Author Topic: Advertised interest rates on new cars.  (Read 256 times)

Offline Dumb and Dumber

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Advertised interest rates on new cars.
« on: November 13, 2017, 08:06:46 PM »
If I can explain per example. a dealer has a promotion on a new car and advertise it at 5% interest rate with a monthly payment of R4000 pm.  But when you want to buy it you are told your monthly payment can exceed R5000 per month. That is before service fees etc. Why is that? What must you do to get the car at the advertised interest rate and  monthly payments? Why are they allowed to advertise what  they are not going to offer their clients? I am ready to sign on the dotted line, but not for R1000 plus extra per month.

Online JonnyP

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Re: Advertised interest rates on new cars.
« Reply #1 on: November 13, 2017, 08:13:42 PM »
Probably requires a given down payment and a balloon payment at the end to get the R4000pm.  They are sharks of note
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Offline AdrianDeLau

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Re: Advertised interest rates on new cars.
« Reply #2 on: November 13, 2017, 09:17:37 PM »
T and C apply as they say.


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Offline Dumb and Dumber

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Re: Advertised interest rates on new cars.
« Reply #3 on: November 13, 2017, 09:30:04 PM »
T and C apply as they say.


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True. But what qualifies you to get the advertised rate? They just give people false hope 😣

Online JonnyP

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Re: Advertised interest rates on new cars.
« Reply #4 on: November 13, 2017, 10:22:44 PM »
False hope and credit, what is new? Not a religious man meself but wasn’t there an incident involving money lenders and a temple back then?  Always been some sharks out there.
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Offline reactor_sa

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Re: Advertised interest rates on new cars.
« Reply #5 on: November 13, 2017, 11:10:26 PM »
Probably requires a given down payment and a balloon payment at the end to get the R4000pm.  They are sharks of note
Yeah they will say "based on a sales price of x, with a deposit of y%, instalment of z Rand's per month, with ab initiation fee, and a balloon payment of bc. Subject to credit checks etc"

Online pwatts

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Re: Advertised interest rates on new cars.
« Reply #6 on: November 14, 2017, 08:01:28 AM »
Not happy with the Renault no more?

Offline Toxxyc

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Re: Advertised interest rates on new cars.
« Reply #7 on: November 14, 2017, 08:18:50 AM »
True. But what qualifies you to get the advertised rate? They just give people false hope 😣

They have to "approve" you for that low interest rate, so you apply for it.  I've been denied so many times it's not even funny, ending up with a quoted monthly installment of almost double the "advertised" price.  It's a ripoff.  The only place that actually honors these things IIRC is Mercedes with their 3-year plan things.

Offline Jaco

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Re: Advertised interest rates on new cars.
« Reply #8 on: November 14, 2017, 09:15:50 AM »
The payments are calculated on the "base" price of the vehicle, which they never seem to have in stock, so you end up buying one with loads of extras, which you may not need, ending up paying much more.

Offline chrisc

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Re: Advertised interest rates on new cars.
« Reply #9 on: November 14, 2017, 09:38:58 AM »
Note than "on the road" fees are no longer permitted to be charged, although some dealers pretend that does not apply to them

If I were considering the deal, I would insist on a written quotation showing all the financial particulars.  The bank or lending house must be FICA compliant and are thus compelled to give you this information in an unambiguous fashion

Offline Dumb and Dumber

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Re: Advertised interest rates on new cars.
« Reply #10 on: November 14, 2017, 09:45:17 AM »
Not happy with the Renault no more?

I am actually going to buy another. Nothing wrong with it. :teach:

Offline Dumb and Dumber

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Re: Advertised interest rates on new cars.
« Reply #11 on: November 14, 2017, 02:36:45 PM »
Well, the interest rate I was offered is 12%. That is more than double the 5.86% ''rate to clients'' What a load of crap.

Offline AdrianDeLau

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Re: Advertised interest rates on new cars.
« Reply #12 on: November 14, 2017, 04:43:39 PM »
Yea i suppose the banks are also to blame.
Dealership is willing but the bank not so much


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