Can I buy a car if I earn R7500?
Car finance remains one of the best and most cost-effective lending agreements you can enter into, allowing you to get behind the wheel of your very own car without resorting to personal loans or credit cards. How much do you need to earn monthly to qualify for car finance, and can you buy a car if you earn R7 500 a month?
Personal mobility is an expense that almost all working adults need to factor into their budgets. The lack of public transport options forces many South Africans to pursue vehicle ownership, even though the average cost of a new car is amongst the highest in the world, considering the average South African salary. This means that most vehicles in SA, both new and used, are purchased through a finance agreement.
Related: Who is eligible for car finance?
Many manufacturers have identified the need for more affordable, safe motoring and have tried offering compact, affordable cars like the Renault Kwid, Suzuki S-Presso, Toyota Vitz, and Suzuki Celerio. While these may be amongst the cheapest cars in South Africa, you still need to earn a certain amount of money every month to qualify for vehicle finance. How much do you need to earn, and can you buy a car if you earn R7 500?
Vehicle Finance Minimum Requirements
The minimum requirements vary from finance house to finance house, but some of the requirements remain the same. Take a look at what the major players require from you.
Wesbank
- Minimum of 18 years of age
- South African citizen or foreign national with permanent residency
- Valid driver's license
- Minimum income of R7 500
MFC
- Minimum 18 years of age
- South African citizen or foreign national with a residence permit, employment contract, and South African driver's license
- Valid South African driver's license
- Minimum income of R6 500
FNB
- Minimum 18 years of age
- Permanently employed
- South African driver's license
- Minimum income of R6 000 a month and have a clear credit record
Standard Bank
- Minimum 18 years of age
- South African citizen
- Valid driver's license
- Clear credit history
- Minimum income of R8 000
Wesbank, MFC, and FNB will accept applications for vehicle finance if you earn R7 500 per month, but Standard Bank will not. Capitec offers an unsecured vehicle loan product for vehicles up to R500 000, but this differs somewhat from a vehicle finance agreement.
Affordability
It's important to remember that simply because you meet these minimum requirements, you will be approved for finance on the vehicle you're interested in. Financial institutions usually require a decent credit score, and the anticipated repayments will most often need to be less than 30% of your gross salary. We recommend working on 25% of your salary, keeping in mind that you must take out comprehensive insurance on a financed vehicle, and then you will still need to pay for fuel.
If you're ready to finance a car, head to our finance calculator to see what you can expect to pay each month for the vehicle you're interested in.
