Tag - car finance;

When a car becomes a debt trap

If you can no longer afford your car, it’s time to take action. Here are your options. Lucky wrote to me to find out whether or not he should sell his BMW for a loss as the cost of the car is having serious consequences on his other financial commitments. Lucky’s story is similar to that of many readers who have written in to me recently...

What to do when you fall behind on repayments

Lindi wrote to me looking for advice regarding her car repayments. She had fallen behind on her repayments to BMW Finance as her business was in financial difficulty. She wanted to find out if she could hand back the car to the financial institution and what the implications would be on her credit profile. By the time I received the query, BMW...

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 brand new or pre-owned car during the festive season? The answer is yes – as long as...

Car insurance – mind the gap

There are two major purchases you will make in your lifetime for which entering into debt can be justified: one is the purchase of property and the other is the purchase of a car. If you buy a car through bank finance, you will find that taking out comprehensive car insurance is compulsory. What many consumers fail to take up, however, is the...

Buy a car or pay off the bond?

“I am 29 years old and I have managed to save R100 000 with which I was planning to buy a new car (cash).  However I realised that the car I am using is still in a good condition and is paid up and I can still use it for 2 more years. I have a home loan but I do not intend to stay in the property for 20 years (period of payment) because I still...

How to save R150 000 in seven years

“I am 23 years old and I earn R7000 a month. I want know where and how much to save so that I can buy a car worth R150 000 by the time I am 30 years old. I am thinking of buying a house too but I am tired of borrowing a car. At least my parents are still providing a roof over my head. I’ll think about a house later or try to save for...