Vehicle financing question

[Edduck]

Phew, I am so grateful that I got 9.5% from VW Finance when I bought my Polo last year!!

I REALLY wish it was forced by law for car dealers to give you the total monthly cost of finance on the advert (even a minimum estimate) when purchasing a car. In my case I was offered R3450 pm over 72 months with a R63000 balloon and a R37000 trade in on my old Renault. I can afford that fine. But then you factor in insurance (varies between R930 me but can be up to ±R1500), GPS tracker (±R250). Add that all up and you are quickly paying R4630 pm over 72 months = R333360!! And flip the car value on my invoice was R233000 This is besides the fact that (worked into my finance) there is R1730 being paid in interest every month, and I have the damned balloon payment of R66300 to finance in 5 years time

TL;DR DO YOUR SUMS PROPERLY before financing a car!!! If I had done all these sums properly I would NEVER have bought the car. But alas I have it now and enjoy and will just have to bite the bullet...

 

[DrJohnZoidberg]

Phew, I am so grateful that I got 9.5% from VW Finance when I bought my Polo last year!!

I REALLY wish it was forced by law for car dealers to give you the total monthly cost of finance on the advert (even a minimum estimate) when purchasing a car. In my case I was offered R3450 pm over 72 months with a R63000 balloon and a R37000 trade in on my old Renault. I can afford that fine. But then you factor in insurance (varies between R930 me but can be up to ±R1500), GPS tracker (±R250). Add that all up and you are quickly paying R4630 pm over 72 months = R333360!! And flip the car value on my invoice was R233000 This is besides the fact that (worked into my finance) there is R1730 being paid in interest every month, and I have the damned balloon payment of R66300 to finance in 5 years time

TL;DR DO YOUR SUMS PROPERLY before financing a car!!! If I had done all these sums properly I would NEVER have bought the car. But alas I have it now and enjoy and will just have to bite the bullet...

Well insurance is a given, that will vary greatly from person to person (my quote is R600). Tracker is not compulsory, I was quoted about R100pm for tracker.

Obviously the banks want to make as much money out of you as possible.

 

[Magandroid]

When it comes to insurance you should conside looking into excess waiver as an option if they offer it. You might find that the extra bit you pay every month for that option might save you in the long run. So instead of having to pay R3000 in excess fees, you now don't pay anything as it's covered.
I think I've calculated that over 4 years, the extra bit I am paying every month towards the excess waiver still comes to less than what my normal excess would be should my car be involved in an accident. I am also with Hollard through a broker.

 

[DrJohnZoidberg]

When it comes to insurance you should conside looking into excess waiver as an option if they offer it. You might find that the extra bit you pay every month for that option might save you in the long run. So instead of having to pay R3000 in excess fees, you now don't pay anything as it's covered.
I think I've calculated that over 4 years, the extra bit I am paying every month towards the excess waiver still comes to less than what my normal excess would be should my car be involved in an accident. I am also with Hollard through a broker.

Thanks, I'll find out about that when I confirm the insurance.

 

[Magnum]

Have 9 months left of car repayments. Will most probably never buy a new car again in my life.

 

[Colin62]

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?

I signed at 12% linked, on Friday last week. No deposit.

 

[pinball wizard]

Phew, I am so grateful that I got 9.5% from VW Finance when I bought my Polo last year!!

I REALLY wish it was forced by law for car dealers to give you the total monthly cost of finance on the advert (even a minimum estimate) when purchasing a car. In my case I was offered R3450 pm over 72 months with a R63000 balloon and a R37000 trade in on my old Renault. I can afford that fine. But then you factor in insurance (varies between R930 me but can be up to ±R1500), GPS tracker (±R250). Add that all up and you are quickly paying R4630 pm over 72 months = R333360!! And flip the car value on my invoice was R233000 This is besides the fact that (worked into my finance) there is R1730 being paid in interest every month, and I have the damned balloon payment of R66300 to finance in 5 years time

TL;DR DO YOUR SUMS PROPERLY before financing a car!!! If I had done all these sums properly I would NEVER have bought the car. But alas I have it now and enjoy and will just have to bite the bullet...

Yeah. Pity we never got the sub-prime style loans the rest of the world got. Oh, wait, that didn't work out either.

As for the 'extra cost' of the insurance monthly, surely you as the consumer should do your homework and factor that into your affordability before pulling the trigger?

 

[Other Pineapple Smurf]

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.

Sounds about right for the value of the car. Obviously individual risk will also play a role here.

 

[Other Pineapple Smurf]

Have 9 months left of car repayments. Will most probably never buy a new car again in my life.

Agree. Bought a new car 4 years ago and traded it in last week and went for pre-owned. Will never buy new again.

Got a car with 25'000km on the clock for R60K less than new price from the dealership. Car is only a year old. I'm going to be driving +30'000km a year anyway so the car is the equivalent of a 10mth old car. Doing 5'000km alone this month.

Difference in monthly premiums including insurance is R1300 per month.

Car is in such a good condition that nobody knows its second hand.

 

[DrJohnZoidberg]

Agree. Bought a new car 4 years ago and traded it in last week and went for pre-owned. Will never buy new again.

Got a car with 25'000km on the clock for R60K less than new price from the dealership. Car is only a year old. I'm going to be driving +30'000km a year anyway so the car is the equivalent of a 10mth old car. Doing 5'000km alone this month.

Difference in monthly premiums including insurance is R1300 per month.

Car is in such a good condition that nobody knows its second hand.

Your logic is sound but logic doesn't really apply when you buy a new car

This will likely be my first and only brand new car also, have to do it at least once right

 

[Other Pineapple Smurf]

Your logic is sound but logic doesn't really apply when you buy a new car

This will likely be my first and only brand new car also, have to do it at least once right

Do agree. I always wanted to buy my first car new. Did it at the age of 37 and no regrets. Previously I've always used my SO car or a family hand me down.

 

[acidrain]

I got a rate of 12.35% through my bank ABSA, the rest were offering 14%+

Just experienced the same thing. Other banks wanted 14.5%+ with deposits. ABSA offered 12.5, no deposit.