Residual or 72 months?

[Bionic]

Wassup gents!

I am considering purchasing a new vehicle but the installments are kinda out of my bracket.I have considered not to choose residual but just dep and finance over 5 yrs.

So the lady offered me a deal over 6 years and it seems better ,offcourse.

I want to know from experience which is better or not.Residual or longer term.

What factors do i need to consider??

Thanks

 

[Ou grote]

Wassup gents!

I am considering purchasing a new vehicle but the installments are kinda out of my bracket.I have considered not to choose residual but just dep and finance over 5 yrs.

So the lady offered me a deal over 6 years and it seems better ,offcourse.

I want to know from experience which is better or not.Residual or longer term.

What factors do i need to consider??

Thanks

First you need a calculator, or spreadsheet...

 

[Anony-mousse]

Depends on how long you wanna keep the car. If you plan on getting a new one after 3 years again I'd get it with residual, if you wanna keep it as in forever then without residual, makes things easier.

Many people will tell you stay away from residual but it entirely depends on your situation.

 

[Bosvark@]

Residual can be a nasty thing - maybe look at a car more in your budget.

 

[shizies]

take the purchase price of the car and have the sales lady after blowing you work out the amount you will be paying with the various options she's given you. then depending how good at blowing she is, you decide.

 

[D3x!]

maybe look at a car more in your budget.

this is the sensible thing to do.

but yes out of the two options a lot would depend on total repayment over time and how long you plan to keep the car.

take the purchase price of the car and have the sales lady after blowing you work out the amount you will be paying with the various options she's given you. then depending how good at blowing she is, you decide.

wow

 

[Bionic]

Well i am interested in the new KIA cerato koupe so I dont think the resale value will be that great after 3 years.....Perhaps need to look at something else!

 

[D3x!]

Well i am interested in the new KIA cerato koupe so I dont think the resale value will be that great after 3 years.....Perhaps need to look at something else!

lol at sig and car choice

Ps. not that I have any issue with Kia , so that is around R215k,

so without prying too much, would you be able to afford the current payments over 6 years instead of 5?

i.e in order to work out what your desired budget should be.

 

[Paul_S]

Well i am interested in the new KIA cerato koupe so I dont think the resale value will be that great after 3 years.....Perhaps need to look at something else!

It may surprise people but some of the lesser trusted brands actually keep their value very well.

For example the 2010 Kia Cerato 2.0 kept 77.6% of it's value after one year according to the Auto Dealers’ Guide.

That's better than the :
Alfa Romeo 159 1.9 JTS: (R303 500) R195 300 - 64.3%
Citroen C3 1.6: (R148 500) R94 700 - 63.8%
Citroen C4 1.6: (R185 000) R130 300 - 70.4%
Dodge Caliber 1.8: (R206 900) R154 800 - 74.8%
Fiat Bravo 1.4 T-Jet: (R252 100) R192 500 - 76.4%
Ford Focus 1.8: (R196 910) R148 400 - 75.4%
Jeep Grand Cherokee 3.0 CRD: (R517 126) R393 500 - 76.1%
Mazda3 1.6: (R236 440) R180 100 - 76.2%
Mitsubishi Lancer 2.0: (R241 413) R179 700 - 74.4%
Mini Cooper 1.6S: (R290 723) R221 900 - 76.3%
Nissan Xtrail 2.0 4x2: (R288 900) R218 800 - 75.7%
Peugeot 308 1.6: (R197 500) R145 900 - 73.9%
Renault Clio 1.2 Va Va Voom: (R117 000) R86 800 - 74.2%
Ssangyong Actyon XDi 4x4: (R259 995) R185 500 - 71.3%
Subaru Forester 2.5: (R314 000) R243 000 - 77.4%
Suzuki Grand Vitara 2.4: (R322 900) R246 500 - 76.3%
Tata Indica 1.4: (R89 995) R66 900 - 74.3%
Toyota Yaris T3: (R171 500) R130 600 - 76.2%
Volvo C30 T5: R308 000 (R234 700) - 76.2%

The trusted Toyota Corolla 1.6 only kept 78.3% of it's value which is a whopping 0.9% better than the Kia Cerato 2.0.

Source: http://www.iol.co.za/motoring/industry-news/resale-values-we-name-best-and-worst-1.1017906

If you can barely afford the car then I'd recommend buying something else or second hand.
Make sure you don't forget to factor in insurance which is usually over R1000 per month for a "performance vehicle".
It seems as if insurance companies regard anything larger than 1600cc as a performance vehicle.

 

[Bionic]

lol at sig and car choice

Ps. not that I have any issue with Kia , so that is around R215k,

so without prying too much, would you be able to afford the current payments over 6 years instead of 5?

i.e in order to work out what your desired budget should be.

Yeah.....german engineering for years dude!!Really want to buy a new VW but they are damn expensive !Yes i can afford KIA over 6 years .Car is R220 so budget should then be around between R170 - R200k

 

[Bionic]

It may surprise people but some of the lesser trusted brands actually keep their value very well.

For example the 2010 Kia Cerato 2.0 kept 77.6% of it's value after one year according to the Auto Dealers’ Guide.

That's better than the :
Alfa Romeo 159 1.9 JTS: (R303 500) R195 300 - 64.3%
Citroen C3 1.6: (R148 500) R94 700 - 63.8%
Citroen C4 1.6: (R185 000) R130 300 - 70.4%
Dodge Caliber 1.8: (R206 900) R154 800 - 74.8%
Fiat Bravo 1.4 T-Jet: (R252 100) R192 500 - 76.4%
Ford Focus 1.8: (R196 910) R148 400 - 75.4%
Jeep Grand Cherokee 3.0 CRD: (R517 126) R393 500 - 76.1%
Mazda3 1.6: (R236 440) R180 100 - 76.2%
Mitsubishi Lancer 2.0: (R241 413) R179 700 - 74.4%
Mini Cooper 1.6S: (R290 723) R221 900 - 76.3%
Nissan Xtrail 2.0 4x2: (R288 900) R218 800 - 75.7%
Peugeot 308 1.6: (R197 500) R145 900 - 73.9%
Renault Clio 1.2 Va Va Voom: (R117 000) R86 800 - 74.2%
Ssangyong Actyon XDi 4x4: (R259 995) R185 500 - 71.3%
Subaru Forester 2.5: (R314 000) R243 000 - 77.4%
Suzuki Grand Vitara 2.4: (R322 900) R246 500 - 76.3%
Tata Indica 1.4: (R89 995) R66 900 - 74.3%
Toyota Yaris T3: (R171 500) R130 600 - 76.2%
Volvo C30 T5: R308 000 (R234 700) - 76.2%

The trusted Toyota Corolla 1.6 only kept 78.3% of it's value which is a whopping 0.9% better than the Kia Cerato 2.0.

Source: http://www.iol.co.za/motoring/industry-news/resale-values-we-name-best-and-worst-1.1017906

If you can barely afford the car then I'd recommend buying something else or second hand.
Make sure you don't forget to factor in insurance which is usually over R1000 per month for a "performance vehicle".
It seems as if insurance companies regard anything larger than 1600cc as a performance vehicle.

Hmmm...Interesting !! Insurance wont be a problem since company covers that

 

[D3x!]

Yeah.....german engineering for years dude!!Really want to buy a new VW but they are damn expensive !Yes i can afford KIA over 6 years .Car is R220 so budget should then be around between R170 - R200k

I know the koup is hot but if you bring it down to under R200k what about the normal cerato ?R205 k for the 2.0L Man or R185k for the 1.6L Man

obviously at the end of the day it is your decision, just giving options.

Hmmm...Interesting !! Insurance wont be a problem since company covers that

you lucky b@stard!

 

[Bionic]

Really want an automatic.Tired of manual in traffic.Want a change.

 

[Brawler]

If you going to keep the car for ages rather get the Koup than a 50 000km GTI or something similar.

If you are planning on keeping the car rather go 72m - although I would never that such a long term HP, I'd rather get something cheaper.

 

[HavocXphere]

Neither preferably. Would be better to pick a car in your price range. If you absolutely must though, go for longer term...dealing with a one shot heavy payment is difficult unless you have some mad discipline & save up for it.

And if you do have extra cash to save up for it anyway then you might as well buy it straight without residual or long term...which you said you can't.

Remember if you go for extended repayment then you also must actually keep the car that much longer....else it doesn't work.

In summary: Whichever way you spin it if its not in your price range then its not in your price range.

 

[Bionic]

Yeah..Thanks for the advice guys !

 

[Fazda]

Subaru Forester 2.5: (R314 000) R243 000 - 77.4%

An interesting one, as I doubt you will ever find a Forester that was originally sold for R314 000. That was the "Suggested" retail price and we never sold one for more than R289 990

That would then equate to 83.79% of original purchase price...makes you think...

 

[Ou grote]

Hmmm...Interesting !! Insurance wont be a problem since company covers that

I know the koup is hot but if you bring it down to under R200k what about the normal cerato ?R205 k for the 2.0L Man or R185k for the 1.6L Man

obviously at the end of the day it is your decision, just giving options.



you lucky b@stard!

We used to have a car scheme at work, but every year SARS increases the fringe benefit tax.
So now the scheme is over.

In a few more years the only company cars will be government sponsored.

 

[milomak]

work out which one entails you paying the most money.

to make the comparison a good one (especially if the numbers are close) is to take into account time value of money.

and there is nothing wrong with going with residual if you have run the numbers and decided that it works in terms of your financial situation

 

[bumblebee]

Unless you current vehicle is giving you problems, why not save the actual payment (Incl insurance) you would make on the Kia for six months before getting the car?
This serves 2 purposes:
Getting you to adjust your budget and realize the actual cost of the vehicle to you before you are stuck with it
Saving up a decent deposit which will actually make the car cheaper should you choose to proceed.

There was a study a while back that made a lot of sense to me, which essentially said you enjoy the anticipation of a purchase more than the actual purchase. So spoil yourself for 6 more months and put yourself in a better position at the same time.