Vehicle Finance now 96 Months......... - Page 4





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  1. #61
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    Default Re: Vehicle Finance now 96 Months.........

    Slightly off topic...
    What amazes me in an economy where businesses are closing down every day, mines are closing, retrenchments are in the thousands, but drive through Durban city centre and take a look at all the fancy new car dealerships opening.
    Kia, SMG, NMI, Audi, VW ect. It will blow your mind.

    Then drive along Umgeni Road, and Old Main Road in Pinetown and look at the dozens of reutable 2nd hand car dealers, and the even more dozens of the dodgy car dealers that have rows upon rows of cars for sale.

    Where does all the money come from?
    And where are all the buyers that support these businesses?
    I met some crazy people.... They made me their leader.

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  2. #62
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by RvanZ View Post

    Imagine if we could get Prado's for R600k and finance them for 8yrs, and drive them for 12 or even 15yrs... is that not realistic?
    People on tight budgets shouldn't be looking at Prados or Discoveries or Touaregs or other luxury SUVs. PERIOD. You're confusing WANT with NEED.
    2012 Jeep Sahara Unlimited 3.6 V6
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  3. #63
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by AlexP View Post
    Slightly off topic...
    What amazes me in an economy where businesses are closing down every day, mines are closing, retrenchments are in the thousands, but drive through Durban city centre and take a look at all the fancy new car dealerships opening.
    Kia, SMG, NMI, Audi, VW ect. It will blow your mind.

    Then drive along Umgeni Road, and Old Main Road in Pinetown and look at the dozens of reutable 2nd hand car dealers, and the even more dozens of the dodgy car dealers that have rows upon rows of cars for sale.

    Where does all the money come from?
    And where are all the buyers that support these businesses?
    it's a false system propped up by the banks: the banks try and keep refinancing one asset OVER and OVER again and the dealers try and make as much profit on every sale, it's a sad system
    in other countries, once the vehicle is paid off and well used, it becomes a cheap commodity
    in South Africa, a 5 year old vehicle often sells for close to what the previous owner paid for it, and the next poor owner has to finance it

    Only in South Africa would you find a rusted piece of crap 4x4 going for R100k+, in other countries it would be on the sidewalk with a "Please make on offer" sign on it. Or it would have been parted out as scrap.

    Drive down any dodgy second hand car corridor (Umngeni rd in KZN, Voortrekker or Zambezi in Pretoria, you get the picture): row upon row of overpriced tin that doesn't sell, standing and being hammered by the sun and rain. It's insane.
    2012 Jeep Sahara Unlimited 3.6 V6
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  4. #64
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by RvanZ View Post
    What if its not about being flash, or keeping up with the Jones'?

    My wife has a 2012 Kia, came with a 5yr warranty thing and some sort of maintenance plan. Both those plans were extended and that was paid for in cash. So she essentially has a car, with so far, 7yrs worth of "cover".
    It only has 70000km on it, has no issues, touch wood, and she intends on using it for quite a while still.

    I love my skanky old ranger, the body is maybe a bit worse for wear, but mechanically I can't fault it much. I service and repair it myself for cheap, I actually use the bin for loading stuff. It takes me camping. Its still a bit of a workhorse that i won't be able to afford to replace with something that ticks all the same boxes.

    Both vehicles were settled early when it suited us, although we were okay with paying the installments for the full term of the finance.

    I have pondered getting a second vehicle, something smaller for the daily commute but couldn't stomach the idea of the high installments or ridiculous residual figures.

    And i'm not talking GTI's and the high priced "show off" boxes.
    I'm thinking more along the lines of Kia Picanto, Ford Figo, VW UP, entry level type stuff.... not Kwid or GO though.

    (I'm not going to do it though)

    Having the option to spend a few monies less every month because the installments are "less" frees up that money for other monthly living stuff.

    In current times I think many people could think like this. And I'm not talking about the people who just want to show off and get the flashest car they can "afford"
    I'm talking about those who are working hard to make ends meet, and want to get some decent reliable, warrantied, safe transport for their family, instead of a 10yr old high mileage #####box from a dealer that will end up on Carte Blanche. Not everybody has R10k monthly to spend on a car. Some can only afford less, but will still make all the payments.

    Imagine if we could get Prado's for R600k and finance them for 8yrs, and drive them for 12 or even 15yrs... is that not realistic?

    DISCLAIMER
    I am not rushing out to purchase a vehicle on 96months finance
    I realize that the installments and residual payments work out more expensive
    I am not rushing out to purchase a vehicle on 96months finance
    I realize that 96 month finance will cost more in the long run
    I am not rushing out to purchase a vehicle on 96months finance
    I am not encouraging the finance of vehilces over 96 months
    I am not rushing out to purchase a vehicle on 96months finance


    Now, let the onslaught begin
    For sure, you have a valid point. People need cars for different reasons. I for example have 2 cars, and another available should I really need it. I can take a gamble on buying second hand cars, as if/should/when they break, I can either fix it, or save up a bit to fix it.

    Other people might not have that luxury, and need at least one car, and that car must be reliable, then the R700-800 rand saving per month over 96 vs 72 for a 200-250k car could be a life saver for them. The biggest worry I have for people in this boat though, is if that R700-800 a month is a deal breaker, how will you be able to fit new tyres, shocks, brakes and all others that might not be covered by maintenance plan and so forth. So it's could be a catch 22 at the end of the day, for some it might work, and work well, and for others they might end up in big poop. I think though the most people that will take it will be people that can't afford that extra 700-800 rand a month, but will now be persuaded that they can buy an even bigger better flashier car, instead of making the practical choice.

    Disclaimer : When it comes to buying cars I am not at all practical.
    2011 Freelander 2 SE
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  5. #65
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by lizardalpha View Post
    I think though the most people that will take it will be people that can't afford that extra 700-800 rand a month, but will now be persuaded that they can buy an even bigger better flashier car, instead of making the practical choice.
    Spot on.
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  6. #66
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    Default Re: Vehicle Finance now 96 Months.........

    The other factor that also need to be discounted is planned built in obsolescence. Many motor manufacturers build certain models to last only for a predetermined lifespan. This phenomenon will surely play havoc with the finances of buyers using these extended finance periods. It may be an idea to find out from European countries which cars are not meant to still be on the roads after eight years.
    *
    Youth is such a wonderful thing - what a pity it is being wasted on the young.

  7. #67
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by jelo View Post
    OY I resemble that remark
    You don't deny it, just resent it!
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  8. #68
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    Default Re: Vehicle Finance now 96 Months.........

    I have not seen nor experienced a rational car purchase - in the end it was always an emotional decision.....
    2000 Patrol GU 4.2D(onkey) beyond 840 000 km

  9. #69
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    Default Re: Vehicle Finance now 96 Months.........

    As someone that falls into the younger generation, This 96 months is dangerous. when I was younger I had quiet a few friends who chopped and changed cars almost yearly. This is especially for younger guys who all want a nice fast hot hatch, realize after a year that is fun to drive, but usually uncomfortable or not very practical. So they sell & buy something else while taking a knock on the original financing because they basically just paid the interest for that year. The replacement car they buy is comfy, practical and economical on fuel, but after 6-8months the itch is back for something fast and exciting.

    I was also guilty of this to a degree, I sold my Mazda rustler bakkie which I inherited from my late grand father. It was light on fuel, fully paid off and services were cheap. I then bought a Fiesta ST, got bored with it and my gat was itching for a Ranger supercab. Young naive me bought said bakkie with my heart and not my head, missing the red flags all the way. Year later head gasket blew and I was in the hole for almost R40k. In that 2 year period I wasted close to R50k on financing for vehicles I didn't need, and still took a loss when I moved to Namibia because it was easier offloading the bakkie was the busted engine than having it fixed and trying to sell again.

    Young men don't look at the total amount spent over the total period of the financing. They just look at the monthly fee and if they can afford that now, by giving under 25's the option to buy new hot hatchs (GTi/ST/OPC etc) over such a long period, they are going to dig themselves in a crater of debt, because they won't keep said hot hatch for long.
    Current: 2019 Legend 50 D/C auto 4x4 - still to be named.
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  10. #70
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    Default Re: Vehicle Finance now 96 Months.........

    I don't blame the system for people making silly choices. If you can't manage your own finances properly you will get in to trouble anyway. Car payments in real terms are better than cell phone contracts, dstv, high speed internet ect.. Not the gun that kills but the person pulling the trigger..

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  11. #71
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by Philip72 View Post
    I don't blame the system for people making silly choices. If you can't manage your own finances properly you will get in to trouble anyway. Car payments in real terms are better than cell phone contracts, dstv, high speed internet ect.. Not the gun that kills but the person pulling the trigger..
    true that

    and since 90% of school leavers are functionally illiterate when it comes to maths, it's no wonder that they get stuck in debt holes
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  12. #72
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by jelo View Post
    true that

    and since 90% of school leavers are functionally illiterate when it comes to maths, it's no wonder that they get stuck in debt holes
    This is closer to the root of the problem.

  13. #73
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    Default Re: Vehicle Finance now 96 Months.........

    This and the fact that school leavers are not home leavers. That only comes many years later.
    Lusted for a Landy but the Pajero was sexier and bigger in the right departments, just like my Missus.

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  14. #74
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by Stranger View Post
    This and the fact that school leavers are not home leavers. That only comes many years later.
    don't remind me, I finally got rid of them

    home leavers are also not expense budget leavers...........
    2012 Jeep Sahara Unlimited 3.6 V6
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  15. #75
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by jelo View Post
    People on tight budgets shouldn't be looking at Prados or Discoveries or Touaregs or other luxury SUVs. PERIOD. You're confusing WANT with NEED.
    Whilst I agree with you, that wasn't quite the point I was trying to make with that opinion, what I meant was that we can certainly get vehicles that we can successfully use for the full term of finance, even longer, without too much fear of it being junk, or even having zero value afterwards.

  16. #76
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by RvanZ View Post
    Whilst I agree with you, that wasn't quite the point I was trying to make with that opinion, what I meant was that we can certainly get vehicles that we can successfully use for the full term of finance, even longer, without too much fear of it being junk, or even having zero value afterwards.
    maybe, but you have to pick carefully
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  17. #77
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by lizardalpha View Post
    It's simple. Keeping up with the Jones's.
    .....gelukkig ly ek nie aan daardie siekte nie!

    Bostoe

  18. #78
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by Philip72 View Post
    Finance can be your friend. Business minded peeps can generate returns above the repo rate. So sometimes it is better to use your spare cash in your business and finance assets🤔
    If the vehicle generate income - yes!

    But a private vehicle it is absolutely the wrong choice! Indirectly you are milking the business for private "luxury"!

    Bostoe

  19. #79
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    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by bostoe View Post
    If the vehicle generate income - yes!

    But a private vehicle it is absolutely the wrong choice! Indirectly you are milking the business for private "luxury"!

    Bostoe
    You misunderstood him. He is saying if some guy has say R600 000, that guy might be better off financing a R600 000 car at 12%, because he can use the R600 000 more effectively elsewhere to earn a return higher than 12% (but obviously it will not be as risk free as just buying the car cash.

  20. #80
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    Default Re: Vehicle Finance now 96 Months.........

    I believe that this might help people get ahead in life if they buy sensible, not confusing want and need. It might help someone get rid of that money pit rust bucket into a new vehicle that he can now afford, budget for the installment, and have a reliable vehicle.

    I have an interresting story. Just to show how long 8 years can be in money terms. In 2009 I bought my first Disco2 (want). Loved that vehicle. Lost my job in 2011, maxed out all available credit sources. Got new job after a few months. Lost job again in 2013, 3 months before our wedding. We were basically bankrupt after the wedding. Had to sell my Disco to get a bakkie so that I can start working as contractor. Didnt want a bantam (what I needed), wanted a defender pick up. Got said vehicle and it cost me R100k in maintenance alone in the first year. Then we decided to move to Nelspruit. Sold the house, packed up and moved. Used all the profit from the house to settle all debt. Combined income for wife and I was R16000. Sold the landy because of ridiculous maintenance costs. Got a Disco 2 again (want) as I worked for a boss and didnt need a bakkie anymore. Then a year later I started working on my own again, so traded the Disco for a bakkie. Got a Defender 110 double cab (want). I had endless crap with this vehicle, causing me to miss appointments, not showing up on site and again killing me financially even further.
    Then it happened. I ended the Land Rover affair / love triangle. Got myself a bantam (need). This was very emotional and tough. Sold SWAMBO's Defender 90 and replaced with a chev utility that we bought out of my dads estate. All the want was gone, we were left with need.
    This decision turned our lives around. In 4 years, we have gone from being completely broke, to owning 2 new vehicles and a house again. And we have 50% equity in it, its not financed to the max.

    So my point is. 8 years is a long time. If you use this 96 month agreement for the right reasons, you can get yourself ahead in life. If you are 22 years old, you should earn almost double what you do now by the time you are 30.

    I will settle my vehicle (72 month contract) before 48 months. Then I think I will look into that just out of warranty LC 70 series at 96 months. I will then use it as my holiday vehicle only, and it will last a lifetime.
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