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A Fin24 user is worried about whether he will be able to obtain vehicle finance despite his bad credit history. He writes:
I'm currently earning a net income of R18 000 after deductions and have a monthly commitment of around R6 000.
I am also planning to buy a property within the next five years.
My problem is that I don't have a pretty credit record. I was once unemployed and the history on some of my accounts shows that I was once in arrears for more than 150 days, but I have paid up all my accounts.
I'm wondering whether the banks will approved me for a vehicle loan and what price range I must look at?
Rudolf Mahoney, head of research at WesBank, responds:
It all depends on how long ago the accounts were in arrears. If it was less than 12 months ago (within the last year) then it is likely that it will be more difficult to secure finance.
That said, it is not impossible. For example, if you have a deposit to support the lending, it would make applying for finance easier.
If it was more than 12 months since these accounts were in arrears, it becomes easier to get financing.
It is very difficult to comment on pricing as it all depends on the financed amount, term, risk and needs to be negotiated with the dealer.
Each case is assessed individually.
- Fin24
* Help us help you by taking our second annual Debt survey and you could win R3 000, or add your voice by sharing your debt experiences, debt-busting tips and insights.
* Have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
I'm currently earning a net income of R18 000 after deductions and have a monthly commitment of around R6 000.
I am also planning to buy a property within the next five years.
My problem is that I don't have a pretty credit record. I was once unemployed and the history on some of my accounts shows that I was once in arrears for more than 150 days, but I have paid up all my accounts.
I'm wondering whether the banks will approved me for a vehicle loan and what price range I must look at?
Rudolf Mahoney, head of research at WesBank, responds:
It all depends on how long ago the accounts were in arrears. If it was less than 12 months ago (within the last year) then it is likely that it will be more difficult to secure finance.
That said, it is not impossible. For example, if you have a deposit to support the lending, it would make applying for finance easier.
If it was more than 12 months since these accounts were in arrears, it becomes easier to get financing.
It is very difficult to comment on pricing as it all depends on the financed amount, term, risk and needs to be negotiated with the dealer.
Each case is assessed individually.
- Fin24
* Help us help you by taking our second annual Debt survey and you could win R3 000, or add your voice by sharing your debt experiences, debt-busting tips and insights.
* Have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
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