See More

Can I buy a car?

Apr 18 2013 15:02
Vehicle finance while under debt review.

Vehicle finance. (Picture: Shutterstock)

Related Articles

Can I afford a car?

Blacklisted: how can I buy a car?

Ten car purchase tips

Nedbank warns of car scam

Financing a car while jobless

Cut car insurance costs

A Fin24 user who is under debt review wants to know if it is safe for her to buy a car.

Friedl Kreuser of 6cents, a division of Summit Financial Partners, responds:

While you are under formal debt review, you cannot access any more debt, so you would not be able to apply for vehicle finance.

Also, if you happen to have enough cash to buy a car without financing, that cash should be disclosed to your debt counsellor and used to pay your existing debt.

You could, however, consider leasing a car, which is a month-to-month service agreement that would not be seen as debt (much the same way you would rent a house).

If you miss payments, you would simply lose access to the car for the relevant month. There are a handful of companies in South Africa that do provide car rental services, so shop around and look for the most affordable option.

As you are under debt counselling, however, settling your debt as fast as possible should still be your first priority, so compare the cost of renting a car to your current transport costs and make sure you keep your expenses as low as reasonably possible.

Also, remember to discuss any significant changes in monthly expenses with your debt counsellor, as they may need to update your payment proposal.

- Fin24

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query. 

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. 

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

vehicle finance  |  money clinic  |  debt


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.

BMW drift battle: M235i vs. speedway bike

Watch this insane drift contest with four-times dirt-track World champion Karl Maier riding a speedway bike against a BMW M235i.



Want to start talking dirty?
Everyday struggles of naturally skinny guys
And this year's Miss Bumbum title goes to...
How to maintain your mo, bro

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...