Financing a car - It doesnt add up??

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MisterBigglesworth

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So I went to test drive a car, go to Finance person there and she does her whole calculation thing. Car is for sale for R169950 and I have trade in value of R45000. Not other "extra's" added. Now I calculated via ABSA and MFC website, and I got a price of about R2800 over 54 months at prime+1. She did the same...and got R3400? I was like WTF? Howd you get that, cos I checked online etc. She says no they take into account interest of the loan, finance costs etc etc. Odd thing is...so did the online calculators...it stated loan interest etc etc.

So how did she get that number then, cos it doesnt make any sense? :confused:
 
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Ive also had that issue with them, where the calculators come out differently. All i can say is get a few different banks to give you a quote and take the lowest one
 
You forgot to tell her about the deposit didnt you???
 
What's the listed price of the vehicle and what's your deposit.
 
Price is R169950 with a trade in value of R45000. Thats it...nothing else fancy...didnt even mention maintenance plans or anything. I think its going to be best to get pre-approved finance first...
 
Never try to arrange vehicle finance through a dealer, go to your bank.
 
CrazyFig said:
Price is R169950 with a trade in value of R45000. Thats it...nothing else fancy...didnt even mention maintenance plans or anything. I think its going to be best to get pre-approved finance first...
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I get 2882.90 (@10%)
 
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These calculations can get tricky & you really need to get all the info else you won't be able to replicate it at all nevermind on an online form thingie.

Go back & ask for the calculation & all inputs in writing so that you can check it at home in peace & quiet.
 
CrazyFig said:
Price is R169950 with a trade in value of R45000. Thats it...nothing else fancy...didnt even mention maintenance plans or anything. I think its going to be best to get pre-approved finance first...
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Whose calculator did you use? Feeding the same figures into Wesbank's I get just under R3k p/m. Add shortfall cover & credit life cover to that and their quote doesn't seem that far off. You can of course elect not to take shortfall cover & credit life, but you'd do so at your own peril.

guyu said:
Never try to arrange vehicle finance through a dealer, go to your bank.
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That's a bit of an unfair call. It is in the dealer's interest for their F&I to negotiate a deal for you, otherwise they ultimately lose the sale. There are unscrupulous individuals, sure, but those I've worked with have all only ever had their customers' interests at heart... at least as much as their own. :twisted:
 
The interest rate from bank to bank doesn't really affect the repayment cost that much.Its the payback period that will affect cost.I would ask her to re-calculate on period of 12 and 36 months respectively to more accurately gauge how she arrives at her figures.
 
Yeah, got the R2800 figure on a few online calculators..they were pretty much spot on with each other. Will find out how she got those figures...brining along my wife sat for a test drive, so will chat with the woman then ;) Thanks for replies ;)
 
CrazyFig said:
Yeah, got the R2800 figure on a few online calculators..they were pretty much spot on with each other. Will find out how she got those figures...brining along my wife sat for a test drive, so will chat with the woman then ;) Thanks for replies ;)
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Credit life & shortfall cover. I'd bet on it. Also, R1,440 once-off as an inception fee from the bank & about R60 monthly admin charge.
 
I have a collegue who wanted to purchase a 2nd hand corsa bakkie through a 2nd hand car dealer. Purchase price was R65000. He needed a 10% deposit and when the dealerships finance lady called him she told him the payments would be about R2200 per month. We worked it out on the interest rate he was offered at R1700 per month. He asked for a breakdown of the costs and found out the financed amount was R75000 (R11500 more than what it was supposed to be). He left it there and went to a GM dealer and got a much better deal.
 
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