Interest Rate Options

[Myzer]

Hi All

I'm currently pruchasing a new vehicle and the financed amount at the end of the day will be approx. R100 000.00

So far these are the two best deals.

Wesbank 9.9% Fixed interest Rate
Standardbank 9.5% linked interest Rate.

So what would be the better option to go for Linked or fixed?

Baring in mind the prime interest rate is 8.5% and is pretty stable at the moment might even go down?

Cheers

 

[supersunbird]

Wesbank fixed rate is pretty decent for a fixed rate and the SB rate sucks a bit. Whats your term of finance? 5 years?

 

[Myzer]

Yes it will be 5 years, but if things go well am looking to pay it off in 3 years.

There only really about +- R1500 difference in interest end of the day.

But like all things in life going with a linked rate is always risky.

 

[trueza7]

I would take Wesbank fixed, for two reasons:
- Wesbank is just better (great online interface, no issues, etc)
- Interest rate is not going to go down anytime soon according to analysts, but it may go up. So it's less risky to fix your rate.

Perhaps ask Wesbank to consider coming down to 9.5% fixed, and then take it?

 

[Beachless]

What are the monthly fees like?

Sometimes they make the lower interest rate more expensive.

 

[ToxicBunny]

9.5% linked?

Thats prime +1.. Thats a bonkers rate for a linked finance agreement.

Interest rate won't go down anytime soon, but I don't see it going up for far either anytime soon...

I would tell SB to make it Prime, linked.. and you will consider it.

I would also talk to Nedbank and ABSA as well, play all 4 banks off against each other.

 

[AlmightyBender]

Fixed at that rate is nice. You can budget ahead with accuracy

 

[ToxicBunny]

What are the monthly fees like?

Sometimes they make the lower interest rate more expensive.

Monthly fees are legislated, they cannot be massively different between banks.

 

[Chevron]

Hi All

I'm currently pruchasing a new vehicle and the financed amount at the end of the day will be approx. R100 000.00

So far these are the two best deals.

Wesbank 9.9% Fixed interest Rate
Standardbank 9.5% linked interest Rate.

So what would be the better option to go for Linked or fixed?

Baring in mind the prime interest rate is 8.5% and is pretty stable at the moment might even go down?

Cheers

That fixed rate is good. When I got my car a year ago it was 9.75% linked. Obviously it's gone down, since prime went down. So I still say take the linked if you want peace of mind.