Streaming issues? Report here
volume_up
volume_mute

Up Next: Best of Talk
See full line-up
Home
arrow_forward
Business
arrow_forward
Lifestyle

How to buy a new car even if you don’t really have enough money for it

19 September 2019 2:26 PM
Tags:
The Money Show
Car
Bruce Whitfield
Finance
Personal finance
car finance
personal finances
Wendy Knowler
consumer journalist
vehicle finance
car financing
vehicle financing
balloon payment
balloon payments
balloon car payment
financing
South Africans are increasingly buying cars they can’t afford using balloon payments, says consumer journalist Wendy Knowler.
Volkswagen (pixabay.com)

A balloon payment is a mechanism to try and make a car that is outside of your reach fit into your monthly budget. We recommend that clients actually not opt for balloon payments and rather buy more affordable cars.

WesBank (vehicle finance market leader)

The economy is toast, and car prices are skyrocketing.

Increasingly, instead of going without, consumers are opting for balloon car payment deals and buying cars they can’t afford.

A balloon car payment deal cuts the price of the car by, for example, 30%.

The rest is divided by, say, 72 months, leaving you with a lump sum to pay at the end of it.

You get to drive off with a brand-new, wealth-destroying machine par excellence.

It’s all fun and games until, after six years of paying it off, you still have to find the money for the 30% that is outstanding.

Many people then must finance what they still owe if they can.

It's a downward spiral.

The Money Show’s Bruce Whitfield interviewed consumer journalist Wendy Knowler.

Listen to the interview in the audio below (and scroll down for quotes from it).

If you have to buy a car with a balloon payment you, basically, can’t afford it.

Wendy Knowler, consumer journalist

Overall, 31% of Wesbank’s loan book is financed with a balloon deal…

Wendy Knowler, consumer journalist

Maybe you don’t qualify for finance seven years down the line… [If you do obtain finance] you’re financing an already financed amount…

Wendy Knowler, consumer journalist

Some people don’t realise that bogeyman is waiting for them… I’ve taken up many cases where there was clear non-disclosure… it’s not highlighted enough on the contract… quite small print…

Wendy Knowler, consumer journalist

In many ways, contracts are designed with the nastiest bits presented in an obscure way… Banking on people not reading the small print… blind trust… the stuff in there is legal…

Wendy Knowler, consumer journalist

There’s a focus only on what that monthly payment is… There’s a lot of exploitation of naivety…

Wendy Knowler, consumer journalist

It’s an expensive vanity purchase…

Wendy Knowler, consumer journalist

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : How to buy a new car even if you don’t really have enough money for it


19 September 2019 2:26 PM
Tags:
The Money Show
Car
Bruce Whitfield
Finance
Personal finance
car finance
personal finances
Wendy Knowler
consumer journalist
vehicle finance
car financing
vehicle financing
balloon payment
balloon payments
balloon car payment
financing

More from MyMoney Online

Discovery, Sandton

Why Vestact is buying Discovery (JSE), Long4Life (JSE) and Booking.com

22 October 2019 8:31 AM

Portfolio Manager Byron Lotter shares his stock picks of the week with Bruce Whitfield on The Money Show.

Share this:
Read More arrow_forward

Divorce

Considering divorce? How to avoid getting poorer in the process

17 October 2019 2:43 PM

Personal finance expert Warren Ingram warns that divorce almost always destroys wealth. Here’s how to not lose your money.

Share this:
Read More arrow_forward

islandjpeg

How to save and buy an island (you need only R2000 per month)

15 October 2019 3:36 PM

Saving money on boring stuff such as a car can allow you to do really outrageous and courageous stuff, says Sam Beckbessinger.

Share this:
Read More arrow_forward

standard-bank-bjpg

Why Mergence Investment Managers is buying Standard Bank and Mr Price

15 October 2019 11:46 AM

The Money Show’s Bruce Whitfield asks investment analyst Nolwandle Mthombeni to share her stock picks of the week.

Share this:
Read More arrow_forward

Hourglass cash money

5 retirement saving tips for those who left it late

14 October 2019 2:48 PM

It’s better to start late than never! The Money Show’s Bruce Whitfield interviews Jeanette Marais.

Share this:
Read More arrow_forward

big-mac-indexpng

Believe it, or not – the cost of living in SA is amongst the lowest in the world

14 October 2019 1:11 PM

If only we earned more – we’d be rich! Kieno Kammies interviews Certified Financial Planner Paul Roelofse.

Share this:
Read More arrow_forward

woman-piggy-bankjpg

Enjoy life and save for the future by splitting income using the '50/15/5 rule'

14 October 2019 10:30 AM

You only live once — personal finance guru Warren Ingram on divvying up your income if you're not the budgeting type.

Share this:
Read More arrow_forward

Growth

How to start saving and investing money

11 October 2019 12:08 PM

Unless you're über-rich, saving money is a must. But it’s not easy. Arabile Gumede talks to personal finance expert Warren Ingram.

Share this:
Read More arrow_forward

Loan lending

Lending money to family – what to do, and what not to do

11 October 2019 10:07 AM

Don’t do it! But if you must, you may want to consider personal finance expert Warren Ingram’s advice.

Share this:
Read More arrow_forward

tax-refundjpg

How to get a nice, fat tax refund from Sars (a guide for business owners)

9 October 2019 2:57 PM

The Money Show's Bruce Whitfield interviews Daniel Baines, author of "How to Get a Sars Refund for Small Businesses".

Share this:
Read More arrow_forward

More from ConsumerTalk with Wendy Knowler

cards

Are 'tap and go' cards safe? Maybe, suggests this case involving Standard Bank

18 October 2019 10:23 AM

Handsfree pickpocketing is a myth, says consumer journalist Wendy Knowler. But risks remain, suggests a case she took on.

Share this:
Read More arrow_forward

car-poolingjpg

Third-party car insurance cover and why it's sometimes just not worth it

16 October 2019 3:46 PM

Consumer journo Wendy Knowler explains why it can be better to claim on your own car insurance after an accident.

Share this:
Read More arrow_forward

Audi

Used-car buyer? Save yourself a world of pain by asking this one question

10 October 2019 2:57 PM

Wendy Knowler says dealerships don’t do much to explain how you may unknowingly void your warranty and service/maintenance plans.

Share this:
Read More arrow_forward

Debit card

Paying with a debit card? Don’t expect a refund on it when returning items

7 October 2019 2:20 PM

Merchants are not allowed to process refunds on debit cards, warns consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

Contract

Banks and insurers can – if they wanted to – serve us better. Here’s how…

3 October 2019 2:03 PM

Consumer journalist Wendy Knowler spent a day with financial services ombuds from around the world. Here are their suggestions.

Share this:
Read More arrow_forward

car-crashjpg

Claimed a few times of late? Consider another insurer before they dump you

26 September 2019 11:55 AM

It’s best to jump before you are pushed. It’s "catastrophic" if that happens, warns consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

genderjpg

[LISTEN] Why 'gendered' products might not be as ridiculous as they seem

25 September 2019 5:30 PM

A new study claims using products which are overtly masculine or feminine increases your desirability to the opposite sex.

Share this:
Read More arrow_forward

happy-old-man-reusablejpg

69% of credit card fraud victims are old and alienated by technology

19 September 2019 11:57 AM

Most people who fell prey to credit card fraud in the first three months of 2019 were old, says consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

phishing-fraud-scam-cybersecurity-hackingjpg

Beware the 'email invoice hacking scam'! – Wendy Knowler (consumer journalist)

9 September 2019 2:28 PM

If you ever send an invoice (or pay after receiving one); you may want to check this out. Especially property buyers and sellers.

Share this:
Read More arrow_forward

water-tap-household-supply-geyserjpg

Fixed municipal water charge is here to stay, explains City of Cape Town

4 September 2019 4:44 PM

Why are Capetonians still facing a fixed water charge? And has the price of prepaid electricity gone up? Municipal FAQs answered.

Share this:
Read More arrow_forward

More from Good to Know with Wendy Knowler

cards

Are 'tap and go' cards safe? Maybe, suggests this case involving Standard Bank

18 October 2019 10:23 AM

Handsfree pickpocketing is a myth, says consumer journalist Wendy Knowler. But risks remain, suggests a case she took on.

Share this:
Read More arrow_forward

Audi

Used-car buyer? Save yourself a world of pain by asking this one question

10 October 2019 2:57 PM

Wendy Knowler says dealerships don’t do much to explain how you may unknowingly void your warranty and service/maintenance plans.

Share this:
Read More arrow_forward

Debit card

Paying with a debit card? Don’t expect a refund on it when returning items

7 October 2019 2:20 PM

Merchants are not allowed to process refunds on debit cards, warns consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

Contract

Banks and insurers can – if they wanted to – serve us better. Here’s how…

3 October 2019 2:03 PM

Consumer journalist Wendy Knowler spent a day with financial services ombuds from around the world. Here are their suggestions.

Share this:
Read More arrow_forward

car-crashjpg

Claimed a few times of late? Consider another insurer before they dump you

26 September 2019 11:55 AM

It’s best to jump before you are pushed. It’s "catastrophic" if that happens, warns consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

aerial-blog-blogger-990819jpg

Got a serious complaint? Here's the best way to get your email read

23 September 2019 2:58 PM

Here are the distinct characteristics of an email that no one can ignore.

Share this:
Read More arrow_forward

happy-old-man-reusablejpg

69% of credit card fraud victims are old and alienated by technology

19 September 2019 11:57 AM

Most people who fell prey to credit card fraud in the first three months of 2019 were old, says consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

phishing-fraud-scam-cybersecurity-hackingjpg

Beware the 'email invoice hacking scam'! – Wendy Knowler (consumer journalist)

9 September 2019 2:28 PM

If you ever send an invoice (or pay after receiving one); you may want to check this out. Especially property buyers and sellers.

Share this:
Read More arrow_forward

fnbpng

FNB illegally takes consumer’s silence as an agreement

29 August 2019 8:46 PM

Have a credit card with FNB? You may want to check this out, warns consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

standard-bank-bjpg

Standard Bank says comedy of errors with bond applicant 'a once off'

21 August 2019 8:04 PM

Only when consumer journalist Wendy Knowler chased Standard Bank did they admit wrongdoing that cost a client R41 000.

Share this:
Read More arrow_forward

More from Good to Know with Wendy Knowler

cards

Are 'tap and go' cards safe? Maybe, suggests this case involving Standard Bank

18 October 2019 10:23 AM

Handsfree pickpocketing is a myth, says consumer journalist Wendy Knowler. But risks remain, suggests a case she took on.

Share this:
Read More arrow_forward

Audi

Used-car buyer? Save yourself a world of pain by asking this one question

10 October 2019 2:57 PM

Wendy Knowler says dealerships don’t do much to explain how you may unknowingly void your warranty and service/maintenance plans.

Share this:
Read More arrow_forward

Debit card

Paying with a debit card? Don’t expect a refund on it when returning items

7 October 2019 2:20 PM

Merchants are not allowed to process refunds on debit cards, warns consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

Contract

Banks and insurers can – if they wanted to – serve us better. Here’s how…

3 October 2019 2:03 PM

Consumer journalist Wendy Knowler spent a day with financial services ombuds from around the world. Here are their suggestions.

Share this:
Read More arrow_forward

car-crashjpg

Claimed a few times of late? Consider another insurer before they dump you

26 September 2019 11:55 AM

It’s best to jump before you are pushed. It’s "catastrophic" if that happens, warns consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

happy-old-man-reusablejpg

69% of credit card fraud victims are old and alienated by technology

19 September 2019 11:57 AM

Most people who fell prey to credit card fraud in the first three months of 2019 were old, says consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

phishing-fraud-scam-cybersecurity-hackingjpg

Beware the 'email invoice hacking scam'! – Wendy Knowler (consumer journalist)

9 September 2019 2:28 PM

If you ever send an invoice (or pay after receiving one); you may want to check this out. Especially property buyers and sellers.

Share this:
Read More arrow_forward

fnbpng

FNB illegally takes consumer’s silence as an agreement

29 August 2019 8:46 PM

Have a credit card with FNB? You may want to check this out, warns consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward

standard-bank-bjpg

Standard Bank says comedy of errors with bond applicant 'a once off'

21 August 2019 8:04 PM

Only when consumer journalist Wendy Knowler chased Standard Bank did they admit wrongdoing that cost a client R41 000.

Share this:
Read More arrow_forward

used-volkswagen-vw-polo-vivo-pre-ownedpng

Buying a used car: Warranties, service plans, avoiding a false sense of security

24 July 2019 7:54 PM

The Money Show’s Brue Whitfield interviews consumer journalist Wendy Knowler.

Share this:
Read More arrow_forward