Financing a car

oldBastard

oldBastard

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I want to buy a second hand car. I still owe R87200 on my current car, but the best trade in deal that I got so far is R45000 for it which leaves a balance of R42200.

What would the price bracket be of the second hand car to be able to settle the current car?
 
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DWPTA said:
I want to buy a second hand car. I still owe R87200 on my current car, but the best trade in deal that I got so far is R45000 for it which leaves a balance of R42200.

What would the price bracket be of the second hand car to be able to settle the current car?
Click to expand...

If you still owe money after trade-in the best course of action is to just continue paying until you can afford to trade-in with zero (or less) balance due on the car.

I've done what you want to do and my monthly car payments are killing me. I have to stick it out though because the trade-in value is way less than the value of the car and the bank just refuses to help me by giving me a personal loan for the difference owed on the car (which is a lot less and a lot more affordable to me at this moment)

So no. Pay off your car, then maybe go for a decent second hand car. Or if you have the case to pay R42200, why not just buy a second hand car cash. Keep paying your monthly payments on your current car but use the second hand car daily. It will subsequently increase the trade-in value of your current car because you have less mileage on it when you do sell it, plus you'll make the money back you paid for the second hand car anyway.

Cash is king and cars and women.... they love the credit.
 
What car do you have where you owe so much yet the trade is so low. Does not make sense. Do you do very very high mileage or something like that, residual...
 
AcidRaZor said:
If you still owe money after trade-in the best course of action is to just continue paying until you can afford to trade-in with zero (or less) balance due on the car.

I've done what you want to do and my monthly car payments are killing me. I have to stick it out though because the trade-in value is way less than the value of the car and the bank just refuses to help me by giving me a personal loan for the difference owed on the car (which is a lot less and a lot more affordable to me at this moment)

So no. Pay off your car, then maybe go for a decent second hand car. Or if you have the case to pay R42200, why not just buy a second hand car cash. Keep paying your monthly payments on your current car but use the second hand car daily. It will subsequently increase the trade-in value of your current car because you have less mileage on it when you do sell it, plus you'll make the money back you paid for the second hand car anyway.

Cash is king and cars and women.... they love the credit.
Click to expand...

I thought so much, ie. I'm screwed......:(

superskully said:
What car do you have where you owe so much yet the trade is so low. Does not make sense. Do you do very very high mileage or something like that, residual...
Click to expand...

I have an Audi A6 2002 model. Bought it for R100K last year. So I pretty much finished paying the interest rate, paying the actual amount for the car off now.

So the only option is to stick with the car then untill paid off....crap.
 
DWPTA said:
I thought so much, ie. I'm screwed......:(



I have an Audi A6 2002 model. Bought it for R100K last year. So I pretty much finished paying the interest rate, paying the actual amount for the car off now.

So the only option is to stick with the car then untill paid off....crap.
Click to expand...

Did you actually get a settlement value from the finance house or are you just going on what's on your statement? There may be early settlement penalties but I settled my car in 2007 about 3 years early. Fortunately there was no early settlement penalties... knocked almost R80k off in interest :D
So the amount you see on your statement each month is the amount owing if you take it to term, but if you settle early then you have to contact them for that amount.
 
45k for trade in. Thats crazy. They will probably sell again at 100k.
Check different dealers and try to sell privately.
I had a similar problem with my Audi but sold it PRV for 30k more than the dealers were giving.
 
DWPTA said:
I thought so much, ie. I'm screwed......:(

I have an Audi A6 2002 model. Bought it for R100K last year. So I pretty much finished paying the interest rate, paying the actual amount for the car off now.

So the only option is to stick with the car then untill paid off....crap.
Click to expand...

Why do you want to get rid of the car seeing as the one you currently have is a 2nd hand car too?
 
superskully said:
45k for trade in. Thats crazy. They will probably sell again at 100k.
Check different dealers and try to sell privately.
I had a similar problem with my Audi but sold it PRV for 30k more than the dealers were giving.
Click to expand...

I think I might try that.

AcidRaZor said:
Why do you want to get rid of the car seeing as the one you currently have is a 2nd hand car too?
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Petrol consumption. I'm doing about 170km a day which is costing me about R150 in petrol per day, the A6 is a 2.4 V6, likes to drink her petrol.

The car that I am after is the Toyota Avensis diesel. Has all the features as the A6 but at +/- 7L/100km it is way more effecient than the A6.
 
Did you take into account the petrol consumption it might have when you bought it?

I estimate your fuel consumption at about 8.7litres per 100km, that's about standard. I guess Diesel will get you a bit further.

Have you tried going slower? ;)

You could also look into the hydrogen add-on you can modify your car with to get the fuel consumption down, but I reckon your warranty (if any exists) would be gone with it.
 
AcidRaZor said:
Did you take into account the petrol consumption it might have when you bought it?

I estimate your fuel consumption at about 8.7litres per 100km, that's about standard. I guess Diesel will get you a bit further.

Have you tried going slower? ;) It's a V6 :rolleyes:

You could also look into the hydrogen add-on you can modify your car with to get the fuel consumption down, but I reckon your warranty (if any exists) would be gone with it.
Click to expand...

And yes I average 110km/h on the highway, what catch me is the traffic, stop/go the whole time chow petrol. I do try to miss traffic, but it is impossible between PTA & JHB.
 
DWPTA said:
And yes I average 110km/h on the highway, what catch me is the traffic, stop/go the whole time chow petrol. I do try to miss traffic, but it is impossible between PTA & JHB.
Click to expand...

It might be cheaper just to move to PTA? (Or JHB, whichever one is the work destination)

If you were doing 170km continuous you wouldn't have the problem though, which sucks.

But yea, just as a footnote, on average your car only starts breaking even at year 2 of the finance agreement.

With mine it's year 3 or 4 if I'm not mistaken, and by that time I might as well go for broke and pay the entire damn thing off anyway.

BUT... like I said, if you can get away with paying cash for a 2nd hand car, you can still keep the petrol chugger and pay it off while driving in the less expensive one. (I know you want to get a fancy Diesel one, but a Toyota Tazz never hurt anyone)
 
This is one of the many reasons I choose not to get finance for a car, you can easily get trapped in a circle of debt, but yeah that's what they want you to do as everyone else does it.
 
So a quick update.

After searching hi & lo for a dealer to give me a decent trade in I manage to find a dealership where I got a decent car and a BIG trade in as well.

The best I got was R45K for my Audi A6, but I then I went to look at a car at a dealership, M/Benz c220 CDI 2005. Very nice with bloutand foon and the whole sjebang. With 119000km on the clock. I asked them how much for a trade in for my Audi, he looked at it and said R58500. WOOT!!!

I asked him to make me a deal, and this was the first dealership/salesman willing to go the extra mile for.

He worked out a deal for where I only have pay in R4k on my Audi to settle it (luckily I got R5600 from the tax man :D, so no capital from savings account was used).

The deal was approved this morning. The car is in for a service now and will get it tomorrow.

Big ups to Auto Market and Peter Oxley in Randburg.
 
DWPTA said:
So a quick update.

He worked out a deal for where I only have pay in R4k on my Audi to settle it (luckily I got R5600 from the tax man :D, so no capital from savings account was used).
Click to expand...

Double check your finance quote/contract - you'll find he probably added the difference of the old car's settlement to the new finance agreement. So you'll end up still paying off your previous car, and sit with this same problem next time you buy a car.
 
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