Car Financing through car dealership

I applied for finance last week at a dealership. Seems that they work through MFC :mad: And apparently the best interest rate ABSA (which is where i bank) could give me is 21.4%. :eek:
 
Slootvreter said:
I applied for finance last week at a dealership. Seems that they work through MFC :mad: And apparently the best interest rate ABSA (which is where i bank) could give me is 21.4%. :eek:
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Is this your first time on vehicle finance ?
They really slaan you hard then.
 
**** me sideways, 21.4%? Try a different bank. I'm pretty sure its NOT the best interest rate. Most companies have "quotas" to fill with a bank or have a preferred bank. I'd be suprised if they tried a different bank other than ABSA.

I always do my own finance through my own bank. They know me and can offer me better deal than the dealership finance thingies. Only if the application gets rejected do they try other banks.

Its worth your while doing your own research.
 
Rouxenator said:
I agree - 4th time round they should be real nice with you. Did you complete all your previous ones or took early exits ?
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Trade the car in after 2.5 or 3 years. Shouldn't make a difference though. I also don't pay via debit order, but EFT. That way I pay before the 1st of the month, and I pay a few hundred bucks more. Saves some interest.
 
ABSA are pigs when it comes to rates. They offer me -1.5% as opposed to -2.0% from Standard when we applied for homeloans. They quickly sang another tune when I told them what Standard did :p If you can rather use your homeloan to finance the car. Sure it runs over a longer period but the interest rate is lower.
 
Slootvreter said:
Trade the car in after 2.5 or 3 years. Shouldn't make a difference though. I also don't pay via debit order, but EFT. That way I pay before the 1st of the month, and I pay a few hundred bucks more. Saves some interest.
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I did the same at MFC and got hit with no penalties when I settled after 3 years (was a 4 year loan). I cannot understand why they offer you such a bad rate this time round.

But if you trade in every 3 years doesn't it mean you are always going to have car payments at the end of the month ?
 
Rouxenator said:
I did the same at MFC and got hit with no penalties when I settled after 3 years (was a 4 year loan). I cannot understand why they offer you such a bad rate this time round.

But if you trade in every 3 years doesn't it mean you are always going to have car payments at the end of the month ?
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Well if you don't buy a car cash, and you buy one that's more expensive than the one you're trading in, obviously there's going to be payments. What I meant by every 3 years, is that the car is not necessarily settled at the bank, I use it as a trade in/deposit.
 
Slootvreter said:
Trade the car in after 2.5 or 3 years. Shouldn't make a difference though. I also don't pay via debit order, but EFT. That way I pay before the 1st of the month, and I pay a few hundred bucks more. Saves some interest.
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From what i was told when financing, if u just pay extra without telling them the extra is to come off your initial debt, they just put that extra towards nexts months payment. So ur not saving interest..
 
thealluseless said:
From what i was told when financing, if u just pay extra without telling them the extra is to come off your initial debt, they just put that extra towards nexts months payment. So ur not saving interest..
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Yes but if I manage to pay the car off like this, it'll be paid a year or so earlier. Which means I do in fact save interest. Please correct me if I'm wrong. :o
 
Update on me: ;)

So i phoned all the banks in question and was denied a better interest :(

I was basically told take it or leave it and i really needed a car (hate relying on other for anything) So i took the deal at Prime +3 and i am now basically going to pump all my xtra cash into the repayment of my car.....

It really sucks that the banks penalises one for being young.... but oh well what can ya do i needed a car and now i have one.
So hopefully the interest rates come down a bit in the nxt month or so.
 
Bru, at least you are still staying with you folks - if you one day start to repay a home then the serious crap starts :p Paying off cars seems heavy at first but remember you are at the stage of your life where you will see your pay increase a lot faster than later on.

BTW - for 65k what are you buying? Spark 1.0l ?
 
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