Buying a new car may be possible – even if you can’t afford the monthly payments
Many consumers use balloon payments when they can't afford the monthly repayments.
Baloon payments do not actually make buying a new car cheaper.
Balloon payments are intended to support a buyer who can afford the purchase but needs to manage her cash flow.
What is a balloon payment?
A balloon loan is set up so only a portion is repaid over a set period.
The remaining balance is due as a final payment at the end of the term.
Africa Melane asked Lebogang Goaaketse (Head of Marketing and Communication at WesBank) for tips and tricks to use this method of payment to your advantage.
Balloon payments make repayments more affordable… If you don’t have a deposit, it gives you leeway to save… for when it's due at the end of the term… It defers interest to the end…Lebogang Goaaketse, Head of Marketing and Communication - WesBank
We find… people don’t have the amount at the end… they fall into the trap of having to refinance it… Nine out of 10 times you’ll have a shortfall [when you trade in the vehicle] …Lebogang Goaaketse, Head of Marketing and Communication - WesBank
People who opt for balloon payment are people who change their cars a lot…Lebogang Goaaketse, Head of Marketing and Communication - WesBank
I know a lot of people who finance their cars with balloon payment because it makes it more affordable… It’s not a bad thing at all if you can afford that lump sum at the end…Lebogang Goaaketse, Head of Marketing and Communication - WesBank
Be mindful of the full cost of ownership… Can you afford the added costs?Lebogang Goaaketse, Head of Marketing and Communication - WesBank
Listen to the interview in the audio below.
Source : https://www.123rf.com/photo_122935538_stylish-black-woman-in-a-car-salon.html?term=new%2Bcar&vti=md6vkvyys77us58582-1-1
Personal finance advisor Warren Ingram on how to save and invest for your child’s future education.Read More
Bruce Whitfield interviews Daniel Strauss, author of The Billionaire Mindset: Secrets of a Successful South African Entrepreneur.Read More
The Money Show’s Bruce Whitfield asks Denker Portfolio Manager Kokkie Kooyman what it means for the industry.Read More
"Affordable classics have grown for the last seven years – even last year," says John Tallodi of Classic Car Passion South Africa.Read More
"The money is safe and waiting for you to come forward," says Kabelo van der Merwe of Unclaimed Benefits at Liberty.Read More
The Money Show’s Bruce Whitfield interviews Nomi Bodlani, Head of Strategic Markets at Allan Gray.Read More
The JSE is near record levels; what are investors smoking? Personal finance advisor Warren Ingram explains the disconnect.Read More
The Money Show’s Bruce Whitfield interviews Sun International Group CEO Anthony Leeming.Read More
It aims to enrol 56 000 students by 2026. The Money Show’s Bruce Whitfield interviews Stadio Holdings CEO Chris Vorster.Read More
Its competitors are paying dividends. The Money Show’s Bruce Whitfield interviews Absa Group CEO Daniel Mminele.Read More