Balloon Payment...what's the point exactly?

Me? Personlly... NO. Don't do the residual. If you want to sell the car before the five years, you will owe the bank more than it is worth. That will screw you!
 
ALFAHOLIC said:
I plan on selling the car after 5 years...i.e which will be hopefully MORE than R115k residual amount...
Click to expand...

You struggled to sell your current Alfa. So i would say No, you will not be able to get 115k for this new Alfa after 5 years.
 
enigma243 said:
However, I'd be very, very, very, very, very, very, very, very, very, very weary of taking a residual on an Alfa... very. You know a rotting sheep carcass holds value better than an Alfa. I wouldn't do it.(
Click to expand...

lol My wife had an Alfa 147. Car wasn't bad, but I still sit uncomfortable after the trade-in. Alfa must do wonders for Vaseline sales. :p
 
catweasel said:
You struggled to sell your current Alfa. So i would say No, you will not be able to get 115k for this new Alfa after 5 years.
Click to expand...

Damn...all the Alfa talk is driving me crazy! LOL...but with a guaranteed buy back in writing the "Can't sell an ALFA issue" is no longer a problem right?

My thinking...Its like the GTA models...they are STILL sought after!

THis is like the GTA model...its the QV...if I recall correctly jhb is bringing in about 11 and CT is bringing in a measly 6!!!

So rarity factor!

I think I'll call them and hear if they can guarantee a buy back. Is this something standard or must one negotiate it?

After 5 years the car will be roughly worth R165k...leaves enough room for R115k res and some more money on dep!

I can't sell my car coz ppl don't wana buy 147's, let alone Alfa's!
 
Be sensible. Wait a year or so after the car has been launched then buy a demo or 1 year old. You'll save a lot of money especially on a alfa :) Also, it will give you a chance to go thru all the reviews.

Eish ... your insurance is bound to be in the region of 1500 - 2000 since you haven't existing insurance and under 30. Go check on Hippo using a similarly priced car .
 
It's easy... if you can't afford the car without residual, it's too expensive. As other people have mentioned, not a chance in hell that you'll get R115 000 for your car at the end of the term (it can be the only model of that kind in the country, but it's still an Alfa).
 
oh another tip...

Your interest rate might drop if you extend your repayments to 72 months instead of 60 and so will your repayments...
 
ALFAHOLIC said:
Pls explain more about this...what does this mean...am I right in thinking...it means that after 5 years, they must buy the car back fo rth res amount or more, or just covering the res amount? Somehow they will prolly add conditions to this right? Like it must be less than 100 000km's after 5 years, in good condition etc???
Click to expand...
You seem to already know the answer.

But, bottom line is that the idea of the residual is that you can sell your vehicle for AT LEAST the amount outstanding just before the amount outstanding becomes due.

Now, the people wanting you to take the residual deal should be confident enough in their product to guarantee a buy-back under certain logical and realistic conditions, if they're not confident enough to provide the guarantee, then you sure as heck should not be confident that you could sell the car when the time comes neither.
 
Hehe, not even an Alfa dealer will give a guaranteed buyback on an Alfa. These things are normally part of finance schemes negotiated with a given bank, and with support from the manufacturer; you're not going to negotiate your way into a guaranteed buyback.
 
OK...some great feedback...admittedly not what I'd like to hear...I would have wanted to hear...go ahead Alfa...drive the crap out of that car, or hell yeah, finally you can kill OPC's on the highways!

But rightfully so...I don't think I'll take the car fi they cannot guarantee buy-back...no no nooooooo my turbo dream!

I don't want another car with someone else's bum on...I want to be the 1st to drive the car, even if the car has 2km on the clock coz they had to move it around...I'll decline it! We also need to remember this is alfa's we talking about...they DON'T sell, I'm sure with some negotiation, I can get the price down or some good terms etc and some good interest rate...
 
ALFAHOLIC said:
My worry is...

After 5 years...will the car still be worth R115000 residual?
Click to expand...
Are you seriously asking this question with regards to a Alfa? Their value depreciates faster than any other car as far as I know.
 
Crowley said:
Are you seriously asking this question with regards to a Alfa? Their value depreciates faster than any other car as far as I know.
Click to expand...

Actually looking at 2005 rates for GT 3.2's and BRera's...NOT SO!!!

GT 3.2 brand new in 2005 was R380k, now, 2010 - they going for R179k with less than 60 000km's on.

Brera 3.2 in 2007 was R555000, now in 2010 - they going for R279000 with about 30 000km' on...so they round about the same rate of depreciation...damn
 
ALFAHOLIC said:
I don't want another car with someone else's bum on...I want to be the 1st to drive the car, even if the car has 2km on the clock coz they had to move it around...I'll decline it!
Click to expand...

If you get it with 0km on the clock, it's just because the speedo cable is the last thing that the dealer connects in the pre-delivery inspection. It will always have done some milage, and someone else's bum will always have been on the seat, unless you go to the factory and build it yourself.
 
i don't know much about residual/balloon payments. but my mind tells me that you should not use residual/balloon payments as a means to afford a car. it's like using a credit card as an extension of your money to live beyond your means... buy a car that you afford, else wait a bit longer. no one has gone broke from waiting to afford a car, but many are from buying cars they can just afford and taking them on residual...

i think residual/balloon payment are great if you have money.
 
koeks said:
i don't know much about residual/balloon payments. but my mind tells me that you should not use residual/balloon payments as a means to afford a car. it's like using a credit card as an extension of your money to live beyond your means... buy a car that you afford, else wait a bit longer. no one has gone broke from waiting to afford a car, but many are from buying cars they can just afford and taking them on residual...

i think residual/balloon payment are great if you have money.
Click to expand...
His wife limited him to R5500.

But, this part: i think residual/balloon payment are great if you have money.

WHY?
 
ALFAHOLIC said:
I don't want another car with someone else's bum on...I want to be the 1st to drive the car, even if the car has 2km on the clock coz they had to move it around...I'll decline it!
Click to expand...
Don't you know that they fit an odometer with -10km on it? Then they can move it around, test it a bit and have 0.2km on the clock in the showroom.
 
davemc said:
His wife limited him to R5500.

But, this part: i think residual/balloon payment are great if you have money.

WHY?
Click to expand...

because if you have money then you will be able to pay R100k if you want to own the car, and not refinance R100k. residual is a way for you to save on interest, people often use it as a means for them to afford a car they don't afford.
 
Originally Posted by ALFAHOLIC
I don't want another car with someone else's bum on...I want to be the 1st to drive the car, even if the car has 2km on the clock coz they had to move it around...I'll decline it!

even if that bum can take the R80k knock?
 
koeks said:
i don't know much about residual/balloon payments. but my mind tells me that you should not use residual/balloon payments as a means to afford a car. it's like using a credit card as an extension of your money to live beyond your means... buy a car that you afford, else wait a bit longer. no one has gone broke from waiting to afford a car, but many are from buying cars they can just afford and taking them on residual...

i think residual/balloon payment are great if you have money.
Click to expand...

I concur
 
ALFAHOLIC said:
Hi ouens...

It costs R330k

I'll put down 30 dep and trade for my car is 50k...so 80k forward.

Now...this works out to R5100pm excl insurance...I've made my budget available and said I'll go as high as R5500 for a car including insurance.

So with 35% residual, which is maximum I think, it works out to R4350pm excl insurance.
My worry is...

After 5 years...will the car still be worth R115000 residual?

Is it worth it to take residual or must I suck up and accept I can't afford it coz residual is not worth it?
Click to expand...

Damn, cars are expensive

I mean you fork our R80k deposit and you still have to pay R5100pm excl insurance
The difference between R4350pm and R5100pm is not much R750. but the R115000 at the end will mess you up.

Chances are you will not be saving those R750s every month to make up the R115000. for the mere fact that you are worried about it, is a sign bru...
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X