Car repayments. Wait to settle or pay in?

CaffeinePirate

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Dec 3, 2011
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I got my first car through Wesbank this year.

I am able to put extra in each month, or to save for a few months and settle it completely. I was wondering- which is is the better route to go, or doesn't it really matter as in the end it will be paid off at roughly the same time?

Thanks :)
 

gifs

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It is always better to pay a little bit extra every month than one large amount later.
 

Sinbad

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Yup, pay in. You get a rebate monthly on interest when you're ahead of your scheduled payments.
 

F1 Fan

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Nov 8, 2010
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Definitely pay in as much as you can. You will save on interest every month.
 

creeper

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Nov 18, 2010
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Pay in. To save the most interest, pay in earlier in the term period. And if your car is paid off, then remember to take that money saved and keep saving it instead of pushing up your lifestyle costs. Discipline is the key.
 

Priapus

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Pay in. To save the most interest, pay in earlier in the term period. And if your car is paid off, then remember to take that money saved and keep saving it instead of pushing up your lifestyle costs. Discipline is the key.

It's also easier said, than done.
 

bromster

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Just specify on your proof of payment that the money should go towards the "Principal Debt Only", otherwise they might simply pay off the interest with your extra cash.
 

Sinbad

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Just specify on your proof of payment that the money should go towards the "Principal Debt Only", otherwise they might simply pay off the interest with your extra cash.

Wesbank don't do that.
 

Fazda

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Apr 24, 2009
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Can anyone else confirm this?

Yes, under the previous system you would have been worrying about only paying interest - for the past 4 or 5 years you can settle early wiothout incurring any "penalties".

So, it's not only Wesbank it's any bank.
 

Sinbad

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From my wesbank statement:

REBATE INTEREST 2013/07/20 R 63.07 CR
NCA SERVICE FEE 2013/07/20 R 57.00 DR
INTEREST 2013/07/20 R 624.01 DR
DEBIT ORDER 2013/07/20 R 2,062.31 CR
REBATE INTEREST 2013/06/20 R 64.77 CR
NCA SERVICE FEE 2013/06/20 R 57.00 DR
INTEREST 2013/06/20 R 653.20 DR
DEBIT ORDER 2013/06/20 R 2,062.31 CR
REBATE INTEREST 2013/05/20 R 62.31 CR
NCA SERVICE FEE 2013/05/20 R 57.00 DR
INTEREST 2013/05/20 R 640.20 DR
DEBIT ORDER 2013/05/20 R 2,062.31 CR

For clarity - I transferred R10000 into the account via online banking a while ago. I gave no instructions whatsoever to Wesbank regarding this.
Basically, it decreased the amount owing, so every month I get an interest rebate on that amount.

You can't "pay off interest" with your excess cash. The interest amount IS calculated in advance, but it's recalculated automatically if the balance is reduced ahead of the amortisation table.

Then, from my account balance on online banking:
Contract Balance -xxxx.84 Advance / Arrears Amount 10 646.84 Contract Period 60
 

Park@82

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Jun 6, 2008
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From my wesbank statement:

REBATE INTEREST 2013/07/20 R 63.07 CR
NCA SERVICE FEE 2013/07/20 R 57.00 DR
INTEREST 2013/07/20 R 624.01 DR
DEBIT ORDER 2013/07/20 R 2,062.31 CR
REBATE INTEREST 2013/06/20 R 64.77 CR
NCA SERVICE FEE 2013/06/20 R 57.00 DR
INTEREST 2013/06/20 R 653.20 DR
DEBIT ORDER 2013/06/20 R 2,062.31 CR
REBATE INTEREST 2013/05/20 R 62.31 CR
NCA SERVICE FEE 2013/05/20 R 57.00 DR
INTEREST 2013/05/20 R 640.20 DR
DEBIT ORDER 2013/05/20 R 2,062.31 CR

For clarity - I transferred R10000 into the account via online banking a while ago. I gave no instructions whatsoever to Wesbank regarding this.
Basically, it decreased the amount owing, so every month I get an interest rebate on that amount.

You can't "pay off interest" with your excess cash. The interest amount IS calculated in advance, but it's recalculated automatically if the balance is reduced ahead of the amortisation table.
Thanks, was worried about that.

But why did your interest go up from 2013/05/20 R 640.20 to 2013/06/20 R 653.20 and then down again? Was it interest rate related?
 

supersunbird

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Oct 1, 2005
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57,245
Thanks, was worried about that.

But why did your interest go up from 2013/05/20 R 640.20 to 2013/06/20 R 653.20 and then down again? Was it interest rate related?

Number of days in the month does that. February shows this clearly.
 

Rouxenator

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Oct 31, 2007
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40,443
Settle the car as fast a you can, then never buy another car again. Works for me, well so far so good.
 

Fuma

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Jul 9, 2007
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5,098
Can't wait to settle mine. Haven't had issues with my car. No reason to get another one really.
 

KOPITE

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Mar 15, 2012
Messages
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For clarity - I transferred R10000 into the account via online banking a while ago. I gave no instructions whatsoever to Wesbank regarding this.
Basically, it decreased the amount owing, so every month I get an interest rebate on that amount.

You can't "pay off interest" with your excess cash. The interest amount IS calculated in advance, but it's recalculated automatically if the balance is reduced ahead of the amortisation table.

Then, from my account balance on online banking:
Contract Balance -xxxx.84 Advance / Arrears Amount 10 646.84 Contract Period 60

How do you add the Wesbank account to your bank that you bank with or do you just eft the money into that account.
Do they add it as another account online where they link it and transfer money across?
 

Sinbad

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Jun 5, 2006
Messages
77,452
How do you add the Wesbank account to your bank that you bank with or do you just eft the money into that account.
Do they add it as another account online where they link it and transfer money across?

I bank with fnb so the wesbank account is automatically listed on my online banking.
If you bank elsewhere, ask wesbank what details you'll need to link them as a beneficiary.
 
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