Buying a new car

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Friedpet

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Not sure if this should be in the finance section?

Anyways, I'm in the process of buying a new car. Loan has been approved, just waiting for the dealer's financing department to phone me back with specifics regarding interest rate and so on. They sent an sms this morning saying they managed to get financing from Absa.

What interest rate can I expect to get? Or at least what interest rate should I not accept and bargain down?

It's my first new car that I'm buying. I tried looking for older threads
E40E.png


I see this might be relevant:

I'm 24 years old. I have no credit accounts, no cellphone contracts, and I own no property. I bought a second hand car in May for R120 000 that is being financed by FNB for 10% (at that time I only accepted what they gave me, didn't bargain with them)
 
Last edited:
I'm at prime-0.5 fixed. Depends on your affordability and credit rating.
 
If its your first car expect around 11% with a decent credit record.

Don't forget you can often get lower interest rates by approaching the banks (wesbank, mfc etc.) directly and bypassing the dealership finance which get a cut of the finance rate achieved.
 
Friedpet said:
Not sure if this should be in the finance section?

Anyways, I'm in the process of buying a new car. Loan has been approved, just waiting for the dealer's financing department to phone me back with specifics regarding interest rate and so on. They sent an sms this morning saying they managed to get financing from Absa.

What interest rate can I expect to get? Or at least what interest rate should I not accept and bargain down?

It's my first new car that I'm buying. I tried looking for older threads
E40E.png
Click to expand...

Depending on your age and deposit I'd say you should accept more than 11, but you could probably negotiate down to 9.0 if you very lucky.
 
Depends on the rate you get. In the current climate I would go fixed if you can get it at a low enough rate.
 
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