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Read the WELCOME ALL BMWFANATICS post.
Vehicle finance up to 96 months
- Thread starter NtandoN
- Start date
FNB/Wesbank do send these out. It depends on whether you took one of the insurance deals the bank offered or not. If you take the bank offer, then that insurer sends the proof to the bank each year on your behalf. If you cancel it and get your own, then the bank requests it from you, and I very clearly remember I had to send the proof to them.TurboLlew said:
96 months??? WTF!
Regarding insurance, I have never had to send proof of insurance after the initial finance application, so I wonder if my broker also sent it directly to them. Going back to the original post of 96 months, thats sickening... Imagine paying for a depreciating asset (in most cases) for 8 years and then you may still lose money when trading in. That is just nuts. :fencelook:
Regarding insurance, I have never had to send proof of insurance after the initial finance application, so I wonder if my broker also sent it directly to them. Going back to the original post of 96 months, thats sickening... Imagine paying for a depreciating asset (in most cases) for 8 years and then you may still lose money when trading in. That is just nuts. :fencelook:
TurboLlew
Honorary ///Member
So you buy a R1M car... You pay R15429/month for 96 months (assuming you actually get prime... though if you're going this route it's unlikely you have great credit)
In the end, you have paid R482K to the bank pretending to be rich in your 8 year old car with 100000km+. Motorplan is a distant memory as the max extension was 1 year ago.
Meanwhile, that car is now probably worth R200K IF YOU'RE LUCKY and someone wants to actually trade it or buy it... so on the 'other side' you have lost another 800K in depreciation...
So you've lost R1,3M on your R1M car but hey, at least you own in in 8 freakin' years. I think we are going to have a whole new crew posting soon about how they 'don't buy cars on GFV or Residual' - but then finance the bloody thing over 8 years :biglol: :roflol:
mgwaiting:
Seriously, rather go GFV than this route unless you're buying a Ferrari or Lambo.
In the end, you have paid R482K to the bank pretending to be rich in your 8 year old car with 100000km+. Motorplan is a distant memory as the max extension was 1 year ago.
Meanwhile, that car is now probably worth R200K IF YOU'RE LUCKY and someone wants to actually trade it or buy it... so on the 'other side' you have lost another 800K in depreciation...
So you've lost R1,3M on your R1M car but hey, at least you own in in 8 freakin' years. I think we are going to have a whole new crew posting soon about how they 'don't buy cars on GFV or Residual' - but then finance the bloody thing over 8 years :biglol: :roflol:
mgwaiting:Seriously, rather go GFV than this route unless you're buying a Ferrari or Lambo.
osiris
///Member
My personal opinion is that if you have to finance a car for more than 48 months you simply can't afford the car. I say this because I have done this in the past when I was younger. I was never really taught much about finance by my parents. My mother is absolutely terrible with money. My Dad is great with money but never really taught me much, He just always said buy cash or if you want to finance make sure its 12 - 24 months max else you obviously can't afford the car. <-- this makes allot of sense to me now!
Obviously being a know it all I didn't listen and I got myself into plenty financial kak over the years with cars. Life happens and when you do things like take car with a residual or finance over a massive term and something happens like you get retrenched you then land yourself in the shit because you simply cannot sell the car and settle the bank as the amount owing is more than the value of the car so you end up in more financial shit than ever before. This has happened to me before and it was a major eye opener.
If your financing a car over 8 years it literally means the car is way out of your financial bracket and your living a champagne lifestyle on a beer budget. Most people opt for these plans and are left with little to no disposable income after all payments come off their account so when that motor plan runs out they going on forums looking for second hand tires and fong kong parts for their cars cause the running costs of such an expensive car is just beyond their affordability range.
There are allot of instances where taking a car over long term finance works for some people, its usually through a business via a car allowance etc.
Obviously being a know it all I didn't listen and I got myself into plenty financial kak over the years with cars. Life happens and when you do things like take car with a residual or finance over a massive term and something happens like you get retrenched you then land yourself in the shit because you simply cannot sell the car and settle the bank as the amount owing is more than the value of the car so you end up in more financial shit than ever before. This has happened to me before and it was a major eye opener.
If your financing a car over 8 years it literally means the car is way out of your financial bracket and your living a champagne lifestyle on a beer budget. Most people opt for these plans and are left with little to no disposable income after all payments come off their account so when that motor plan runs out they going on forums looking for second hand tires and fong kong parts for their cars cause the running costs of such an expensive car is just beyond their affordability range.
There are allot of instances where taking a car over long term finance works for some people, its usually through a business via a car allowance etc.
TurboLlew
Honorary ///Member
@Osiris has good insight and advice there. By all means use longer terms to get into the car and make sure your installment is low enough in case of a cashflow crunch (we all have things that come up) but have a plan to pay it in 1-2 years. If you don't have a budget build one. If that budget says your car's total cost is going to make you working-poor, don't do it.
Sales people look at us like deer caught in headlights wondering why we are shopping for cars or buying houses that are not at the max of affordability.
It is easier said than done but in this world we are living in literally NO JOB is secure. NO BUSINESS is immune from economic, competitive and technological pressure. If you feel like there is certainty for 5 or 8 years in your industry/business (at least in SA) quite frankly, you're dreaming.
You might not even realise this is a source of anxiety and stress for you until you no longer have it.
Sales people look at us like deer caught in headlights wondering why we are shopping for cars or buying houses that are not at the max of affordability.
It is easier said than done but in this world we are living in literally NO JOB is secure. NO BUSINESS is immune from economic, competitive and technological pressure. If you feel like there is certainty for 5 or 8 years in your industry/business (at least in SA) quite frankly, you're dreaming.
You might not even realise this is a source of anxiety and stress for you until you no longer have it.
