Vehicle Finance now 96 Months.........





Page 1 of 6 1 2 3 4 5 6 LastLast
Results 1 to 20 of 107
  1. #1
    Join Date
    Jan 2012
    Location
    Bethlehem
    Age
    52
    Posts
    7,933

    Default Vehicle Finance now 96 Months.........

    From around October, I think MFC already offers that but now also Wesbank.

    New and Demo Vehicles.

    But no Residual Value if the Contract exceeds 72 Months.

    Dunno what to think of this..........8 Years is a LONG Contract for a Depreciating Asset that uses Fuel, servcing, etc etc.

    At least no Residuals - I just HATE that word.
    Of COURSE I have a Bad Habit. I take Tea at Three (Mick Jagger)

  2. #2
    Join Date
    Nov 2015
    Location
    Edenvale
    Age
    32
    Posts
    532

    Default Re: Vehicle Finance now 96 Months.........

    I think that's a bit crazy, but people will go for it, no doubt. They can afford newer/better cars, and will just keep on trading them in long before that 96 months has run out.
    2011 Freelander 2 SE
    Swambo : 2012 BMW 530d Msport("the beast")

  3. #3
    Join Date
    Jan 2012
    Location
    Bethlehem
    Age
    52
    Posts
    7,933

    Default Re: Vehicle Finance now 96 Months.........

    I think Franchise Dealers must be happy with this little "breather"........seeing what Pricing on New Vehicles is nowadays.
    Of COURSE I have a Bad Habit. I take Tea at Three (Mick Jagger)

  4. #4
    Join Date
    Mar 2010
    Location
    Cape Town - RSA
    Age
    34
    Posts
    2,640

    Default Re: Vehicle Finance now 96 Months.........

    Suppose it depends on if there is a guaranteed buy back or not.
    2007 Jeep Grand Cherokee 3.0 CRD Overland - GDE Eco Tune + 2" Lift on 265/70/17 BFG KO2's
    2017 Venter Savuti + Tentco Jnr, Dometic CF50 Fridge + Snomaster Battery Box
    --
    Ex - 2005 Cherokee CRD

  5. #5
    Join Date
    Jul 2008
    Location
    Constantia Kloof
    Age
    37
    Posts
    1,970

    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by Petri Oosthuizen View Post
    From around October, I think MFC already offers that but now also Wesbank.

    New and Demo Vehicles.

    But no Residual Value if the Contract exceeds 72 Months.

    Dunno what to think of this..........8 Years is a LONG Contract for a Depreciating Asset that uses Fuel, servcing, etc etc.

    At least no Residuals - I just HATE that word.
    This is completely reckless.

    Most if not all warranties are under 6 years. Most if not all service/ maintenance plans are under 6 years which for someone who wants to finance a vehicle over such a long period of time must be a consideration because if you have to finance a vehicle over 8 years it is unlikely you have enough budget left over for unexpected repair costs.

    I do think this is an instrument for the motor industry to sustain itself and ensure continued sales seeing as vehicles are becoming more and more expensive, thus less easy to obtain finance for as well as a way for banks to make more money. In the long term however I think this is going to backfire badly. We as a nation are already indebted to the hilt, schemes like these will only make the situation worse and a replay of 2008 is ultimately inevitable.
    2019 Mahindra S6 Pik Up S/C 4x4
    2007 Mercedes Benz ML500 5.5
    1968 VW Beetle 2276

  6. #6
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    57
    Posts
    35,486

    Default Re: Vehicle Finance now 96 Months.........

    It's simply insane and shows how weak our money really is.
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  7. #7
    Join Date
    Jun 2013
    Location
    Alberton
    Age
    58
    Posts
    6,052

    Default Re: Vehicle Finance now 96 Months.........

    People will lap this up.

    It is what people want, a lower monthly allowing for a higher value vehicle. The pre owned trade will have plenty of stock choice as these will be traded long before they are paid off. New car sales are good for the economy.

    When the economy is down, you have to get creative. A residual is one of the worst financial tools out there.
    Lusted for a Landy but the Pajero was sexier and bigger in the right departments, just like my Missus.

    2004 Gen 3. 3.8i petrol V6 (PAJTU)
    X Factor Bundutop trailer (designed by me)
    1998 Blister Fender Pajero 3500 24V (PAJ) (Sold)
    BMW R1200R

  8. #8
    Join Date
    Apr 2010
    Location
    Garsfontein
    Age
    41
    Posts
    1,284

    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by Petri Oosthuizen View Post
    I think Franchise Dealers must be happy with this little "breather"........seeing what Pricing on New Vehicles is nowadays.
    Yeah, a Datsun go is like R160 000

  9. #9
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    57
    Posts
    35,486

    Default Re: Vehicle Finance now 96 Months.........

    This will just push second hand prices up.

    And think of the poor guy that buys that nice 2018 demo for R1m and finances it for 72 months because now he can spread the cost and afford it, and after 12 months the crank falls out. He still has to pay most of the vehicle off and he's facing a R100k repair bill.

    I'd think of hanging myself.
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  10. #10
    Join Date
    Jan 2012
    Location
    Bethlehem
    Age
    52
    Posts
    7,933

    Default Re: Vehicle Finance now 96 Months.........

    One issue here I think......the Buyer who budgeted and can only afford a (say) R 400 000 Ranger 2,2 over 72 months, no Residual, is going to "upgrade" to say a 3.2 Fullhouse Ranger of R 600 000 over 96 Payments.

    ..........With that "upgraded" more expensive car losing even more value than its equivalent cheaper version.

    I guess what I'm trying to say is Buyers are VERY easily going to over commit/over spend, just looking at the Affordable Instalment and forgetting the Purchase Price altogether.

    But then, on the other hand, A car over 60 Months, no deposit, with a 50% Residual is'nt a better Deal than a " straight" 96 Months Contract, to be honest.

    The length of the Warranties/Maintenance Plans also came up tomorrow........but I guess Franchises will offer extended options for at least as long as the Contract runs. Maybe, dunno......once again, 8 Years is long.
    Of COURSE I have a Bad Habit. I take Tea at Three (Mick Jagger)

  11. #11
    Join Date
    Dec 2010
    Location
    Cape Town
    Age
    56
    Posts
    716

    Default Re: Vehicle Finance now 96 Months.........

    Would be much better to reduce it to 3 or 4 years and prohibit balloon and residual payments. Force people whocannot afford it to buy smaller cheaper cars, rather than to enable them to borrow themselves into a debt trap......not very unlike Eskom.

  12. #12
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    57
    Posts
    35,486

    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by DJR View Post
    Would be much better to reduce it to 3 or 4 years and prohibit balloon and residual payments. Force people whocannot afford it to buy smaller cheaper cars, rather than to enable them to borrow themselves into a debt trap......not very unlike Eskom.
    that will put the car industry into a recession and they'll need to cut back on production and lay off staff and the unions will start a riot and burn the factory down........
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  13. #13
    Join Date
    Jan 2012
    Location
    Bethlehem
    Age
    52
    Posts
    7,933

    Default Re: Vehicle Finance now 96 Months.........

    Oh yes forgot to add in OP........this new extended Terms are only applicable to "Cars under R 600 000".

    Yeah right.

    As if they'll say "no" to a Profile 4 Customer (Excellent) who wants to buy an Isuzu DMax at R 700 000, not the Hilux 2,4 at R 560 000.
    Of COURSE I have a Bad Habit. I take Tea at Three (Mick Jagger)

  14. #14
    Join Date
    Nov 2015
    Location
    Edenvale
    Age
    32
    Posts
    532

    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by DJR View Post
    Would be much better to reduce it to 3 or 4 years and prohibit balloon and residual payments. Force people whocannot afford it to buy smaller cheaper cars, rather than to enable them to borrow themselves into a debt trap......not very unlike Eskom.
    Why. Longer term means more money for Car Dealership, more money for Finance house, and ultimately more money for Government. The average consumer won't care, cause he/she can now drive an even better car, that they will trade in once settlement and trade balances out, and carry on doing that till they need to retire, at which stage they realize they can't afford a car for retirement.
    2011 Freelander 2 SE
    Swambo : 2012 BMW 530d Msport("the beast")

  15. #15
    Join Date
    Dec 2010
    Location
    Cape Town
    Age
    56
    Posts
    716

    Default Re: Vehicle Finance now 96 Months.........

    A much better option to make vehicle ownership more affordable would be for banks to make finance of older second hand vehicles possible. Say, an older AA inspected and approved vehicle with reasonable mileage, perhaps with an add-on service
    plan
    or disastrous failure insurance? Many older higher mileage vehicles are good for many more miles and years of service, but they are impossible to finance. Keeping vehicles functioning for longer makes environmental and economic sense, but the car makers and the banks want us to replace them much sooner and often than is really necessary.

  16. #16
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    57
    Posts
    35,486

    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by DJR View Post
    A much better option to make vehicle ownership more affordable would be for banks to make finance of older second hand vehicles possible. Say, an older AA inspected and approved vehicle with reasonable mileage, perhaps with an add-on service
    plan
    or disastrous failure insurance? Many older higher mileage vehicles are good for many more miles and years of service, but they are impossible to finance. Keeping vehicles functioning for longer makes environmental and economic sense, but the car makers and the banks want us to replace them much sooner and often than is really necessary.
    won't stimulate new car sales, won't happen

    I do see a tougher time for Petri as the second hand buyer decides he can now afford new.
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  17. #17
    Join Date
    Jan 2012
    Location
    Bethlehem
    Age
    52
    Posts
    7,933

    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by jelo View Post
    won't stimulate new car sales, won't happen

    I do see a tougher time for Petri as the second hand buyer decides he can now afford new.
    Not really jelo - I've always steered WELL clear of one or 2 year old cars. You buy those at the Franchise, with their 50 Point Checks thingies etc etc, or you buy new.

    But yes the non franchise okes with the 2017/18 model Polo's at R 199 900 Retail, at 72 months, may have a hassle competing with the VW around the corner with a brand new Polo at R 249 900 but over 96 months, Motor Plan, Warranty, etc etc.

    And the Guys with Floorplans - he is forced to only buy Cars less than 5 years old.

    I dont know that market, and its too late to try learn it now, and I operate without a Floor Plan. Sometimes I wish I did have one believe me - maar soos hy nou werk werk hy al vir 23 jaar.8)
    Of COURSE I have a Bad Habit. I take Tea at Three (Mick Jagger)

  18. #18
    Join Date
    Jul 2016
    Location
    Kloof
    Age
    47
    Posts
    19

    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by Koebelwagen View Post
    This is completely reckless.

    Most if not all warranties are under 6 years. Most if not all service/ maintenance plans are under 6 years which for someone who wants to finance a vehicle over such a long period of time must be a consideration because if you have to finance a vehicle over 8 years it is unlikely you have enough budget left over for unexpected repair costs.

    I do think this is an instrument for the motor industry to sustain itself and ensure continued sales seeing as vehicles are becoming more and more expensive, thus less easy to obtain finance for as well as a way for banks to make more money. In the long term however I think this is going to backfire badly. We as a nation are already indebted to the hilt, schemes like these will only make the situation worse and a replay of 2008 is ultimately inevitable.
    I agree; this is strongly indicative of the reality that vehicles are beyond incomes. Prices are too high relative to incomes at current time-horizons. Only two methods to fix that, viz, decrease the pricing or increase the term. The replay of 2008 is guaranteed because the clearing out of the financial morass hasn't been allowed to occur. 2008 could've been dealt with as a short and extremely sharp recession (which general market forces would've forced), but the manipulations of the authorities have ensured a protracted, longer term disgruntled economy. And this is likely global in scope.

  19. #19
    Join Date
    Nov 2015
    Location
    Edenvale
    Age
    32
    Posts
    532

    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by jelo View Post
    won't stimulate new car sales, won't happen

    I do see a tougher time for Petri as the second hand buyer decides he can now afford new.
    I actually see the opposite for Dealers like Petri. More people buy new cars, which in turn will cause more secondhand cars to be available, which should boost secondhand sales? And seeing as people are buying even more expensive cars, it would mean that the market will have more options available. Ultimately, I think the only loser is the original purchaser or said new vehicle over 96 months. They will end up "renting" cars for the rest of their lives, however, that has become a thing in South Africa already, so yeah, no big deal.
    2011 Freelander 2 SE
    Swambo : 2012 BMW 530d Msport("the beast")

  20. #20
    Join Date
    Jan 2012
    Location
    Bethlehem
    Age
    52
    Posts
    7,933

    Default Re: Vehicle Finance now 96 Months.........

    Quote Originally Posted by deanMorris View Post
    I agree; this is strongly indicative of the reality that vehicles are beyond incomes. Prices are too high relative to incomes at current time-horizons. Only two methods to fix that, viz, decrease the pricing or increase the term. The replay of 2008 is guaranteed because the clearing out of the financial morass hasn't been allowed to occur. 2008 could've been dealt with as a short and extremely sharp recession (which general market forces would've forced), but the manipulations of the authorities have ensured a protracted, longer term disgruntled economy. And this is likely global in scope.
    Agree 200%.

    With the Middle Class explosion we had , what could have been a HUGE Success Story became one of Millions of over-indebted people, and they are over-indebted with depreciating assets. Not homes and townhouses - fancy cars, clothes, boats, etc etc etc. Speelgoed.

    My opinion. And yes, most of us (including myself) had some benefit. Maar nou sit BAIE mense met hulle vingers binne in hulle julleweetwat, so diep in die skuld hulle kan nie asem kry nie............maar die Banke kan nie WAG om die volgende Speelding vir daai ou te koop nie.
    Last edited by Petri Oosthuizen; 2019/10/21 at 10:57 AM.
    Of COURSE I have a Bad Habit. I take Tea at Three (Mick Jagger)

Page 1 of 6 1 2 3 4 5 6 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •