Paying more into my Wesbank loan

[killerbyte]

So I currently owe R100k on my car.
Does Wesbank allow you to pay extra every month?
What is the process? Do I just transfer to that account? Or is it more complicated?

 

[Sinbad]

Yes, just transfer it

 

[killerbyte]

Yes, just transfer it

I have heard you got to contact them and get the extra money applied to the capital amount. Is this not the case?

 

[zerocool2009]

I have heard you got to contact them and get the extra money applied to the capital amount. Is this not the case?

Just call them and get the facts.

 

[Matt91]

I have heard you got to contact them and get the extra money applied to the capital amount. Is this not the case?

Yup otherwise you're just paying the interest.

 

[blowdart18]

Pay extra into the account each month.
Once it reflects, phone them and ask them to allocate.

Sometimes they will ask if you want to reduce your capital balance or if you want to reduce your remaining months.

Reducing your capital balance - your repayment will be less each month depending on how much you paid in.
Reducing your remaining months - your repayment will stay the same, however your period commitment will reduce.

Alternatively you can ask them to reduce the balloon if you have this on the vehicle.

 

[joker08]

I just paid into the account, they used to give me a rebate on the interest accrued on the principal amount.

 

[Sinbad]

I have heard you got to contact them and get the extra money applied to the capital amount. Is this not the case?

This is not the case.

They will give you an interest rebate every month based on how much extra you've paid in.

 

[Sinbad]

Yup otherwise you're just paying the interest.

Incorrect.

 

[Sinbad]

Just call them and get the facts.

I have given the facts.

 

[Matt91]

Incorrect.

Okay all knowing omniscient one.

 

[Sinbad]

Okay all knowing omniscient one.

No need to be sarcastic.

I have done this numerous times, I know exactly how it works, from experience.

 

[genetic]

I have heard you got to contact them and get the extra money applied to the capital amount. Is this not the case?

Nope. It's just like a regular account. You just transfer the money across.

 

[Matt91]

No need to be sarcastic.

I have done this numerous times, I know exactly how it works, from experience.

Wasn't trying to be a d!ck, but I'm talking from experience too. I had to specify where I wanted my extra payments to go toward, they just assumed I wanted to pay the interest off.

 

[genetic]

No need to be sarcastic.

I have done this numerous times, I know exactly how it works, from experience.

Me too. Paid two cars off early with Wesbank through my FNB account.

 

[Sinbad]

Wasn't trying to be a d!ck, but I'm talking from experience too. I had to specify where I wanted my extra payments to go toward, they just assumed I wanted to pay the interest off.

I think you are confused by the "contract balance" part of their statements. This is the _total_ amount outstanding including all interest which would be charged up until the end of the contract period. There is also a capital balance, and THAT is the number against which interest is actually charged.
Paying money into the account decreases both the contract and capital balance. The monthly interest charge is precalculated according to the amortisation table when you start paying the loan - which is why, when you reduce the capital balance, you then get an interest rebate based on the difference between the actual capital outstanding and the scheduled capital outstanding according to the initial amortisation.

 

[zerocool2009]

So its a flexi on wheels? Put in and borrow against if needed?

Thats what I mean by facts..

 

[Sinbad]

So its a flexi on wheels? Put in and borrow against if needed?

Thats what I mean by facts..

No, you cannot borrow against it. You can't transfer money back out of the wesbank account.

 

[genetic]

No, you cannot borrow against it. You can't transfer money back out of the wesbank account.

Yip - it's not a revolving credit account. You can only pay into it.

 

[zerocool2009]

Thanks for confirming, I never had any car finance before