[b]COMMENT WHETHER TO FULL_PAY OR HP A VIOS AT $20 000 LOAN?
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Hi, would like to hear some advises from those exprience car owner.
As I'm consider whether to down pay all or loan 20k from BM? -
if i am not wrong, if u do a full payment at BM, the price is slightly different...slightly higher in fact. So check first ok?
think last time my dad had to pay like 2 - 3k more cos BM cant earn the loan interest... -
if i am u.. i will get loan.. pay 10% loan the rest.. use the cash at hand for investment is alway better to haf more cash at hand..
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he has a point.
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I think u only get the $2K rebate if u take up min loan of $20K for min 1 yr at 2.2% interest. This means u pay $440 interest, n u get nett rebate of about $1.6K! Moreover, ur cash position is more liquid with the extra $20K cash over the next 1 yr. In fact, even if u take the same loan up to 4yrs itÂ’s still better as the interest will only be $440 x 4 = $1,760; still less than the $2K rebate u will enjoy.
Unless u very sure u can reap more than 2.2% returns with ur excess cash/ investments, u may want to think twice about taking a huge loan. -
Thanks, Jiayong, Heluim n KmKm. But after comparing the amount of interest the BM or rather HSBC charged. It will be $440 p.a. for 2.2% base on 20k loan.
If compare to bank fixed deposit int. It will be much more higher! Coz, currently it around 1 plus % p.a. for fixed deposit.
But it quite true lah! If got more $$ on hand it definitely better. Unless the investment is "Bao Tan" type. Hee...Hee...Then dun wait liao loh! Can have a new car again in 3 yrs time. -
If I have the cash, I would take the minimum loan and period to get the cash rebate cos although if you invest, you are likely to get a better return than 4-5% but it comes with risk. I would rather pay-up within and have the peace of mind.
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yah thats a better choice, when u pay the full amt, the instant earnings on investment is the interest that u don't have to pay. unless u so sure that got investment out there that can top this, better to take minimum loan n earn the rebate as well. enjoy ur new ride!Originally posted by wsoon:If I have the cash, I would take the minimum loan and period to get the cash rebate cos although if you invest, you are likely to get a better return than 4-5% but it comes with risk. I would rather pay-up within and have the peace of mind.