you should have R9k (nett or gross).... give or take.

I stand to be corrected.

However there are other factors, ie your credit rating and any other deductions/debts impact it as well.
Click to expand...

Maximum is 30% of Gross OR disposable income which is your nett income minus all current expenses. The lesser of the two.
As far as I know, the 30% is a law, not a guideline. You are not allowed to pay more than 30% of your salary to one establishment. This is also why you can very rarely have two homeloans or two vehicle finances at the same bank.

Also, personal loan for vehicle finance is a very bad idea. For personal loans, you'll get an interest rate of probably 17% or higher whereas interest rate for vehicle finance can be around 10% depending on your credit rating, history at bank, etc.
 
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