If you’re considering choosing a balloon payment when financing a new car, you’re not alone. South African banks report that as many as a third of car loan customers are choosing the maximum balloon payment so that they can reduce their monthly...
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Listen: Navigating the financial maze of buying a home or car
Buying a home or a car is one of the most significant financial decisions you'll ever make. It can be an exciting journey, filled with dreams of new beginnings and the thrill of ownership. But, as our latest podcast episode reveals, it’s also...
Buy a home or replace my car?
Many people are wondering whether now is the right time to buy a home for the first time, given the high interest rates. It is a common question I receive from readers. One reader wrote: "I am looking to buy a home for the first time but am...
“On-the-road” fees hide the true cost of a car
A North Gauteng high court ruling recently found that vehicle financing houses are not required to repay customers for “on-the-road” fees. This related to a finding in 2017 by the National Credit Regulator which determined that the “on-the-road”...
When to switch to a fuel-efficient car
With the fuel price at record highs, many motorists may be rushing to sell their fuel-guzzling vehicle and to replace it with a more fuel-efficient car. But you should be careful not to make a costly knee-jerk decision. If you were planning on...
How much does it really cost you to buy a car?
Ernest North, co-founder of Naked Insurance, recommends that before you decide to buy a car, you take into account all of the costs that come along with owning a vehicle. Buying a car is exciting, whether it’s a brand new model or a preowned beauty...
Tips for a successful used car purchase
Ernest North, co-founder of AI-driven insurtech Naked, looks at some of the steps to follow before committing to a used car purchase. Numbers from TransUnion show that South Africans financed around 79 000 used vehicles in the first three months of...
Video: The true cost of a fancy car
The decision on how much to spend when purchasing your car is possibly one of your most important financial decisions. In fact, banks say that the main reason they turn down home loan applications is due to affordability, and the main culprit is...
The best way to settle your car finance
Advance payments on car finance do not work the same as on your home loan, so it’s worth understanding how to make the most of it. Any debt that you pay off sooner than required will save you money on interest. However, you need to understand how...
Listen: Buying a car? Here’s what you need to know
While her current car has been a reliable mode of transport, Mapalo faces the reality that after eight years, it is time to buy a new one. What car should she consider? How does she work out her affordability and should she put down all her savings...
Previous Articles
The balloon payment shock
One of the more common questions we receive from readers about car finance is regarding a balloon payment. In many cases it seems that consumers eager to buy a car sign on for a financing agreement that they do not fully understand. When we talk about balloon payments...
A car or an apartment?
A 23-year-old wants to do the right thing with her money and not end up a casualty of ‘bad debt’. Nthabiseng has just graduated and started her first job. She still lives at home and is currently using her parents’ car. “I am caught in between buying a comfortable car...
Should you just hand back the keys?
You have bought the car of your dreams but within a year or two you realise that the installments, petrol and insurance are all just unaffordable. The car of your dreams is now giving you nightmares – so what can you do about it? One option is simply to return the...
When to pay that car deposit
One of the more frequent questions I get asked is whether it makes sense to pay an upfront deposit when buying a car. It seems that dealerships are advising customers not to pay the deposit upfront, but rather to make a lump-sum payment 24 months into the contract as...
Video: Buying a car
If you are considering buying a car, try save up so that you can put down a deposit. This will reduce the total cost of the car. By saving up a deposit, you could qualify for a better interest rate. A bank will view the fact that you were able to save for a deposit as...
Does a new car make us happy?
I recently spent some time interviewing potential candidates for the City Press/Absa Money Makeover competition. It is so interesting that almost all applicants state that their biggest financial mistake was buying a new car. As one applicant said to me: “I feel so...
Understand the fine print
I often receive complaints from people who have signed agreements they haven’t fully understood. Unfortunately there is little recourse for the consumer in such cases. Take time to read the fine print. As consumers we tend to be very emotional about our purchases. We...
How to buy a car on auction
Auctions are typically associated with property or fine art, however, you can also pick up a good second-hand car at an auction. The first thing you need to know when buying a car on auction is that it is sold “voetstoots”, which means that you buy the item as is....
Buying a car in December
By Nicholas Nkosi, Head of Vehicle and Asset Finance – Personal Markets, at Standard Bank It is natural to think about the joys of starting the New Year in your dream car when your bank account is filled with an end-of-year bonus. However, is it advisable to buy a...
Free financial planning workshops in Cape Town
Financial Planning Week: 25-29 August CERTIFIED FINANCIAL PLANNER® professionals Craig Torr, Paul Rossouw, Ian Beere and Laverne Slater will be giving four free financial planning workshops in Cape Town on 26, 27 and 28 August, as part of Financial Planning Week in...