In the market for a new car? Keep in mind the real cost, says financial planner
There's nothing quite like that feeling of anticipation when taking the wheel in a new car for the first time.
But the excitement will eventually wear off while your vehicle financing obligations won't. And you'll be paying off that debt as the value of your new baby steadily depreciates.
Certified financial planner Paul Roelofse says to keep in mind that cars cost more than you actually might think they do.
We mustn't be lulled into the 'got to have it now' feeling and not take very clear notice of the actual vehicle cost from the time that you sign on.Paul Roelofse, Certified financial planner
If you finance something for R100,000 over five years at 10%, the cost is 27.5% morePaul Roelofse, Certified financial planner
Don't forget this when a bonus or salary increase tempts you to splash out on a fancy new ride, cautions Roelofse. And keep in mind that a tax write-off doesn't offset the real cost.
When you get into the actual calculation it's actually cheaper to pay the tax than it is to pay for the vehicle.Paul Roelofse, Certified financial planner
For more sober advice on purchasing a new car, take a listen:
This article first appeared on 702 : In the market for a new car? Keep in mind the real cost, says financial planner
The City responds after complaints from drivers about perceived delays in granting licenses and explains how the process works.Read More
A number of Fish Hoek residents have started a petition to close the beach-front restaurant, claiming service is "appalling".Read More
Guy Leitch says government, as SAA owner, seems unwilling to meet the terms of banks to grant airline funding to continue flying.Read More
Financial journalist Sikonathi Mantshantsha does a round-up of the big business stories this week from Telkom and Massmart to SAA.Read More
Germany – not the US or China – is set to lead the world into a post-fossil fuel age. Kieno Kammies interviews Steven Beardsley.Read More
What does it really cost you to have your investment managed by somebody else? What is that management worth in the end?Read More
A South African matric will not equip most of today's learners with a competitive edge.Read More
The slight drop in the repo rate is a good thing for ordinary South Africans.Read More
SA's delegation to the 2020 World Economic Forum in Davos, Switzerland is getting ready for the annual gathering.Read More
The SA Reserve Bank has announced the decision on rates.Read More
The Duke and Duchess of Sussex will no longer be working members of the British royal family, announces Buckingham Palace.Read More
CapeTalk host John Maytham shares his top book picks for the week, including a new read by British author Robert Macfarlane.Read More
TravelBug director Tess Faber recommends 3 visa-free countries out of the 100 that South Africans can travel to visa-free.Read More
South African Reserve Bank (Sarb) Governor Lesetja Kganyago has announced that the repo rate will be reduced to 6.25%.Read More
Mzansi's first-ever Michelin-starred chef visited CapeTalk studios to talk about his new restaurant in the Kalahari and much more.Read More
“You’ve got a majestic view of Johannesburg! A Feng Shui expert said it’s like having your kingdom below you,” says Rory O'Hagan.Read More
Africa lost his eldest son in a gruesome traffic accident in 2001 and says his grandkids are his everything.Read More
Why can't the socket-outlets on multi-plugs be used all at once? Consumer journalist Wendy Knowler looks for answers.Read More
Dean McCoubrey of MySocialLife gives tips for parents on how to deal with a circulating chain letter causing fear among children.Read More
Before you hop onto the #BackToSchool2020 bandwagon and post your kids on social media, ask yourself these 6 important questions.Read More