I want to buy another car. Currently on my contract I am paying 14% interest with a fixed instalment over 70 months. I want to organise a better deal - what should I do?
Secondly, is it possible to pay the principal amount first and pay interest later?
Rudolf Mahoney of WesBank responds:
You are welcome to trade in your car at any reputable dealership. The finance and insurance manager at the dealership will help you obtain finance for the new transaction.
It seems that you are dissatisfied with the interest rate on your current transaction. When financing a car you have the option of using either a fixed or a linked interest rate.
A fixed interest rate provides you with the certainty that your instalments will remain the same for the duration of the contract. It will, therefore, always be slightly higher than the comparable linked interest rate.
Unfortunately it is not possible to structure your finance agreement in such a way that you pay the capital amount first and then the interest.
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