Finance Query

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mike156

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With the way things are going, would it be worthwhile going for a fixed interest rate?

I'm not looking to finance much, round about R120k but with the ups and downs the country has been seeing I have a feeling the rates will be climbing nicely in the next few years.

Thoughts?
 
Depends on the term and rate you getting.. If the difference between variable and fixed is starting off with say 2% difference and you just financing a car.... with say 0.25% increases over time to repo rate (per rate increase).. it will likely be that the variable rate will be a cheaper cost over time... Unless the interest rates sky rocket soon which no one can predict...
 
Seems absa have come back with 9% fixed over 72 months. Will have confirmation tomorrow.

The plan being to pay at least 30% extra pm into the loan.

I was also going to add a 25k deposit but I'd rather squash my credit card at this point.
 
mike156 said:
Seems absa have come back with 9% fixed over 72 months. Will have confirmation tomorrow.

The plan being to pay at least 30% extra pm into the loan.

I was also going to add a 25k deposit but I'd rather squash my credit card at this point.
Click to expand...

9% fixed is pretty good on such a small amount. Obviously have a look at what floating rate you can get but a sub prime fixed rate at this time is good.
 
mike156 said:
Seems absa have come back with 9% fixed over 72 months. Will have confirmation tomorrow.

The plan being to pay at least 30% extra pm into the loan.

I was also going to add a 25k deposit but I'd rather squash my credit card at this point.
Click to expand...

9% fixed over the period of the loan? That is below prime, which I wouldn't even begin to expect on such a small vehicle loan if it was a variable rate.

I think someone at ABSA messed up...
 
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