Can I afford a car?
(Duncan Alfreds, News24)
A Fin24 user wants to know if she will qualify for car finance. She writes:
If I earn up to R3 000 per month, will I be able to get an instalment that is available to purchase a car?
WesBank spokesperson Rudolf Mahoney responds:
When the National Credit Act came into force, the result was that banks changed the way in which they assessed credit application.
The focus has shifted from the minimum salary to the assessment of the client’s disposable income, by taking income as well as all expenditure - including living expenses - into account.
Furthermore, when budgeting for a car you cannot take only the instalment into account, but also need to budget for fuel, maintenance and insurance.
Depending on the monthly mileage you anticipate driving, these three factors can add up to more than the actual instalment of the car.
According to the brief information that you have provided (you earn R3 000 per month) it does not appear as if you are in a financial position to afford a car; however, we do not have a clear picture of your finances.
By submitting an application, you will provide us with the information we need to objectively assess the transaction. WesBank will only be able to fully assess your situation if you submit an application.
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
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