• Mini budget: Lost trust

    The elephant in the room is a bigger danger to SA than weak finances, says Jaco Leuvennink.

  • Time to tackle floods

    Government isn't doing enough so it's up to us to take responsibility, says Mandi Smallhorne.

  • Conquering prejudice

    Every workplace would benefit from a self-critical process relating to prejudices, says Ian Mann.


Why can't we get car loans?

Jan 16 2013 07:32
A Fin24 user who works in a call centre is bothered about not being able to qualify for car finance. He writes:

I would like to ask about us people who work in a call centre environment - why can’t we qualify for car finance?

When we approach the banks, they tell us we don’t qualify because our jobs are open-ended contracts.

I want know why, and what can we do in this situation? We are looking for solutions.

Chris de Kock of WesBank responds:

Any person who wishes to qualify for credit needs to prove their ability to repay the loan.

Currently our book data shows that the average car finance contract is taken over 65 months. So, the applicant must be able to satisfy WesBank or any other vehicle financing institution that they will have a monthly income for the duration of the contract period.

The fact that temporary workers do not have the assurance that they will be contracted over this extended time does present a higher risk to the bank. However, each decision is taken on the merit of the individual's other credit attributes.

Our advice to customers is:
  • You need to provide sufficient proof of your income over a substantial period of time;
  • You need to buy a car that is well within your financial means;
  • You must buy from a reputable dealership; and
  • You must have a clear credit history.

- Fin24

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.

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

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

wesbank  |  money clinic  |  vehicle finance



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
Comments have been closed for this article.

Company Snapshot

We're talking about...

Calling all social entrepreneurs - apply for The Venture now!

Are you running an innovative social business that's helping to create a better future? Then pitch for a share of The Venture’s $1m fund and receive world-class mentorship to help accelerate your business growth.

Money Clinic

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

Voting Booth

Pick n Pay launches new website for easier online shopping

Previous results · Suggest a vote