Sign up with GoogleI am looking into buying a car worth 50 000. I need to know which option is better with regards to interest rates and monthly instalments between car finance and getting an overdraft. My employer is applying for the finance and overdraft on my behalf. The vehicle will be registered in the company's name but I pay the interest and monthly installments.
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which option is better overdraft or car finance
- Thread starter Sherice
- Start date
Sinbad
Honorary Master
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That sounds dodgy. If you're paying, you should be the owner (not titleholder, that will be the bank if it's financed, or you if it's overdraft).
Secured debt normally has lower interest rates.
So you pay the instalments until your employer shafts you? Leaving you out of pocket of numerous car payments?
If you can't get car finance through normal avenues, don't get at all.
agentrfr
Executive Member
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AVOID
Its not dodgy I don't qualify to get bank finance in my name that's why my employer is doing it on my behalf. The vehicle will only be in my name after I have fully paid for it. I just need to know in terms of interest rates which option will be better between the overdraft and finance as I am working on a tight budget.
Sherice, unless you're someone who doesn't have matric and is working a minimum wage job then go for it. Otherwise your employer is screwing you over hard enough to not be able to afford a car. Tell him to up your salary so you can do it alone. Hy gaan jou VROT naai.
Goliath
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I second that.. sounds dodge!
Alton Turner Blackwood
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Ask your employer to give you an advance to buy the car. They then deduct x amount from your salary every month.
Pitbull
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If they are financing the car (employer) Then yes, they can own it you be the title holder.
If you're paying it from your own pocket, don't let them register it on your behalf. That is idiotic. They trying to tie you in so you don't go anywhere. And if you do you lose the money and the car.
If you're paying it from your own pocket, don't let them register it on your behalf. That is idiotic. They trying to tie you in so you don't go anywhere. And if you do you lose the money and the car.
Sinbad
Honorary Master
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Normally when you don't qualify to get finance, it's best just to leave it at that...
Rather save some cash, buy a cheap car, save more, upgrade... and keep doing that.
If you don't qualify, it would be either because of too much debt not earning enough, or blacklisted?
Would you really then want even more debt?
Pitbull
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titleholder is the financing organisation
I know.
That's what I'm saying. Sounds like the company will be paying for the vehicle (IN FULL) and then he repays them with interest.
I might be wrong though. Just sounds like they trying to bind him with the car.
TheMightyQuinn
Not amused...
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Maybe tone it down a bit??
Also are you seriously suggesting her employer GIVES HER A RAISE so she can buy a car? WTF are you talking about? Maybe her employer wants to help her, but is not sure exactly how to go about it? Why just assume he is trying to cheat her?
If this is done correctly, only the bank will score IF she defaults on payments, NOT the employer, since he will have to continue payments our of his own pocket to keep the vehicle. The vehicle MUST be registered in her name however, NOT the employer.
Either a raise or get a new job. Sorry, but after 2.5 years of being shafted by employers, I'd rather find an alternative and do this on my own.
Also, I've seen a few of these types of arrangements go pear-shaped with employers and employees as well as with family. This type of arrangement is doomed.
The better solution out of this all is YingYang's suggestion. Otherwise its leaving everyone open for a world of hurt.
TheMightyQuinn
Not amused...
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More BS being spouted. In this economy you hold on to your job. It is not that simple to just get a new job anymore and if you are in the lower end of the market, getting a new job with such a big salary increase that you suddenly can afford a car??
You have no idea what you are talking about.
Your comprehension skills are clearly being suffocated by the need to be right. READ my post where I said if she's working a minimum wage job, then she should go for it. OP should just be warned of the risks involved.
Also, making massive salary jumps is not unheard of. But that's a topic for another day.
TheMightyQuinn
Not amused...
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I did...I read your WHOLE post. You cannot just nit-pick sections out of your vague and generalising posts, as it suites you.
Also: making massive salary jumps in a minimum wage job? WTF are you on about?
Anyway, enough already.
/
Agreed. This wasn't achieving much.
Guys I agree with Mightyquinn. With all due respect I appreciate all your opinions and trying to guard me from being cheated but there is no cheating involved. In actual fact the employer is doing me a huge favour by assisting me get the vehicle. My car was stolen and wasnt insured bla bla bla so this is starting from scratch and all I needed was to get info on which option is better I have already made the decision to get assistance from my employer and there isnt any cheating going on here.