Car Loan Interest Rate

Q

qwerty123

Member
Joined
Apr 5, 2011
Messages
18
Reaction score
0
Hi

Hope someone can help me , I want to find out if the interest rate they offered me is average/acceptable.

I've requested finance a R260,000.00 car, with a deposit of R130,000.00.

I'm with a very good credit history, they are offering me interest rate of 14% over 3 years. It feels a bit high.

Thank you in advance.
 
Last edited:
That is high... Official rate of interest now is 10% if I am not mistaken...
 
Prime is 9.5% AFAIK and I got 12% fixed last year and I was 24 on a R250k with R50k dep. I could have gotten Prime + 1 if I didn't take fixed rate. Btw Wesbank.
 
That rate is quite high, I got a fixed rate of 12.4% in 2009 when prime was 11%.

Prime is currently 9%.

It maybe because its a shorter term, but even so, I'm sure you can get a better rate if you shop around.
 
Thanks for all your quick replies, I also think I it's a bit steep and will rather shop around. I've worked through MFC, will it better to go to the banks directly ?
 
qwerty123 said:
Hi

Hope someone can help me , I want to find out if the interest rate they offered me is average/acceptable.

I've requested finance a R260,000.00 car, with a deposit of R130,000.00.

I'm 50 with a very good credit history, they are offering me interest rate of 14% over 3 years. It feels a bit high.

Thank you in advance.
Click to expand...
Seems ridiculous, are you absolutely sure your credit history is ok?

Maybe the period of 3years is also negatively affecting the rate as they wont make AS much money on the deal?
 
Wesbank just offered me Prime - 1%, finance request was put in through the dealer
 
MFC is motor finance arm of Nedbank like wesbank FNB Bankfin ABSA etc.

Im 35 just bought a R200000 kia cerato 10% dep over 3 yrs and got prime - .5% direct from banker at nedbank

sounds like you being ripped. beware going through dealers they get a cut and its priced in

if you have no adverse listings i wouldnt pay anything over prime +1 and bounce the offers off each bank. Absa offered me prime +3 on above said cos i didnt have homeloan with them...
 
qwerty, go to a bank directly. Go see a consultant and let him help you do the forms etc. You WILL get a better rate than prime +4.5
 
markface said:
Seems ridiculous, are you absolutely sure your credit history is ok?

Maybe the period of 3years is also negatively affecting the rate as they wont make AS much money on the deal?
Click to expand...

Yip, my credit history is near perfect. Have never been late with a payment and all my accounts are up to date.
 
Don't accept anything less than prime less 1.
Tell them you have prime less .75 and you looking for prime less 1.
Banks and motor dealers are bullies and trade without concencess (spelling) and don't allow them to bully you into anything less.
Wesbank i am sure will give you prime less 1.
Good luck.
 
I always deal directly with the banks. I find that companies like MFC and the dealers themselves can never better or even match the rates i get myself.
 
If you've financed a car before - go back to the financier and ask for a decent rate as return business.
 
I really I appreciate all the replies, I were about to accept the offer but then decided to rather hear other people think about it :D Maybe I should also add that I didn't went through MFC directly, I filled in MFC forms but the motor dealers are the middleman. Maybe they are planning to take a nice long vacation if I accept.
 
Try Wesbank - always got the best rate there (except for my previous vehicle which was a private purchase so attracted prime + 2%).
 
I'd also consider asking for a loan over a longer period like 54 months, so they think they're going to make more money and then pay it off over three years (or less if you can - consider paying as though they were charging you prime plus 5).
 
qwerty123 said:
I really I appreciate all the replies, I were about to accept the offer but then decided to rather hear other people think about it :D Maybe I should also add that I didn't went through MFC directly, I filled in MFC forms but the motor dealers are the middleman. Maybe they are planning to take a nice long vacation if I accept.
Click to expand...
So what was the outcome here did you get prime less 1 - 2?
 
mcryan said:
That's way too high. I just bought a car, I'm in my 20's and I got 8.25 percent.
Click to expand...

From which bank?

Am presently obtaining quotes for new 'tjor'. And good to see the sort of rates being offered.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X