Interest rates

Heisenborg

Heisenborg

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Hi guys

I am buying a new car and got offered the following:

Linked: Prime + 1%
Fixed: Prime +3%

Im thinking of going linked, what are your guys' feeling on this.
 
I'm sure others better informed will chime in, but the projections I've heard are of a slow climb in rates, probably towards 10% by year-end. I would hazard that linked is still likely to work out better if buying now.
 
I also think linked should still be good... I got 8.6% recently. Have you shopped around? There are lots of things to factor in obviously, but just make sure you get the best possible rate.
 
Quantum Theory said:
I also think linked should still be good... I got 8.6% recently. Have you shopped around? There are lots of things to factor in obviously, but just make sure you get the best possible rate.
Click to expand...

Its a massive special Ford is running, only drawback is i have to use Ford Credit, so cant shop around
 
rakabos3 said:
Its a massive special Ford is running, only drawback is i have to use Ford Credit, so cant shop around
Click to expand...

Ah, okay... If you get a very good deal, an extra 1% should be okay. Just make sure a better percentage elsewhere will not be a better deal, even without the special's discount.
 
The Fixed rate will have been calculated by the bank to give them at least a similar projected return as the linked rate...

So I would go Linked...
 
+3 is quite high for fixed, I'm currently on +0.75 fixed and that is on a 2nd hand car where I've found interest rates to be slightly higher than on new cars
 
grim said:
+3 is quite high for fixed, I'm currently on +0.75 fixed and that is on a 2nd hand car where I've found interest rates to be slightly higher than on new cars
Click to expand...

With the huge chunk off the price, Ford will likely be quite protective over their rate in this case. I can't see them retaining much, if any, profit on the car so any money made will be limited to the bank's incentive and fitted accessories, if any.
 
rakabos3 said:
Hi guys

I am buying a new car and got offered the following:

Linked: Prime + 1%
Fixed: Prime +3%

Im thinking of going linked, what are your guys' feeling on this.
Click to expand...

Be sure that the fixed rate is for the duration of the contract.

Ask yourself, how soon will that rate increase by 2% and then go above the fixed rate for this to be more beneficial? Fixed seldom works out better.

With inflation a bit lower there is even talk of no change in the interest rate this year.
 
Rates will go up, but I'm not sure that fixing it 2% above the linked rate would be good. SA 'needed' to push interest rates all of last year, and yet we held out.

How long are you financing the care for? Over a 5 year period, I'm not sure that you would save much, if at all, with the fixed rate.
 
Rates are likely to remain unchanged in the medium term. Much is dependant on the oil price. Price of food has slowly reduced because of oil.
 
Where do you bank?
Reason I ask, want to know whether Absa gives a decent rate even if you do not bank with them
 
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