Vehicle Finance rates

joker247

New Member
Joined
Sep 10, 2012
Messages
7
#1
Good Day all. I applied recently for vehicle finance through a dealership and they came back with some ridiculous rates from all the banks. I'm a low risk client and have no debts. I have recently got a homeloan at a rate below prime. Now the best rate offered is 11.75% linked rate with a like a 20% deposit on the car. I feel that the rate is still way too high. Is there any other avenue I can pursue to try and get a better rate. Am I being unrealistic in my expectations of a rate around prime or below given my good credit rating etc. The dealership also tried to attach a whole lot of extras like extended warranties etc onto the deal. They were also not clear at all about all the upfront costs for the finance.

Thanks Any advice would be much appreciated.
 

3WA

Expert Member
Joined
Sep 25, 2012
Messages
4,837
#2
Have you asked the dealer to drop it? Tell them you're not taking the deal above x%. Sit down with the salesman and work his own tactics against him "Listen, buddy, I really want this car. But you're busting my balls here"
 
Last edited:

Sumen

Expert Member
Joined
Mar 30, 2016
Messages
4,600
#4
Good Day all. I applied recently for vehicle finance through a dealership and they came back with some ridiculous rates from all the banks. I'm a low risk client and have no debts. I have recently got a homeloan at a rate below prime. Now the best rate offered is 11.75% linked rate with a like a 20% deposit on the car. I feel that the rate is still way too high. Is there any other avenue I can pursue to try and get a better rate. Am I being unrealistic in my expectations of a rate around prime or below given my good credit rating etc. The dealership also tried to attach a whole lot of extras like extended warranties etc onto the deal. They were also not clear at all about all the upfront costs for the finance.

Thanks Any advice would be much appreciated.
You being unrealistic - some people dream about getting an interest rate like that.
 

Dark Agent

Expert Member
Joined
Nov 30, 2008
Messages
2,000
#5
Anything below Prime + 3% is a good rate for vehicle finance.
Note you will need comprehensive insurance so don't forget to calculate that into account.
 

I.am.Sam

rehabilitated troller
Joined
Jun 14, 2011
Messages
79,775
#6
Yeah i have heard normal rate is like 15% ...maybe the 20% deposit is an issue here
 

UrBaN963

Executive Member
Joined
Jul 27, 2016
Messages
9,413
#7
Also remember, the interest rate comes from the bank, not the dealer. How many banks have they applied at?

Standard practice, get an offer from wesbank, then use that against MFC, once you get a better offer, go back to wesbank and ask them to beat it.

Remember, you’re asking them for finance, but at the end of the day THEY want your money, you hold the power, not the bank.
 

D4N_CPT

Well-Known Member
Joined
Sep 18, 2017
Messages
377
#8
No Debt does not equal low risk, quite the opposite actually. I found this out when I bought my first car at a ridiculously high rate.

Also if you recently took out a huge loan (such as a home loan) which you have not been servicing for that long, it will also negatively affect you...
 
Last edited:

D4N_CPT

Well-Known Member
Joined
Sep 18, 2017
Messages
377
#10
If buying new, the resident finance house will usually run specials on the interest rate not so much the vehicle cost, which will have you see interest rates of around 6% or even lower to make the installment amount more attractive...

Many people see these widely advertised rates and want to compare said rates with what they see elsewhere...
 

LPCPT

Senior Member
Joined
Jun 24, 2011
Messages
863
#12
Note that the extended warranty only applies when the factory warranty expires. Who's to say you will still own the car by then. If you do, then make that decision at that time.
Very stupid concept, to pay now for a future need.
BTW interest rate is not too bad as others have mentioned as well.
 

handyman007

Senior Member
Joined
Mar 1, 2017
Messages
610
#13
My interest rate is 11%, prime plus 0.75%. Always thought it was a bit high.

I'd say shop around a bit. Go to your bank and ask what they are willing to give you.
 

Ecko_1

Senior Member
Joined
Jul 6, 2017
Messages
537
#16
I've financed 4 cars with Investec with prime less 1. Its almost a given. When my wife applied for finance for her last car the best she could get was prime plus 3. So your rate is not bad.
 

rh1

Senior Member
Joined
Aug 5, 2011
Messages
617
#17
I think I stated this before om the forums. Dont take the first interest rate offer. Its normally the inhouse finance rate. Insist taht they show you all the banks qoutes and then take the cheapest rate. I gave this advice to a junior colleague, although he was excited buying his first car told the saleman if he does not see all the banks offers he is walking away. They showed him the offers which was significantly less than the inhouse rate. For my last purchase in 2013 I did the same.
 

phil77

Well-Known Member
Joined
Feb 4, 2016
Messages
205
#18
I think I stated this before om the forums. Dont take the first interest rate offer. Its normally the inhouse finance rate. Insist taht they show you all the banks qoutes and then take the cheapest rate. I gave this advice to a junior colleague, although he was excited buying his first car told the saleman if he does not see all the banks offers he is walking away. They showed him the offers which was significantly less than the inhouse rate. For my last purchase in 2013 I did the same.
Agreed, dealerships often have a preferred finance house and will try to push you towards that one. The rate OP got is not bad though.
 
Top