Financially Trapped

I'm confused? You said she bought a car cash but took a loan??
 
Story does not add up, she bought a first generation Picantion for R65k + R95k, i.e. R160k? Or did she use the loan for other purposes as well?

She must also be spending at least half of her salary on this car, which again, doesn't make sense?
 
Car dealers will sell a used car close to its new price, these days.

I was just looking recently, same car , much more mileage,
Sells for close to its new price at a dealer....Even if it's a bog basic econobox.

So I do believe it's possible, unfortunately.

Can't op refinance? At a better interest rate?
 
KhoisanX said:
Story does not add up, she bought a first generation Picantion for R65k + R95k, i.e. R160k? Or did she use the loan for other purposes as well?

She must also be spending at least half of her salary on this car, which again, doesn't make sense?
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Can't no one read:

R95k loan, 65k spent on car, 30k spent on renovations (renovations of what is unclear)

with the remaining amount, she did renovations
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Semisane you are being very kind to this lady. She needs a wealthy blesser and will be looking to you to fulfill that role.

Listen to HavocXphere and run for the hills.
 
I purchased cars 3 times using a capitec loan when I was younger. Sometimes to get a car you have no choice. (Yes, I made that mistake 3 times but really had no choice).

1 thing she needs to do is settle that capitec loan ASAP. Those things comes with the highest interest rate + service + initiation fees. If she thinks she can afford a new car(I don't know here situation) then settle the capitec loan first. The Picanto can be used as a deposit and make sure to get proper vehicle finance. Stay away from personal loans.

edit. If she can not get vehicle finance and her car still gets her from A to B comfortably, then keep the car until one day she can get vehicle finance.
 
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terencej said:
Those things comes with the highest interest rate + service + initiation fees. If she thinks she can afford a new car(I don't know here situation) then settle the capitec loan first. The Picanto can be used as a deposit and make sure to get proper vehicle finance. Stay away from personal loans.
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I have a personal loan where the interest rate is 1% lower than my car finance. I took it out a number of years ago before the NCA when banks would give you low interest rates, and I've kept it going because I'll never be able to renegotiate that rate ever again.
 
Colin62 said:
I have a personal loan where the interest rate is 1% lower than my car finance. I took it out a number of years ago before the NCA when banks would give you low interest rates, and I've kept it going because I'll never be able to renegotiate that rate ever again.
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The good old days when a banks sole purpose was not to try to screw you over :)
 
Semisane said:
Good morning friends here is the situation my friend bought first generation KIA Picanto last year she bought it cash for R65 000. She took a loan of R95 000 at Capitec Bank with the remaining amount, she did renovations the Kia Picanto run alright nothing wrong with it.

Here is the problem my friend wants to upgrade to something new, personally I think it's a bad idea to buy a brand new or demo car. She is paying Capitec Bank R3 500 for the loan I suggested she finish paying Capitec Bank that is when she can think of getting a new car. She feels the Kia Picanto is old and updated but at least it move her from point A to B.

Can car finance give her a loan if she has other debts I don't know her other debts but I know she earn R10.000
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Just a note on that debt.

I have a car loan of R190k and my repayments are R3k so either she has a really short term loan or is getting charged a lot for interest.

So first up she must clear that debt. It may be frustrating but like you say she will get stuck. Hopefully by the time the debt is gone she will have a bit more money.... then she can look at an upgrade
 
OCP said:
Er, sorry... what?

In what alternative universe did this happen?
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:D see if you can find a personal loan like this today
Colin62 said:
I have a personal loan where the interest rate is 1% lower than my car finance. I took it out a number of years ago before the NCA when banks would give you low interest rates, and I've kept it going because I'll never be able to renegotiate that rate ever again.
Click to expand...
 
Nerfherder said:
Just a note on that debt.

I have a car loan of R190k and my repayments are R3k
Click to expand...

Either you have a balloon to settle or you purchased over 72 months with a interest rate @<5%. This calculation still excludes monthly admin fees.

I work from a norm of for every R100k, your repayment will be R2k. (60 months without balloon and at a "normal" fixed interest rate of 10%)
 
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