Young Professional’s Guide to Buying Your First Car in SA

A comprehensive 2025 guide to car finance, real costs, and getting approved even without a credit history.

Landing your first job or starting your career is exciting, but let’s be honest; getting around on public transport while building your professional life can be challenging. Anyone who’s stood at a taxi rank at 6 am or missed an important client meeting because the train was delayed knows exactly what I’m talking about. Whether you’re a recent graduate or a young professional climbing the first rungs of the career ladder, having your own car unlocks far more than just convenience. But with car prices what they are, how do you make it work on a young professional’s salary?

The good news is that you don’t need to save for years or rely on family help. WesBank vehicle finance makes car ownership accessible, even for new graduates. The key is understanding your options and choosing the right one for your situation and wallet.

Your First Car Is More Than Just a Ride

For many, owning a car is a milestone, and honestly, it should be. It’s your entry point into independence and a powerful enabler for career growth. Having safe, reliable transport means you can widen your job search beyond taxi routes, take on that freelance work without worrying about how you’ll get home after dark, attend networking events, and show up for work and personal commitments consistently, even when the weather doesn’t cooperate or load shedding hits the train systems.

It’s not just about getting from A to B, it’s about controlling your time, energy, and future.

This is exactly why choosing the right finance option can make the difference between struggling with repayments or comfortably managing your budget. Working with our friends at WesBank, we’ve put together what every first-time buyer should know about the most common types of vehicle finance in South Africa.

Traditional Instalment Sale

This is the most straightforward option. You borrow the full amount for the car and pay it back monthly, typically between four and six years. Once you’ve made your final payment, the car is entirely yours with no further obligations.

For example, if you’re looking at a car that costs R200 000, your monthly repayment might come in at R4 200 per month for 60 months, depending on interest rates. After five years, you own the car outright.

Best for young professionals and first-time buyers who plan to keep their car for many years and want to build equity in the vehicle.

Instalment Sale with Balloon Payment

This option lowers your monthly instalment by setting aside a chunk of the car’s cost (the “balloon”) to the end of your contract. The idea is that by reducing the amount financed each month, the vehicle becomes more affordable in the short term.

Using the same R200 000 car as an example, but with a R60 000 balloon payment. This would reduce your monthly instalment to roughly R2 800, but you’ll need to pay that R60,000 at the end of your finance term either in cash, through refinancing, or by trading in the car.

Best for buyers who expect their income to grow over time or have a solid plan in place to deal with the balloon payment down the line.

Guaranteed Future Value (GFV)

GFV is a flexible, risk-managed financing solution. Here, the lender guarantees what your car will be worth at the end of your contract (usually between three and four years). You only finance the difference between the purchase price and this guaranteed value.

Let’s say the car you’re interested in costs R200 000 with a guaranteed future value of R80 000. This means that you would only finance R120 000, so your monthly payments are significantly lower at around R2 200, depending on your agreement. At the end of the term, you have the option to trade in the car, keep it by paying the R80 000, or simply return it without further obligation.

Best for first-time buyers who aren’t ready to commit long-term and want the flexibility to change vehicles as their career and lifestyle evolve.

GFV is growing in popularity as it keeps your monthly repayments manageable, lets you avoid the stress of resale value and depreciation, and gives you several options at the end of the term. And if you’re like us, we’re big fans of it as it also helps you stay current with newer models and tech – something increasingly important in a fast-changing automotive market.

WesBank’s Graduate Finance

Now, here’s where things get interesting for recent graduates. While this article helps all young professionals understand their finance options, there’s a specific solution for those facing what might be the most frustrating catch-22 in personal finance.

You need credit to get financing, but you also need financing to build credit. It’s enraging, right?

WesBank’s Graduate Finance solution is designed specifically to break that loop. Instead of just looking at your financial history (or lack thereof), it focuses on your future potential. If you’ve completed a degree or diploma and earn a stable income, you may qualify, even if traditional banks have turned you down.

As Lebo Gaoaketse, Head of Marketing and Communication at WesBank, explains: “For young South Africans, a vehicle is often more than just transport. It’s a critical enabler for career advancement and entrepreneurial pursuits, opening doors to new opportunities.”

We know getting your first car is an exciting and empowering milestone, but it’s also a major financial commitment. The right finance option can make the process smoother, more affordable, and better aligned with your lifestyle.

Here’s a Reality Check Every First-Time Buyer Need

It’s important to calculate your budget realistically. This includes not just the car payment, but insurance (comprehensive is non-negotiable in SA), fuel costs that seem to climb every month, regular maintenance, and those often-forgotten expenses like parking fees and e-tolls.

Don’t chase the lowest monthly instalment at all costs as that’s a mistake many first-time buyers make. Instead, choose the solution that gives you long-term value, flexibility, and peace of mind.

With the right planning and the right finance partner, your first car won’t just get you from point A to B, it’ll help drive your future forward.

Ready to Take the First Step?

If you’re a recent graduate with a steady job and a dream to own your first car, WesBank’s Graduate Finance is built just for you. Click here to explore your options and see if you qualify. Your journey to independence might be closer than you think.