A Millennials Guide: How Do I Finance A Car?
Remember when you were in primary school and you thought that everyone in their 20’s were responsible adults, that they had their lives together and that they had their whole life planned out? Well lol, that’s so not true. BUT we’re getting to that point in our lives where we need to start making important decisions, and no, I don’t mean choosing between chicken wings and chicken nuggets being the better snack, because it is WINGS, it has always been WINGS and it will always be WINGS. I mean, we need to start making important decisions such as buying our first car. Sounds impossible right? Like how do you start? What kind of car do you consider? Don’t fret guys, this a Millennials guide on how to finance your car.
Firstly, before you start thinking about how you’re gonna finance the car,
You need to have certain documents ready, such as:
- A South African ID book or passport if you’re a foreign national.
- Proof of address ( a copy of the lease, or mail will suffice ).
- If you’re a student: Proof of enrolment from the institution you’re enrolled at.
- If you’re employed: Proof of income ( such as a bank statement or a copy of your paycheck ).
- You might need a cosigner, so a copy of their South African ID book, or passport if they’re a foreign national, will be needed as well as proof of their income.
Okay, let’s get into the tough talk: THE MONEY.
There’s 2 ways to buy a car: buy it with cash from a car loan or pay it off in monthly instalments.
If you’re a student without a fixed and stable monthly income, it will be tough to be approved for a car loan from any bank. But, if you have an irregular monthly income you could get a loan with a cosigner. A cosigner is someone who takes the responsibility of paying off your loan ( a very trustworthy and generous family member/friend with a fixed and stable monthly income ) if you are not able to. Follow these links and find the right loan for you:
OR if you don’t wanna go the loan route, you could pay the car off in monthly instalments.
This sounds simple enough, right?
Well, you still have to get that ching to pay off the car.
You could do the obvious, and find a job in the evenings and/or on weekends, such as waiting on tables or teaching classes, but nowadays there are a lot of different ways to get money. If you’re entrepreneurial you could start your own business. If you were blessed by God with good looks you could apply to a modelling agency. You could become a DJ and play at nightclubs and parties ( I'm not sure how difficult it is to become one but everyone DJ's nowadays so GO FOR IT! ).