Using your bond instead of a personal loan

[NavarroCarly]

Hey guys

I am in the process of buying a new car, and of course the dealer wants my trade-in for next to nothing. So I want to come up with a bigger deposit - less interest on the car (12.5% fixed 60month) - I know it can be done, its just FNB Rosebank has a habit of telling me nothing is possible. (this is a special branch) - I basically want them to pay out R20k to the dealer and slap it onto my home loan - give or take R200 extra on the bond repayments, but I plan to pay R1000 extra on the bond to kill that R20k quick. My question is, how should I approach the bank with this? I just want to educate myself a little before they attempt to sway me again.

 

[bakkies]

Its possible with an access bond but i wouldn't make debit with debit. Rather save up some more and have a bigger deposit aside to slap on the car payments.

 

[bakkies]

Newer cars always looks pretty the first few months later the novelty wears off.Keep your current car I'm sure it can take you from A to b

 

[Rocket-Boy]

You can do it with any bond, doesnt need to be an access bond.
You make an application with FNB to draw an amount and it gets paid into your bank account.
You can only draw money you have paid in as extra into the bond, i.e not the normal instalment amounts.

 

[NavarroCarly]

Thanks for the replies. Bakkies you know what, your right lol, I suppose I should just re-think this first. I been driving this old car for 12 years, I suppose a few months extra wont kill me.

Rocket-Boy, you brought up a good point, I was only going to start paying extra on the bond around september this year, so there wouldnt be anything available for me to "draw" out right now, and the bond is only 9 months old, I have a feeling this might count against me too.

 

[ToxicBunny]

Thanks for the replies. Bakkies you know what, your right lol, I suppose I should just re-think this first. I been driving this old car for 12 years, I suppose a few months extra wont kill me.

Rocket-Boy, you brought up a good point, I was only going to start paying extra on the bond around september this year, so there wouldnt be anything available for me to "draw" out right now, and the bond is only 9 months old, I have a feeling this might count against me too.

If the bond is only 9 months old, and you've paid nothing in, the bank won't give you money as there is no money to give... to get more money from the bond would require registering a "new" bond on the property with the new value which would cost you a good few thousand rand.

 

[Turbo_Aspiration]

Thanks for the replies. Bakkies you know what, your right lol, I suppose I should just re-think this first. I been driving this old car for 12 years, I suppose a few months extra wont kill me.

Rocket-Boy, you brought up a good point, I was only going to start paying extra on the bond around september this year, so there wouldnt be anything available for me to "draw" out right now, and the bond is only 9 months old, I have a feeling this might count against me too.

This is very good thinking. Unless your vehicle is unreliable and putting you in dangerous situations (stranded in the middle of nowhere at night), there is no reason to dig into money you effectively don't have.

 

[Electric]

Just do it.
The interest rate on a homloan is lower than car repayments.
Just be sure to pay into your homeloan regularly.

 

[F1 Fan]

That only way you will be able to draw additional funds from your home loan not previously agreed upon when you submitted is if you apply and have the bond re registered. It will cost you atleast 8k in bond legal fees

 

[Electric]

That only way you will be able to draw additional funds from your home loan not previously agreed upon when you submitted is if you apply and have the bond re registered. It will cost you atleast 8k in bond legal fees

Access bond though.

 

[F1 Fan]

Access bond though.

As I understand it, Access bond only refers to additional money YOU have paid in. As is over and above your installment.

 

[WaxLyrical]

Never trade your car.


Rather sell privately.


What car btw?

 

[Electric]

Nope.
We applied for an access bond and received the money.
Our original bond amount was just increased.

 

[NavarroCarly]

The old car is a Golf Chico 98'. I was looking at a getting the Toyota Etios sedan.

 

[F1 Fan]

Nope.
We applied for an access bond and received the money.
Our original bond amount was just increased.

Interesting. Which bank?

So you saying you registered your bond for let's say R100 000 (with no future use amount). You then wanted an additional R50 000, and applied for an access bond and they gave it to you? No lawyers involved?

 

[Gaz{M}]

If you are talking 9 month old bonds and Toyota Etios's, I think you are really not in a good financial position to be buying new cars?

Have you not considered something used or something R20 000 cheaper? I think waiting a bit is a very good idea. Sell the Golf cash later when you have a deposit saved up.

 

[F1 Fan]

If you are talking 9 month old bonds and Toyota Etios's, I think you are really not in a good financial position to be buying new cars?

Have you not considered something used or something R20 000 cheaper? I think waiting a bit is a very good idea. Sell the Golf cash later when you have a deposit saved up.

Is the Golf giving any problems?

 

[NavarroCarly]

Hehe sort of, well its going to. 330 000 on the clock. Engine is noisy as hell. 2nd gear "disappears" sometimes (linkages are misaligned, again), 13 litres/100km. Most of the issues can be sorted out with a recon and a few others. But I've spent so much cash over the years fixing this and that, mechanics are never your friends - they only see you as a cash cow.

I can put together a deposit of R20k (including the R15k they offered, which I suppose is not that bad), brings the instalments to 2900 per month with disposable of around 1100.

 

[Ancalagon]

You will also be able to reduce your petrol bill, but your insurance bill will definitely go up. Calculate the two beforehand so you know exactly what you are getting yourself into.

Is the Etios new or used? If new, have you considered a demo? Like 5000 on the clock or something?

 

[Paul_S]

I can put together a deposit of R20k (including the R15k they offered, which I suppose is not that bad), brings the instalments to 2900 per month with disposable of around 1100.

With a new bonded property against your name and not a lot of disposable income, I'd recommend you rather look at another second hand vehicle if the one you have is giving you too much grief.

Interest rates are probably going to go up by 1 to 2% in the next couple of years so the last thing you want, is to be in a position where you can't afford your vehicle and/or bond instalments.