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BUSINESS NEWS - Congratulations on finishing your studies and graduating. This milestone must be both rewarding and fulfilling, given all the work you had to put in to get your qualification.

Now that you have done the work, it is time to step into the beginning of your career and grow in all the ways you have imagined. 

For that, you may need to make some large purchases that will make your new elevated life a breeze. 

A car is one such buy, as it affords you the privilege and convenience of being mobile most times, making it easy to get to and from work and other destinations of importance.

But, as a graduate with no money to buy a car (and maybe some deposit), you may be wondering how you will get financial assistance to fund your car purchase without a credit history. 

Worry not; in this article we highlight the benefits of financing and buying cash, how you can benefit from graduate finance, what it entails, the application process, as well as other things to note when applying for graduate finance.

Boss buying moves

Buying a car cash can be one of the most liberating things you can do for yourself. It puts you at an advantage as you will not need to pay back any money, and your only expenses will be maintaining and servicing the car. 

Most people tend to save up before buying, unless they have the funds from the get go. A lot of other drivers opt to save up for a car, and then when it is time to buy, change their mind to a more expensive car (or model), and then use the money as a large deposit in order to have a lower repayment amount. 

Depending on the kind of car you want, its model/year, and whether it is a new or used one, you are able to see whether or not you can save up or buy it cash within the time you’d like to have it. 

Buying cash is disadvantageous when it comes to the fact that you will need to have the full amount when heading to the dealership if you want to drive off in your new four-wheeled baby.

Graduate finance, the not so new answer

Graduates have been struggling with acquiring loans for a while due to a lack of credit history. Financial services providers have since come up with a convenient way to ensure that graduates do not take up unnecessary debt in order to build a credit history or profile and that they do not have to wait a certain period of time to start applying for financial aid once they start building these profiles. 

Graduate finance affords recent graduates access to financial aid in order to make it easy to buy assets such as a car. 

With graduate finance, you do not have to have built an extensive credit score; however, you will be expected to maintain your instalment as it will appear great on your credit score/profile, meaning a new auto loan can raise your credit score if well-maintained.

How it works 

With graduate finance, you are basically getting financial aid to supplement your car payment and then repaying your financial services provider in return. Just like vehicle finance, having a little bit of a deposit upfront can help you lower your repayment premiums; however, not having it doesn't mean you will not get your car. 

When applying for graduate finance, start first by determining how much your car will cost so that you know how much you will need from your financial services provider, then consider using what is called a loan calculator. 

The likes of WesBank have such available on their website and app, and what they do is give you a rough estimate of how much your premiums will be, given the amount of money you will need from them.

Why are they helpful? Say you know what car you want to buy and how much fuel and maintenance costs that car will incur. If you calculate your graduate finance repayment, you can also add the cost of fuel and maintenance and get a clearer idea of how much your monthly costs for your car will be. 

This makes it easy for you to budget and make better financial decisions. Researching before committing to a financial contract is one of the most important and recommended steps by reputable financial services providers.

Applying for graduate finance

When applying for graduate finance, just like any kind of financial aid, there are a few documents you need to have in your possession. These include:

• Proof of Address not older than 3 months.
• A copy of your ID.
• A copy of your driver's licence.
• If you have a job offer but haven't started working yet: a signed employment contract.
• If you started working less than 3 months ago: a signed employment contract and a recent payslip.
• If you've been working for more than 3 months: a recent payslip and 3 months' bank statements.

As mentioned before, a deposit is not mandatory, but it does help if you have it, and there is no set limit to the highest amount you can loan as it all depends on your affordability.

You will have to apply for your graduate finance, and financial services providers will let you know immediately if you qualify or not. 

Upon approval, your financial services provider will contact you within 24 hours to finalise everything. Remember, your graduate finance can help with a new or used car, so you do not have to commit to one type simply because you are getting financial assistance.

Final thoughts

When it comes to graduate finance, always go for respectable and reputable financial services providers. And when it comes to choosing a dealership or a private seller, especially when buying a used car, you need to go for one that is just as reputable as your financial services provider. 

Be careful of fraudsters that may want to drown you in unmanageable amounts of debt or taint your credit record and name, or even take money from you. As mentioned earlier, nothing beats a bit of research. 

There are lots of platforms that offer advice on car buying as well as financing options. One such example is financial services provider, WesBank, who has a Youtube channel dedicated to answering questions, offering insights on financial aid, and so much more. 

Immerse yourself in as much information so that when you hit the road, you enjoy the beautiful experiences without any bumps.

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