African Bank Car Finance...

[Flame]

i beg pardon then truly...but some people judge to fast if they dont know all the facts.

2 pages of post , and not one who was in my shoes?

 

[DJ...]

i beg pardon then truly...but some people judge to fast if they dont know all the facts.

2 pages of post , and not one who was in my shoes?

You don't know the personal circumstances of other people on this forum. There's no way for you to know if someone has ever been in your shoes before...

 

[Flame]

You don't know the personal circumstances of other people on this forum. There's no way for you to know if someone has ever been in your shoes before...

i know that...all i ment was..i hope someone would replied who was...

 

[boxerulez]

I was in your shoes I racked up 185k worth of debt. Lost my job and earned sub 5k salary for 2 years. I phoned a debt counsellor and got out of my debt.

Took me 3 years and lots of private projects to pay it off.

I now drive a 1985 model car that I purchased cash and owe nothing on. I posted did I not? I was in your shoes yeah?

 

[Goliath]

30% is insane!

 

[Hendrix]

You posted the question in the finance section of this forum, most people who follow this section are relatively financially sound and informed, maybe you should listen to some of their advise, and not scream and shout because it's not what you want to hear.
People here have nothing to gain regarding your decision, all they offer is their thoughts, and most say that this is a decision you will regret, but it's your choice at the end of the day

Now my 2c, Even if you can afford to pay 30% interest doesn't mean you have to.
Do you have to get a 70k car? Won't something cheaper do?

Maybe explain to us why you have a bad record? This should set the record straight...

 

[F1 Fan]

i know that...all i ment was..i hope someone would replied who was...

For the record, whether they've been in your shoes or not, does not impact the reality that this is a bad decision.

Yes we all want new/nice cars, even me, but affordability comes first. If your credit record is bad now, wait a year or 2 and let it get better first. More debt is not the answer.

 

[Saltex]

Some people just come to the forum looking for someone to just say yes to give them re assurance, it's people like this that will just do it in the end anyway, so I don't see why you would post a topic like this if all you are gonna reject the advice? So from what I can see is you're just waiting for someone to post ya do it.

 

[ShaunyCT]

If you got a very good credit record, you could be paying as low as 7%....
That's a huge difference from the 30%. Do you see now why people think that percentage is ridiculous?
If you can get at least a 10% -12% rate, then that is ok.

 

[Flame]

im marked as a bad payer due i skipped some payments when times was hard on a credit card...thats 2 years on my name now till its cleared.

absa , nedbank, wesbank all turned down due that one thing on the credit bureau ....coming to the point only one bank is preparred to help me due they dont look into transunion only experian..and that bad thing is not listed on experian for some reason...

even if car cost 5000, it will still be 30%...

 

[supersunbird]

If its still two years it means your times were hard a just month ago? (since payment history like that is just visible for two years)

 

[Gtx Gaming]

maybe apply for overdraft at your bank?

overdraft sometimes get offered at decent rate .

I qualified for 40k overdraft and i probably earn less then you , rate was offered at 12% , this was at fnb.

Keep in mind everyone starts with a fresh credit record from april ! so you if apply around may, you should qualify!

 

[adamr]

I'm confused...you posted to know if the interest rate is high ... And are you being screwed? ... Legally any entity is only allowed to charge a maximum of 32% unsecured. So is 30% high ... He'll yeah it's robbery, but it's unsecured which can be a plus on your side ... But trust me it ain't easy as "oh I didn't pay let me keep my car" ... African bank will make sure they get their money or litigation . You are paying almost three times the norm, most people have interest rates around 10%... I personally would not go for this deal .... You posted for advice, people telling you it's robbery, don't go bashing them. If you want someone to tell you it's a good rate and go for it they will be untruthful

Here is advice ... If you really need that car and African bank the only option, I'd go for a cheaper car ... Not R70k

EDIT: what car are you buying ?

 

[supersunbird]

maybe apply for overdraft at your bank?

overdraft sometimes get offered at decent rate .

I qualified for 40k overdraft and i probably earn less then you , rate was offered at 12% , this was at fnb.

Keep in mind everyone starts with a fresh credit record from april ! so you if apply around may, you should qualify!

Unfortunately (and fortunately) not. Only if the debt has been settled.

 

[Arthur]

I think 30% interest is too little.

The OP clearly has a problem with impulse control. More seriously, he has the grave moral failure of borrowing money from people, giving a written undertaking to pay it back, and then reneging on that promise.

His word cannot be trusted. His promises to pay his debts have been proven to be empty words.

Worst of all, he has the gall to blame his circumstances, not himself. The OP clearly doesn't have a basic clue about how life works, or how to assume responsibility for his own life. His parents might well bear some culpability for that.

What the OP fails to realise is that his previous unpaid debts (that caused his bad credit record) did not magically disappear, but were paid off by other people. Behind the simple accounting entry of writing off the bad debt lies the reality that the loss is recovered from the interest charged to other consumers. This the OP fails to see, or if he does, he seems to care not a fig. Debts don't just disappear, mate - they are paid by other people. Every Rand you get that you didn't work for came from someone who worked for it.

What he rather needs to do is save for 6 months or a year, buy an old jalopy like the rest of us did at some point, and live within his means.

 

[JV_011_]

HI

I applied for car finance via african bank today, car cost R70 000.

Approved but with 30% interest ....dealer say payment is R3300 to R3500 a month...is this true?

Absa onlince calculator say R2200 over 72 months.... (R2400 over 60)

I know they put insurance in also..but surely it cant be R1000 on insurance?????

Anyone who can put light on here, any dealer???

thx

My guy do yourself a favour and wait it out. Read up on the credit amnesty. You might get your payment history expunged for debt that is paid up. Then apply to the top 3 banks. The worst that they can do is ask for a deposit or give you 16%. 30% is ridiculous even if you really want a car, its not worth it.
One thing you can do is drive the car for a year and bring it back, provided you can sell it for an amount you owe the bank then maybe you can get better rates.

Again: Use the credit amnesty and take responsibility for your debt guy

 

[F1 Fan]

My guy do yourself a favour and wait it out. Read up on the credit amnesty. You might get your payment history expunged for debt that is paid up. Then apply to the top 3 banks. The worst that they can do is ask for a deposit or give you 16%. 30% is ridiculous even if you really want a car, its not worth it.
One thing you can do is drive the car for a year and bring it back, provided you can sell it for an amount you owe the bank then maybe you can get better rates.

Again: Use the credit amnesty and take responsibility for your debt guy

I think by now the OP has already bought the car.

 

[hellfire]

I'm confused...you posted to know if the interest rate is high ... And are you being screwed? ... Legally any entity is only allowed to charge a maximum of 32% unsecured. So is 30% high ... He'll yeah it's robbery, but it's unsecured which can be a plus on your side ... But trust me it ain't easy as "oh I didn't pay let me keep my car" ... African bank will make sure they get their money or litigation . You are paying almost three times the norm, most people have interest rates around 10%... I personally would not go for this deal .... You posted for advice, people telling you it's robbery, don't go bashing them. If you want someone to tell you it's a good rate and go for it they will be untruthful

Here is advice ... If you really need that car and African bank the only option, I'd go for a cheaper car ... Not R70k

EDIT: what car are you buying ?

Like he said - it's unsecured so African Bank won't have a claim on your car if you fail to pay. That's a massive risk and that's why the interest rate is extremely high. You won't get an option for a residual on an African Bank loan, so once you reach end of term your car will be fully paid for.

If the only offer that came back from the dealer was from African Bank, your credit record must be pretty bad. That means not only will the other banks not give you an expensive loan (prime + 8), they won't give you a loan at all.

I don't see that you have much choice, really. If you need a car and can't pay cash, but can afford the installments on the African Bank loan, you should take it.

 

[fonoi]

I understand what you are saying OP, if there is ANY way you can avoid doing this then please avoid it. That interest rate is crazy and whether you can afford it or not, remember you will have this for five years.

To your actual question, your repayment should be around 2400 at 30%, you should ask the dealer for a printed quotation from African bank so you can see the costs yourself.

Don't do it, if you don't have to. Rather wait till May and see what happens and save yourself a ton of money.

 

[Flame]

did not buy yet...uhm, i paid up the card this week , but standard bank refuse to update transunion.

2nd, i applied at wesbank and absa with the paid up letter, but they still reject due they see i was a "slow payer"...what means they dont care of amnesty ..so whats the use of amnesty if banks wipe their ass on it?