Car Finance: Bank or Dealer

[KOPITE]

Hi Guys just wanted to know where i should look for financing specifically. which bank or which dealer?

[marco79]

Go directly to the bank.

[chrisc4290]

The dealer is only a front for a bank anyway. If you already have a bank account, approach them first.

Don't forget that hire-purchase agreements have different conditions from straight bank loans, the most important one is that with a bank loan, you only pay interest on the outstanding balance

[Sinbad]

The dealer is only a front for a bank anyway. If you already have a bank account, approach them first.

Don't forget that hire-purchase agreements have different conditions from straight bank loans, the most important one is that with a bank loan, you only pay interest on the outstanding balance

Er. My car loan I also only pay interest on the outstanding balance...?

[chrisc4290]

Yes, then it is a loan, not a hire-purchase agreement. In HP agreements with someone like Wesbank, the interest and period is declared up front. If you want to settle early, you call them for a settlement figure. But they don't give you much discount, so a straight loan is better. However, some banks lending criteria might be stricter.

[Sinbad]

Yes, then it is a loan, not a hire-purchase agreement. In HP agreements with someone like Wesbank, the interest and period is declared up front. If you want to settle early, you call them for a settlement figure. But they don't give you much discount, so a straight loan is better. However, some banks lending criteria might be stricter.

Mine is a standard Wesbank contract.
The interest was declared up front, yes.
I have paid in extra, and I get an interest rebate every month...

The settlement figure they give you is less than your contract balance because they write back all the interest on the outstanding balance.

[chrisc4290]

Then you either lucky with the contract, or have a good history and they have given you a better deal

One of my employees bought a used Golf and the total cost of the contract was 60 x R 2595 = R 155700. After 42 months her mother said she would pay the balance. The settlement figure was R 44000 odd, which means they only shaved R 2000 off over 18 months. When she argued, they said she should take it or leave it.

[Sinbad]

Then you either lucky with the contract, or have a good history and they have given you a better deal

One of my employees bought a used Golf and the total cost of the contract was 60 x R 2595 = R 155700. After 42 months her mother said she would pay the balance. The settlement figure was R 44000 odd, which means they only shaved R 2000 off over 18 months. When she argued, they said she should take it or leave it.

What was the purchase price, residual and interest rate?

[KOPITE]

What was the purchase price, residual and interest rate?

whats the difference

[Sinbad]

whats the difference

To work out an amortization table to see what was paid, owing etc.

The banks can't just make stuff up.

[beans100]

When buying a new car, dealers can sometimes get good interest, like with the Polo Vivo's at the moment. They are giving it at 8.8% via Westbank. I doubt that you'll get the same interest if you try to negociate the deal directly with Westbank.
Secondhand cars is something else, depends on year model and brand. But most of the times you'll get the same deal or beter if you negociate yourself.