Did you buy your last car with cash or on a finance plan?

Did you buy your last car with cash or on a finance plan?

  • Cash

    Votes: 82 57.7%

  • Finance plan

    Votes: 54 38.0%

  • Other

    Votes: 6 4.2%
  • Total voters
    142
Cray said:
Cash for me, annoying thing is that dealers get big incentives from finance houses so you don't get any discount for paying cash. But yeah, always cash if at all possible.
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Yep was buying a car cash and went to a dealer and asked him what was the best price he could give me for the car I wanted. He asked me how much I can afford per month. Told him I was paying cash and wanted the best price. He said he couldn't give me any discount and could only discount if I took a monthly installment. I walked out and went to another dealer.

The other dealer gave me the option of so and so % discount for a cash purchase or I can get a discounted lending rate on installment. Purchased the car there
 
Cray said:
Cash for me, annoying thing is that dealers get big incentives from finance houses so you don't get any discount for paying cash. But yeah, always cash if at all possible.
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So take the car on finance, wait a month and settle the amount outstanding. That's what I did and at most I paid R1000 over the the "special" dealer price.
 
Lupus said:
Technically financial plan, but paid off in 3 weeks. Only reason is that cash actually ends up costing more to buy new cars, as financed cars get "discounts".
So I put down a massive deposit, got a finance plan for 2 years, after the first deduction, settled the car. Ended up paying R1000 more than the price.
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Didn't know you could get a discount for financed cars but I guess it makes sense if the dealers are getting a kickback from the banks.
 
Cray said:
Didn't know you could get a discount for financed cars but I guess it makes sense if the dealers are getting a kickback from the banks.
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Most quoted prices under special are under finance only, not cash. Dealers do get kickbacks, but you can take a finance, put down a decent deposit and wait for a bit and settle. I waited about a month and contacted them for a settlement letter and paid up the remaining amount, it was R1000 over the "remaining" amount I financed.
 
Azbubu said:
Did they add admin fees or penalties?
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It would depend on wether the financed amount was over or under R250k. If it is over R250k you have to give the bank 3 months notice. This is where the big deposit @Lupus mentions comes into play, to make sure the outstanding amount is less than the threshold.
 
WollieVerstege said:
It would depend on wether the financed amount was over or under R250k. If it is over R250k you have to give the bank 3 months notice. This is where the big deposit @Lupus mentions comes into play, to make sure the outstanding amount is less than the threshold.
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Ah that makes sense, my deposit did drop it down by quite a lot
 
But a lot of the specials are for 0% deposit. I guess for them to avoid those situations.
 
Azbubu said:
But a lot of the specials are for 0% deposit. I guess for them to avoid those situations.
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You'll probably have to take a hit somewhere.
E.g., I've seen it like this:
  • Cash will be R250 000
  • Adding any deposit will be: R225 000
  • 0% will be R200 000
So pick your poison, or twist the salesman's arm. Sometimes they will give you the same deal as the 0% just to make a sale.
 
I Usually buy cash if possible but got a deal on my last car at 8% with no deposit. So I decided try and use the cash somewhere else.
 
Generally cash if I can, but cars are so expensive these days that cash isn't really an option. Current car came with deal assistance if I took finance that shaved R100k off the price so it was a no brainer, settled as soon as I could.
 
Progenix Oj101 said:
I wouldn't even know how to finance a car. Paying interest on a depreciating asset doesn't make sense.
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Makes very little sense if you're an individual, unless you don't have the money and need a reliable car to get to work. Makes a lot of sense in business if the opportunity cost is higher than the interest you would pay less the tax benefits.
 
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