NeonNinja
Neon Resident
(New) VW Tenaciti. R1195 p/m x 72 including warranty. No deposit. 30% risidual (what ever that is), 10.5% interest rate. P.S I kno nothing about buying cars.
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R1195 x 72 = R 86,060
10.5% interest rate = +- prime +2 for 6 years. After 6 years you have to pay a lump sum (residual) of 30% = R 25,818.
So the total price of the car is R 111,878. I'm not sure if the 10.5% interest is included in the monthly price or not. I would assume it though if that's what they're offering as finance.
So, R112k for a citi golf... I guess the catch is ... it's a citi golf.
10.5% interest rate = +- prime +2 for 6 years. After 6 years you have to pay a lump sum (residual) of 30% = R 25,818.
So the total price of the car is R 111,878. I'm not sure if the 10.5% interest is included in the monthly price or not. I would assume it though if that's what they're offering as finance.
So, R112k for a citi golf... I guess the catch is ... it's a citi golf.
supersunbird
Honorary Master
How can that car be new? Didn't they stop making Citis in 2009?
The residual is the cash they would want you to pay at the end of your 6 year contract (so what it mean is you'll still not own the car after 6 years of paying).
Rather try to get a car for around R55 000 to R60 000 and you'll be paying around R1200 for 5 years and you'll at least own the car by then.
NeonNinja
Neon Resident
NeonNinja
Neon Resident
Yeah, but I guess they're new 2009 models. Thanks.
HapticSimian
Honorary Master
No, you can refinance that amount over up to a further 18 months. However, most people would trade the car in after the six years, which should leave you with enough to cover the residual & perhaps even with a bit of a deposit for a replacement car.
All that being said, don't buy a ****ty Golf. Ever.
Pay it cash or refinance it when it hits you. I would advise against the residual and that other term they call it... "balloon payment". It will effect your trade in Ive been told.
Buying a car that's been standing for 2 years and paying a new-car price for it? No thanks. It might not be pre-owned, but it'll be registered in 2009, so if you sell it it'll be worth the price of a 2yr old vehicle.
Rather go have a look at GM's G2 pre-owned store on the corner of Fleet & Cambridge street. Barnes is usually a rip off and I've found GM's prices / quality / service to be surprisingly good. I've bought 2 cars from them (1 demo / 1 2nd hand) and any issues I had they dealt with 100%.
I know how you feel about wanting a new car, but the novelty wears off VERY quickly and then you sit with the installments. Look around and don't show them you're eager / in a hurry.
The F'up there is after 6 years you don't actually own your car. You just end up having to buy a new one all over again.
I paid mine off in Oct. last year on 54 month financing. I put down 40k deposit which helped a lot. But yeah, if you can't afford the payments, don't buy the car. It's just not worth it, regardless of how much you want it. Also do some homework and see how much insurance will set you back.
If a certain model is a risky car for insurers you'll notice that it's actually cheaper overall to get a more expensive car with cheaper insurance.
NeonNinja
Neon Resident
Wow, cover the risidual and have some more? Roughly how much would it trade in for after 5 years?
NeonNinja
Neon Resident
So how much would you need to deposit to get a new car, worth maybe R95000, to pay R1500 p/m?
Have you thought about getting a used car, Khanya? Not quite the same feel as a brand new car, but, much much cheaper.
Plus, you can get something infinitely better than a Citi for less than half the price, like my new (as of 1994) E Class Merc. Do note that you wont get finance for such old cars though, because if you end up not being able to pay them off, the bank typically doesnt have a hope in hell of regaining its cash by reselling your car. However, you might be able to get a personal loan that would cover it.
EDIT: According to that calculator, if you buy a R95k with a 15% interest rate, no residual and a R38000 deposit, you will pay something like just under R1600 per month on it. I dont know what the actual interest rate is, I thumbsucked.
Plus, you can get something infinitely better than a Citi for less than half the price, like my new (as of 1994) E Class Merc. Do note that you wont get finance for such old cars though, because if you end up not being able to pay them off, the bank typically doesnt have a hope in hell of regaining its cash by reselling your car. However, you might be able to get a personal loan that would cover it.
EDIT: According to that calculator, if you buy a R95k with a 15% interest rate, no residual and a R38000 deposit, you will pay something like just under R1600 per month on it. I dont know what the actual interest rate is, I thumbsucked.
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NeonNinja
Neon Resident
Thanks. Will have a look at autotrader and the newspaper for some used cars.
How much are your services ganna cost for a merc?
About R2000 for a normal service. Its a 1994 after all. Hell, its a celebration of Democracy!
Fazda
Honorary Master
It never ceases to amaze me what bollocks some people say on this forum!
You should get a respectable price for the Citi after 6 years. The banks will at least cover themselves with a residual, and 30% is maximum residual allowed by some banks over 72 months.
As far as affecting trade price, what he means is that sometimes you will owe more on your car than a dealer is willing to pay, so you will not be able to trade it in until those numbers that you owe are more realistic with relation to the car, OR the dealer is able to use Trade Assist to settle the old car.
All that being said, it sounds rather expensive for a car that is never going to reflect newer than 2009 on the books, even if it was registered in 2011.