Buying a car advice

derp90 said:
Considering options for a family member who actually owns my current car. I could sell the car I have, settle their CC debt with the money, and I'm wondering if that's a good idea.

Then I would need my own car and I have the means to finance it.

That way, they get the money from a car that's technically theirs, their debt is settled, and I can use my money for a newer car instead of keeping their car and using my money to settle their debt (the other option).

I guess another option would be to 'buy' the car from them, but I'm kinda into the idea of driving a newer car. Nothing fancy though! Demo models welcome!
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So they're lending you their car and not expecting anything in return? That's generous of them.

Knowing their financial situation, I would offer to buy the car from them so they can settle their debt then save up for a new car. I'd feel less like a leech this way too.
 
So consensus is that it never makes sense to "subscribe" to a car if you don't have to?
 
derp90 said:
So consensus is that it never makes sense to "subscribe" to a car if you don't have to?
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There are lease agreements where you do subscribe to the car, but without the balloon stupidity. You pay and drive for 4 years and give the car back and/or get a new one at the end of the lease period. Terms and conditions do apply on the state you return the car in with a limit of mileage.
 
derp90 said:
So consensus is that it never makes sense to "subscribe" to a car if you don't have to?
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It depends on your needs, really.. if you need a new car every 3 or so years, for whatever reason, a lease agreement or guaranteed future value finance plan is better than going with a balloon payment option..

But, again, cash will always be cheaper..
 
There is a way to get an older premium car for less money, but you're going to have to be technically and mechanically inclined to effect repairs, maintenance and possible upgrades (so have some cash on hand).

You're basically going to have to put labor and know-how into the vehicle as opposed to lots of money (though, some of that too).

derp90 said:
I'm not a car person either! Would never spend huge amounts.
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Yeah, from this feedback, this is probably not you. The option does exist though.
 
As @WAslayer said if you need new car every 3 years I would still go without balloon (normal instalments) and buy car that I can afford without it (cash even beter).
Financial circumstances change and maybe after 3 years you decided to keep the car.

Personally we buy second hand cars, usually 2-3 years old with motor plan.
Currently wife's car is 7, mine is 16 and spare one 18 years old.
 
derp90 said:
So consensus is that it never makes sense to "subscribe" to a car if you don't have to?
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In my opinion, you'd have to be so well off to do this, that the price barrier isn't why you're doing it.

You basically want less admin, stress and a car rotation in a few years' time.

For the plebs (I am one), we need to be smart, save our money and live within our means.

My daily is a 2005 e90 sedan which is paid off. Do you know how awesome NOT having a car payment is? Put that amount into a yearly budget to get an idea.

Also, because it's considered old, the comprehensive insurance is cheap - R190 p/m.
 
Buy a 320d and thank me after 20 years. Bulletproof engine will still be going strong and cheap as chips to maintain.
 
adrcl said:
Buy a 320d and thank me after 20 years. Bulletproof engine will still be going strong and cheap as chips to maintain.
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I am not stirring the pot here just curious, Why is everyone so 320D, I have driven this car in E46 and E90 formats but also had the opportunity to drive the 330D in both E46 and E90 formats. The 330D is way much more a better car than the 320D, its gets the job done with minimal effort. The golden BMW rule if it has less than or more than 6 cylinders walk away,
 
So the balloon be payment structure dependents on your needs. I bought a Ford Fiesta 1.0T Ecoboost titanuim knowing it would be my daily and used for work and I was going to keep it for 5 years then move one.

Car was a 2015 model brand new. Traded in it 2021 Jan for an Audi A6 as work from home and less client visits.
The cost of the Ford was R280 000.00 in 2015, monthly payments were around +/-R4500.00 which was not bad,my mindset was just as yours this would be a "subscription service car" as I am a consultant and need to travel to see clients. Therefore I financed only the part of the deal I was going to use if that makes sense. Weekend car is a Golf 6 GTI ( fully paid off) . When I traded the Ford the in 2021 I got offers for the car the lowest was webuycars that offered R120 000.00 and the highest was Audi Sandton which gave me R170 000.00 the balloon was R90 000.00 - took the R80 000 balance and put it towards the Audi. The Audi I plan to keep for about 10 years so I didnt go the balloon route. Had I not found this Audi and went for another cheap run around car I would use the balloon payment system again but also pick your car carefully some might depreciate more than the outstanding balloon amount and you dont want that. You want to be able to trade the car in, pay off the balloon and still walk away with some equity from the deal.

Again you will have to decide it this suits your needs.
 
chickenbeef said:
So they're lending you their car and not expecting anything in return? That's generous of them.

Knowing their financial situation, I would offer to buy the car from them so they can settle their debt then save up for a new car. I'd feel less like a leech this way too.
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The guy is paying the vehicle off for the family member but getting to use it so probably a fair deal either way.
 
You'll be stuck with that debt forever.

When you get to a certain age finance becomes more difficult and you will eventually have to pay that balloon off. Depending on what you get for the car down the line, price increases and what your next car is, chances are the balloon will keep growing...
 
Out of interest sake if you have the finance settlement cover add on for your vehicle insurance will that also settle the balloon payment?
 
airborne said:
Out of interest sake if you have the finance settlement cover add on for your vehicle insurance will that also settle the balloon payment?
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How does the cover usually work without a balloon? I take it the settlement usually covers everything you owe, including the balloon.
 
TheChamp said:
How does the cover usually work without a balloon? I take it the settlement usually covers everything you owe, including the balloon.
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Thats normally what I understand as well.

Remember most insurance shortfall amount cover is around maximum R250 000.00.
 
On a side note, what's with the prices for second hand cars? I was looking at my car and it looks like I can get more than what was paid for it in 2012. Or are all listings on Autotrader wishful thinking ? Of course inflation, but didn't realise it would be this much.
 
derp90 said:
On a side note, what's with the prices for second hand cars? I was looking at my car and it looks like I can get more than what was paid for it in 2012. Or are all listings on Autotrader wishful thinking ? Of course inflation, but didn't realise it would be this much.
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Something about semi-conductor chip shortage affecting the supply of new cars and the crowd that usually buy new cars flocking over to the used car market making life difficult for us peasants, at least that's the theory, I have been checking Auto Trader ahd the same overpriced cars are still there, it's been months already, no idea how it's working out in practice.
 
derp90 said:
On a side note, what's with the prices for second hand cars? I was looking at my car and it looks like I can get more than what was paid for it in 2012. Or are all listings on Autotrader wishful thinking ? Of course inflation, but didn't realise it would be this much.
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Generally all car prices new or 2hnd have been inflated since the lockdown hit and all that entailed, if you can get a good deal on a replacement vehicle now is the best time to sell and do it.
 
What's the best resource for cars to consider? I guess would be looking at cars from R200k-R400k
 
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