Car finance

[prejoh]

Hi

Just trying to gauge if I can get a better deal.

Both Investec and Wesbank have quoted me an interest rate of prime (i.e. 8.5%) on a motor vehicle purchase of R 90000 for 48 months with no deposit.

Is that good for the current market or would I be able to get lower, as a friend of mine bought a Kia Picanto new through Investec for prime -1%.

Would appreciate any feedback?

Cheers

 

[rrh]

Some manufacturers offer below-prime financing on new cars ...

 

[purpleonlineadmin]

Hi

Just trying to gauge if I can get a better deal.

Both Investec and Wesbank have quoted me an interest rate of prime (i.e. 8.5%) on a motor vehicle purchase of R 90000 for 48 months with no deposit.

Is that good for the current market or would I be able to get lower, as a friend of mine bought a Kia Picanto new through Investec for prime -1%.

Would appreciate any feedback?

Cheers

Whhhhhaaaaaat?? I need to do a background check on you:wtf:. All my friends and myself can't even break 11% (One even getting 13.5% from Wesbank or ABSA I think, granted first car, 1st yr as a licenced driver).

But on a serious note, first car? Age? Mind you I have no debts, all my accounts settled and earn pretty decently working for myself, and even then I'm getting ridiculous quotes (13%+). What else contributes to car finance qualifications I wonder?

 

[Other Pineapple Smurf]

Hi

Just trying to gauge if I can get a better deal.

Both Investec and Wesbank have quoted me an interest rate of prime (i.e. 8.5%) on a motor vehicle purchase of R 90000 for 48 months with no deposit.

Is that good for the current market or would I be able to get lower, as a friend of mine bought a Kia Picanto new through Investec for prime -1%.

Would appreciate any feedback?

Cheers

It depends on your risk profile. I got prime +1.7% when I bought my new i10 in February. Someone on this forum also mentioned deposit, payment periods and credit record all come into play.

 

[creeper]

Some manufacturers offer below-prime financing on new cars ...

What is irritating is the manufacturers deals are below prime with lots of small print. Balloon payments, only below for first year, etc. The only reason that those "deals" can below is that, in effect, you are paying only interest and very little capital back.

 

[prejoh]

Whhhhhaaaaaat?? I need to do a background check on you:wtf:. All my friends and myself can't even break 11% (One even getting 13.5% from Wesbank or ABSA I think, granted first car, 1st yr as a licenced driver).

But on a serious note, first car? Age? Mind you I have no debts, all my accounts settled and earn pretty decently working for myself, and even then I'm getting ridiculous quotes (13%+). What else contributes to car finance qualifications I wonder?

I don't know, but just got quoted 12.5% at Wesbank. (I misunderstood the original Wesbank quote) Thought they had lost their minds until I saw your post. It just shows again that Investec is the best, flat fee, great interest rates on house and cars. (The low interest rates more than offsets the R 295 fee a month). I have been considering the likes of FNB Private but I just need to deal with Investec again and I am blowin away by there great service and offerings.

If you can would recommend that you go over to them!

 

[purpleonlineadmin]

I don't know, but just got quoted 12.5% at Wesbank. (I misunderstood the original Wesbank quote) Thought they had lost their minds until I saw your post. It just shows again that Investec is the best, flat fee, great interest rates on house and cars. (The low interest rates more than offsets the R 295 fee a month). I have been considering the likes of FNB Private but I just need to deal with Investec again and I am blowin away by there great service and offerings.

If you can would recommend that you go over to them!

I guess that fee does kinda subsidize the low interest rates, I'd only save around R193.07pm on installments with a prime rate, if I moved to Investec I'd actually be paying more than R30 per month (this is if my calc's r correct), so not worth a saving for me, perhaps in future, def sounds like a great overrall package as I hate interest rates on principle alone. def noted

 

[HavocXphere]

I guess that fee does kinda subsidize the low interest rates

The R295 is that flat rate for banking services. i.e. You don't get charged ATM fees & credit card fees, but rather the flat rate. I doubt it subsidizes the loans: Every time you draw cash at another bank Investec takes a hit on the other bank's ATM fees...that comes out of the R295. Same for garage card, CC, etc. All adds up fast so I don't think there is much left to subsidize the loan.

I don't know, but just got quoted 12.5% at Wesbank. (I misunderstood the original Wesbank quote)

If you're at Investec you are either already earning a pile of money, or will soon earn a pile of money due to career choice so either way you're not really a risky bet for them. So the rate will be good even with a patchy credit record. The other banks don't really take this into account.

Some manufacturers offer below-prime financing on new cars ...

Sometimes you do get good deals if the manufacturer is desperate to move stock, but generally they just mess with the numbers until its below prime. Loans have tiny risk adjusted margins so its not like they can decide today is half interest day.

 

[Dolby]

What is irritating is the manufacturers deals are below prime with lots of small print. Balloon payments, only below for first year, etc. The only reason that those "deals" can below is that, in effect, you are paying only interest and very little capital back.

Yea ... It's also on the full price of the car.

I checked two manufacturers and they'd both offer sub 6% - but only on the full price of the car and no discount. If I elected to take my standard rate (9.5%) they would take between 15k and 20k off the car. Figures were quite similar in the end

 

[Sinbad]

Yea ... It's also on the full price of the car.

I checked two manufacturers and they'd both offer sub 6% - but only on the full price of the car and no discount. If I elected to take my standard rate (9.5%) they would take between 15k and 20k off the car. Figures were quite similar in the end

Precisely. The lower interest rate is just a discount worked out over the life of the loan.

 

[biometrics]

Got prime (8.5%) last month from Toyota Finance.

 

[geezer]

When I purchased my Hyundai Elantra 1.8 GLS Automatic in March this year, I got prime -1% at Standard Bank. Probably because I have been with them since December 1980, and my last 3 vehicles were all financed through them.

 

[wikk3d88]

Hi

Just trying to gauge if I can get a better deal.

Both Investec and Wesbank have quoted me an interest rate of prime (i.e. 8.5%) on a motor vehicle purchase of R 90000 for 48 months with no deposit.

Is that good for the current market or would I be able to get lower, as a friend of mine bought a Kia Picanto new through Investec for prime -1%.

Would appreciate any feedback?

Cheers

Prime, or under Prime is good.
I wouldn't finance a 90k car personally, would prefer buying cash but then i suppose it comes down to your set of financial circumstances.

 

[purpleonlineadmin]

The R295 is that flat rate for banking services. i.e. You don't get charged ATM fees & credit card fees, but rather the flat rate. I doubt it subsidizes the loans: Every time you draw cash at another bank Investec takes a hit on the other bank's ATM fees...that comes out of the R295. Same for garage card, CC, etc. All adds up fast so I don't think there is much left to subsidize the loan.


If you're at Investec you are either already earning a pile of money, or will soon earn a pile of money due to career choice so either way you're not really a risky bet for them. So the rate will be good even with a patchy credit record. The other banks don't really take this into account.


Sometimes you do get good deals if the manufacturer is desperate to move stock, but generally they just mess with the numbers until its below prime. Loans have tiny risk adjusted margins so its not like they can decide today is half interest day.

That certainly explains a lot as far as the flat R295 rate goes, I guess if you are a heavy account user it fits well into the pic. For now I make less than 10 transactions per month including EFT's, but in future with more purchases it would change obviously. How I dream to get even +1 on prime at this point. Oh well!

 

[snail]

There are so many things to consider when getting finance,

1) Vehicle value,
2) Deposit amount,
3) Residual amount,
4) Balloon payment,
5) Term of loan,
6) Risk profile,
7) Current prime rates,
8) Loan structure (fixed or variable?),

The list goes on. As I said in a previous thread, my chick (currently 23) got 11.2% fixed rate last month on an i10 with service plan (put a 15k deposit down). So many factors. I think you can't compare your rates to someone else unless they inform you of what they are working on. My chick could of probably got a much lower rate if she took the vehicle on residual or balloon payment and put down a bigger deposit.

 

[MagicDude4Eva]

Didn't want to create a new thread - has anyone taken out finance recently and who has offered you less than prime (currently 8.5%). Wife is trying to take out a loan on a 290K car (90K deposit, no balloon, 54 months, no risk profile) and offers coming in at prime (variable) or 10% fixed - both are a joke IMO.

So any suggestions for more favourable rates would be great - seems that banks are full of non-sense and it does not seem to be a buyers market at the moment, judging from their arrogance.

 

[Sinbad]

Prime on a car is pretty reasonable IMHO. The only reason I have below prime on car finance is because I get staff rates.

 

[creeper]

Prime on a car is pretty reasonable IMHO. The only reason I have below prime on car finance is because I get staff rates.

My guess is that you are working for a bank.

I'm going to apply for car finance this week. Will post the interest rate as soon as I found out.

 

[HapticSimian]

On R90k over 48 months 1% this way or that makes a difference of less than R50 per month. Car finance isn't over a long enough period to get too fussed over interest rates, as long as what's presented is within reason.

*edit*

Didn't see this was a revival of an old thread, but point stands.

 

[Clueles.s]

The higher the percentage the more the dealer also make they get like commission from the banks on your interest rate