Not everyone can afford to buy a new or second hand car, and in addition, the cost of owning a car – fuel, insurance, maintenance, servicing and repairs.
So, how much should I be spending in order to tick all the lender’s vehicle finance requirements and criteria off the checklist, and qualify for car affordability?
Apart from having a good credit score, a deposit is always a good idea when it comes to taking out a car loan – the more you put down, the less your monthly vehicle finance repayments and the more your car affordability. If you’re still thinking about not putting down a deposit, then bear in mind that a new or second hand car isn’t worth having if your monthly car repayments eat up all the extra room in your budget.
In addition, it’s important to note that the longer the period of your car loan, the more interest you pay and the longer you’ll have to deal with your financier’s insurance requirements and increasing rates.
These factors will affect how much of the new or second hand car you’ll have to finance and the interest amount payable.
Use our car loan affordability calculator to find out your maximum payment, based on your monthly income salary, before speeding off to buy a car that may cause burning holes in your pocket.
Already have a car under finance or just looking to do some car finance calculations on your desired vehicle? Use our car finance calculator to see how your deposit, interest rates and terms affect the amount of car you can afford.
But, if your vehicle finance repayments are already burning holes in your pocket, then perhaps it’s time to flog your car. Luckily, at CarZar.co.za, we buy cars for cash and make an instant payment. Simply get a free online quote in seconds and make an obligation-free inspection booking at any DEKRA inspection centre available on our list of locations or our professional inspectors can come to you.