Whats the interest on a 145 000k car +-?

[Nerfherder]

You "might" get a better interest rate if your loan amount is higher... In which case borrow the full amount and pay off the "deposit" after a few months.

No... you will get a better interest rate on a LOWER loan amount.

Big deposit up front.... its the way to go.

[Hamster]

You "might" get a better interest rate if your loan amount is higher... In which case borrow the full amount and pay off the "deposit" after a few months.

There is an element of truth to this. I was offered 10.2% and then I increased my deposit by R50k and the interest rate went up to 10.5% .. or something close to that.

But I think that extra 50K made a way bigger difference that the extra 0.3% they are asking.

NOTE: There may have been other contributing factors in the 3 weeks between their initial "approval" and me buying the car.

[Dryad]

Ok, not sure if this is anyway related to what you are asking also this info was as per ABSA banker, so I am not sure if this is 100% accurate, but hoping so.

You will have a lower interest rate if you finance the car through the bank yourself than when the car dealer does the finance deal for you, due to the bank having to pay commission to the car dealer.

New cars will usually have a lower interest rate than 2nd hand cars, apparently even if you are looking at the same value.

The higher the amount you borrow the lower the interest rate usually is.

Edit: Your interest rate also depends on your credit rating, so if you have been a bad and not played nice with previous credit given your interest rate will be higher.

[Fazda]

Your interest rate doesn't change according to what you put down!

Here are some figures based on 145000

60 months -

14% - 3373.90
11% - 3153.65

72 months -

14% - 2987

11% - 2759

[Fazda]

No... you will get a better interest rate on a LOWER loan amount.

Big deposit up front.... its the way to go.

Sorry, but it's the opposite - the bigger the loan, the better the chance of a low interest rate.

[grim]

Sorry, but it's the opposite - the bigger the loan, the better the chance of a low interest rate.

Yep is true. When I bought my first car the best interest rate one of the banks would give was prime+4% on the R60k I wanted to borrow because it's such a small amount. I ended up with prime+1% eventually.

[Mike Hoxbig]

Sorry, but it's the opposite - the bigger the loan, the better the chance of a low interest rate.

I think it's safe to say that the size of the loan itself doesn't affect the interest rate. It also depends on factors such as affordability and creditworthiness.

Putting down a larger deposit directly translates to a bigger saving that would be incurred by being granted a lower interest rate purely on the basis of the size of the loan.

[Boris Becker]

dumb thread Don't you know how to google repayment calculators

R145000k = R145 million. expensive car - must be a collectors items - Ford Sierra in powder blue with torn cloth seats?

[Chevron]

Sorry guys
it will be for 5 year period. i see some places you can pay it off over 72 months too.
so its about 45K extra

another question. if you buy a 2nd car, is it better to put down a 10% down or once your first payment debits then you put a 20k or 30k down to bring the interest down and also your monthly payment

The only way your interest rate changes is if it's linked to Prime.

[Masataka]

Just use an online tool to see what the different variables give you. Try the WesBank one.

Your monthly interest due is recalculated each month (based on what you still owe), at least that's how MFC works. If you drop a lump sum in at a later date, the bank can recalculate your term accordingly.

[iceblue]

I got this info from my banker when I bought my car earlier this year:

If you make a deposit, your interest rate could possibly be higher than if you purchase without a deposit (somebody confirmed this above already).
But there is a way around this:
Take out the finance without a deposit, sign the papers, and then make your deposit into the finance account before the first installment comes off. Instruct them to recalculate your repayments, etc. That way your interest rate stays the same as if you purchased without a deposit, but you reduce your actual repayment amount by adding the deposit.

This tip was given to me by my private banker.

[KOPITE]

I got this info from my banker when I bought my car earlier this year:

If you make a deposit, your interest rate could possibly be higher than if you purchase without a deposit (somebody confirmed this above already).
But there is a way around this:
Take out the finance without a deposit, sign the papers, and then make your deposit into the finance account before the first installment comes off. Instruct them to recalculate your repayments, etc. That way your interest rate stays the same as if you purchased without a deposit, but you reduce your actual repayment amount by adding the deposit.

This tip was given to me by my private banker.

i don't think you can do that once the documents have been signed. is that not breach of contract since you have signed to confirm that all info on the doc is correct.

[grim]

i don't think you can do that once the documents have been signed. is that not breach of contract since you have signed to confirm that all info on the doc is correct.

Yes you can, with my current vehicle finance I can at any time make a deposit into the account and either pay less per month or pay it off quicker without any penalties.

[iceblue]

i don't think you can do that once the documents have been signed. is that not breach of contract since you have signed to confirm that all info on the doc is correct.

It's part of the new credit act. You can now make a capital injection at any stage and ask them to recalculate. Likewise, there is no penalty for early settlement. You're not changing anything on the documents because the document essentially states your loan amount, interest rate and repayment period - which all remains the same after a capital injection.

[Pho3nix]

At this.. How much of a deposit would make a significant impact on the repayment lets say on a R280k car, financed for 72months.