13th Cheque options...

ambroseg1 said:
pay car off sooner. will thank me later.
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Yes and no.

Sure it's a good deal to get the money out of the way so you have more cash every month, but that doesn't help anything at all if you simply burn that money on something less worthy or just go and buy another car...which is what people tend to do when they pay one credit off...they make another.

Also if you loan agreement is a static interest over 54 months then it doesn't help you to pay more in faster as you'll ultimately pay the exact same interest for the entire period and not save any money in the process.

If they allow you to pay a lump sum and recalculate the interest based on that, then yes it might be an option.
 
SauRoNZA said:
Yes and no.

Sure it's a good deal to get the money out of the way so you have more cash every month, but that doesn't help anything at all if you simply burn that money on something less worthy or just go and buy another car...which is what people tend to do when they pay one credit off...they make another.

Also if you loan agreement is a static interest over 54 months then it doesn't help you to pay more in faster as you'll ultimately pay the exact same interest for the entire period and not save any money in the process.

If they allow you to pay a lump sum and recalculate the interest based on that, then yes it might be an option.
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No car loans nowadays are like that. The NCA requires them to recalc the interest whenever you make an extra payment.
 
The_Unnamed said:
So if i made a lump payment the monthly installments would go down by a tiny amount?
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Depends on the loan company. They could either recapitalise it and rework your instalments, or do what Wesbank have done with mine and just credit some interest each month (ie, shortening the term of the loan)
 
Sinbad said:
Depends on the loan company. They could either recapitalise it and rework your instalments, or do what Wesbank have done with mine and just credit some interest each month (ie, shortening the term of the loan)
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I shall check. Currently have my car finance with MFC.
 
Gaming laptops are pretty shocking wastes of money most of the time. They lose their value fast and become antiquated even faster. You'll regret buying it within a year.
 
Zyzzyva said:
Gaming laptops are pretty shocking wastes of money most of the time. They lose their value fast and become antiquated even faster. You'll regret buying it within a year.
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Like i regret buying my Asus G73JH a few years ago?? Oh wait, i don't regret it one bit :D.
 
The_Unnamed said:
Its that time of the year again, and i am in a bit of a pickle.

I cannot decide which option is better.

Option A) Deposit the 13th cheque straight into a savings account and leave it there.

Option B) Use it all to pay off a big chunk of my car.

Option C) But a new gaming laptop.


I would rather do option C out of all of those but its not the most responsible choice :D.
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Go with Option D) Spend it on booze and women!
 
I just applied for my "13th cheque"... selling 5 days of accumulated leave.
 
Ya same situation.

I could pay off my car completely with it, then i can save an extra R1700 per month. think its the best option, else im gonna take it and go travel
 
poffle said:
Ya same situation.

I could pay off my car completely with it, then i can save an extra R1700 per month. think its the best option, else im gonna take it and go travel
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I was kind of keen on the travel idea also. But after seeing the cost of flights at the moment i gave up on that idea.
 
hahaha ya its crazy, thats why u just plan for february/march and its cheapstix.

But ya, i vote go for a good financial decision now and buy yourself something lekker with the cash you save on your car
 
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