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Dizzy28 wrote:I shudder at the thought that local banks offering up to seven years to pay for a new vehicle. A person really wants to be in debt for seven years for an asset that at the point of finally owning it outright will be of significantly lower value than what was paid?
Monthly payments looks smaller the longer the loan period but think of how much more interest is earned by the bank on a seven year loan than say 3-4 year one.
Rooki3 wrote:debt service ratio isnt like 30-35%?
devrat wrote:Pay cash for mine!
Mr. Red Sleeper wrote:dont own the car for 10 yrs....Take the 7 yr loan get rid of the car in 3-4yrs and keep your payments around the same every month...New car always...if you can pay off cash at any point go brave
mitsu_chick941 wrote:devrat wrote:Pay cash for mine!
aight nah big shot
DJ Q wrote:I've been gathering some info and have been realising that a lot of places are not willing to fully finance "commercial" vehicles, i.e., the Navara, Hilux, BT-50 etc.
And in many cases you're only getting up to four years at a higher interest rate.
original_lollybob wrote:Dont forget with the DSR (debt service ratio), u need to take into account your other debts...
So using the example
10000 * .4 = $4000
minus a credit card -250
minus other loans -500
minus insurance -250
so u may only be able to actually afford $3000
moti wrote:Last vehicle I bought was the wife Tiida, paid cash.
Not taking a car loan ever, bank can't be smarter than me.
DJ Q wrote:moti wrote:Last vehicle I bought was the wife Tiida, paid cash.
Not taking a car loan ever, bank can't be smarter than me.
Paying "cash" for a vehicle is not necessarily the "smarter" way to go.
Personally, assuming this was a new Tiida from N&M, I'd prefer to keep the $150,000 in the bank for medical or any other emergency and pay the bank a small portion of my income.
However, if your income dictates that affording a vehicle is "no scene" then, yes, I agree with you.
Very difficult for the average person to save up to buy a vehicle.
My eventual goal is to cycle my personal vehicle every three years.
Sell it when it still has good retail value and always have a practically new vehicle.
DJ Q wrote:original_lollybob wrote:Dont forget with the DSR (debt service ratio), u need to take into account your other debts...
So using the example
10000 * .4 = $4000
minus a credit card -250
minus other loans -500
minus insurance -250
so u may only be able to actually afford $3000
The places that *I* have personally been to do not take other expenses outside of another loan into account.
Credit Unions are the only ones (from MY experience) that ask you all of that.
Here's another big point I've been studying... A lot of places do not insure your loan!
If anything [God forbid] was to happen to the breadwinner in the family, that debt is passing on!
I fear FCB honestly. I don't like how the government has a big part to play in that bank.
Can someone share FCB's options?
Dizzy28 wrote:DJ Q wrote:original_lollybob wrote:Dont forget with the DSR (debt service ratio), u need to take into account your other debts...
So using the example
10000 * .4 = $4000
minus a credit card -250
minus other loans -500
minus insurance -250
so u may only be able to actually afford $3000
The places that *I* have personally been to do not take other expenses outside of another loan into account.
Credit Unions are the only ones (from MY experience) that ask you all of that.
Here's another big point I've been studying... A lot of places do not insure your loan!
If anything [God forbid] was to happen to the breadwinner in the family, that debt is passing on!
I fear FCB honestly. I don't like how the government has a big part to play in that bank.
Can someone share FCB's options?
ANSA Merchant Bank offers loan insurance as an option. Currently I pay $21/month..anything happens to me the loan is paid out in full, car goes to my estate.
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