Using public transport is not as cheap as it once was especially since one has to take into account mixed modes of transport when one transfers from a train to bus to taxi. Additionally, travel times can vary wildly making keeping an appointment or even just getting to work on time a difficulty.
Taking these costs into account one may find that these are on par with the cost of buying and running a pre-owned vehicle.
“Research indicates that COVID-19 and the associated health and personal safety risks that commuters are exposed to when using public transport has encouraged many commuters to explore buying their vehicle. Owning your vehicle gives you the freedom to go where you want when you want safely. Buying a car is a serious commitment but with a myriad of finance options to consider, buyers might be pleasantly surprised at what they can afford,” says the CEO of Motus Retail and Rental, Corné Venter.
Whilst everyone’s financial situation is different a general rule to follow is that one should not spend more than 25% of your monthly nett income on a vehicle. Sticking to this rule will likely avoid running into an issue later down the line as car loans are long term commitments.
If your take-home is between R8 000 to R10 000 then you could feasibly look at buying a pre-owned vehicle, this would result in total monthly vehicle expenses of around R2000 to R2500. Saving up cash for a deposit could help to further lower this figure.
The current low-interest-rate gives you a chance to find a finance deal at a much lower rate than what has been available for the past few years making vehicles more affordable, especially if you find a fixed interest rate contract. But one should remember that the finance costs are only one part of the cost of owning a vehicle.
One’s total vehicles budget must include costs for insurance, maintenance and fuel costs. If purchasing a newer vehicle certain maintenance costs may be covered by a manufacturer plan but items like tyres are not covered so budget accordingly.
Also, note that one insurance premium depends on various factors such as how long you have had your license and how long you have been accident-free as such it’s a good idea to try get your drivers license as early as possible even if you are still a way away from your physical vehicle purchase.
Before a purchase does your research, look up maintenance costs, dealership reviews and make use of vehicle finance calculators so you know exactly what you’re getting into before you sign an offer to purchase.
The next step is to contact WP Motors and speak to a salesperson. They will assist you with a test drive, quote and offer any additional buying advice you may need.