Car repayments. Wait to settle or pay in?

[Park@82]

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.

As far as I remember Wesbank is also listed on ABSA internet banking.

 

[Voicy]

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

I'm toying with this idea.

I paid off my '06 Corsa 1.8 GSi 2 years before the due date on my contract. Bought it in '07 @ 21,000kms. It's sitting on 92,000km now and still purring along nicely. (Granted 12,000km of that was done this year alone when I started using the car for work)

I keep looking at upgrading seeing as I do almost exclusively Transkei driving which gets dicey at the best of times, but everything else worth upgrading to is around the R300k margin.

 

[srothman]

Not to hijack the thread, but I have a similar question along these lines.

So I've made up mind to get a new car. Said new car will only be available in about six months. Now, my current vehicle isn't fully paid yet, nor will it be in six months.

So my question is this: Do I push more money into my existing car payments, or do I rather save that extra money and use it for a bigger deposit when I finance the new car? My gut tells me to rather pay the extra into the existing account, figuring it will be worth more (interest saved vs. interest earned), but considering my car's depreciation over the next six months, I might obviously not get as much trade-in as what I've put in?

Example: I owe R100k on the car. I pay R2k/month on my existing vehicle and I can pay an additional R20k over the next 6 months, which means instead of owing R88k after six months, I will only owe R68k.

Considering the depreciation of my vehicle (especially as it will be a year-model older in 6 months time), *should* I get at least R88k for my car come trade in, all things being equal, which will still give me the extra R20k as part of my deposit, or am I more likely to get less for the car, and be better off to rather pay the R20k cash?

 

[Park@82]

Not to hijack the thread, but I have a similar question along these lines.

So I've made up mind to get a new car. Said new car will only be available in about six months. Now, my current vehicle isn't fully paid yet, nor will it be in six months.

So my question is this: Do I push more money into my existing car payments, or do I rather save that extra money and use it for a bigger deposit when I finance the new car?

I would push more to the account now. I don't think you'll gain anything from paying a big deposit, in fact I was told that the bigger the loan amount the better the interest they are able to negotiate (not sure if bs though)...

 

[AlmightyBender]

I would push more to the account now. I don't think you'll gain anything from paying a big deposit, in fact I was told that the bigger the loan amount the better the interest they are able to negotiate (not sure if bs though)...

That is indeed true. Around 5-10% deposit is optimum depending on the bank I guess. So if you have a lot of capital rather pay a small deposit and then as soon as the facility is set up make a huge payment into it.

 

[Sinbad]

Not to hijack the thread, but I have a similar question along these lines.

So I've made up mind to get a new car. Said new car will only be available in about six months. Now, my current vehicle isn't fully paid yet, nor will it be in six months.

So my question is this: Do I push more money into my existing car payments, or do I rather save that extra money and use it for a bigger deposit when I finance the new car? My gut tells me to rather pay the extra into the existing account, figuring it will be worth more (interest saved vs. interest earned), but considering my car's depreciation over the next six months, I might obviously not get as much trade-in as what I've put in?

Example: I owe R100k on the car. I pay R2k/month on my existing vehicle and I can pay an additional R20k over the next 6 months, which means instead of owing R88k after six months, I will only owe R68k.

Considering the depreciation of my vehicle (especially as it will be a year-model older in 6 months time), *should* I get at least R88k for my car come trade in, all things being equal, which will still give me the extra R20k as part of my deposit, or am I more likely to get less for the car, and be better off to rather pay the R20k cash?

The amount you owe should make no difference to what they offer you as trade in...
Pay it into the car now. You'll save money on interest in the next six months.

 

[Park@82]

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

...

Hi there, looking at the transaction history on Wesbank I see I get charged two interest amounts monthly unlike yours.

REBATE INTEREST 2013/09/30 R 185.75 CR
INTEREST 2013/09/30 R 40.32 DR
NCA SERVICE FEE 2013/09/30 R 57.00 DR
INTEREST 2013/09/30 R 1,251.93 DR
DEBIT ORDER 2013/09/30 R 2,753.30 CR

Does anybody know why it shows two separate interest amounts?

 

[Sinbad]

Hi there, looking at the transaction history on Wesbank I see I get charged two interest amounts monthly unlike yours.



Does anybody know why I get charged two separate interest amounts?

Do you have any other products loaded on the agreement? Like shortfall cover, or an insurance plan of some sort?
Failing that, give them a call and ask?

 

[Park@82]

Do you have any other products loaded on the agreement? Like shortfall cover, or an insurance plan of some sort?
Failing that, give them a call and ask?

None of the above, will have to contact them.

Edit: Wait... I do have a service pan, guess that might be it but AFAIK the service plan was part of the loan amount so it should not be separate. Will pop them a mail to ask.

 

[Park@82]

Do you have any other products loaded on the agreement? Like shortfall cover, or an insurance plan of some sort?
Failing that, give them a call and ask?

Got the following reply:

Please note, interest is calculated on a daily basis therefore the interest is determined by the number of days in a month.

31 days in a month will have more interest than the months that have 30 days.

The interest is finance charges due to WesBank for financing your vehicle.

These amounts are shown separately for audit purposes but is included in your monthly debit order.

Meh I knew I would get some mambo jumbo answer.

 

[Sinbad]

Got the following reply:


Meh I knew I would get some mambo jumbo answer.

I'd reply asking for clarification of there being two line items for interest.
I only have 1, even on 31 day months.

 

[ToxicBunny]

I never got more than 1 line on my statements for interest.

I would ask for clarification, because that doesn't sound right.

 

[Fuma]

Car payments? What's that?

Been two months since settling my car, haven't felt this good since 2006 (having financed my cars during that period).

 

[Park@82]

I never got more than 1 line on my statements for interest.

I would ask for clarification, because that doesn't sound right.

It shows one line on my statement but two lines on my "Transaction History" on the Wesbank web site.

 

[Sinbad]

It shows one line on my statement but two lines on my "Transaction History" on the Wesbank web site.

My transaction history on the site:

PAYMENT 2013/08/31 R 1,500.00 CR
REBATE INTEREST 2013/08/20 R 65.56 CR
NCA SERVICE FEE 2013/08/20 R 57.00 DR
INTEREST 2013/08/20 R 636.36 DR
DEBIT ORDER 2013/08/20 R 2,062.31 CR
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

nope, only 1

 

[Sinbad]

It shows one line on my statement but two lines on my "Transaction History" on the Wesbank web site.

My transaction history on the site:

PAYMENT 2013/08/31 R 1,500.00 CR
REBATE INTEREST 2013/08/20 R 65.56 CR
NCA SERVICE FEE 2013/08/20 R 57.00 DR
INTEREST 2013/08/20 R 636.36 DR
DEBIT ORDER 2013/08/20 R 2,062.31 CR
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

nope, only 1

 

[Park@82]

Yeah thanks Sinbad, it looked like you also copy and pasted the transaction history that's why I thought it was odd that I had 2 lines vs your 1.

Ill ask for clarity but I dont expect much joy.