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Post by danie on Aug 27, 2011 10:32:49 GMT 2
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Post by marius on Aug 27, 2011 12:14:44 GMT 2
Hi all
I do know that in real life it is not always possible, but if you can - try not to get into debt if you can avoid it. Paying for a car over a period of 60 months (or whatever) can cost you quite a substantial amount in the end.
If you have to make a loan - try and pay a little bit extra each month. This can save you a large amount of interest (real money) in the end. I don't know if it is still the case but be aware that your friendly financial institution can actually penalize you for doing so?
Marius
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Post by ronnie on Aug 27, 2011 12:55:35 GMT 2
Hi Marius
I don`t know if they can still penalize you or not if you pay off early, but you can and always were able to avoid penalties by giving 3 months written notice that you intend to pay the balance in full.
Ronnie
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Post by danie on Aug 27, 2011 13:26:27 GMT 2
Hi Marius / Ronnie
As far as I know penalties are applicable when long term bonds (like on home loans ) are canceled without giving a three month notice to the banks in advance.
Large amounts of interests can indeed be avoided by paying extra bits each month, and by doing this the contract will be fully paid before the initial term (i.e. 60 months) has ended. By keeping track of the outstanding amount I think one should just give the banks notice three months before the final installment will be paid.
I think it always makes sense to go for the longest term available - in the shorter term monthly payments are more affordable, and in the longer term one can always pay the extra bits whenever affordable.
I do agree - it is always better to pay cash whenever possible - but on the other hand, most things (like new cars) get more and more expensive, and many people out there will never be able to buy a car, should they prefer to buy cash.
As far as Ladas is concerned - I think anyone who are capable of doing his / her own repairs on the Lada, and who are importing his / her own spares , my advice would be:
If you do find a Lada in very good condition, don't worry about the damn interest, just buy the Lada. By doing "your own thing", you are going to save a lot of money anyway !
Danie
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Post by danie on Aug 27, 2011 14:05:25 GMT 2
This is probably not the best available, but the Auto trader Calculator can be used to get indications of monthly installments no Personal Loans as well. Just type in the selling price under "Total loan amount e.g R15 000" at the bottom of the next link : www.dealer.co.za/financecalculator_new.htmlDanie P.S. Unfortunately max term at the link is only 48 months.
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Post by ronnie on Aug 27, 2011 14:59:40 GMT 2
Hi Danie
You are quite correct in what you say. Last house before this one because of my age the maximum term they would give me was 11 years. I closed it after 3 years by giving them 3 months notice, the one before Was 20 years and I closed it in 8 years the same way and this was way back in the late 80`s. If you can do this you will save a fortune. You can pay extra money in anytime you feel like it. As you say if you don`t borrow you will not be able to buy a car these days, as the prices are horrific.
Ronnie
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Post by danie on Aug 27, 2011 16:28:56 GMT 2
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Post by Charles on Aug 27, 2011 19:15:41 GMT 2
Thank you guys so much for this. It helps a lot.
All my stuff will just have to work out now!
Calla
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