You should not do this - Page 5




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  1. #81
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    Default Re: You should not do this

    I do not think the banks are the culprits. You approach the bank for a loan. The bank lends you money at their terms. Its the same as buying anything else. The BIG problems are "Greed", "Peer pressure", "The me too" problem and last but not least, the general financial literacy and spending ethics. People buy way too much on financing schemes. They are indebted to the hilt but still drive an expensive car, eat out at expensive restaurants etc..
    The so called "Gowth" requirements of countries or companies are being paid for by the baloons. (Was that an l i typed? My recommendation-start being a stingy bastard.
    2002 Discovery td5

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  3. #82
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    Default Re: You should not do this

    Quote Originally Posted by Nambro View Post
    I do not think the banks are the culprits. You approach the bank for a loan. The bank lends you money at their terms. Its the same as buying anything else. The BIG problems are "Greed", "Peer pressure", "The me too" problem and last but not least, the general financial literacy and spending ethics. People buy way too much on financing schemes. They are indebted to the hilt but still drive an expensive car, eat out at expensive restaurants etc..
    The so called "Gowth" requirements of countries or companies are being paid for by the baloons. (Was that an l i typed? My recommendation-start being a stingy bastard.
    Nambro, agree with you.

    If you agree to "load a deal" to either get your trade in traded in, or get cash back, or whatever, and you understand and accept that you're borrowing your "own money", then the Bank or the Dealer is not to blame.
    Once again, I'm not talking fraudulent stuff here.
    Example.......you go buy that car with the " R 50 000 CASH BACK" sticker on it.
    1) You take up the offer, get R 50 000 cash, BUT you know that you borrowed that money.
    2) You rather opt for R 50 000 discount.

    Option 1 above is also not always stupid or wrong, by the way. You may actually put that R 50 000 to very good use.
    "Everything You See, I Owe to Spaghetti" (Sophia Loren)

  4. #83
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    Default Re: You should not do this

    Slightly off topic but in the same vein. Having been in Greece for the last 5 years, I'm obviously well versed in the economic problems of the country.
    One of the big if not the main reason for its problems, was unchecked lending of banks to people for just about anything. People were borrowing money for new cars (at one stage the biggest market for Porche Cayennes in the world), overseas holidays you name it. Without anybody really thinking about the payback. We all know how that panned out.

    The really frustrating thing for me is that generally everybody blames the banks, nobody takes responsibility for their own lack of sense (stupidity). This thread reminds me of Greece's situation very much.
    I'm not arguing, I'm just explaining why I'm right!

  5. #84
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    Default Re: You should not do this

    We had a domestic worker at my factory, blacklisted, handed over, garnishing orders, the works.

    We still had weekly calls from credit providers checking if she worked here before they let her open new accounts etc. And she was still getting junk mail from various banks offering her personal loans.

    I have zero sympathy for any of them, providers or users.
    Any minority that advocates for gun control is either wilfully ignorant, or has never opened a history book.

  6. #85
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    Default Re: You should not do this

    I wonder what the statistics are with regards to how many of the monthly new car sales are due to finance with Balloon/ residual.

    once you get caught in the cycle it just grows. The only way out is spending more time in the asset. ( you can actually break even in nominal terms- here I'm referring to stories of old folk selling there 30 year old mint condition corollas for the same amount the bought if for)

    Same with investments as the mantra goes - the more time you spend in them the better it is in the long run.
    2006 VW Touareg 3.0 TDi air suspension aka Pumba
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  7. #86
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    Default Re: You should not do this

    Browsing this thread has sparked Googles spyware. This is one of the adverts here on the forum. 35% Balloon! (I am in no way connected to Toyota or any rival of theirs.

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    Last edited by New; 2018/03/16 at 10:24 AM.
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  8. #87
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    Default Re: You should not do this

    There are also Balloons and Balloons, or Residual Values.

    If pricing is exactly the same (Selling Price), A 40% Balloon on a new Hilux 2,0 VVTi and a 40% Balloon on a new Tata 4x4 differs. Completely.

    Especially after 4 years and 100 000 km on each of the two.
    "Everything You See, I Owe to Spaghetti" (Sophia Loren)

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