Dear Morgan

Dear Morgan

I've been employed for more than five years as a casual worker. I'm earning R5880 a month gross. Do you think a bank would finance a car for me? Best regards - Abram

Dear Abram

Anything is possible provided you meet with all the requirements that financial institutions have and which the new National Credit Act expects of them.

South African consumers have been freely accessing credit through loans, credit cards and buying on account.

This has resulted in many consumers spending more than 50percent of their gross monthly income on debt - not an ideal situation.

Unfortunately, the banks have been big culprits in raising the debt level of ordinary consumers by freely dispensing credit facilities, especially in the run-up to the new credit act being enforced.

Why do I mention all this? Because your situation is that you are a casual worker with a gross monthly income of just under R6000. The fact that you have been earning consistently and working regularly for the past few years will definitely impact on your standing with the banks.

You are going to have to do a complete credit assessment which will look at your monthly income, from work as well as other sources (additional income in your household, rental income or income from odd jobs etc).

Then your credit history will be analysed and finally your ability to pay back instalments on a monthly basis will be assessed.

It sounds complicated but it is a necessary process that is there to protect you and make sure you do not fall into a debt trap that you cannot get out of.

Assuming you come through these checks and balances, you should be given a figure as to what sort of finance you qualify for.

Once you get this, contact AA Autobay, a division of the AA and look at their selection of used cars and different financing packages.

Also, look out for manufacturers' upgrades or face-lifts which then push down the prices of outgoing models.