When you say ‘I do’ you really need to be sure and ready before you commit yourself. Buying a car can be exciting but it also requires one to be discipline. WesBank has shared the dos and don’ts with Mzansi Life that first-time car buyers need to be aware of before committing to a vehicle loan.
- Apply for a car loan that is within your budget and make provision for all the mobility costs (petrol, maintenance, comprehensive insurance and car washes).
- Make sure you saved enough to put down a big deposit. If you have a big deposit this knocks money off the purchase price, you end up borrowing less from the bank, and pay your car loan off sooner.
- Maintain a good credit history. Always pay your loans and bills on time. The bank looks into your credit history to make sure you are a good borrower.
- If you are looking at a used car, consider extending the warranty or service plan to ensure you are covered once the current plan expires.
- Don’t be tempted to go above your car-buying budget. Your loan has a higher chance of being rejected because the bank can see that you can’t afford the monthly car instalment.
- Don’t be embarrassed about going for a cheaper or used car. A small car is the first step to one day owning your dream car.
- Don’t apply for a car loan just after starting a new job. Rather wait for a couple of months, as this helps to increase your stability status. This counts in your favour when applying for your car loan.
- Don’t increase the length of your car loan unless money gets tight. The quicker you pay back the loan the less you pay in interest.