HP Innitiation fee ?

[dunkyd]

Wesbank quoting just shortof 6 thousand Ront !!!!
On a 110,000 car deal.

 

[ColonelJAck]

Over 24 months?

Oh sorry. Initiation fee :erm:
I thought installments.
Geeez. Thats crazy.

 

[supersunbird]

I thought there is a limit of maximum R1140 (incl VAT)...

http://www.iol.co.za/news/south-afr...-charge-initiation-fees-1.464997#.UtymtBsaLYU

 

[dunkyd]

Its a quote for a car for my daughter over 72 months.
Should she rather go for 60 months ?

 

[HapticSimian]

Wesbank quoting just shortof 6 thousand Ront !!!!
On a 110,000 car deal.

Doesn't sound right. The initiation fee is limited to R1,000 ex. VAT, and the monthly administrative fee to R50 ex. VAT. It is rather unlikely that any bank would quote figures foul of the regulations. Could you give a more specific breakdown of the figures you were quoted?

 

[Ianf1]

Ask the dealership to get quotes as well. Sometimes they get better rates and terms.

 

[dunkyd]

Doc says:
Repayment calculator Version 54 19 August.
Finance excl Vaps 69120
Purchase price 110,000
Deposit 50,000
Documents 3876
Initiation fee 5244
Rate 11%
Period 72
Repayments 1540
Warranty 95
Paint 35
Adcover 102
Payment 1642

 

[HapticSimian]

Documents 3876
Initiation fee 5244

It might - and should - be a simple mistake. The R1,140 maximum initiation fee isn't optional; it is regulated by the National Credit Regulator in accordance with Section C of Chapter 5 of the National Credit Act. So, yes, you must query it with the dealer. I would advise you tailor your further interaction with them to their response.

As for that 'Documents' fee: dealers are allowed to charge separately for licensing, registration, administration and any number of other incidentals, but I would ask them for a breakdown.

 

[Chevron]

It's probably because you're putting such a big deposit don relative to the finance amount that they'll make nothing off you.

 

[BloodBurner9000]

I made a hire-purchase with Koopkrag (they are in lynnwood, Pretoria) back in 2009. Don't know if they finance new vehicles, but the interest rate was a percentage point less if the vehicle to be financed was younger than 4 years.
Value of financing required then was R105 000.
R100 initiation fee (instead of the R1000 charged by everyone else.
Zero administration fees.
Better rate offered than MFC and Wesbank.

Things might have changed since then, but working with them was a pleasant experience.