When buying a new or used vechicle. whats the best way.

[Bmw.wp]

Hi Guys

What is the best way in buying a new or second hand vechicle.

Do u trade in your old car and also add a deposit or do u just trade in. and when your first installments go off then u just add your deposit also to the montly installment on the car for the first month.?

will it make a different.? as to when u put say R20 000 deposit down plus trade in. the installment goes down from say R4900 to R4500. you just win R400 back on a montly installment.

will the bank then maybe adjust your installment to a lower one.?:ty:

 

[kabal]

you must pay deposit before finance.

when you finance for say R50000 with a R10000 deposit, you actually only finance for R40000.

with finance, interest for the whole period is immediately credited to your account. therefore there is a huge difference between taking R50000 and then depositing R10000 into your finance account and financing for R40000, if that makes sense

 

[drugekull]

Do you want to keep the car you buy or do you replace your car every 5 years?

How many KM's do you do in a year?

Sometimes putting a deposite down is not a good idea because you end up kissing it away after the term when you trade the car in

There are other ways to bring down your payments

 

[Bmw.wp]

Do you want to keep the car you buy or do you replace your car every 5 years?

How many KM's do you do in a year?

Sometimes putting a deposite down is not a good idea because you end up kissing it away after the term when you trade the car in

There are other ways to bring down your payments

Drugekull , im like 1200 km's from my family in western cape. Now the only cars that is going to be wortwhile is in the R160 000 to R350 000 bracket.

I budget for R3000 to R5000 for a new car or used one. If taking the km's in account then maybe i have to consider a fairly new or used car with low km's. I am still deciding on sell one of my cars and used the money as deposit or just trade the car.

 

[drugekull]

Ok but how many km's do you do in a year

Do you replace them evey 5 years when the motor plan starts to run out or do you keep you cars

I am assuming that you are looking at purchasing a BMW right?

Which one did you have in mind

I have just purchased a Brand new 320d exclusive auto with sunroof and I am paying R5100 pm and I put no deposite down.
There are a few restrictions in buying a car like I did so thats why I am asking the questions.

 

[Clownshoe]

Trade in vs selling privately. Will depend on the trade value you get. Some dealers will give a good deal some will not. Selling privately means that there will be a time delay. Trading is considered teh most painless way of changing cars. The trade in value will be deducted from the finance needed for the new car.

Deposits... well you need to look at what you would have done with that money other than use it as a deposit. True the deposit will only save you a few bob a month... but look at how much it would be over the period of ownership. You will also not get that money back in cash. but a depreciated for when you trade the new car in on the next.

Vehicle finance is the most expensive finance (compared to a morgage) so if you are buying X car and you take money from teh morgage to help finance the vehicle... you save in teh long run...

I challenge an actuarial scientist to prove me wrong.

 

[Bmw.wp]

Ok but how many km's do you do in a year

Do you replace them evey 5 years when the motor plan starts to run out or do you keep you cars

I am assuming that you are looking at purchasing a BMW right?

Which one did you have in mind

I have just purchased a Brand new 320d exclusive auto with sunroof and I am paying R5100 pm and I put no deposite down.
There are a few restrictions in buying a car like I did so thats why I am asking the questions.

Currently i dont no how many now, because my whole situation change from doing up en down to my nearest family from 400km's to 2400km's.

think the best is going to replace from now on each 3 to 5 years. because Northern Cape roads are very bad vs Western cape.

 

[drugekull]

Ok So look structure it how you want. BMW has still got that trade in assistance special going. So When I traded in my 2006 323i e90 they gave me a ok tradein R145000 then they gave me R60k tradein assistance so I ended up getting my 320d for less than a Demo with more extras. This only works on new cars. Demo cars you can get the prime less 5 deals but if you compare it to the new car with tradein assistance it is sometimes better to go with a new car. Don't look at sticker prices go speak to the dealer and see what they can do if you sell you car privately you cannot get the tradein assistance on a new car.

Also something to note the Prime less 5 was not happening on 2011 Demo models only 2010. I don't know if that has changed though.

 

[Spy007]

Remember that R400 is for every payment so 60 months x R400

= R24k

---

FYI Residual A BIG NO NO NO NO NO NO

 

[Bmw.wp]

Ok So look structure it how you want. BMW has still got that trade in assistance special going. So When I traded in my 2006 323i e90 they gave me a ok tradein R145000 then they gave me R60k tradein assistance so I ended up getting my 320d for less than a Demo with more extras. This only works on new cars. Demo cars you can get the prime less 5 deals but if you compare it to the new car with tradein assistance it is sometimes better to go with a new car. Don't look at sticker prices go speak to the dealer and see what they can do if you sell you car privately you cannot get the tradein assistance on a new car.

Also something to note the Prime less 5 was not happening on 2011 Demo models only 2010. I don't know if that has changed though.

This special also on 5 series.? 3 series seems so small. would like an E60 530d then. or lol 7 series (too big but still beautifull)

 

[drugekull]

Na I doubt it the new 5 series are new models there won't be specials on those for a while.

 

[Sankekur]

I try to never use finance when buying a car, and luckily have never had to.

 

[Clownshoe]

I try to never use finance when buying a car, and luckily have never had to.

:thumbs:

Finance is evil.

 

[VWGTI]

always buy new if you can afford it..... but cars depreciate so much so you can get a good second hand one...

 

[Sankekur]

Luckily I will probably never be able to afford a new car so i will never be tempted to do that :=):

 

[Sportpack]

FYI Residual A BIG NO NO NO NO NO NO

Why is that? Especially if its called a guaranteed future value and you plan on trading it in after 4 or 5 years

 

[Bmw.wp]

Here i am again. lol.

How much do the Dealers offer for a 2001 E46 330i if you trade it for a used or new Bmw on the floor.

and what do you guys think about they finance options like the lease option.

Thanks Fanatics

 

[ChefDJ]

you must pay deposit before finance.

when you finance for say R50000 with a R10000 deposit, you actually only finance for R40000.

with finance, interest for the whole period is immediately credited to your account. therefore there is a huge difference between taking R50000 and then depositing R10000 into your finance account and financing for R40000, if that makes sense

No.

Interest for the whole period should not be added immediately. It should be added monthly as is with my case.

Your monthly instalment goes off, and then the monthly interest is added. This allows you to have a lower settlement value at all times should you decide to settle the finance at some stage.

You cannot be charged interest for 5 years if you can settle the loan amount within 3 years by paying more than the minimum instalment at any given time.

 

[badboizn]

you must pay deposit before finance.

when you finance for say R50000 with a R10000 deposit, you actually only finance for R40000.

with finance, interest for the whole period is immediately credited to your account. therefore there is a huge difference between taking R50000 and then depositing R10000 into your finance account and financing for R40000, if that makes sense

No.

Interest for the whole period should not be added immediately. It should be added monthly as is with my case.

Your monthly instalment goes off, and then the monthly interest is added. This allows you to have a lower settlement value at all times should you decide to settle the finance at some stage.

You cannot be charged interest for 5 years if you can settle the loan amount within 3 years by paying more than the minimum instalment at any given time.

That correct:thumbs:
they calculate interest on a monthly basis based on principal debt owed.