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Thread: Vehicle finance interest rates and best vehicle loans?

  1. #1
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    Default Vehicle finance interest rates and best vehicle loans?

    I'm looking to buy a second hand car in the region of R100 000. What I'd like to know is what sort of interest rate other people are getting on their vehicle finance, and what finance company is the best for vehicle loans.

    To give you an idea, I'm 31, have just returned from the UK after two years and earn R17 000 basic salary. I have a Virgin Credit card but don't have any debt which I know counts against me when it comes to loans.

    First time buyer of a car requiring a loan so not sure of the pitfalls and hoops I have to jump through.

  2. #2

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    You can easily expect to pay 16% - 19% due to the lack of debt . I know that I am paying 17% and that was after a R20k deposit.

  3. #3
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    with interest rate offerings like that you better off paying for the car on your overdraft, personal loan or CC.
    but shop around... or let the dealer do the running around, they desperate for business even if they act like they don't.

  4. #4
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    Quote Originally Posted by TheShadow View Post
    with interest rate offerings like that you better off paying for the car on your overdraft, personal loan or CC.
    but shop around... or let the dealer do the running around, they desperate for business even if they act like they don't.
    Holly cr@p!

    I wish I had a credit card limit of R100 000 to buy a car on. *irony*

    No offence TheShadow, but that doesn't make a whole lot of sense.

  5. #5
    Super Grandmaster Ou grote's Avatar
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    I went to Hyundai yesterday.
    For a new i20 at R150 000, the starting rate is prime + 2%.

    Prime is 10%

  6. #6
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    Most new car buyers get offered Prime + 3% - which would be 13%.

    If you have a good income, and enough excess cash (after expenses) - you can try and negotiate to Prime + 1.5 or Prime +2%

  7. #7
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    Quote Originally Posted by fdaniels View Post
    You can easily expect to pay 16% - 19% due to the lack of debt . I know that I am paying 17% and that was after a R20k deposit.
    I would double check the interest rate. 17% would be prime +7% which is out of NCA rules (I think) for long term finance.

  8. #8

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    I just purchased a Hyundai i20 for the wife this week, received prime + 0.525 from Wesbank, 10.525%
    Neo-Luddite - Permanent Darwin award candidates
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  9. #9

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    Quote Originally Posted by wizzball View Post
    I'm looking to buy a second hand car in the region of R100 000. What I'd like to know is what sort of interest rate other people are getting on their vehicle finance, and what finance company is the best for vehicle loans.
    If you're buying from a dealer then MFC seems to offer the best rates, else try your bank. Make sure you have a checking account where the salary gets deposited. Also, negotiate the rate that is offered. The general rule applied by the finance houses is that the longer the term of the loan the better rate they will offer. You will also get a better rate if the loan amount is large so keep the deposit minimum and once you have the finance approved you can pay into principal after a couple a months.

    Quote Originally Posted by wizzball View Post
    To give you an idea, I'm 31, have just returned from the UK after two years and earn R17 000 basic salary. I have a Virgin Credit card but don't have any debt which I know counts against me when it comes to loans.
    Did you have any history before you left for UK. That should count as well. Register on the Transunion (www.transunion.co.za) site and get a free Credit Report

    Good Luck with purchase.

  10. #10

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    Quote Originally Posted by mak2000 View Post
    If you're buying from a dealer then MFC seems to offer the best rates, else try your bank. Make sure you have a checking account where the salary gets deposited. Also, negotiate the rate that is offered. The general rule applied by the finance houses is that the longer the term of the loan the better rate they will offer. You will also get a better rate if the loan amount is large so keep the deposit minimum and once you have the finance approved you can pay into principal after a couple a months.


    Did you have any history before you left for UK. That should count as well. Register on the Transunion (www.transunion.co.za) site and get a free Credit Report

    Good Luck with purchase.
    With the new Credit Act, you can pay into the principal pretty much straight away. They are not allowed to penalise early payment anymore.
    Neo-Luddite - Permanent Darwin award candidates
    Shaping Explained here
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  11. #11
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    Quote Originally Posted by mak2000 View Post
    If you're buying from a dealer then MFC seems to offer the best rates, else try your bank. Make sure you have a checking account where the salary gets deposited. Also, negotiate the rate that is offered. The general rule applied by the finance houses is that the longer the term of the loan the better rate they will offer. You will also get a better rate if the loan amount is large so keep the deposit minimum and once you have the finance approved you can pay into principal after a couple a months.


    Did you have any history before you left for UK. That should count as well. Register on the Transunion (www.transunion.co.za) site and get a free Credit Report

    Good Luck with purchase.
    Thanks Mak2000 for the tip on using Transunion. I pulled my free credit report and it looks great. I have no judgments or defaults on debt and my credit history seems quite good. Never been late for a payment either.

  12. #12
    MyBroadband Covert Slab's Avatar
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    My brother got 15%. Got no debt or credit record.
    CMD this: If Mr Bean went to the shops and told teddy that he would be back at 6pm, why was teddy surprised to see him home at 5pm?

  13. #13

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    I just purchased a second hand vehicle 3weeks back... I got prime minus 1 with Nedbank

  14. #14

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    I got 14% on my car. First loan/debt. Had no accounts before that. Just had a credit card.
    Can't wait to pay this sh*t off!

  15. #15

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    If you ask my advice then I say DON'T pay interest. Get a used BM that's on motorplan or something cheap and reliable. When you can, then you buy what you can afford.
    Why do you people like to pay interest ? It costs, a lot.

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