Johannesburg - One of South Africa’s top car financiers, WesBank, says that first-time buyers might not be aware of restrictions for vehicle finance and has offered a simple list of minimum requirements.
“Some might take it for granted that their vehicle finance was approved without any hitches, but first timers don’t always have all of the information,” says Rudolf Mahoney, head of research at WesBank. “Thankfully, the minimum requirements are quite simple, and will give potential car buyers an immediate idea of whether they will qualify for finance.”
Three things must be in order to apply for finance and all buyers need to hold a valid driver’s licence, earn a minimum of R6 000 per month, and not be under any debt counselling.
WesBank urges the public to use its online affordability calculators to determine monthly budgets for vehicle repayments, as well as accounting for fuel and maintenance costs.
When determining a monthly budget, a vehicle repayment should not exceed your disposable income, which is calculated as your net take-home pay minus all monthly expenses.
Pre-owned shoppers also need to know that used cars should be fewer than 10 years old to qualify for finance from a bank, and vehicles cannot be classified as Stolen and Recovered, or Built Up – meaning that it was in a major accident and was written off by insurance.
The cash price of the vehicle must also be in line with guided retail value for the specific make and model, including the general condition and mileage of the car.
It is also recommended that used cars should have a full service history, show little or no exterior damage and the condition must be consistent with the mileage on the odometer.