Vehicle financing question

DrJohnZoidberg

DrJohnZoidberg

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Hey guys,

I know there a few threads already regarding financing but this stuff changes the whole time so I just want to know what kind of rates people are getting currently.

I was first offered 13.5% linked no deposit which I declined as I wanted a fixed rate (and that seemed very high for linked). I was now offered 13.5% at a fixed rate with 10% deposit which sounds reasonable to me in the current economic climate. Am I correct in thinking this?

The term is over 72 months which I plan on paying off quicker.

Thoughts?
 
Sounds good, considering the current economic crisis here and interest rates going up.
 
It's not terrible. Keep in mind if the agreement is for R250k or more you'll need to give 3 months' notice of your intention to settle, or you'll get charged early settlement penalties.
 
It does sound good, but push them to negotiate more! I dropped my rate by another 2% (fixed and linked) by forcing them to negotiate it. You pay a big enough amount in admin fees for them to go through the effort to do this.
 
werfie said:
It does sound good, but push them to negotiate more! I dropped my rate by another 2% (fixed and linked) by forcing them to negotiate it. You pay a big enough amount in admin fees for them to go through the effort to do this.
Click to expand...

What is your fixed rate now?
 
Another question while on the topic.

How much are you people paying for insurance, which company and do you have combined insurance? What do your excesses look like?
 
DrJohnZoidberg said:
Another question while on the topic.

How much are you people paying for insurance, which company and do you have combined insurance? What do your excesses look like?
Click to expand...

I got a crappy fixed rate last week so rather went linked. My approach is that while linked does offer some surprises things have been stable enough to go that route. I did not ask either Wesbank or MFC what the T&Cs where but it would not surprise me if they have the same clause as in my bond that if I elected to go the linked rate that there would be loopholes in place to protect them against massive increases and/or if the interest rates remained high for longer than 6 months.

As for insurance, well its a piece of string.

Got 3 quotes for cars between two brands and the cheapest car being purchased insurance was R100 less than the one costing R60K more. The second car was R40K cheaper but only R10 saving. They all required a tracker unit which adds another R100 to my insurance. That said we have a basket of products so can't cherry pick, instead we look at the total premium and what it covers.

But go speak to your broker, and if you don't have one then ask for recommendations.
 
But the deposit part seems a bit of a stretch, In my instance i got a fixed rate of 12.8% plus 0% Deposit.

As for insurance go with a broker just as (cbrunsdonza) mentioned.
 
DrJohnZoidberg said:
Hey guys,

I know there a few threads already regarding financing but this stuff changes the whole time so I just want to know what kind of rates people are getting currently.

I was first offered 13.5% linked no deposit which I declined as I wanted a fixed rate (and that seemed very high for linked). I was now offered 13.5% at a fixed rate with 10% deposit which sounds reasonable to me in the current economic climate. Am I correct in thinking this?

The term is over 72 months which I plan on paying off quicker.

Thoughts?
Click to expand...

The only people/sharks/vampires willing to finance my car gave me an interest rate of 15% fixed. The lack of a credit record was their reason.
 
DrJohnZoidberg said:
Hey guys,

I know there a few threads already regarding financing but this stuff changes the whole time so I just want to know what kind of rates people are getting currently.

I was first offered 13.5% linked no deposit which I declined as I wanted a fixed rate (and that seemed very high for linked). I was now offered 13.5% at a fixed rate with 10% deposit which sounds reasonable to me in the current economic climate. Am I correct in thinking this?

The term is over 72 months which I plan on paying off quicker.

Thoughts?
Click to expand...

I just got a rate of 10.75% linked this morning - term over 72 months

Get them to negotiate down. They also offered me 12% fixed so I''m sure they can do better.
 
SJe said:
I just got a rate of 10.75% linked this morning - term over 72 months

Get them to negotiate down. They also offered me 12% fixed so I''m sure they can do better.
Click to expand...

You have prior financing or house bond, etc?
 
I got a rate of 12.35% through my bank ABSA, the rest were offering 14%+

I've got a brokers details which I can PM to you. Santam, Indwe and all the rest were quoting me between R900 and R2500 for my Citroen DS3 THP at R172 000.

This broker came in at R570 odd including excess waiver but excluding roadside assist through Hollard.
 
mike156 said:
I got a rate of 12.35% through my bank ABSA, the rest were offering 14%+

I've got a brokers details which I can PM to you. Santam, Indwe and all the rest were quoting me between R900 and R2500 for my Citroen DS3 THP at R172 000.

This broker came in at R570 odd including excess waiver but excluding roadside assist through Hollard.
Click to expand...

Got a R620 (with R3k excess) quote from Santam now for R230k which I don't think is too bad and may take it. I'm waiting for a friends broker to contact me though so will see.
 
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