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Source: jeshoots.com

If you’re in the market for a new car, you’re spoilt for choice…

There are a lot of affordable brands in the market to suit your pocket.

Before you make a long term commitment on which car to buy, you need to do your homework quite well.

The last thing you want from your car repayment is to be unhappy and find out that you can’t pay your instalment.

Here is advice from Rudolf Mahoney, Head of Brand and Communications at WesBank:

What should new car buyers consider before buying a car?

The single most important thing when considering a new car purchase is affordability. Buyers should start with a budget – look at their income and expenses – then determine how much they are willing to spend on a car instalment every month.

They should keep in mind that a car loan can be as long as five or six years, so you should be sure that the car you choose and the instalment amount will be what you can live with, for that period of time.

BUDGET

It’s also very important that the budget for your car includes:

The instalment amount
– Insurance costs
– Petrol money
– Savings for maintenance and servicing

RELATED ARTICLE: Men and Women buy cars differently (of course)

What’s the benefit of having a deposit for your car?

Paying a deposit on a new car purchase will reduce the total amount of money you borrow from the bank.

This means you can either have lower monthly instalments; a shorter loan period; or both.

The less money you borrow and the sooner you pay it back, the less you end up paying in overall interest.

How to spot a good car deal for your budget?

If you’ve done your homework, you will know exactly how much you can afford to spend on a car. This makes it easy to find the right deal. Buyers should always shop around to find the best deal for their budget.

How do I check if I can afford a car?

The WesBank website has affordability and budget calculators that help you calculate what you can afford to spend on a car.

These calculators can also tell you how much a car’s monthly instalment will be, as well as showing the impact a deposit can have on your loan.

What should one consider before making a long-term financial commitment?

A car loan can last for as long as six years, during which time your budget and lifestyle could change dramatically.

Fuel prices could skyrocket. You could buy a house. Or you might lose your job.

These things can negatively impact your budget, and the ability to continue paying your car instalment.

Try to set money aside in your budget to accommodate for possibly unforeseen circumstances.

It’s also important to think about how your life might change over that time.

Will you get married? Will you have children? Will you need a bigger car?

Your choice of car and your financial planning should try to cover some of these eventualities.

Here are some brand new brands with affordable cars available:

RENAULT SANDERO

Retail Price: R139900

Monthly repayment: R1999.00 Special Offer*

Features:

Expression 66kW Turbo (incl. A/C)
F1-inspired turbo engine
Impressively low fuel consumption from 5.2l/100km
Smart Technology
Class Leading Safety

Terms & Conditions:

0% Deposit | 72 months | 8.42% Interest rate | 35% Balloon | Retail price R139 900 | Total cost R194 928

KIA PICANTO 1.0 LX MANUAL

Retail Price: R136 995
Monthly Repayments: R1995 Special Offer*

Features:

● Power Steering
● Air Conditioning
● Front Electric Windows
● Radio & CD Front Loader
● MP3/iPod/USB Connection
● 60/40 Split Folding Rear Seats

Terms & Conditions:

Retail Price: R136 995 | Deposit: 0% | Term: 72 Months | Rate: 8.25% | Instalment: R1 995 pm | Residual: 30% (R41 098.50) | Total Cost to Customer: R184 794

HYUNDAI GRAND I10

Retail Price: R149900

Monthly Repayment: R1925 Special Offer*

Features:

Power Steering
Air Conditioning
Front Fog Lamps
14” Alloy Wheels
Steering Wheel Mounted Controls
Fully Integrated Bluetooth and MP3 audio functionality
Terms & Conditions:

Price: R149900 | Deposit: 15% | Interest: 10.5% | From R1 925 PM | Residual Value: 40% | Term: 72 Months | Total Cost of Credit: R220924