Car finance

[BuzzGlo]

I'm purchasing a car in this month

I've been told by the car sales man that if I finance the car for under R250k I can get a better discount and then settle it a week later without any penalties.

I spoke to another dealer today and they said the same thing but after the 3rd month only without penalties.

Please advise if financed what give you the best interest rate in terms of deposit and residual as a %
and
If this thing about financing and settling without penalties is actually a thing.

oh lastly Yaris CVT 1.3 OR Ford Fiesta trend ?

 

[Riaz]

I'm purchasing a car in this month

I've been told by the car sales man that if I finance the car for under R250k I can get a better discount and then settle it a week later without any penalties.

I spoke to another dealer today and they said the same thing but after the 3rd month only without penalties.

Please advise if financed what give you the best interest rate in terms of deposit and residual as a %
and
If this thing about financing and settling without penalties is actually a thing.

oh lastly Yaris CVT 1.3 OR Ford Fiesta trend ?

The penalties you are referring to, is it for early settlement?


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[BuzzGlo]

The penalties you are referring to, is it for early settlement?

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Yes

 

[Noddy]

Do you plan on actually settling the finance? If you do, why not just buy cash a month later?

And definately do not finance it with a residual. Especially the Ford which will have a worse trade value than the Toyota

 

[MilkDromeda]

I second @Noddy, if you are planning on settling so quickly why not buy the car cash from the get go if not I have had good experience with Nedbank MFC and of course Wesbank. I dont have any knowledge of penalties as you described unfortunately although I dont think you will have any penalties if you settle early, cant see why?

I'm very persistent and always negotiate a better interest rate. Also try and waive the on the road costs as I think its unnecessary to pay for it as you can do it yourself if you really wanted to. Its just another money making scheme.

 

[BuzzGlo]

Because banks have turned into pricks and now give dealers a kick back on car loans,
basically

Cash price = xk
finance price = xk - 10 k

If I finance the car for 50k over 24 month @ a 17% I pay the same amount as the cash price.

I'd probably get around 12-13% as an interest rate. So ideally take the loan and settle at the first opportunity with the lowest penalties.