Selling a FINANCED car:HOW?

Nerfherder said:
They said that I could pay it off quicker if I wanted to... I think that different finance houses might have different rules.
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The rules are all the same and you can interpret that statement in a couple of ways.

1. There is nothing to stop you from paying it off sooner...just rather silly as they are still going to chrage you the full interest rate.

2. IF YOU WANT TO SETTLE EARLY, you may do so, and extra finance charges will be dropped in your settlement figure. THAT is the best way to pay it off sooner...and it's usually done in the form of a trade in.
 
ALFAHOLIC said:
Can you OVERPAY on your monthly installment? I'm told you can't? Its not a HOUSE!!!

Or are the bank people just ONCE again out to get me?
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you can, but from what i understand it just ends up going towards the following months payment and so on, u can put down a payment to knock off the initial debt, but you have to tell your bank this is what you are doing, and they will readjust your monthly payments accordingly

PetrolHead said:
Sell a car at a profit?? Do tell us more please.

I am under the impression that unless you trade in classics, your car will be nothing more than a gigantic money hole sucking your wallet dry.
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i think he means sell it for more than you owe....very few ppl make any kind of a profit on a car.
 
Fazda said:
The rules are all the same and you can interpret that statement in a couple of ways.

1. There is nothing to stop you from paying it off sooner...just rather silly as they are still going to chrage you the full interest rate.

2. IF YOU WANT TO SETTLE EARLY, you may do so, and extra finance charges will be dropped in your settlement figure. THAT is the best way to pay it off sooner...and it's usually done in the form of a trade in.
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What she explained was that I could pay in extra money when I had it and it would reduce the repayment period.
In the same way that putting money on your credit card before interest is calculated reduces the interest charged for that month.
 
Nerfherder said:
What she explained was that I could pay in extra money when I had it and it would reduce the repayment period.
In the same way that putting money on your credit card before interest is calculated reduces the interest charged for that month.
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Sneaky...yes it does reduce the payment period, but won't reduce the finance charges...very sneaky indeed!!:rolleyes:
 
Nerfherder said:
What she explained was that I could pay in extra money when I had it and it would reduce the repayment period.
In the same way that putting money on your credit card before interest is calculated reduces the interest charged for that month.
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you need to inform the bank that you are adding extra money to the lump sum, otherwise they deduct it as stated in this thread...
 
Nerfherder said:
I think you missunderstood.

I refering to the fact that if you finance the car and try and sell it before 3 years you will not cover the outstanding finance and will have to pay in.

You will never make a profit on a car unless it becomes a collectors item.
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My Ford Bantams settlement amount is R75 000 and I can sell it for R85 000... do I win a prize? :p
 
Fazda said:
The rules are all the same and you can interpret that statement in a couple of ways.

1. There is nothing to stop you from paying it off sooner...just rather silly as they are still going to chrage you the full interest rate.
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Of course your interest rate (prime+1, for example) will stay the same. I suspect you meant to say that the total interest calculated for the deal over x months will stay the same, even if you put in extra and pay it off over y months. If that is the case, you are incorrect.

Interest is calculated daily or monthly (depending on loan) on outstanding capital amount - any extra cash you put into the loan is deducted from this capital amount and hence the total amount of interest paid will be less. All 3 of my previous car loans (Wesbank, Absa and AA finance) have all been like this - I confirm in writing before signing on the dotted line.
 
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lol - moral of the finance story is...buying a car with finance is ALWAYS A LOSS!!! only if you buy a vintage and then keep it for 20 odd years and sell it for 3 times what you paid for it.
 
ALFAHOLIC said:
lol - moral of the finance story is...buying a car with finance is ALWAYS A LOSS!!! only if you buy a vintage and then keep it for 20 odd years and sell it for 3 times what you paid for it.
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Absolutely! :D My Wolseley is now worth nearly 4 times what I paid for it in 2004.

If I had the cash right now, I would buy a low mileage Series III Jaguar XJ6 and put it in mothballs.

5 years ago you could pick up a Series 1 XJ6 for whatever you had in your wallet...decent ones are now hitting around 70k...time to buy smart guys. ;)
 
Slootvreter said:
That R10,000 is not profit ;)
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Did I say it was? :p In the 1.5 years I have had the bantam obviously I had to pay interest, but I was also able to get reliably to work to earn my salary which is much more than the interest.

That R10 000 does mean that I don't have to pay extra in if I want to sell my bakkie. It means I will have come cash directly and then also R2700 a month saved (payment+insurance)...

Mmmmm... maybe I SHOULD sell it and pay of the bond quicker? :confused:
 
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