Vehicle finance question

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stoymigo

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Good day, I would like to find out whether the following interest rate is fine:
14.4%

This is through toyota, for a new toyota etios, over 6 years without a deposit.

With a deposit it comes down to 14.1% and means I'll pay slightly over R4000 a month, however
I've also noticed that I pay a couple of hundreds less when trying the Wesbank calculator, hence my concern.

Thanks for any advice.
 
That's daylight robbery. Suggest you go through the multiple threads on this forum that discusses this exact topic in detail.

Based on the above repayment, your Etios will cost you R288 000
 
Last edited:
What bank is that through? Is that a fixed rate? Is that the best rate you received, how many banks gave you a quote?
 
DrJohnZoidberg said:
What bank is that through? Is that a fixed rate? Is that the best rate you received, how many banks gave you a quote?
Click to expand...

It is fixed rate, the bank is "Toyota Financing".
It is definitely not the best rate, because Wesbank calculates a lower monthly instalment, and I am waiting on FNB & STD Bank
for a financing application that I submitted.
 
F1 Fan said:
That's daylight robbery. Suggest you go through the multiple threads on this forum that discusses this exact topic in detail.

Based on the above repayment, your Etios will cost you R288 000
Click to expand...

I will start doing that, apologies for not researching first.
 
stoymigo said:
I will start doing that, apologies for not researching first.
Click to expand...

No worries. I would say even for a fixed rate that is high. I would think normal variable rates are about 11%. As you said, you are waiting for other quotes.

Another question is, do you really need a brand new car? Just seems like an awful waste to spend money on a car like that. I would suggest buying a cheap second hand car and saving the money for something better.
 
That is a ridiculous rate, but probably dependent on your risk profile. Toyota Finance is through Wesbank so I wouldn't expect much better from them.

Now is not a good time to be getting into debt to be honest. If you can pull through with your current car then do that. Don't fall into the trap of wanting something with a maintenance plan, rather save towards maintenance of your existing car...
 
Definitely going to get the car and new, I've test driven a 2nd hand i20 & Accent and they didn't convince me to buy those.
Btw I've had my drivers license for 2.5 years.

Thanks for replies I now know I can either negotiate or use a bank for a lower rate.
 
stoymigo said:
Good day, I would like to find out whether the following interest rate is fine:
14.4%

This is through toyota, for a new toyota etios, over 6 years without a deposit.

With a deposit it comes down to 14.1% and means I'll pay slightly over R4000 a month, however
I've also noticed that I pay a couple of hundreds less when trying the Wesbank calculator, hence my concern.

Thanks for any advice.
Click to expand...

That's insane.

Nowhere near good. Especially over that time period.
 
stoymigo said:
Definitely going to get the car and new, I've test driven a 2nd hand i20 & Accent and they didn't convince me to buy those.
Btw I've had my drivers license for 2.5 years.

Thanks for replies I now know I can either negotiate or use a bank for a lower rate.
Click to expand...

Here's what you do.

Go test drive the new Ford Figo.

Even if you don't like it, tell them you want a quote. Tell them they need to beat Toyota's rate. They probably will. Then contact Toyota and tell them that since Ford is giving you a better rate, you're getting a Figo instead. Then they either have to beat Ford's rate or risk losing you.

The Figo is a better car anyway.
 
Decent GT86 will set you back R200k second hand. Are you still thinking about that etios?
 
Vegeta said:
Decent GT86 will set you back R200k second hand. Are you still thinking about that etios?
Click to expand...

The fact that he's only has his license 2.5 years makes me the he's still young, an 86 might cost him the same but insurance will be a beeech.

I've also had my license for 2.5 years and I still have to pay 1.5k towards insurance on an 07 Polo
 
Mike Hoxbig said:
Now is not a good time to be getting into debt to be honest. If you can pull through with your current car then do that. Don't fall into the trap of wanting something with a maintenance plan, rather save towards maintenance of your existing car...
Click to expand...

^^ The best advice you can get IMHO.

May I second that opinion?
 
It's a terrible time for debt but if you're going to be chained to something it might as well be something you lust after.
 
Vegeta said:
It's a terrible time for debt but if you're going to be chained to something it might as well be something you lust after.
Click to expand...

If the 86 is out of service plan, does he have R7k saved up for the 75k km service and R12k for the 90k km service? And with a niche car that has a boxer engine, finding an independent mechanic isn't easy...
 
Mike Hoxbig said:
If the 86 is out of service plan, does he have R7k saved up for the 75k km service and R12k for the 90k km service? And with a niche car that has a boxer engine, finding an independent mechanic isn't easy...
Click to expand...
Do junkies have enough money for their habit? Yet they go back to it day after day. Lust is not a rational thing, there in lies the beauty my friend.
 
Mike Hoxbig said:
If the 86 is out of service plan, does he have R7k saved up for the 75k km service and R12k for the 90k km service? And with a niche car that has a boxer engine, finding an independent mechanic isn't easy...
Click to expand...

OP has already made up his mind so that's that.

What I would do and actually have done is quite simple. Buy a nice 60k polo, which is better than an Etios, and use the rest of the money towards a bond. Alternatively use that money to save for a car. Or buy a second hand 2012 golf 1.4tsi for about R180 000. Sorted.
 
Mike Hoxbig said:
If the 86 is out of service plan, does he have R7k saved up for the 75k km service and R12k for the 90k km service? And with a niche car that has a boxer engine, finding an independent mechanic isn't easy...
Click to expand...

Furk cheaper to just extend the thing before it runs out.
 
Would it be better to go with a variable rate (starting at 12%) versus 14% fixed over the next 6 years?

Thanks
 
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