Financing second vehicle before paying off first

[FiestaST]

Sorry about that, its a 2012 VW Scirocco, fully spec'd.

Very nice man.

 

[Arthur]

expecting a bundle of joy... One way of cutting down unnecessary maintenance, installment, insurance costs etc, is to sell the car privately or trade it in for a cheaper one...

Good man. From hereon out you will diminish and they will increase. You will evolve from being Mista Cool to an impoverished Bond-Payer and Writer of Cheques. All for the sake of your family. It will make of you both a mensch and a man.

I can't advise about the car. My intuition is the best you can hope for is a little grey secondhand Hundy i20 with automatic gearbox.

 

[Warmachine]

As you haven't given us figures, I would guesstimate that you would have to finance the shortfall on a new car. So in theory you could buy a cheaper car and at the end of the day end up paying the same. So for you to have a considerably smaller debit order, you would have to get a really cheap car.

This is of course just speculation as there are many factors to keep in mind such as depreciation which is again linked to factors such as car brand etc.

Personally I would try to keep the car until you reach a point in time where the trade-in value is more than the financed amount.

Got the car for R240k, actual contract balance to the bank is around the R340k region over the next 4 years with no residual... Did a valuation on the car (2012 VW Sirocco) few months ago when I took it in for service and they said it's still in excellent condition, gave me a trade value of around R220K. Roughly 12 months in and I've barely done 9000km, I hardly drive the car...

I guess to be more direct, my question was around the shortfall between the trade value and the balance that I owe the bank, how do I get that reduced?

 

[Warmachine]

I drove a 2 door as our primary car when my daughter was born.
Not optimal and some parts are quite a pain but easily doable.

Personally I would suggest keeping it and if you must, get a 2n'd 4 door car.

Obviously don't drive it the way it can be driven (with or without kids).

There is a parent behind the wheel now.

Edit, seat covers are something I would look at though, waterproof for front and back.

This is the most meaningful response thus far. Thanks.

 

[marco79]

Got the car for R240k, actual contract balance to the bank is around the R340k region over the next 4 years with no residual... Did a valuation on the car (2012 VW Sirocco) few months ago when I took it in for service and they said it's still in excellent condition, gave me a trade value of around R220K. Roughly 12 months in and I've barely done 9000km, I hardly drive the car...

I guess to be more direct, my question was around the shortfall between the trade value and the balance that I owe the bank, how do I get that reduced?

Best is to live with car for 2 more years. Wait until your shortfall is 0.

 

[Warmachine]

Good man. From hereon out you will diminish and they will increase. You will evolve from being Mista Cool to an impoverished Bond-Payer and Writer of Cheques. All for the sake of your family. It will make of you both a mensch and a man.

I can't advise about the car. My intuition is the best you can hope for is a little grey secondhand Hundy i20 with automatic gearbox.

Lol. How exciting.

 

[Warmachine]

Best is to live with car for 2 more years. Wait until your shortfall is 0.

My initial thought also. Just wanted the peace of mind of knowing what to prepare for financially over the next few years or so. I'm at a good place financially, but good just doesn't cut it given my new circumstances, best is ideal.

 

[AstroTurf]

My initial thought also. Just wanted the peace of mind of knowing what to prepare for financially over the next few years or so. I'm at a good place financially, but good just doesn't cut it given my new circumstances, best is ideal.

Look, cover what you can inside the car, you now have a milk spilling, projectile vomiting, random item masticating machine as a carpanion.

When getting the baby seats (there are two of these) keep the size and shape of your back seat in mind, babies and toddlers should not really be allowed in the front. You will sooner or later find the front seats being used to change clothes/diapers. This is why I say seat covers front and back.
You can also put some padding under the baby seat to protect your back seat from it.
Keep some toilet paper, wet wipes, some spray soap and some water in the car along with a cloth. Baby vomit and poo can stain if not cleaned as it happens.

Where the baby seat goes.
That floor space is no longer foot space.
It will become baby bag space.
I suggest covering it with either a carpet or plastic as that is also where most of baby mess (cookies, milk, vomit etc) will go once baby is in a front facing seat, there and onto the seat in-front of baby or down the person sitting in front of baby's neck.

 

[Warmachine]

Look, cover what you can inside the car, you now have a milk spilling, projectile vomiting, random item masticating machine as a carpanion.

When getting the baby seats (there are two of these) keep the size and shape of your back seat in mind, babies and toddlers should not really be allowed in the front. You will sooner or later find the front seats being used to change clothes/diapers. This is why I say seat covers front and back.
You can also put some padding under the baby seat to protect your back seat from it.
Keep some toilet paper, wet wipes, some spray soap and some water in the car along with a cloth. Baby vomit and poo can stain if not cleaned as it happens.

Where the baby seat goes.
That floor space is no longer foot space.
It will become baby bag space.
I suggest covering it with either a carpet or plastic as that is also where most of baby mess (cookies, milk, vomit etc) will go once baby is in a front facing seat, there and onto the seat in-front of baby or down the person sitting in front of baby's neck.

Hehehehe, can't wait.

 

[superskully]

Got the car for R240k, actual contract balance to the bank is around the R340k region over the next 4 years with no residual... Did a valuation on the car (2012 VW Sirocco) few months ago when I took it in for service and they said it's still in excellent condition, gave me a trade value of around R220K. Roughly 12 months in and I've barely done 9000km, I hardly drive the car...

I guess to be more direct, my question was around the shortfall between the trade value and the balance that I owe the bank, how do I get that reduced?

The contract balance is not the same as your settlement.
First find out whats the settlement!

 

[A3@MBB]

Got the car for R240k, actual contract balance to the bank is around the R340k region over the next 4 years with no residual... Did a valuation on the car (2012 VW Sirocco) few months ago when I took it in for service and they said it's still in excellent condition, gave me a trade value of around R220K. Roughly 12 months in and I've barely done 9000km, I hardly drive the car...

I guess to be more direct, my question was around the shortfall between the trade value and the balance that I owe the bank, how do I get that reduced?

The sums quoted don't add up?
Unless you loaded additional maintenance warranties and extras to the deal and got nailed by interest rate!

@ interest rate of 12% and on month 12 you should sit with roughly R210k capital outstanding. (R240k + R6k on the road fees @ 12% & no residual over 60 months)
I know Standard Bank quotes the outstanding balance WITH the finance charges for the ENTIRE term -> is this your quoted R340k?
You do not own the entire amount (capital + interest) if you trade the car in.

And welcome to the parents club. It's not as rough as some would make it out to be, but always go leather upholstery. This is my saving grace so far with my 3 year old. Wet cloth and looks good as new.

 

[Cicero]

Got the car for R240k, actual contract balance to the bank is around the R340k region over the next 4 years with no residual... Did a valuation on the car (2012 VW Sirocco) few months ago when I took it in for service and they said it's still in excellent condition, gave me a trade value of around R220K. Roughly 12 months in and I've barely done 9000km, I hardly drive the car...

I guess to be more direct, my question was around the shortfall between the trade value and the balance that I owe the bank, how do I get that reduced?

First off, I'd contact the bank and ask what your settlement amount is.

Its a 2nd hand car, so most of the loss has gone before you purchased, you should be able to break even or a little better. Then you can look to getting something smaller/cheaper/more practical.

EDIT: Didn't refresh the page before posting this. superskully beat me to it.

 

[cueball]

When did the NCA come into effect?

Since the NCA, a car loan less than R250k is not subject to early settlement penalties. Ask the bank for a settlement quotation, the contract balance is meaningless in this instance.

 

[Warmachine]

When did the NCA come into effect?

Since the NCA, a car loan less than R250k is not subject to early settlement penalties. Ask the bank for a settlement quotation, the contract balance is meaningless in this instance.

Will definitely give them a call today to find out. Thanks for all the feedback

 

[rorz0r]

Sounds like it might not be too much of a problem as you didn't buy the car new at least, and VWs generally have good resale. Get the actual settlement figures, have a look at the "book" values and you'll have a better idea of where you stand.

 

[Rouxenator]

Sorry about that, its a 2012 VW Scirocco, fully spec'd.

:crylaugh:

I was young too, back in 2004 you know, bought a Opel Astra and 8 years later I took my bundle of joy home from the hospital in that very car. Drove it for two years after that then got a newer one.

So don't blame being young.