Hyundai No Repayments No Deposit Until 2015 - Thoughts?

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Hyundai Australia

• 

  Quotationz on 16/12/2013 - 12:34

  +3

  It looks as if the interest still accrues during the no payment period. So in 2015 you're going to have a 2013 Hyundai Elantra at full price + 1 years interest on top and on top of that its now a car 1 year old and depreciated in value. So you would be much better off buying a car when you can afford it.

• 

  _Bruce_ on 16/12/2013 - 12:48

  +1

  On top of what Quotationz says, note that almost all finance deals come out of the sellers margin because they are paying for it. That means if you don't get a finance deal they can actually sell the car for less.

  Also note that buying a new car never makes financial sense, you do it only because you want to.

  • 

    Cheeper on 20/12/2013 - 15:28

    Not exactly, especially when buying a 2-3 y/o car from a yard.
    They can be over priced and you have to pay the transfer fee.
    In addition they don't have new tyres or battery, may only have limited rego & ctp remaining. You don't know what has been done to or with it by the previous owner or owners and if it has had well disguised previous damage.

    With a used car you usually don't get as good a trade in as you do with a new one.

    Buying from an auction can improve the chances of getting better value but it is not a place for those with little automotive knowledge or any idea of values.

• 

  mafmouf on 16/12/2013 - 13:00

  Thanks for the advice and info!

  I did a little more searching and found that Quotationz had the same information and the interest accumulates along the year of no repayments. A bit of a deal breaker really.

• 

  anna10 on 17/12/2013 - 07:29

  +1

  If you can afford the 'cash' (I bought my car across 3 cc and got quite a few points), you can negotiate the price down to cover anything that in theory says this should be a good deal. The price is inflated to to cover the drive now pay later offer.

  If you intend to pay w' ccards, make that part of the deal upfront and say NO cc fees or I'm going elsewhere, eg 3 hours drive up the road where they will honour this deal breaker - ring around to get it locked in Ed.

• 

  spersephone on 17/12/2013 - 09:34

  Buying a new car makes sense depending on your financial circumstances at the time, and how much you're spending. I bought a new Getz 8 1/2 years ago, it's still going strong and I've spent much less on it than I would have if I'd continued to buy bombs every year or two. It's been reliable and the cost per year continues to drop as I spread the purchase price out each additional year.

  Buying a much more expensive car might not make financial sense, then you're better off buying it when it's a year or two old and reaping the benefits of a much lower price.

  As for this deal, see this link http://practicalmotoring.com.au/car-news/hyundai-finance-num…

  It gives a good explanation of how the deal works. It may suit you, it may not. The best thing would be that you would be putting the repayment amount away as though you were paying, earn interest on it, then use it to continue paying the loan once it starts. For example, open a savings account, put away the $614 a month you should be paying (if you started paying from the beginning). At the end of that year, you will have earned about $200 in interest (gee, less than one month's repayment). But you'll have around $8000 saved.

  The following year, you continue making your payments of $620 from your everyday account, grab a bit from your saved funds to make up the difference to $830, and let the bulk of that money continue to earn interest. It also means if you are caught short at some point you have a buffer of money there. But hopefully that doesn't happen.

  It can work if you're disciplined.

  • 

    mafmouf on 17/12/2013 - 09:47

    +1

    Your first section makes sense and I guess for my circumstance, not paying for a car in the first year would be great, despite the interest accumulation.

    The link I had already included in the previous post but thanks again haha.

    I realised that if you paid within 2 years of starting to pay the car off, you really wouldn't be paying that much more in total.

    • 

      spersephone on 17/12/2013 - 09:59

      Whoops, hadn't realised it was the same article. It's a good one though, explaining how it all works. You can use that to your advantage, but people are more likely to just not put money away at all.

    • 

      Cheeper on 20/12/2013 - 15:30

      Look for early payout penalties too. Finance co's like to get their blood.

      • 

        spersephone on 20/12/2013 - 15:39

        Definitely. I made sure there were no early repayment penalties before I signed up for mine. I came out at the end several thousand ahead of what they had intended I pay because I paid it quickly. You have to check exactly how your particular loan works to see whether it's a good deal or not.

  • 

    _Bruce_ on 17/12/2013 - 12:37

    I bought a new Getz 8 1/2 years ago, it's still going strong and I've spent much less on it than I would have if I'd continued to buy bombs every year or two.

    Your argument is that brand new cars and bombs are the only options? You next comment here:

    better off buying it when it's a year or two old and reaping the benefits of a much lower price.

    Explains the obvious flaw.

    The best thing would be that you would be putting the repayment amount away as though you were paying, earn interest on it, then use it to continue paying the loan once it starts.

    No the best way is to get a loan that will let you pay it off (not letting you pay for a year is a BAD thing) and do this. The interest you earn will not cover the cost of the loan.

    • 

      spersephone on 17/12/2013 - 12:45

      I did say that the decision to buy a car depends on your personal circumstances. The more expensive the car new, the less it is a good idea to purchase it new, due to depreciation. The depreciation on my car is a lower percentage than on a much more expensive car.

• 

  srhardy on 17/12/2013 - 09:48

  MONEY mag has car loans with 6.x% and a $50 fee, just go to any news agaent this month and look it up for free

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  gbanger on 29/12/2013 - 08:53

  newsagencies are not a library.

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  mafmouf on 08/01/2014 - 09:07

  Just as an update. Ended up contacting Hyundai and had a talk. Even they didn't really recommend their (back then) offer and mentioned most people stuck to regular finance to avoid a whole year of accumulated extra cost.

  Anyways, I ended up hearing about Nissan low finance of 0.9% and got a 2013 Pulsar ST-L for $22k at Liverpool.

  Right now, I think Honda have a 1.5% finance offer for a select range of cars.

  Ps. Liverpool Nissan didn't stock the GT-R so I was a little disappointed!