Thank you David for this episode. I am 29 years old and I don’t drive because I feel like I don’t need a car. I stay next to Gautrain in Rosebank. There’s Uber if I want to go to another Malls. When I visit home in KZN I fly or take a bus. I am not even thinking 💭 f buying a car maybe when I’m 31 years old. Right now I’m focusing on buying a property 😁. I don’t do things because of my friends but for myself.
if you have never any more of mobility you do not understand the freedom and time you save ..... this is not a flex really rather say I own a R2ok car than say I dont need it
Such conversations are important to educate black people about perosnal finances and what's more beautiful about this podcast in particular is that it's being done by a Black woman.
I love the way David asks the questions and receives answers as if he's never heard them before.....its so disarming and brings in everyone into the convo. I'm loving it, thank you 😊 🙏🏻
I think people who give this advice also don’t know . Balloon payment is not all that bad . Just don’t wait until the final installment date where they’ll need lump sum . You can call the bank and ask them to recalculate and make projections on how much you can pay extra to get to the ballon payment same time with the normal installment you paying . Usually you need to do that on year 3/4 if you financed for 6 years . Also if you pay extra into your car loan without telling the bank they might consider it as advance payment and it will just sit there and not reduce your monthly payment or reduce your loan until you give them an instruction what you want that money to do . I paid 4k extra on my car on year 3 after letting the bank know that I want to reach my balloon payment before the final installment. They made calculations for me . Also take balloon payment if you don’t want to own the car because you will sell it or trade it in maybe after 3 years so no need to pay full installment on a car you won’t keep. If you want to keep it then call the bank and make extra payments years before you reach final loan term repayment .
Not that I am in favor of balloon payment but yah you are right more especially on the fact that if you are not intending on keeping the car, then Ballon works on your favor. They should be pros and cons for everything so why they only touch base only the cons.
Agree with you ,how the bank trick you the day you call about your advancement payment they suggest to decrease your instalment to trap you to the same return on their interest gain
Brilliant watch. My son is 8 years old and I've already bookmarked this as material for him to watch 8, 10, 13 and 15 years time. He will watch it as refreshers until it sticks
I wish this conversation was available in 2008. I have survived an abusive relationship with my bank over 8 years trying to swim out of this stupid balloon payment arrangement. Thank God I am now free.
Ohh Marcus... Sorry to hear... There are many who went/are going through the same hurdle... Let's share and circulate to as many so that they become 'credit-wise' ne! I'll continue to serve...🙌👌😉
I cannot wait for this one. I really enjoyed the first interview and I have to say my financial wellness has improved. Thanks King David and Kelebogile for this series of financial education 🙌
I don't mean to be forward but King David I think you and daai suster make a cute couple. 😂😂😂😂Bo ma Power Couple so Wang ntshwara ne...... Anymore nice episode and in fact your channel is becoming a knowledge reservoir for some of us. Keep up the good work 🔥🔥🔥
Looking forward to the debt counselling conversation. Alot of people have fell victim to scammers and people that dont follow due processes. Glad that our people get to learn more.
Kelebogile is now my friend😂. She is that friend who doesn't know that she is my friend 😂. Great conversation. Thank you bhuti David for bringing her back
Gud mrng Sir, I'm very happy for this information on car balloon payments, may you kindly please have another one on mortgage or home loans. I'm very much hopeful that, the lady is full of helpful information?
Wow! What info and knowledge! Talk of being empowered!! Thank you King David and to our sister KB I would love to have follow up conversation. Thank you
Kelebogile, you have opened my mind on negotiating with the bank. You have the patience to explain until we understand... your voice is so peaceful...🙏
Sometimes sales ppl omit certain info on purpose to usher the buyer into a trap. As a 1st time buyer I could afford to pay the deposit bt the sales person said it won't make much of a difference on the price, so I fell into a trap of residual. Bt we learn day, thanx for the interview King D.
There is a lot to learn interms of finances and buying, understanding laws that relates with the product you want to buy.. Shout-out to David for bringing KB
I wish I knew this when I was 25, I would be far, but it’s better than never already ordered the book, Thanks very much King David for bringing this beautiful sole.
Great educational episode. Such education is crucial in getting the society as whole in a very good financial health. Kelebogile's energy and the passion she has on financial topics is absolutely. That's a sign of true subject matter expert. Key words taken "Financial literacy is key" "Personal finance coaching is important" "Coaching is better than training" I'm looking forward to the conversation about debt counseling! I only came across this podcast yesterday, and from the one episode of Spikiri interview I felt this a super podcast. David, I love your energy, the way you engage with your hostee is absolutely amazing. It keeps me glued to the whole show. This is how or what makes audio visual podcast to win!
I have just watched this now and I bought a car 5 months ago no deposit, i guess I am just going to start saving for that residual from now onwards, they will find me ready this car people after m done paying for the car. Thank you very much for the insight.
Those words from last week’s podcast if we are still here we can still rectify our mistakes jonga I was inspired phambili kulapho ndiyakhona👏🏾Ndiyabulela
Mdeva... superb content, can you bring her again to talk about residual payments for repossessed homes? I think she can save us by educating us about home loans residual payments where a bank repossessed and sold a home loan below its value...
Great advise here. But You'll find all types of videos on how bad balloon payment is yet no one seems to have information on how to negotiate with the banks to kill balloon payment especially once you have access to more money to pay a little bit extra on your installment.
Lol exactly . And I think people who give this advice also don’t know. Balloon payment is not all that bad . Just don’t wait until the final installment date where they’ll need lump sum . You can call the bank and ask them to recalculate and make projections on how much you can pay extra to get to the ballon payment same time with the normal installment you paying . Usually you need to do that on year 3/4 if you financed for 6 years . Also if you pay extra into your car loan without telling the bank they might consider it as advance payment and it will just sit there and not reduce your monthly payment or reduce your loan until you give them an instruction what you want that money to do . I paid 4k extra on my car on year 3 after letting the bank know that I want to reach my balloon payment before the final installment. They made calculations for me . Also take balloon payment if you don’t want to own the car because you will sell it or trade it in maybe after 3 years so no need to pay full installment on a car you won’t keep. If you want to keep it then call the bank and make extra payments for the next few years .
I so wish this session was interactive, is it really possible to buy a car without residual these days. An average family car costs around R900k, installment sale R16k excl insurance…🤷🏾♂️
It depends what car you are buying. The market has cheaper alternatives. It's either you are brand conscious/loyal or look for value for money for you or your family
David U are ahead than our guests.there is no investment in SA that will give U more than 10% on investment hence the vehicle finance is hardly less than 12% My advice if you have cash rather pay your residual and do not allow them to decrease instalments
I would say if you have R50 000, in the third year, pay it, unless you are a good investor and you can identify an investment that can beat your interest rate charged by bank. My car finance is at 11%. And I am not likely to find a 11% return in the market , so it means if my car had a residual it would make sense for me to pay it as soon as possible to save on interest. Another thing which we need to high light is that paying off debt has the save effect as investing. Coz if you were paying interest of R10 000 p.a to a creditor ,paying it off means you have made R10 000 return on your money without even investing, simply because you no longer have to give it to Absa, or Nedbank or Wesbank etc.
My understanding is that you are charged the interest on the total cost of the car (R200 000 as per the given example), so whether you pay the residual (R50 000) on the third year or not, it will not save you any interest. Hence the suggestion of saving, that way you will gain off of the invested R50 000. You will only save on interest if you pay any portion of the R150 000 earlier. I stand to be corrected.
@@reneilwetotwe1725 Im not talking from first hand experience coz I have never had a balloon on a car. But from my experience working with banks in financing of building loans. There whats called interim interest , how this works is that say you are approved for R200 000 , and the loan is 5 years, they start charging interest on your account and capitalize it even during the building project ,before you start paying your loan, but people generally dont know this. Now coming back to car financing. Remember that VW gets paid by Absa Vehicle Finance on your behalf, and in my understanding you then owe them. But when they buy you a R200 000 car, thats how much capital they have assigned to your name and they should start making moneny from the first month they gave that to the dealer. In the banking system there is literally no amount of money that can sit under a person's name without and be reported on their books as loan without it attracting an interest. But there are my ways to skin a cat ,so this R50k amount in my mind can be understood as a deffered loan for which an interest portion is still payable concurrent with the normal installment. Im not a banker myself but this to me would make sense knowing how banks work in general terms. But hey, I could be wrong
Thanks Dave for the knowledge. I would like to know if you bought a car and also asked sales person if there's any hidden cost and they said there's nothing and at the end you find this balloon, is the a way to contest it that you were informed there's nothing to pay after the arranged time frame?
@@goodlifemoney-masteryacade2191 I'm only 20 years old but I love this content so much. As young people we can't make the same financial mistakes that were made by our parents.❤🙌🏾
Any system developed by humans can be manipulated to your advantage if you’ve done research. Problem is when you don’t know, then you’ll be frustrated.
What happens after the prescribed judgment has been removed, let's say from Westbank...would you still apply for the car finance with the Westbank? Is it removed from the credit bureaus or from their banking system?
Hi Themba, the judgment is not prescribed since it's already a legal action. But if the car is repossessed BEFORE judgment is taken (typical illegal Repossession). Then the shortfall can prescribed as per those 4 requirements I mentioned. Upon a successful 'claim' or 'defense' on prescription, we update major credit bureaus. Not creditors. It's the creditors' responsibility to update their systems consistently with the credit bureaus. *** When it comes to assets financing (like car or house)... Any bank can finance you... Even if you don't have a banking history with them. In most cases those banks are the ones to approve your application and give better lending terms... Don't get too stuck up on bank loyalty...😉
Ok thank you for the reply, very enlightening... What if the Westbank doesn't update the judgment shortfall that you owe from their side, after it has prescribed, while the bureaus has completely removed the shortfall prescribed judgment, can the bank still see your credit history with them and Make a decision from that if they could approve you or not?
