Pay off residual faster

[Dolby]

Hi,

I've got a R60,000.00 residual on my car and was wondering if the banks allow you to pay off the residual over the period?

For example I still have 30 months left of my contract. Can I purt in R1000.00pm and have a residual of R30,000.00 at the end?

 

[CaTcH21]

Yes i think you can do that, but phone the bank to confirm.

 

[thatdamnJoe]

A warning to others

You should never buy a car with residual value. It only means you're buying a more expensive car than you can afford. And that rarely, if ever, ends well...

 

[JK8]

Hi,

I've got a R60,000.00 residual on my car and was wondering if the banks allow you to pay off the residual over the period?

For example I still have 30 months left of my contract. Can I purt in R1000.00pm and have a residual of R30,000.00 at the end?

Yes they can draw up a new payment plan, they wont like it, because they losing on the interest.

 

[Dolby]

A warning to others

You should never buy a car with residual value. It only means you're buying a more expensive car than you can afford. And that rarely, if ever, ends well...

Except if you have a plan.

I can clear the full car today if needed - however a few people have told me rather not to and buy shares instead - especially as the share price is low right now.

The story is R60,000.00 in shares now will (hopefully) result in more than that in 30 months.

I'm not a finance guy - but I have asked a numerous people and the majority agree.

 

[.geek]

That's a massive risk.