Capital Reduction on car finance

[Dolby]

Does anyone know of a calculator somewhere, where I could work this out?

I emailed and phoned VW/Audi finance and gave them the exact figure I would like to put into the account, yet the installments each worked out is about 25% difference ...

Logic tells me the mail is wrong - but I'd like to see if I can get a rough figure myself?

 

[HarryPotgieter]

Give me the figures and I'll do the calc for you.

Things to include:
Capital:
Interest:
Term:
Deferral period:
Balloon:
Deposit:

Think thats it xD

I reread your post. Sounds like you are already paying for this car, you just got some cash now you want to pay in to reduce monthly prems? If so just give original capital amount, monthly prem, interest rate, and the amount you want to pay in.

 

[superskully]

Try Loan Amortization in Excel.
Dont know what version of Excel
But goto New>Template> Loan Amortization

 

[Dolby]

PM sent.

superskully - don't think that works out the capital reduction though ; only the amoritsation ?

 

[c3n0byt3]

Give me the figures and I'll do the calc for you.

Things to include:
Capital:
Interest:
Term:
Deferral period:
Balloon:
Deposit:

Think thats it xD

I reread your post. Sounds like you are already paying for this car, you just got some cash now you want to pay in to reduce monthly prems? If so just give original capital amount, monthly prem, interest rate, and the amount you want to pay in.

This. How do you do this?

Also, do the banks allow you to do this? i.e. paying in to reduce the capital amount? Or does your paying in go only to the interest amount?

 

[HarryPotgieter]

This. How do you do this?

Also, do the banks allow you to do this? i.e. paying in to reduce the capital amount? Or does your paying in go only to the interest amount?

You can most certainly pay a cash amount towards any of your loans to reduce the installment (I would be amazed if you couldnt that would be entrapment)(Most banks will allow it without penalty as long as it doesnt close the account, otherwise they will charge you some cancellation fee, which for a house, can be a lot of money lol). I did this with my harley, bought it and 3 months later settled the account without a penalty as its sub 200k.

Your capital contribution will be used to reduce the outstanding balance, which in turn reduces the interest charged per month. You can choose to either reduce your monthly premiums (probably the point of this whole exercise) or you can continue to pay the same amount but for a shorter duration.

Not sure if I explained everything you wanted to know?

 

[DrJohnZoidberg]

This is an interesting topic for me too, I plan on doing the same with a new car purchase. Will probably have some extra every few months to put towards the car.

 

[Dolby]

If we calculated correct, makes little sense ... unless it's only in my situation because I'm under 12 months into the contract. A R100,000 injection saved me R1,000pm.

I can think of far better things to do with the cash

EDIT : I think my bond yields more of a saving ...

 

[Chevron]

If we calculated correct, makes little sense ... unless it's only in my situation because I'm under 12 months into the contract. A R100,000 injection saved me R1,000pm.

I can think of far better things to do with the cash

EDIT : I think my bond yields more of a saving ...

Remember the tax though...

 

[supersunbird]

If we calculated correct, makes little sense ... unless it's only in my situation because I'm under 12 months into the contract. A R100,000 injection saved me R1,000pm.

I can think of far better things to do with the cash

EDIT : I think my bond yields more of a saving ...

Doesn't sound right.

 

[TehStranger]

If we calculated correct, makes little sense ... unless it's only in my situation because I'm under 12 months into the contract. A R100,000 injection saved me R1,000pm.

I can think of far better things to do with the cash

EDIT : I think my bond yields more of a saving ...

Doesn't sound right, unless you financed over 72 months with a low deposit and massive balloon?

 

[Dolby]

I did do that, as I knew I wouldn't really have the finance that long.

But still, it does sound odd. Perhaps they made an error too.

I'll try chat to the finance guys again, but one of them (call centre or mail) made a mistake

 

[superskully]

PM sent.

superskully - don't think that works out the capital reduction though ; only the amoritsation ?

Excel template allows you to inject cash at any point.

 

[Saba'a]

Any other tool on a financial site or in a financial application?

 

[Joeboy69]

A R100k injection's impact obviously different in a R300k or R900k loan, maybe I missed it in an earlier post.

I started doing EFT into a SBSA VAF account. After about 3 days I must call and a instruct them to capitalize the surplus funds in the account. Then choose lower installment or shorter period (the latter my choice)

 

[supersunbird]

A R100k injection's impact obviously different in a R300k or R900k loan, maybe I missed it in an earlier post.

I started doing EFT into a SBSA VAF account. After about 3 days I must call and a instruct them to capitalize the surplus funds in the account. Then choose lower installment or shorter period (the latter my choice)

ABSA just automatically lowers the instalments, keep the period the same. If one wants different one must phone.

 

[Dolby]

Excel template allows you to inject cash at any point.

Ah - almost perfect, just needs the residual added. But that's exactly what I'm looking for

 

[CraigKer]

Give me the figures and I'll do the calc for you.

Things to include:
Capital:
Interest:
Term:
Deferral period:
Balloon:
Deposit:

Think thats it xD

I reread your post. Sounds like you are already paying for this car, you just got some cash now you want to pay in to reduce monthly prems? If so just give original capital amount, monthly prem, interest rate, and the amount you want to pay in.

Hi Harry.

I was told by the salesman not to put my deposit down, "this will get you a better interest rate". So I have now waited for my first installment to go off. The first installment went off the other day..

Now I am trying to inject my deposit into my loan but I'm not sure if I can lower my installments with this deposit and still affect my overall interest as positively as it would if I rather take some months/years off.

What I understand my options are now:

1. Pay the deposit and choose to lower my current 72 months, to bring it to around 50 months. This will help lower my total interest payed on the loan but only benefits me down the line.

2. Pay it in and choose to lower my installments, this however will not assist in saving money on total interest? Or will it but not as much as if I lowered the months?

Please confirm if I am understanding this correctly.

Is there a way I can somehow save just as much on interest by going with no.2 above? Can I pay my deposit into the principle amount somehow, lower installments and benefit in lowering overall interest to the same degree as taking months off?

Sorry for the long story but I'm in need of honest advise wherever I can find it.

Many Thanks,

Craig