Interest rate slaughter

N

Nangi

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So I just ordered a new Polo... 1.6 C/Line, Metallic blue, Panoramic sunroof, cruise, arm rest, RCD-320, 5yr 60 000km service plan.

After a R21000 discount because there's a new one due, became R232 000. Theyr giving me R20 000 for a 2005 Renault Clio 1.2 16v with 211 000kms (Dad's car, letting me use it as a deposit so I cant really complain about that).

The best interest rate they can offer me is 13.5%, apparently MFC refused (1st time buyer, been working for 4 months only). I'm taking VW insurance at R399. Is there a way to renegotiate the interest rate at a later stage when I have a better credit score? Or am I stuck with this interest rate until the car is paid off (planning to keep the car until it falls apart, that's if someone doesn't steal it)

Edit: added the 16" alloys too
 
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Roux will be along shortly to tell you what an idiot you are by buying a VAG product.

Also AFAIK you can't renegotiate the interest rate at a later stage.
 
You can't renegotiate at a later date.

Also 13.5% is absolutely ridiculous. I would not be biting at that value. Does the Renault Clio still work fine? If so drive that for a few more months.
 
This:

"Also AFAIK you can't renegotiate the interest rate at a later stage. "

and this:

"you what an idiot you are by buying a VAG product."
 
Well done on buying a VAG product!! :D

First time buyer and Prime plus 4 is about right, so you will be stuck with this rate for the next 5 years, then you should be able to negotiate a decent deal when you buy your 2019 Golf 8 ;)
 
You're pretty lucky to be getting finance after working for only 4 months. BMW Finance was going to offer me 11.5% as a 1st time buyer, but I had 0 credit record and so the vetting process fell over.
 
I called the lady and told her that 13.5% is too much, she said she'l get back to me.

I'm not much of a VW fan, but the discount and R399 insurance sold me. I was being quoted around R1800p/m for insurance (22 male FTL). Wanted a Rio Tec.

So it was VW Polo at R399 insurance and R21 000 discount, or cheaper car (i.e. Sandero Stepway, Rio 1.2, etc etc). It was a no brainer. Polo will be around R1200 from next year according to the quotes I got (pretending to be a year older, older licence etc etc), which I'm willing to pay.
 
XennoX said:
You're pretty lucky to be getting finance after working for only 4 months. BMW Finance was going to offer me 11.5% as a 1st time buyer, but I had 0 credit record and so the vetting process fell over.
Click to expand...

I got a credit card, bought a R10 000 camera then paid it off, and also got a cellphone contract. Apparently those things help a bit.
 
Fazda said:
Well done on buying a VAG product!! :D

First time buyer and Prime plus 4 is about right, so you will be stuck with this rate for the next 5 years, then you should be able to negotiate a decent deal when you buy your 2019 Golf 8 ;)
Click to expand...

A3 Sedan definitely, Golf? No thanks!
 
On that capital amount 1% change in interest will equate to roughly R100 p/m. Keep that in mind when plotting your course.
 
HapticSimian said:
On that capital amount 1% change in interest will equate to roughly R100 p/m. Keep that in mind when plotting your course.
Click to expand...

about that... I'm being offered 14.5% linked, which is even more ridiculous. difference is about R160. R160 "security fee" worth it?
 
Nangi said:
about that... I'm being offered 14.5% [-]linked[/-] fixed, which is even more ridiculous. difference is about R160. R160 "security fee" worth it?
Click to expand...

FTFY I assume?

If there is ever a time to take a fixed rate rather it's now, as the next shift in rates will invariably be up. That said, see what they come back with - you might end up being able to fix at or near the first linked offer?
 
On my first car, I asked MFC to re look at my interest rate (about a year in) and they dropped it by 0.5%.
This isn't much, but they definitely do these things.

I read that you can ask for them to re-look at it every 6 months.
 
Fazda said:
Well done on buying a VAG product!! :D

First time buyer and Prime plus 4 is about right, so you will be stuck with this rate for the next 5 years, then you should be able to negotiate a decent deal when you buy your 2019 Golf 8 ;)
Click to expand...

Yip... might as well get your credit rating up in the mean time.

Also... R240k on your first car ???

Dude. You are asking for trouble and that insurance looks way too cheap for a polo
 
TehStranger said:
Roux will be along shortly to tell you what an idiot you are by buying a VAG product.
Click to expand...
Au contraire! Well done and congratulations. To improve your credit score I would suggest you only keep this car for 9 months and then get a S3 sedan.
 
R1200 for insurance on a Polo?!?!?!

WTF! That is not even vaguely in the realms of acceptable, I would tell the insurance company to go and get knotted if they presented me with a quote like that.
 
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