Hyundai Deal ...is it worth?

[shaz1983]

Good pple!

I am on the market in search of a good second hand vehicle...so I approached a dealership and spotted something I was interested in. To cut the long story short

2011 Hyundai i10 vehicle with 95 000km with a retail price of R79 900. Bank is requesting a deposit of R20 000.00 at a fixed interest of 17% over 48 months. Then monthly repayment is R1 950.00 excluding insurance

My question is this deal worth it...bank reason is am a first time buyer and foreign national that's why interest is so high!!!

Please advise ...........by the way saved deposit is 8k

 

[Pitbull]

Good pple!

I am on the market in search of a good second hand vehicle...so I approached a dealership and spotted something I was interested in. To cut the long story short

2011 Hyundai i10 vehicle with 95 000km with a retail price of R79 900. Bank is requesting a deposit of R20 000.00 at a fixed interest of 17% over 48 months. Then monthly repayment is R1 950.00 excluding insurance

My question is this deal worth it...bank reason is am a first time buyer and foreign national that's why interest is so high!!!

Please advise ...........by the way saved deposit is 8k

Sounds right. Your total repayment will be R 113 600. Which isn't too bad. Unfortunately with you being a first time buyer you're going to struggle getting a better rate. If you want a better rate, get your dad or someone to buy it for you. Just remember you will always still be a first time buyer till you buy a car yourself. Maybe just buy it to get it out of the way and in 3 year buy something else and get a better rate.

 

[Fazda]

Even for a first time buyer, that rate is steep.

Obviously much depends on your borrowing profile, however, I think you should approach your own bank and see if they can give you a better deal.

Mileage is fairly high for the age of the car - should be approx 20 000/year.

 

[Brawler]

That is a very high interest rate! I got 11% as a first time buyer.

 

[Edwe]

Semi-related hypothetical question: could you get around this by financing your first car over a very short term (say six months)? I am going to have to buy my first financed car in the next 12 months and am weighing up:

1. Buying with a small deposit sooner,
2. Saving up and buying cash, or
3. Saving up till I can afford to buy cash and then financing anyway (over the shortest possible term).

I am considering 3, because I assume this will improve my credit record, which will pay off when I want to buy property.

 

[Pitbull]

Semi-related hypothetical question: could you get around this by financing your first car over a very short term (say six months)? I am going to have to buy my first financed car in the next 12 months and am weighing up:

1. Buying with a small deposit sooner,
2. Saving up and buying cash, or
3. Saving up till I can afford to buy cash and then financing anyway (over the shortest possible term).

I am considering 3, because I assume this will improve my credit record, which will pay off when I want to buy property.

Massive deposit, small repayment - 12 months or so. Would do your credit score heaps of good. So Option 3. But as short as possible due to the interest. I would say 6 months at least.

 

[Edwe]

Massive deposit, small repayment - 12 months or so. Would do your credit score heaps of good. So Option 3. But as short as possible due to the interest. I would say 6 months at least.

Thanks, that more or less confirms my thinking. Will keep my current ride on the road with duct tape and prayers until January, then put ~60% deposit down, and pay the remainder over as short a term as they allow.

 

[shaz1983]

The repayment of the vehicle is not over 48 months, its actually over 72 months... is this deal still worth it then?

 

[Pitbull]

The repayment of the vehicle is not over 48 months, its actually over 72 months... is this deal still worth it then?

Eish, at that repayment?

You'll be paying R 160 400 for a car worth R 79 900?

You decide if it's a good deal or not

 

[etienne_marais]

The repayment of the vehicle is not over 48 months, its actually over 72 months... is this deal still worth it then?

Personal opinion, yes, it's still a reasonable deal.

 

[Fazda]

The repayment of the vehicle is not over 48 months, its actually over 72 months... is this deal still worth it then?

No! You must be crazy!

You would be paying almost double the value of a 10 year old car!

It surprises me that the bank even OK's it!

 

[Hemi300c]

Shop around for finance.

 

[Pitbull]

No! You must be crazy!

You would be paying almost double the value of a 10 year old car!

It surprises me that the bank even OK's it!

Why won't they? More interest

I won't buy this vehicle then no. If normal 48 months as in the OP then yes, it's an okish deal. But 72 months? Fark no

 

[Fazda]

Why won't they? More interest

I won't buy this vehicle then no. If normal 48 months as in the OP then yes, it's an okish deal. But 72 months? Fark no

Banks are usually pretty sticky on the length of time that you can finance a used vehicle - 72 months is stretching it on a new one, and unlikely to be Okayed on a Used one.

 

[ToxicBunny]

Banks are usually pretty sticky on the length of time that you can finance a used vehicle - 72 months is stretching it on a new one, and unlikely to be Okayed on a Used one.

They are usually quite happy to finance over 72 months on even used vehicle.

 

[Fazda]

They are usually quite happy to finance over 72 months on even used vehicle.

There is a cut-off on the Used side - I cannot recall the exact age, but 72 is approached with care.

 

[TEXTILE GUY]

Mileage is fairly high for the age of the car - should be approx 20 000/year.

THis ^^ - i10 small car .... mmmm.

 

[shaz1983]

Thank you all for the informative responses, have decided keep looking for finance. I cancelled the Hyundai deal!

 

[Pitbull]

Thank you all for the informative responses, have decided keep looking for finance. I cancelled the Hyundai deal!

Great call. You will find a good deal out there.
I just can't see how paying R 160k for a R 80k car is actually allowed. Just insane. You make a good choice

 

[Sapcat]

OP if you still interested in a I10, Pm me. I can get you a 2014 with 24000kms for just R13 000 more.