Vehicle Finance for recent graduate

[khanyet]

Greetings Mybroadband community,

This is my first post, please do forgive me if this has been asked before and excuse the lengthy post with lotsa questions.

I'm 22 and I've just recently completed my university degree (December 2014). I have been hired and I start in February 2015. I will be earning about R13K after deductions. I'm going to stay at my parents house and look after my siblings (parents are deceased) and I've decided I'm going to need a car to travel to work, about 80km single trip (160 km per day).

1: Is it a good idea to travel such km per day? what car do u think I should get? I really don't want to spend a lot on petrol.

2: how does vehicle finance work when you're a recent graduate, with nothing in my name but a year old clothing account. I don't have deposit money for the new car either. How do I go about getting the best deal? (Low interest, no deposit) What banks should I approach?

Thank You.

 

[Acid0]

Well its not going to be easy, as they want to see a credit track record.
The clothing account might help at least.

Low interest is not going to happen as you have no credit rating yet.

160km is allot to be honest, so you going to have to get a small car that does not use allot of fuel p/km.

There is a few options but I would start looking for a I10 or similar to that class of car.
You are looking at about R3k for the car payment + Insurance of about R600 - R1000 + Petrol that will be about R2500 pm.

 

[Mike Hoxbig]

Sounds like you're going to be doing the Pretoria-Jhb commute. Would it be possible to use the Gautrain and bus?

 

[F1ve_Claw]

You wont get away with not paying lots of petrol. I did a 160-200Km daily round trip and my petrol bill was always over R3k, and that was 85% highway driving

 

[khanyet]

Sounds like you're going to be doing the Pretoria-Jhb commute. Would it be possible to use the Gautrain and bus?

I thought about it but the Gautrain bus route is nowhere near my workplace, it is also no where close to my house.

 

[khanyet]

Well its not going to be easy, as they want to see a credit track record.
The clothing account might help at least.

Low interest is not going to happen as you have no credit rating yet.

160km is allot to be honest, so you going to have to get a small car that does not use allot of fuel p/km.

There is a few options but I would start looking for a I10 or similar to that class of car.
You are looking at about R3k for the car payment + Insurance of about R600 - R1000 + Petrol that will be about R2500 pm.

That's half my salary per month... Way too much. Would getting a second hand car make a difference?

 

[khanyet]

You wont get away with not paying lots of petrol. I did a 160-200Km daily round trip and my petrol bill was always over R3k, and that was 85% highway driving

If say I had people with me (carpool) and split fuel costs, that would certainly make a big difference right?

 

[spiderkzn]

Greeting Khayhet.

Welcome to myBB

Congrats on your graduation from Universty degree. And wish you all the best in your career.

So what I can suggest. 80km is helluva far as it like driving PMB to Durban daily. So Only way is sell your house and buy the house closer to work?

In past 6 years I've driving Merc 190E 2.0 as it giev me hard time on heavy petrol so I sold it few week ago and bought brand new Honda Brio 1.2. Best decision ever.

Other suggestion for your 1st timer as you can buy small car 2nd hand with 1.2. What i can give you best suggestion:

Honda Brio
Suzuki Splash
Cherlovette Spark
Hyundai i10
KIA Pinacto

Make sure you test drive above and choose what you are happy and comfortable with. Oh yes go to any approved dealership from car company that they do sell Pre-owned/ 2nd hand car.

Once you drive as you can use it for next 4 or more years and save up till when you are ready to buy better car.

So if you are looking for finance a vehicle as most dealership willing to do a fiance for you and you can choose how long you wish to pay off. ALso you can speak to bank as they will be happy to help you.

If you have deposit that it will help lower pay off they offer.

 

[khanyet]

Greeting Khayhet.

Welcome to myBB

Congrats on your graduation from Universty degree. And wish you all the best in your career.

So what I can suggest. 80km is helluva far as it like driving PMB to Durban daily. So Only way is sell your house and buy the house closer to work?

In past 6 years I've driving Merc 190E 2.0 as it giev me hard time on heavy petrol so I sold it few week ago and bought brand new Honda Brio 1.2. Best decision ever.

Other suggestion for your 1st timer as you can buy small car 2nd hand with 1.2. What i can give you best suggestion:

Honda Brio
Suzuki Splash
Cherlovette Spark
Hyundai i10
KIA Pinacto

Make sure you test drive above and choose what you are happy and comfortable with. Oh yes go to any approved dealership from car company that they do sell Pre-owned/ 2nd hand car.

Once you drive as you can use it for next 4 or more years and save up till when you are ready to buy better car.

So if you are looking for finance a vehicle as most dealership willing to do a fiance for you and you can choose how long you wish to pay off. ALso you can speak to bank as they will be happy to help you.

If you have deposit that it will help lower pay off they offer.

Thanks so much @spiderkzn ...unfortunately I can't sell my parents house, my siblings still live there, and I can't move closer to work cos I have to take care of them. I will definitely go test drive these cars u mentioned. I've been looking on autotrader to see if I can get a good used car.

 

[JackWhite]

160km per day is 3520km a month
If you can find a car that does 6.5ltr/100km in traffic, then you will be spending R2700pm on fuel for work only.
You looking at R5500pm easily after factoring insurance and instalment

 

[paul5186]

With a long trip like that I would suggest posting an add somewhere or asking around and seeing if you can share a lift or if you buy a 2nd hand car for someone to share petrol costs with. For at least the first year of work.

 

[nakedpeanut]

Please be aware of balloon payments and understand how they work! Especially if you decide on signing a contract that has one.
They can be good if you are disciplined, but they often catch people unaware!

I would also add a second hand ford figo to your list.
Personally i'd try keep the total < 80k for your 1st car. I'm not saying don't buy new, but don't try stretch yourself too much!

 

[spiderkzn]

autotrader is definity worth to look into. but beware of vehicle condition. That why it is best if you buy 2nd car from Pre-owned at car dealer as they also do finance.

yeah 180km per day is very long trip! as if it my car I will have to fill up every 3 days on my Honda Brio (35litre)

Car pool is excellent idea unless maybe share lift every week.

Keep us updated with the process.

Good Luck

 

[konfab]

Have a look at a Suzuki Alto as well. It is one of the cheapest cars on the road to buy and run.

The other solution might be to get a bike until you are more financially secure.

 

[RustyPrincess]

If you don't have a car, how would you get to work?
How much would this cost you per month?

 

[Mvu]

Public transport is the cheapest but for convenience and more especially since you will be traveling almost 200 kms a day it would be more convenient to have your own car. Since you will be traveling a lot I would suggest something small and not old. Spark maybe? Do you have secure parking?

 

[Mvu]

Please be aware of balloon payments and understand how they work! Especially if you decide on signing a contract that has one.
They can be good if you are disciplined, but they often catch people unaware!

I would also add a second hand ford figo to your list.
Personally i'd try keep the total < 80k for your 1st car. I'm not saying don't buy new, but don't try stretch yourself too much!

Once drove a Figo and I must say it was heavy on the petrol for a small car...

 

[mak2000]

Have you considered joining a lift club yourself? It might be cheaper initially to share a ride in someone else's car.

Also, call your bank and see if they will consider you for a loan without a deposit. Pointless looking for a car when you might not get any loan, IMO.

 

[MIA7171]

"what car do u think I should get? I really don't want to spend a lot on petrol. "

Roughly estimate figures just to get an idea. (does not apply on older generation models) (Older generation models have a higher figure fuel consumption.)
Peugeot 107 5,2 L per 100 km
Toyota Aygo 5,5 L per 100 km
Hyundai i10 5.7 L per 100 km
Suzuki Celerio 5.8 L per 100 km
Mitsubishi Mirage 5.9 L per 100 km
Kia Picanto 6.0 L per 100 km
Toyota Yaris 1.0 6.1 L per 100 km
Nissan Micra 6.2 L per 100 km
Renault Sandero 6.2 L per 100 km
Fiat Panda 6.2 L per 100 km
Daihatsu Serion 6.3 7.2 L per 100 km
Ford Figo Diesel 6.4 2 L per 100 km
Mazda2 6.5 L per 100 km
Chevrolet Spark 6.5 2 L per 100 km
Toyota Yaris 1.3 6.5 2 L per 100 km
Suzuki Splash 6.7 L per 100 km
Suzuki Hatch or Sedan 1.2 6.8 L per 100 km
Suzuki Alto 6.8 L per 100 km
Fiat Punto 6.8 L per 100 km
Hyundai i10 Grand 7.1 L per 100 km
Toyota Etios 7.2 L per 100 km
Honda Brio 7.2 L per 100 km
VW Vivo 7.4 L per 100 km
Ford Figo Petrol 7.9 L per 100 km
Old Renault Sandero 8.5 L per 100 km

Chevrolet Spark R 79,900 - 2011 - 38000 km
Hyundai i10 R 79,900 - 2010 - 24500 km
Nissan Micra R 84,995 - 2012 - 38000 km
Toyota Yaris R 74,999 - 2006 - 42000 km

Why not get a Scooter instead, it's cheaper than your average bikes.

 

[khanyet]

If you don't have a car, how would you get to work?
How much would this cost you per month?

That's why I need to get the car before 2nd February when I start work.