Toyota GT86

Safrica said:
Slightly off topic freeway toyota doing a zero percent deal on 6 models (not 86) 25percent deposit 36 months to pay
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Yes, all Toyota dealers are doing that on 7 specific models - basically all saloons except the Etios - I mentioned that in the other thread.
 
Vlad said:
interested in hearing the argument in favour of financing? Unless you get a really good financing deal or some tax (or other) benefit I don't see why one wouldn't want to pay cash.

edit: e.g. if toyota gave me 0% interest, i'd obviously finance it
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Ok haldex has a point here peeps. Let me explain, very few rich people buy their high end cars in cash now im talking 3 4 million rand cars not toy M-powers and AMGs and stuff, even if they got the cash lying around

Firstly you never leave cash doing nothing. Cash is an employee it works for you to get more cash even if its just sitting in a bank earning interest. Now the payment via fiance has nothing to do with the dealership its between you and the bank. As a prestiege banker I get different rates from the average banker likewise the investec boys get WAAAAAY better deals with interest rates. In that scenario the more money they have in the bank the better fiancing things become.

Lets take a million rand spare cash. If you buy your car for a million rand what happens to that spare cash? it goes poof. Disappears completely. You invest in a Fixed deposit (for keeping it simple) for the full fiance period of 5 years. That generates on average 5% pa, so thats R50 000 interest per year so that R250 000 by the time the period of investment ends. A R250 000 extra you would of never had if you bought cash.

Now you guys are going to be thinking "oh but that wont exceed the interest .... ect ect ect" but remember the type of person that buys a million rand car usually earns about 40k + per month (well if they can spare 30k for the car there more elements involved here), they can also change the payment of the installments to free the car faster than the 60 month period. The investec class peeps for example will settle the car in 6 pay cheques or run it through one of many businesses and then use it as a tax write of later lol. So by doing this they can buy cars on the intrest from the bank (essentially get the car for free) or make a profit from buying the car, the car was R1 000 000 at the end of the 5 year period the bank cashes out R1 250 000 and they circumvented the interest by settling the bank ASAP. Now this is an example so dont flame me too much on the details im just trying to explain the concept, I know lots of people that do this, they fiance via a trust fund ect ect ect.

Now also you got to be careful when buying a car in this fashion. There is no point investing small amounts of cash cause it wont generate enough interest to circumvent the bank charges, so its a loss. Also when you invest in this manner you have to declare it to SARS and if the income from intrest pushes you into a higher tax bracket then you going to take HEAVY losses. This is when you turn that cash into an asset.

This only works for the very rich though. Its a loss for the average joe, even the better than average joe like me cant do this. I dont know if this is what he was trying to say but thats how its done. Realistically you looking at the interest method for cars over 2 million rand and a monthly income of about 100k+
 
RiaX said:
Ok haldex has a point here peeps. Let me explain, very few rich people buy their high end cars in cash now im talking 3 4 million rand cars not toy M-powers and AMGs and stuff, even if they got the cash lying around

Firstly you never leave cash doing nothing. Cash is an employee it works for you to get more cash even if its just sitting in a bank earning interest. Now the payment via fiance has nothing to do with the dealership its between you and the bank. As a prestiege banker I get different rates from the average banker likewise the investec boys get WAAAAAY better deals with interest rates. In that scenario the more money they have in the bank the better fiancing things become.

Lets take a million rand spare cash. If you buy your car for a million rand what happens to that spare cash? it goes poof. Disappears completely. You invest in a Fixed deposit (for keeping it simple) for the full fiance period of 5 years. That generates on average 5% pa, so thats R50 000 interest per year so that R250 000 by the time the period of investment ends. A R250 000 extra you would of never had if you bought cash.

Now you guys are going to be thinking "oh but that wont exceed the interest .... ect ect ect" but remember the type of person that buys a million rand car usually earns about 40k + per month (well if they can spare 30k for the car there more elements involved here), they can also change the payment of the installments to free the car faster than the 60 month period. The investec class peeps for example will settle the car in 6 pay cheques or run it through one of many businesses and then use it as a tax write of later lol. So by doing this they can buy cars on the intrest from the bank (essentially get the car for free) or make a profit from buying the car, the car was R1 000 000 at the end of the 5 year period the bank cashes out R1 250 000 and they circumvented the interest by settling the bank ASAP. Now this is an example so dont flame me too much on the details im just trying to explain the concept, I know lots of people that do this, they fiance via a trust fund ect ect ect.

Now also you got to be careful when buying a car in this fashion. There is no point investing small amounts of cash cause it wont generate enough interest to circumvent the bank charges, so its a loss. Also when you invest in this manner you have to declare it to SARS and if the income from intrest pushes you into a higher tax bracket then you going to take HEAVY losses. This is when you turn that cash into an asset.

This only works for the very rich though. Its a loss for the average joe, even the better than average joe like me cant do this. I dont know if this is what he was trying to say but thats how its done. Realistically you looking at the interest method for cars over 2 million rand and a monthly income of about 100k+
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Your still paying more finance charges and interest than you're making on your investment.

Bought my car and my bike cash. I'm not super rich.

5 years finance = 4 years (or less) savings.
 
well I know a couple of very rich people and they buy their stuff like that, they also explained how it makes more money. Also a friend of mine who does finance said it does work. As I said earlier it doesnt work with a small amount of money.

Even if you pay more you earn more if that makes any sense, because if you buy it from savings then you deplete those savings and you got to restore it, however if you use your current income to settle it ASAP you dont so your accounts still stay high and the money you earn through interest is still paying out alot.

Again look at the R1 000 000 example. At the end of 5 years that account becomes R1 250 000, how long will it take to have that account become R1 250 000 if you started from zero with say a 50k/month salary ? after sars medical aid insurance bank fees accounts groceries ect what you left with? say you left with 20k after all that to put away, it would take you 63 months to reach that figure again, considering nothing bad happens and you can put away a definite R20 000 away per month. You lose R16 000 in terms of basic interest with the R1 250 000 account. You cant look at 3 months down the line as money you have cause you dont.

maybe we should ask someone qualified in the field to comment here lol, maybe im making sense maybe im not
 
I don't know why this is so complicated. If you're paying say 12% interest on the car versus a fixed deposit which will grant you about 8% interest over 5 years, then you're losing money by financing. It is then better to pay cash, which is pretty much always the case.

The only time financing is better, if you have the cash available, is if one of the following is true:

1. You earn better interest than the financed rate by investing your cash. Highly unlikely.
2. You pay no interest on the car as part of the deal. This could be a catch since they sometimes include the interest as part of the cost and declare "0% interest" to get peoples attention.
3. You need extra cash on hand and the finance interest rate is better than the interest on a taking out a personal loan.
 
RiaX said:
Ok haldex has a point here peeps. Let me explain, very few rich people buy their high end cars in cash now im talking 3 4 million rand cars not toy M-powers and AMGs and stuff, even if they got the cash lying around

Firstly you never leave cash doing nothing. Cash is an employee it works for you to get more cash even if its just sitting in a bank earning interest. Now the payment via fiance has nothing to do with the dealership its between you and the bank. As a prestiege banker I get different rates from the average banker likewise the investec boys get WAAAAAY better deals with interest rates. In that scenario the more money they have in the bank the better fiancing things become.

Lets take a million rand spare cash. If you buy your car for a million rand what happens to that spare cash? it goes poof. Disappears completely. You invest in a Fixed deposit (for keeping it simple) for the full fiance period of 5 years. That generates on average 5% pa, so thats R50 000 interest per year so that R250 000 by the time the period of investment ends. A R250 000 extra you would of never had if you bought cash.

Now you guys are going to be thinking "oh but that wont exceed the interest .... ect ect ect" but remember the type of person that buys a million rand car usually earns about 40k + per month (well if they can spare 30k for the car there more elements involved here), they can also change the payment of the installments to free the car faster than the 60 month period. The investec class peeps for example will settle the car in 6 pay cheques or run it through one of many businesses and then use it as a tax write of later lol. So by doing this they can buy cars on the intrest from the bank (essentially get the car for free) or make a profit from buying the car, the car was R1 000 000 at the end of the 5 year period the bank cashes out R1 250 000 and they circumvented the interest by settling the bank ASAP. Now this is an example so dont flame me too much on the details im just trying to explain the concept, I know lots of people that do this, they fiance via a trust fund ect ect ect.

Now also you got to be careful when buying a car in this fashion. There is no point investing small amounts of cash cause it wont generate enough interest to circumvent the bank charges, so its a loss. Also when you invest in this manner you have to declare it to SARS and if the income from intrest pushes you into a higher tax bracket then you going to take HEAVY losses. This is when you turn that cash into an asset.

This only works for the very rich though. Its a loss for the average joe, even the better than average joe like me cant do this. I dont know if this is what he was trying to say but thats how its done. Realistically you looking at the interest method for cars over 2 million rand and a monthly income of about 100k+
Click to expand...

This will only work if you manage to get investment growth greater than the interest on the financing. It does happen. Occasionally the dealers offer very low or even no interest, but not often. You also need to make sure you invest the equivalent amount then, and don't spend it elsewhere...
 
ah yes but i was giving a crude example. Though if you have interest of 12% but you settle the car in 2 or 3 years and you get 8% interest in 5 years, then it works yes?
 
Fazda said:
Yes, all Toyota dealers are doing that on 7 specific models - basically all saloons except the Etios - I mentioned that in the other thread.
Click to expand...


All other dealers charging 30 percent deposit
 
Well as i said it only works for the rich :P
 
Safrica said:
All other dealers charging 30 percent deposit
Click to expand...

This is a Toyota backed plan, and individual dealerships are actually not allowed to deviate from it.

The only way I can see that working is that your monthly instalments will jump right up, and they are high enough with the 30% deposit.
 
Car looks good at night :D ... fazda I read in the motoring section of the daily news that toyota its bringing in a performance upgrade kit that will boost the power to 180kW. What is this all about ?
 
RiaX said:
Car looks good at night :D ... fazda I read in the motoring section of the daily news that toyota its bringing in a performance upgrade kit that will boost the power to 180kW. What is this all about ?
Click to expand...

Nothing official at this stage, but all of the power boosting stuff has always been here via Subaru, so it's not if it will happen ,but when and how much. No doubt go under the TRD name.
 
finally got to test drive one today, for 45 minutes even... what a blast..
it really is a go cart for grown ups. didn't feel underpowered, although off the line acceleration does feel slower than expected.
but once you get to 60 kmh, it's all good. Love the sound too.
two things i liked less than on my current car:
brakes don't grip that quickly, which was a surprise at my first stop sign
in traffic, the blind spots become very apparent, esp if you're used to angled/curved side mirrors

otherwise, i still can't stop grinning after 45 minutes :)

(another good part was when a GTI driver moved over to let me pass in order to blatantly stare at the car)
 
this waiting is killing me

http://www.carmag.co.za/article/twin-turbo-clout-for-toyota-86-2012-06-28 ... woah

fazda where can I get detailed information on the south african model. Im hearing bad news that its not comming with the toyota touch system :/ ? first the GT is removed now you downgrading the high spec to be similar to the standard -.- or is this all nonsense?

my dealership says it comes with the touch system, because I asked for a reverse camera and they said it integrates with the toyota touch.
 
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