Getting Finance for old car?

J

jacodebeer

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Hi Guys,

I found a true gem of a car that is a 1987 year model car, it is like new with 70000km on and one owner,

I'm very excited about this as the guy gave me first option to buy, because I harrased him always to sell it to me...

Anyway.. He wants R37k cash for the car, which is a bargain, but I don't have that kind of money just laying around.

Now the bank doesn't want to give me finance because it is so old, but when you apply online they give you the option to select the old cars??? kind of pointless!!

What do you suggest is the best way to go?
 
What is the difference between a personal loan and vehicle finance? isn't a personal loan's interest high?
 
jacodebeer said:
What is the difference between a personal loan and vehicle finance? isn't a personal loan's interest high?
Click to expand...

Yeah.

Car loan you can get around 10%, personal load around 16%.

Not too bad on that small amount. Depending on the term you'll pay back around a grand a month.
 
jacodebeer said:
What is the difference between a personal loan and vehicle finance? isn't a personal loan's interest high?
Click to expand...

Depending on your profile interest will likely be higher, yes... if you'd be granted one. Difference? Vehicle finance is secured by the car so if you stop paying the bank simply repossess it. A personal loan isn't secured by an asset so the bank's risk is higher; the interest rate and period offered (if any) will reflect this.
 
Isn't FNB advertising that they'll finance such old vehicles.. I saw an ad for a guy buying Elanor.. So maybe consider that route.
 
That car has very little kilo's on for such an old car! Or was the guy using it as a second vehicle?

edit: Did some sums and it works out to about 2 690 k's per year. Hmm, probably possible /shrug
 
I would use an access facility from my bond. I would draw the cash from that. You benefit from the low bond interest rate which is often below prime. Also because the interest is calculated on a daily basis you can add money as you go along and pay it off quicker. I think that a personal loan will penalize you if you settle early.

BUT, don pay the car back over 20 years. Work out the installment they you can afford and pay it back over that time.

Hope that makes sense.

This is what I would do.
 
thanks getafix, your bond way sounds complicated... What are the penalties that you have mentioned and is it wise to pay via debit order? how do I pay a little bit extra? I did ask the consultant this but I was not satisfied with her answers...
 
jacodebeer said:
thanks getafix, your bond way sounds complicated... What are the penalties that you have mentioned and is it wise to pay via debit order? how do I pay a little bit extra? I did ask the consultant this but I was not satisfied with her answers...
Click to expand...
Its not complicated.

Do you have a a bond? If so, do you pay more than your monthly required installment? If so find out by your bank if you can access the excess amount. That's it.

Penalties, he's referring to what is called an Early Settlement Fee, but I doubt you'll get penalised. I've had two/three loans which I've paid off recently, long before the settlement date.

Paying via debit order is preferred, but they won't debit your account for more than the agreed amount (because, simply put, they can't due to the NCA). If you want to pay anything over and above your installment you need to add your loan account as a beneficiary on your internet banking and then pay the additional amounts if and when you have the means.
 
YingYang said:
Its not complicated.

Do you have a a bond? If so, do you pay more than your monthly required installment? If so find out by your bank if you can access the excess amount. That's it.

Penalties, he's referring to what is called an Early Settlement Fee, but I doubt you'll get penalised. I've had two/three loans which I've paid off recently, long before the settlement date.

Paying via debit order is preferred, but they won't debit your account for more than the agreed amount (because, simply put, they can't due to the NCA). If you want to pay anything over and above your installment you need to add your loan account as a beneficiary on your internet banking and then pay the additional amounts if and when you have the means.
Click to expand...

What he said
 
I got her today

I only got this one pic for now

I ended up borrow money from my uncle
ps. click on pic to enlarge if you want
 
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