# Car finance and PR



## Bwixie (Mar 11, 2014)

Hi All
So I was excited when I got my PR and decided to get myself a car. The interest rates from the finance offers made my jaw drop :boom: 18% at one institution and 16.8% at another. Apparently a 'foreigner scoring' was used on me despite my good credit record and PR. Anyone else experienced this? I applied for my ID in April and went to check this morning at the office of application and its's been verified. The lady estimated mid November for finalization. Will the ID make my car finance 'cheaper'?
Thanks


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## IamT (Aug 4, 2014)

They are trying to make money off you. I got finance 3 years ago when I had a TRP at a rate of 11%.Didnt even earn much at that time either.

Keep shopping around and here is a tip.Try demanding a reasonable rate.Those rates are negotiable.They are baiting you.


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## Bwixie (Mar 11, 2014)

IamT said:


> They are trying to make money off you. I got finance 3 years ago when I had a TRP at a rate of 11%.Didnt even earn much at that time either.
> 
> Keep shopping around and here is a tip.Try demanding a reasonable rate.Those rates are negotiable.They are baiting you.


Thanks IamT. I also thought I was being fleeced so I declined the offers because they wouldn't revise them. So I guess I'll wait for my ID. My south african colleague got an offer at 13.5% and he had no credit record at all! This daylight robbery is alarming.


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## IamT (Aug 4, 2014)

Bwixie said:


> Thanks IamT. I also thought I was being fleeced so I declined the offers because they wouldn't revise them. So I guess I'll wait for my ID. My south african colleague got an offer at 13.5% and he had no credit record at all! This daylight robbery is alarming.


Did the dealership arrange the financing for you or u personally bank hopped?


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## Bwixie (Mar 11, 2014)

IamT said:


> Did the dealership arrange the financing for you or u personally bank hopped?


The dealership applied on my behalf. Is it better to bank hop personally rather?


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## IamT (Aug 4, 2014)

Bwixie said:


> The dealership applied on my behalf. Is it better to bank hop personally rather?


Well, I wouldn't say you would get a cheaper quote going to banks yourself coz for me the dealership is the one that offered me 11%,however,I believe if you can go into a bank and ask to speak to someone who if Vehicle Finance focused,sit down with them, tell them I am not interested in the crazy rates offered and believe x% rate will be acceptable then you could get head-way.Currently the SA Prime rates are around 9.3% so if someone offers you 18% its clear that they are on a profit maximization ride-Thats close to buying a car with your credit card!A friend of mine with a PR was offered 14% by his bank and I believe if he had negotiated he would have dropped it to 11.5-12%.
Stand your ground.Find out the ideal rate that others similar to you are getting and request that rate-knock 2 competing banks against each other till you get the lowest rates.


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## Bwixie (Mar 11, 2014)

IamT said:


> Well, I wouldn't say you would get a cheaper quote going to banks yourself coz for me the dealership is the one that offered me 11%,however,I believe if you can go into a bank and ask to speak to someone who if Vehicle Finance focused,sit down with them, tell them I am not interested in the crazy rates offered and believe x% rate will be acceptable then you could get head-way.Currently the SA Prime rates are around 9.3% so if someone offers you 18% its clear that they are on a profit maximization ride-Thats close to buying a car with your credit card!A friend of mine with a PR was offered 14% by his bank and I believe if he had negotiated he would have dropped it to 11.5-12%.
> Stand your ground.Find out the ideal rate that others similar to you are getting and request that rate-knock 2 competing banks against each other till you get the lowest rates.


Thanks a lot for your help


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## tapsmatenga (Apr 8, 2014)

Bwixie said:


> Hi All
> So I was excited when I got my PR and decided to get myself a car. The interest rates from the finance offers made my jaw drop :boom: 18% at one institution and 16.8% at another. Apparently a 'foreigner scoring' was used on me despite my good credit record and PR. Anyone else experienced this? I applied for my ID in April and went to check this morning at the office of application and its's been verified. The lady estimated mid November for finalization. Will the ID make my car finance 'cheaper'?
> Thanks


 Banks should treat you the same as an SA citizen even without ID. How many months will be the loan payments?


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## Bwixie (Mar 11, 2014)

tapsmatenga said:


> Banks should treat you the same as an SA citizen even without ID. How many months will be the loan payments?


It was 72 months  (late reply ).
This 72 months is a thorn in my flesh, now with ID I got a good interest rate but 72 months I can't deal! :smash:


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## IamT (Aug 4, 2014)

Funny thing is in Nov 2014 I was granted Vehicle finance at 10.5% (probably because I put in 20% dep on a R290k car) and they gave me 72 months when I am on a Quota permit which expires before the 72 months is up!

Someone at the bank probably slept on the job by granting me a loan that had a repayment over my permit expiry date!.I wanted 60 months so what I am doing is paying the loan off as if it is a 60month loan.


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## Bwixie (Mar 11, 2014)

IamT said:


> Funny thing is in Nov 2014 I was granted Vehicle finance at 10.5% (probably because I put in 20% dep on a R290k car) and they gave me 72 months when I am on a Quota permit which expires before the 72 months is up!
> 
> Someone at the bank probably slept on the job by granting me a loan that had a repayment over my permit expiry date!.I wanted 60 months so what I am doing is paying the loan off as if it is a 60month loan.


Oh you can do that  . You are paying by debit order right? Did you just specify a higher amount when you completed the debit order form?


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## IamT (Aug 4, 2014)

Yes I pay by debit order but I put in additional cash every month.The plan is after a while I contact the bank and renegotiate the installment as I would have paid off quite a bit of the interest.With Vehicle Finance that is over a long term, its the interest that usually kills you but after pumping in a bit after you get the loan, you can always go to the bank and renegotiate-at least that is what the bank told me.


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## zizebra (Mar 11, 2012)

I don't think banks treat everybody the same. I was offered 17% for a car loan recently despite having paid up a decent loan and clear credit record. I ended up taking a cash loan for 14℅ from my company.


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## Bwixie (Mar 11, 2014)

zizebra said:


> I don't think banks treat everybody the same. I was offered 17% for a car loan recently despite having paid up a decent loan and clear credit record. I ended up taking a cash loan for 14℅ from my company.


Do you have PR and ID @zizebra? On investigation I found that my bank declined to finance me because they couldn't reconcile my records because I put my ID number on my finance app and they have my passport number on record (they overlooked updating even after they told me they had when I gave them a copy of my ID). So they advised me to submit direct to them and they will get me a good deal but unfortunately it cannot be this car that I had found. This other institution that approved has increased my interest to 13.5% from 12.4% because I requested a 60 months term:confused2::boxing:
Don't know what to do :confused2:


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## lovers (Jul 30, 2015)

IamT said:


> Funny thing is in Nov 2014 I was granted Vehicle finance at 10.5% (probably because I put in 20% dep on a R290k car) and they gave me 72 months when I am on a Quota permit which expires before the 72 months is up!
> 
> Someone at the bank probably slept on the job by granting me a loan that had a repayment over my permit expiry date!.I wanted 60 months so what I am doing is paying the loan off as if it is a 60month loan.



Waaaal where was it I need one as well, they are sending me up & down without a positive outcome.


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