Buying my first car.

Apparently MFC only ones that wanted to offer me a loan and said on the application minimum interest.

So think I'll just walk away and save up a bigger deposit
 
Can't comment much on the car, I'd rather get the Swift Sport, a bit more power, and a few more features.
 
The price was dropped for a special to R111 995, payments would be R2650 for 60 months or R2350 over 72 months which i don't want to do


Interesr is what kills me at 13%
 
13% isn’t that bad. The rate on a smaller amount is always higher, and there’s always going to be someone who gets a better rate than you, there’s not that much room to negotiate these days, unless you’ve been offers better by another bank.
 
Quinton1275 said:
The price was dropped for a special to R111 995, payments would be R2650 for 60 months or R2350 over 72 months which i don't want to do


Interesr is what kills me at 13%
Click to expand...
Did they add the "on the road cost" into the finance package?

When I worked out the installments on MFC website it came to R2395 over 60 Months including the R12000 deposit and 13% interest
 
Quinton1275 said:
The price was dropped for a special to R111 995, payments would be R2650 for 60 months or R2350 over 72 months which i don't want to do


Interesr is what kills me at 13%
Click to expand...

Do you have more than a year working ? I’ve heard such things increase the interest rate
 
Quinton1275 said:
Apparently MFC only ones that wanted to offer me a loan and said on the application minimum interest.

So think I'll just walk away and save up a bigger deposit
Click to expand...

Lol I was told the same thing I'm a first time buyer,. Apparently only MFC want to offer me a loan.
 
Guys, it's no problem going with MFC ... they're one of the biggest finance houses out there.

I also got my first car loan through MFC with terrible terms: I'd just started a new job (only three months in), it was for 'only' R60 000, I was earning almost nothing, and I took it over 60 months with no deposit ... around R1 200/month as I remember.

You know what? I'd do it again, and I'm so grateful that MFC actually gave me a foot in the door. At the time, my previous car had been stolen and I HAD to urgently get anything with four wheels just to do my job.

Later on I ended up going with MFC again, because they offered me a residual AND a 72 month payment term (yeah I know - I'd over-extended myself, story of my life), whereas WesBank approved me for a loan with one or the other, not both. And that went fine too (the bigger problem was that I'd bought a new Citroen which devalued like a rock - lesson learned).

Your biggest expense as a new car owner is going to be your car insurance ... you'll be *amazed* how much that's gonna cost. Just keep phoning around, and whatever you do do NOT compromise and get a high excess (the once-off payment you pay in the event of an accident). The last thing you want after an accident is to have to pay your insurer R10 000 or more, but that's what some of the 'budget' insurers will try con you into to get your monthly premium down.

If your first car is something sensible like a Suzuki Swift, AND you qualify for over R100 000 in a loan AND you have a decent deposit to put down, go for it. Don't wait. Cars aren't investments ... the best time to get a car loan is now, just to pay that sucker off and get the value out of actually owning the car. The finances will always suck, that's just a fact of life.
 
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