Streaming issues? Report here
John Maytham 2019 1500 BW John Maytham 2019 1500 BW
Afternoon Drive with John Maytham
15:00 - 18:00
volume_up
volume_mute

Up Next: The Money Show with Bruce Whitfield
See full line-up
Afternoon Drive with John Maytham
15:00 - 18:00
Home
arrow_forward
MyMoney Online

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

19 September 2019 2:26 PM

South Africans are increasingly buying cars they can’t afford using balloon payments, says consumer journalist Wendy Knowler.
Volkswagen logo. Picture: 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:


19 September 2019 2:26 PM

More from MyMoney Online

black-family-house-for-sale-sold-property-household-investment-bond-rent-123rf

South African residential property is rapidly and unexpectedly recovering – FNB

13 August 2020 11:35 AM

Pent-up demand, excess supply and record low interest rates are fuelling the unforeseen recovery, says Siphamandla Mkhwanazi.

Share this:
Read More arrow_forward

absajpg

Absa wins international award for its response to Covid-19

5 August 2020 11:38 AM

The bank is one of only six in the world to be recognised in this way for outstanding performance during the global health crisis.

Share this:
Read More arrow_forward

black-family-house-for-sale-sold-property-household-investment-bond-rent-123rf

Digital mortgage originator Mortgage Me ensures you get the lowest interest rate

4 August 2020 12:59 PM

Everything is done electronically – you never have to leave your home, says Mortgage Me’s Andrea Tucker.

Share this:
Read More arrow_forward

TikTok 123rf 123rfbusiness 123rfworld 123rflifestyle

Microsoft wants to buy TikTok. Donald Trump gives it 45 days to negotiate

3 August 2020 7:23 PM

[EXPLAINED] The Money Show’s Bruce Whitfield interviews Craig Wilson, Editor at Stuff Magazine.

Share this:
Read More arrow_forward

Nigeria flag nigerian 123rf 123rfAfrica 123rfBusiness

Shoprite pulls the plug on Nigeria (pop 206m) – trouble for SA companies abroad?

3 August 2020 6:34 PM

Shoprite is exiting the oil-rich but spending-money-poor nation. Bruce Whitfield interviews Dianna Games (Africa At Work).

Share this:
Read More arrow_forward

Mine mineworker mining gold platinum coal 123rfbusiness 123rf

Resilient Amplats reports rise in earnings (Ebitda), solid balance sheet

27 July 2020 7:06 PM

The Money Show’s Bruce Whitfield interviews Natascha Viljoen, CEO at Amplats.

Share this:
Read More arrow_forward

Covid-19 insurance 123rf 123rfbusiness 123rflifestyle 123rfpersonalfinance

Santam to pay out R1 billion to policyholders in 'business interruption' relief

27 July 2020 6:29 PM

It still argues that the lockdown, not the pandemic, is responsible for its clients’ losses. Bruce Whitfield interviews its CEO.

Share this:
Read More arrow_forward

rands

SA Reserve Bank cuts repo rate to 3.5% - an all-time low

23 July 2020 3:39 PM

As widely expected, Sarb Governor Lesetja Kganyago announced a repo rate cut of 25 basis points on Thursday.

Share this:
Read More arrow_forward

Interest rates rate cut Sarb MPC 123rf 123rfbusiness

Expect another cut in interest rates – already at record-lows – later today

23 July 2020 1:13 PM

"Consumers who are in debt have received a huge bonanza," says Econometrix Chief Economist Dr Azar Jammine.

Share this:
Read More arrow_forward

Sars online tax return revenue service 123rfbusiness 123rfpersonalfinance

Ruling against Sars: 'Taxpayers have the courts on their side'

22 July 2020 3:17 PM

"This case shows rogue officials at Sars that the courts protect taxpayers," says tax attorney Jean-Louis Nel (Tax Consulting SA).

Share this:
Read More arrow_forward