South Africans are more cash-strapped than ever and having money for a deposit on anything these days is beyond the reach of most of us. If you desperately need your own, personal mode of transport, but you haven't managed to save any money for a down payment, can you still buy a car?
The short answer is yes. If you have a decent, stable job with proof of income and a good credit rating, many finance houses will want to help you, if your choice of car is also sensible and affordable in relation to what you're earning. Banks want to be certain that you'll be able to pay that instalment month after month.
The biggest downside to not putting a deposit down is that your interest will be so much higher. Your loan may also not be approved as quickly. Having cash for a down payment definitely helps because lending the balance of the purchase amount is less risky for the bank.
In this article, we explore your options and use our car finance calculator to find out what the difference in price will be every month if you don't have a deposit for a car: Can I buy a car without a deposit?
Also take a look at the following videos and articles that will assist you in your car-buying journey:
1. Watch: How much deposit should you put down on a car?
2. Read: Is a deposit on a car legally binding?
3. Read: The pros and cons of buying a car without a deposit
