First Time car finance

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travcaine

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Hi there,

Hope I am posting in the right place.

I am test driving a car tomorrow that is selling for R124 500, I am 21 years old and have a credit card, clothing account and cell phone contract and with a credit score in the 900 (Transunion). I earn around 8000 p/m before deductions.

I am planning to put a R35 000 deposit down and then according to Wesbank online calculator the repayment will be around R1372.00, do you think I would be approved for finance? Also any tips for a first time (brand new) car buyer?
 
travcaine said:
Hi there,

Hope I am posting in the right place.

I am test driving a car tomorrow that is selling for R124 500, I am 21 years old and have a credit card, clothing account and cell phone contract and with a credit score in the 900 (Transunion). I earn around 8000 p/m before deductions.

I am planning to put a R35 000 deposit down and then according to Wesbank online calculator the repayment will be around R1372.00, do you think I would be approved for finance? Also any tips for a first time (brand new) car buyer?
Click to expand...

I think you'll get approved, just be careful of the high interest catch, don't settle for anything that you are uncomfortable with, remember you still have insurance to worry about so make sure you get the best deal possible.
 
Last edited:
And since you are under 25 (I think that's the age) your insurance premiums will be higher. Make sure you can afford the insurance first!
 
Hamster said:
And since you are under 25 (I think that's the age) your insurance premiums will be higher. Make sure you can afford the insurance first!
Click to expand...

Thanks, yes definitely, this is also what I am looking at because I am under 25 and had my licence less than 2 years.
 
Check insurance first.
Then check petrol consumption - ask people that drive roughly the same route as you would how much they spend on fuel. This is a huge expense that really bites you.

Also keep in mind that the Wesbank calculator is an over-simplified tool - your premiums will almost definitely vary.
 
My 2cents apply for finance at all banks, the last dealer I went to was adamant we go Wesbank but I was getting a better rate with Standard bank, after I refused to go with Wesbank the dealer asked me for a day to sort out somethings with Wesbank and they came back with a lower rate than standard bank did. Apparently I found out banks give them different kick backs and Wesbank gives the dealer a higher commission. Don't let them force you into one bank.
 
With such a substantial deposit, you'll will get the finance needed. Shop around for the best interest rate and don't be afraid to play each off against each other. Also try to pay the "other fees" cash at the dealer, otherwise it will be added to the finance.

btw.
How do you get a repayment of R1372? Only with a balloon you can get it that low.
My rough guide is R2000 for every R100k (10% deposit, without balloon and "normal" interest rates)
 
shinji said:
Check insurance first.
Then check petrol consumption - ask people that drive roughly the same route as you would how much they spend on fuel. This is a huge expense that really bites you.

Also keep in mind that the Wesbank calculator is an over-simplified tool - your premiums will almost definitely vary.
Click to expand...

Thanks, I have been driving my current route for ages now and roughly spend R1500 on fuel per month. Think it would be better with the car I am looking at.
 
Nithan15 said:
My 2cents apply for finance at all banks, the last dealer I went to was adamant we go Wesbank but I was getting a better rate with Standard bank, after I refused to go with Wesbank the dealer asked me for a day to sort out somethings with Wesbank and they came back with a lower rate than standard bank did. Apparently I found out banks give them different kick backs and Wesbank gives the dealer a higher commission. Don't let them force you into one bank.
Click to expand...

Thanks for the advice, they were trying to push for wesbank but now I know why.
 
A3@MBB said:
With such a substantial deposit, you'll will get the finance needed. Shop around for the best interest rate and don't be afraid to play each off against each other. Also try to pay the "other fees" cash at the dealer, otherwise it will be added to the finance.

btw.
How do you get a repayment of R1372? Only with a balloon you can get it that low.
My rough guide is R2000 for every R100k (10% deposit, without balloon and "normal" interest rates)
Click to expand...

Thanks, There is a balloon of 35%.
 
Avoid the balloon if possible.

Rule of thumb is if you need the balloon, you can't afford it.

I have a balloon payment on my current car - the finance term is over end next year, then I will have to refinance the balloon payment - lekker stupid.
 
shinji said:
Avoid the balloon if possible.

Rule of thumb is if you need the balloon, you can't afford it.

I have a balloon payment on my current car - the finance term is over end next year, then I will have to refinance the balloon payment - lekker stupid.
Click to expand...

+1
 
shinji said:
Then check petrol consumption - ask people that drive roughly the same route as you would how much they spend on fuel. This is a huge expense that really bites you.
Click to expand...

Search the vehicle on fuelly.com. Don't trust the brochure or the salesman because LIES!!!!!
 
Probably not what you want to hear, but if I were you, at that age and with that salary, I would just buy the best car I could find with the R35 cash, no insurance. No seriously.
 
Coasti said:
Probably not what you want to hear, but if I were you, at that age and with that salary, I would just buy the best car I could find with the R35 cash, no insurance. No seriously.
Click to expand...

There MUST be, at least, balance of 3rd party insurance for any damage he may do to anyone else's car/property.
 
Coasti said:
Probably not what you want to hear, but if I were you, at that age and with that salary, I would just buy the best car I could find with the R35 cash, no insurance. No seriously.
Click to expand...
+1 this. Don't waste your money on some new small piece of crap. For R35k you can get a decent second hand car.
 
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