Every day, we are bombarded with advertising messages persuading us to dress a certain way, live our lives a particular way or drive a certain car. These have the potential effect of making us feel insecure – am I looking good enough, how should I be living my life, what car should I be driving? These messages are further amplified across social media platforms by influencers and ambassadors who represent and punt specific brands. You can start doubting yourself and the important life choices you make.
However, if you are making your purchase choices responsibly because it is what you can afford, rather than what you desire, you are making the best life choices! Getting into debt by making purchases that stretch your budget beyond your means – whether it is a big-ticket item such as a vehicle or a pair of shoes – is not a responsible financial decision.
This is especially the case if you are a recent graduate or young professional starting out in the workplace and looking to buy your first car. Whether it’s a reliable used model or brand-new off the showroom floor car, the thrill of owning your own set of wheels comes with its own set of financial responsibilities.
“The priority for young graduates when purchasing a car should be that they are able to realistically afford it, while ensuring that this additional asset does not compromise their financial situation. Instead, it should contribute positively to their new work lifestyle and sense of independence,” says Kutlwano Mogatusi, WesBank Retail’s Communications Specialist.
Don’t let peer pressure or the advertising messages cloud your judgment in terms of purchasing the car you can afford. The general rule is that you shouldn’t spend more than 20% of your total income on car repayments. It is also important to budget for the other expenses that come with vehicle ownership such as fuel, insurance, maintenance and service costs – in addition to keeping up with all other financial commitments to maintain a positive credit history.
The WesBank online affordability tool gives you a realistic range of finance options for the car you have in mind, based on your financial profile. While the lack of a credit history for many young professionals can be a stumbling block on the path to vehicle finance approval, WesBank has put a special vehicle finance deal in place where a credit history is not essential for graduates if they meet certain other criteria.
The application process to check affordability and get approval for a vehicle finance deal can all be done quickly and seamlessly online via the WesBank website or by downloading the WesBank App.
Being financially responsible could mean opting for a more affordable car, while putting your dream car on hold until you can afford it. It is unwise to put yourself under unnecessary financial strain as you start out in the workplace.
“Choosing the car you can afford – and not necessarily the one you really want – is an indication of exercising financial maturity, discipline and independence that can only benefit you in the long run. Remember that when you’re buying a car, you should buy with your head and not your heart. This means knowing your budget, sticking to it and being realistic about the car you’re looking at.
“Managing all the expenses that come with owning a car should never get to a point where you feel that you have bitten off more than you can chew. Be sensible and be responsible – you’re an adult now!” concludes Mogatusi.
