Additional payments on car finance

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PearlJam

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I spoke to someone at the bank to ask about additional payments. I want to pay in R20k now and then other amounts as and when I have it available. Now they tell me I need to phone Absa everytime I make a payment in order for them to capitalise it. It just seem cumbersome.

The idea of the payments is to pay the least amount of interest (vs the interest in the original term) and obviously reduce the payment term.

Any advice?
 
To me this seems stupid. I mean, what frikkin year are we in?

Surely there should be a reference code you can insert when you want it to come off the capital amount?
 
I did exactly what you want to do. On my Capitec internet banking I found the ABSA vehicle and asset finance account (you know that preloaded account search-for-company thing), paid extra in using the account number on the statements as the reference, each time the monthly installment lowered and I was debited that lower amount.

Dindn't phone anyone. I guess if I had wanted to debit order to stay the same and the period to shorten I would have had to phone.
 
I had the same on my bond. Paid in extra and they lowered my monthly debit order. I eventually went to crap on them and fixed my debit order at a much higher level than required. I want to shorten the term. Not decrease the amount I pay each month.
 
Cius said:
I had the same on my bond. Paid in extra and they lowered my monthly debit order. I eventually went to crap on them and fixed my debit order at a much higher level than required. I want to shorten the term. Not decrease the amount I pay each month.
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I stopped the debit order and started paying it myself every month.
 
I have a car financed through Wesbank.

Just last week Wednesday I dumped an additional R25k into my Wesbank vehicle account from my Absa account. Took Wesbank 48 hours to process and when I requested a settlement letter last Friday afternoon, my outstanding capital amount reflected R25k less.

No phone calls to no-one, no nothing, just transfer the money and let them process the payment.

EDIT: I believe that once you make an additional payment you can continue to pay the regular installments and simply finish the finance period quicker, or request to have your monthly installments adjusted for the remaining period so that you pay less every month (but in my mind this means resigning a contract to reflect the new installment amount, and do you really want to go through this schlep every time you make an additional payment?).
 
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Cius said:
I had the same on my bond. Paid in extra and they lowered my monthly debit order. I eventually went to crap on them and fixed my debit order at a much higher level than required. I want to shorten the term. Not decrease the amount I pay each month.
Click to expand...

Transferring money into my mortgage on internet banking with FNB seems to just lower the monthly interest charged. It hasnt made any changes to my monthly installments

At some point i do want my installments to be lowered, as we will rent our place out and would like rent to cover bond costs. Reckon i would need to phone them in order to do this
 
syntax said:
Transferring money into my mortgage on internet banking with FNB seems to just lower the monthly interest charged. It hasnt made any changes to my monthly installments

At some point i do want my installments to be lowered, as we will rent our place out and would like rent to cover bond costs. Reckon i would need to phone them in order to do this
Click to expand...

When I had a bond with Standard Bank, I would just call them and ask them to re-calculate after I made a lump sum contribution.
However, my new bond with FNB is a mission, I must fill in a form for them to do this.
 
FlatspinZA said:
To me this seems stupid. I mean, what frikkin year are we in?

Surely there should be a reference code you can insert when you want it to come off the capital amount?
Click to expand...

It will always come off the principle amount.
Remember, the interest is calculated on the outstanding principle after a lump sum, so your interest will drop.
If you requested it to only come off the interest, you will be screwing yourself, as your principle debt won't decrease.
As far as I know it's not even allowed to come off the interest portion...
 
need some advice for vehicle finance.

Long story short, my courtesy car is going to expire soon and my insurance is slow paying out due to some paperwork issues. I'm confident that they will pay out but its going to take another 2-3 weeks.


My question is: Can I purchase a vehicle without a deposit and pay the deposit in after the purchase? How does that affect my installment going forward? would It be reduced? I've got a set budget for my installment. I understand that if I don't have a deposit - my installment will likely be higher but I can absorb that for a month but not over a longer period.

Thoughts?

Also - I don't want to go residual.
 
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