We help people to get loans to buy cars, we sell some brands and we also help people to get cash out of their cars e.g. to pay off debt or to use the money to put as a deposit when they buy a home. As we approach Christmas and some among us expect bonuses, we are receiving calls as people ask for help to buy a car or get a loan to buy a car.
If you want to be able to get cash out of your car in the future, it is important that you buy a car well within your means. Below are tips to ensure that you are buying a car you can easily afford;
- Pay a deposit for your car – aim for at least 10% of the purchase price of the car
- Do not buy a car with a balloon payment – this simply means you cannot afford the car
- Factor in the insurance costs of buying the car – note that some cars are a hijacker’s favourite and have a higher insurance tag than others & generally the younger you are / your license is, the higher the insurance costs. If you are accident prone, your insurance costs would be higher too. Sad to say but some areas automatically come with a higher insurance costs than others and factors such as the following will influence your insurance costs;
- Where you stay – if you are in an estate or boomed off suburb, you are likely to pay less
- Where your car parks, especially overnight – garage or carport?
- Whether you have an alarm system or not, etc…
- Ensure that the car repayments plus insurance are no more than 20% of your net income
- Be aware that interest rates are very low at the moment so ask yourself the question, will I still afford the monthly repayments when interest rates increase?
- Resist the urge of buying a car, especially a fancy car – if you don’t have a home
- Factor in all costs of owning a car e.g. petrol, service, licence fees, extra security for your car e.g. Tracker, etc….
- If you have a poor credit record, you are not going to qualify for a car loan. Read the newsletter https://test1.sdds.co.za/10-tips-to-improve-your-credit-score-so-you-can-qualify-for-a-home-loan/ 10 Tips to improve your credit score so you can qualify for a home loan.
If you want us to help you get a loan to buy a car, get cash out of your car or to buy one of the cars we sell, email us at email@example.com
We will need the following documents from you to be able to prequalify you and let you know how much you are likely to qualify for;
- Drivers license
- 3 latest payslips
- 3 months bank statements
- Proof of address