Used car monthly installments - Does this seem right?

dal2000 said:
ok looking at the finance application form I see:

Warranty: R 5440.00
Coverplus: R33.68
Grouplife: 72.38
Licence fee: R2995.00


Looks like Fazda is right. What price can you guys recommend on paying for this car? The installments. Not higher than R 900.00?
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You can start off by telling them to remove the 2995 for licence, and do it yourself. AFAIK licence for a Corsa is in the region of 300, and then you will be in for a set of number plates if your number changes - that is plain theft!
Cover plus is there to help you if you write the car off before paying it off. It is only worth taking if you owe more on the car than you could get on a retail write off...i.e. If you owe 50 k and the car is only worth 30 k that insurance will cover the gap. That is ONLY to be paid until you are at break even point, and then cancelled...and looking at your deal, I would say you are only going to have to take it because they have loaded the deal with all of these extras.
Tell them to shove the Group Life as well. Most of us have cover via our work or separate policies. that is ONLY to cover the bank if you die before repaying the car.
Warranty should not be included in the HP as it is probably for a limited period with a whole list of rules that you must follow otherwise it is void. ANY warranty should be paid for in cash, I presume this is a Motorite one. Give Hollard a ring and get a quote from them and I'm pretty sure it will come out lower than this.
Finally, you must REFUSE to pay that ridiculous rate.

As I said earlier, the most they can charge you is 14% if you are on a fixed instalment. They do charge higher when the finance amount is relatively low, as it is in this case, so you will never get a prime deal anyway...I have been through this with Wesbank and the norm is 14% NOT higher!
 
D3x! said:
+1 I am 21 and i received an interest rate of 12% for my car finance
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12% is entirely dependent on the amount being financed, and whether it is a fixed or linked rate. When last I checked, in January, 14% was as low as they would go on fixed rate.
The other factor, as I said before is related to the amount of money being financed. If it is 150 k plus, they suddenly become a lot more flexible with their rates.
 
perhaps dal2000 is a credit risk to the financial institution hence the high interest rate?
 
So if i'm a credit risk they charge "more" interest? Doesn't this create an even greater risk?

I see on the application form there is a "requested" interest rate. Does the dealer request this? The requested rate is 15.5%.
 
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The requested rate is 15.5%?!?!?! from the dealer?

Tell the dealer to go fsck himself, and go find another vehicle from another dealer.
 
dal2000 said:
So if i'm a credit risk they charge "more" interest? Doesn't this create an even greater risk?

I see on the application form there is a "requested" interest rate. Does the dealer request this? The requested rate is 15.5%.
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One of the totally illogical things about bank finance is that they charge risky people more...it makes absolutely no sense at all. If you were loaded and wanted to finance part of your new BMW 750iL, you would no doubt get Prime less a few percent...as I said, no logic to it at all, and if the dealer is requesting 15.5% then, as ToxicBunny says, tell him to go fsck himself.
 
When I bought my car, I the finance lady I'm not paying more than R4,000.00pm.

She came back and said unfortunately it was R4,050.00 and I told her cancel the deal. She said it's only R50.00 - told her it was the principle and to rather cancel. She came back a few hours later with R3,950.00 and I signed.

Just tell them exactly what you want and walk away if R1 over. Only issue ia you may lose the car - but it better than being ripped :/
 
True.

But occasionally there's a reason for wanting that specific car ie different colour, upgraded motorplan etc and there's a risk losing it
 
Dolby said:
True.

But occasionally there's a reason for wanting that specific car ie different colour, upgraded motorplan etc and there's a risk losing it
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It's at that point that you sit down with the Sales Manager or Dealer Principal and discuss the whole thing like adults. It's amazing what a little diplomacy can do on both sides, as very few DP's want to end up with unhappy clients.
 
Damn...why the F are banks such dogs? Why the hell do they give yousuch a high interst rate
 
ALFAHOLIC said:
Damn...why the F are banks such dogs? Why the hell do they give yousuch a high interst rate
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Wesbank has competitions with their workers on the dealership floors, and the one who makes the most money for the bank wins all sorts of prizes, right up to overseas trips and cruises, so it is in the interest of the FSI guy on the floor to make as much from each deal as possible.

If he/she can find someone who hasn't got much experience in buying cars, or who is not rate savvy, they will klap them with the highest possible rate that they can comfortably get away with. The lady at the Sakers branch that I worked at in 98, used to drool when I bought a first time buyer, and we ended up having hellfire fights if I saw her charging for things that she thought she could get away with.

I saw her push a woman from being able to afford a car to actually returning it after 2 months simply because she had jacked up the instalments with extras with so much extra cr@p that a marginal buy became impossible. It was not one of my deals, otherwise it would not have got that far. She hated me with a passion because I insisted in sitting in when she signed somebody up, and I personally checked that they weren't being screwed.

Bottom line, however, was that she was winning holidays left right and centre and Wesbank thought she was wonderful. :mad:
 
Damn good you telling us this Fazda...one thing though...do you just say, "Nope, that interest rate it too high...that's like 8% more than the prime lending rate...see if yo u can bring it down""...or do you say, "nope, that interest rate is too high bring it down or I'll go elsewhere for finance"???
 
What interest rate is ultimately too high and that I should refuse? Not above 14%? What should the maximum be? Just so I have an idea of how badly they're trying to ripp me off, and what I can bring it down to.
 
dal2000 said:
What interest rate is ultimately too high and that I should refuse? Not above 14%? What should the maximum be? Just so I have an idea of how badly they're trying to ripp me off, and what I can bring it down to.
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Basically, you can say that you contacted a Wesbank broker and you believe you should not be paying more than 14% on a fixed rate, and if the installments are linked, you believe that you can pay less.

They will not be able to come up with a truthful answer as to why you are paying more than 14%...just turn it into a deal breaker, and they should come around.
 
Fazda said:
Basically, you can say that you contacted a Wesbank broker and you believe you should not be paying more than 14% on a fixed rate, and if the installments are linked, you believe that you can pay less.

They will not be able to come up with a truthful answer as to why you are paying more than 14%...just turn it into a deal breaker, and they should come around.
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Thanks! Excellent advice. Hopefully they will get back to me today.
 
In my opinion you are paying a very high interest rate. I agree with a PP who said you should be given a breakdown of costs!
 
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