Toyota HSBC Loan - Any hidden conditions?

• ureshiman

  1 Jan 05, 18:03

  Hi,
  
  I intend to take up the HSBC loan which gives $1500 cash rebate. The minimum loan period is 1 year and amount is $20000.
  
  I worked out the sum and found it unbelievable. The total interest that i need to pay at the end is $440 which means i will have a savings of $1060 !!! It is better than paying all in full.
  
  It is quite unbelivable. Does anyone know if there is any hidden conditions?
  
  Thanks !
• Qitai

  3 Jan 05, 14:39

  Not sure if this is related. But my brother took up some bank loan 4 years ago to repay in one year. The deal is similar to what you wrote and I don't think I heard any complain from him about any hidden conditions. In his case, he was able to borrow $$ from people around him to pay in full but took the loan intentionally since the rebate is more than the interest.
• ed2win2

  3 Jan 05, 19:16

  Originally posted by ureshiman:

  Hi,
  
  I intend to take up the HSBC loan which gives $1500 cash rebate. The minimum loan period is 1 year and amount is $20000.
  
  I worked out the sum and found it unbelievable. The total interest that i need to pay at the end is $440 which means i will have a savings of $1060 !!! It is better than paying all in full.
  
  It is quite unbelivable. Does anyone know if there is any hidden conditions?
  
  Thanks !

  No worries. Whether u take 1 year or 7 year loan, conditions are the same - that means u still get $1500 discount.
  
  All they are interested is to make sure u get the loan even though u hv the money to pay all at once.If u are good at negotiating, u can still get the $1500 rebate w/o obtaining loan.
  
  Once, my cousin walk away in frustration when the SE told him that he hv to take the loan to get the discount (he wants to pay whole amt). SE saw him walk away, change his mind, then say he can get same discount w/o getting loan.
  
  It is only call HSBC discount in name only. It was more of car dealer marking up its prices by $1500.
  
  Its like bank will pay car dealer incentives for every customer that take up its loan.
  
• swifty

  4 Jan 05, 14:34

  just to share with you guys about hsbc loan
  hsbc offering 1st year interest free provided you tahke up minimum 7 years loan...
  less than 7 years loan interest at 2.2%...
  more than 7 years loan interest at 2.3%...
  will need to pay penalty fees if you settle your loan in full within first 2 years of your loan...