Settle Car??

[Noob-Noob]

This might sound like a real stupid question to some,

But let’s say you get 300k somewhere, and i have a lot of thing i need to pay off, one of them is my car.
Now my question is, if i have 300k in a savings account (debit card), how in the heck do i settle a car of 120k that’s with another bank?

If the cash was in my credit card, will this make a difference?, can i settle a car with my online banking?, just a simple “pay beneficiaries” function?, im with ABSA and the car with WESBANK

 

[F1 Fan]

Yes, if you have 300k with pn the debit card, you would use online banking and do an eft to the loan account of the car. Keep in mind, if you want to settly, you have to notify the bank first, otherwise you could incurr penalties.

If the cash is on your credit card, you could still do an eft out.

 

[Vegeta]

Depending on my age I wouldn't settle the car. I'd rather invest(wisely, investing like a moron doesn't help) the 300k and payoff the car as per usual maybe put in a little more each month to pay it off faster.

If a good investment isn't an option I'd rather payoff any bond I may have. Or maybe even sell the car for the 120k settlement(if its costing me to keep it) and buy something cash for below R50k (small, reliable, easy to fix... always risky though if spending that little)

 

[F1 Fan]

Depending on my age I wouldn't settle the car. I'd rather invest(wisely, investing like a moron doesn't help) the 300k and payoff the car as per usual maybe put in a little more each month to pay it off faster.

If a good investment isn't an option I'd rather payoff any bond I may have.

I disagree, you incurr crazy amounts of interests on a car. By paying it off, you have an asset owned by you completely and you won't incurr interest charges.

 

[Beachless]

Phone wesbank and get a settlement amount.
Then login to your internet bankin and up your daily transfer limit to more than that figure.
Make once off payment to the westbank account.
Set limit to something more reasonable.

Phone wesbank to arrange for car papers to be delivered to you.
Take those documents to the Licensing Dept and transfer car from banks name to your name.
Possibly inform insurance of name change.

Resist the urge to buy new car.

 

[riscbroker]

Yes, if you have 300k with pn the debit card, you would use online banking and do an eft to the loan account of the car. Keep in mind, if you want to settly, you have to notify the bank first, otherwise you could incurr penalties.

If the cash is on your credit card, you could still do an eft out.

Yip, tell the bank you want to settle and they will send you a letter/fax/email with the exact amount and validity.

 

[Sinbad]

Settle the car and invest the equivalent of the monthly repayments.

 

[*SynergyX*]

the problem here is that you have 300K -- and still have a lot of things to pay off? why? how?
do you like to hoard money in your bank account? could be saving tons on the interest you paying everywhere

 

[SauRoNZA]

I disagree, you incurr crazy amounts of interests on a car. By paying it off, you have an asset owned by you completely and you won't incurr interest charges.

A depreciating asset.

So if you have other debts linked to assets that don't generally depreciate (such as a house) then it makes more sense to settle those or take a large chunk off the remaining capital balance, rather than settling a car which will be worth less and less as time goes by.

 

[supersunbird]

A depreciating asset.

So if you have other debts linked to assets that don't generally depreciate (such as a house) then it makes more sense to settle those or take a large chunk off the remaining capital balance, rather than settling a car which will be worth less and less as time goes by.

Well, in all honesty it will depend on his vehicle loans interest rate. Say the car is at 14%, then pay off the car. If the cars interest rate is at say 8.5% then invest.

 

[supersunbird]

the problem here is that you have 300K -- and still have a lot of things to pay off? why? how?
do you like to hoard money in your bank account? could be saving tons on the interest you paying everywhere

He said he got it somewhere... :erm:

inheritance/lotto second division/ABSA-MTN sim swap fraud/who knows where!

 

[unskinnybob]

No investment income will beat the interest you're paying on you car. Get a bank cheque from your bank, take it to your vehicle finance bank. Presto!

 

[Sinbad]

A depreciating asset.

So if you have other debts linked to assets that don't generally depreciate (such as a house) then it makes more sense to settle those or take a large chunk off the remaining capital balance, rather than settling a car which will be worth less and less as time goes by.

***.
Settle the ones with the highest interest rate first. Guaranteed that's NOT your house.

The amount for which you can realise the asset makes no difference to the interest you pay on it.

 

[Maverick Jester]

***.
Settle the ones with the highest interest rate first. Guaranteed that's NOT your house.

The amount for which you can realise the asset makes no difference to the interest you pay on it.

Yeah, agree with you there... Sorry SauRoNZA, but that statement didn't read properly at all...

 

[ABCpt]

Resist the urge to buy new car.

This being the most difficult part.

 

[SoulTax]

@OP, as far as your main question goes. As has already been said. Phone Wesbank and ask for a settlement amount. Inform them that you wish to settle. They will give you the amount and when it is valid until. Double check the banking details with them and do the EFT. Fax/email them the proof of payment so that they can start the ball rolling on the paperwork.
Arrange when and where the paperwork will be sent/collected by you. I had to go to the Wesbank office myself when settling my car. Take the paperwork that they give you and head to the licensing dept.
Inform Insurance of name change once complete.

 

[Noob-Noob]

okay let me come clean
I have property so i want to take out a bond on the property

currently i am paying the car which is 2700pm, then my credit card is R2500pm, then some other dept is R1200pm, this adds up to R6400pm, currently i don’t have that cash (also thanks to life circumstances)
The loan amount on the house is 300k at R2700pm, so basically i will have R3700 extra, which is money i really need

So all i can do is take out a loan, but it’s not all bad, after i paid all my skuld is want to use the other 150k on home renovations and upgrades, with my current salary i wont be able to ever fix anything on the house, like in never....

Dont know if this will help
Bond at 8.0%
Car at 12%

And thanks for all the replies!!

 

[SauRoNZA]

***.
Settle the ones with the highest interest rate first. Guaranteed that's NOT your house.

The amount for which you can realise the asset makes no difference to the interest you pay on it.

Home Loan = 20 Years

Car Loan = 5 Years.

20 Years = Considerably more interest even if the rate appears to be lower. Therefore taking out a massive chunk of the capital balance remaining to be paid brings the effective interest down considerably especially if you continue to pay the instalments at the rate you were paying them before.

Car is a relatively static cost which will simply lose it's value regardless. Paying your house off faster means you can buy another one or make alternative investments.

Car = Short-term Goal to achieve transport.

House = Longterm goal to achieve financial independence.

Car doesn't get paid you give it back to the bank and take the train.

House doesn't get paid and you have nowhere to live.

 

[SauRoNZA]

okay let me come clean
I have property so i want to take out a bond on the property

currently i am paying the car which is 2700pm, then my credit card is R2500pm, then some other dept is R1200pm, this adds up to R6400pm, currently i don’t have that cash (also thanks to life circumstances)
The loan amount on the house is 300k at R2700pm, so basically i will have R3700 extra, which is money i really need

So all i can do is take out a loan, but it’s not all bad, after i paid all my skuld is want to use the other 150k on home renovations and upgrades, with my current salary i wont be able to ever fix anything on the house, like in never....

Dont know if this will help
Bond at 8.0%
Car at 12%

And thanks for all the replies!!

120k Car at 12% over 5 years = R72 000

300k House at 8% over 20 years = R 480 000 (120k per 5 years if you divide by four)

So the home loan would in fact cost you more based on that very quick calculation.


All of that being said what you want to do is kill that credit card first, it will have the highest interest rate of them all.


Sure from a monthly expenditure point of view it will solve your problem all things considered and the home loan amount probably offsets all the other debts paid together.

However from a financial point of view you are trying to fix other mistakes by making another.


I would highly advise you go to your bank and chat to them about debt consolidation, if you do it now and you run into serious trouble later then they'll actually care about helping you out. If you default on payments they will come after you and your life will be over.

Banks aren't really all that evil.

 

[Sinbad]

120k Car at 12% over 5 years = R72 000

300k House at 8% over 20 years = R 480 000 (120k per 5 years if you divide by four)

So the home loan would in fact cost you more based on that very quick calculation.


All of that being said what you want to do is kill that credit card first, it will have the highest interest rate of them all.

OK, now tell the full story. ADD the car repayment you would have made each month to your bond repayment after you settle the car, and then work out the overall interest cost for the two scenarios.