Finance Interest Rate

[Dolby]

I bought my first new car in April 2006 and got prime -1.

I'm not buying a used a car and they're working on prime +1. He said we can negotiate, but I probably wouldn't look at prime -1 again.

He said with banks being tighter and NCA, seldom they go prime - anything.

True? Or is he fscking me?

A friend at work said he'd take prime, as he financed 5x cars through Wesbank and received prime less on each. When he enquired about one the other day, they said prime was the absolute lowest.

 

[RustyPrincess]

depends who you talk too, I was first offered prime + 3, I said no, I want to talk to someone else, mentioned the company I work for and what I do for a living and I got prime - 1, (wesbank)

It was my first loan...

 

[Dolby]

depends who you talk too, I was first offered prime + 3, I said no, I want to talk to someone else, mentioned the company I work for and what I do for a living and I got prime - 1, (wesbank)

It was my first loan...

How long ago? In the past year?

 

[RustyPrincess]

feb/march this year

 

[RustyPrincess]

Check if your company has any special deals worked out with the banks, I know we get reduced rates at standbank, absa and webank, oh and tiger wheel and tiger....

 

[Chunkyfeather]

prime -X is flipping good dude!!!!

hell, even prime is awesome!

 

[superskully]

Used to get -2.
Now, on one car that i did not buy, negotiated -1/2.
The one i bought (more expensive) got prime.
From ABSA cos i bank with them.
Other banks were >+3.
My theory:
They say 70% of South africans are a credit risk.

Previously i bet they gave the 30% below prime while giving above prime for the credit risk people. So they make their money.

With the NCA and current economic turmiol, banks can now only lend to the 30%.
So they have to make their money somewhere.

 

[Dolby]

Ah - alrighty ... so I should take prime if I can get it :/

Thanks!

 

[alpine]

friend of mine just bought polo c/l 1.6
total repayment 300k. sounds a bit steep hey

 

[USZA]

depends who you talk too, I was first offered prime + 3, I said no, I want to talk to someone else, mentioned the company I work for and what I do for a living and I got prime - 1, (wesbank)

It was my first loan...

I just got prime + 2, through Wesbank, on a used car, and the deal was approved without a deposit but I opted to pay a deposit to lower the repayments.

 

[ALFAHOLIC]

friend of mine just bought polo c/l 1.6
total repayment 300k. sounds a bit steep hey

are you sure its R300 000?

That's impossible...

You're interest would have to be in the 50% mark...

he's been duped and needs to go see the Bank ombudsman or someone...joh!

I hope you're joking!

 

[Paul_S]

are you sure its R300 000?

That's impossible...

You're interest would have to be in the 50% mark...

It sounds a bit steep but at prime +1.5% :
Polo 1.6. Comfortline : R183600
Finance term : 72 months (6 years)
Deposit : R0
Balloon payment : R0
Total interest paid over term : R 74837
Total paid : R258437

Hence the reason why I have never and will never buy a new car.

 

[LandyMan]

I bought my first new car in April 2006 and got prime -1.

I'm not buying a used a car and they're working on prime +1. He said we can negotiate, but I probably wouldn't look at prime -1 again.

He said with banks being tighter and NCA, seldom they go prime - anything.

True? Or is he fscking me?

A friend at work said he'd take prime, as he financed 5x cars through Wesbank and received prime less on each. When he enquired about one the other day, they said prime was the absolute lowest.

I used to get prime - 2% consistently, did an application now (same bank I've been a Private Banking customer with for 9 years) and they are willing to "offer" me 15% deposit and prime + 1.7% ... I obviously told them where to get off

 

[ALFAHOLIC]

Are Polo comfortline's THAT expensive? Jeez it looks likea R10200 car...joh!

 

[alpine]

It sounds a bit steep but at prime +1.5% :
Polo 1.6. Comfortline : R183600
Finance term : 72 months (6 years)
Deposit : R0
Balloon payment : R0
Total interest paid over term : R 74837
Total paid : R258437

Hence the reason why I have never and will never buy a new car.

Well the balloon payment was close to seventy k on 60 months, which they have scrapped and extend contract to 72 months

Its safe to say that he didn't shop around but still he is a 1st time buyer and the salesman took him for a ride

by the way is a M/P standard??? maybe it was a bolt on which might explain things

 

[rurapente]

72 months? I would only finance a toyota over that period

obviously its cheaper to finance as low months as possible, but since some of us dont walk around with Investec Platinum cards in our pockets we have to settle for lower repayments at higher final interest.

The problem I see with balloon payments is that you have to make VERY sure your car will be worth more than that at the end of the installment period so you can sell it and recover. Some banks, which is good, also wont penalize you for settling a contract with balloon payment early, they simply work it back into the installment sale and give you a settlement incl it.

I'm gonna look for a new car in Feb/march 10. My contenders so far are : new Megane (currently no 1), Alfa 159 JTD, Toyota Hilux, Renault Koleos (No 2 on list)

I will decide primarily on resale value, followed-up best interested rate.

 

[Dolby]

The problem I see with balloon payments is that you have to make VERY sure your car will be worth more than that at the end of the installment period so you can sell it and recover.

My contenders so far are : new (currently no 1), Alfa 159 JTD, Toyota Hilux, Renault Koleos (No 2 on list).

I will decide primarily on resale value, followed-up best interested rate.

And you have Alfa and Renault on your list?