how much downpayment? how many year loan? how much interest?
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want to know what is the best/common practice?
thinking to buy vios or sunny -
buy vios with ten yrs loan and u get cashback and 600plus per mth installment.
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Best practice - Take min. loan to get rebate and balance PAY CASH
Common practice - As much as you can afford
Bad practice - 10yr 100% loan -
what is rebate? sorry, i am a new bird in car buying.Originally posted by fondue:Best practice - Take min. loan to get rebate and balance PAY CASH
Common practice - As much as you can afford
Bad practice - 10yr 100% loan -
You pay them first, then you return you some. That is rebate.Originally posted by findingnewidea:what is rebate? sorry, i am a new bird in car buying. -
if it's still the same now and u r buying Vios, best is to take 1 yr loan (now still min 20k?) to qualify for the rebate (now still 2k?) so that u dun end up paying more interest than the rebate value.
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kmkm bro, i don't have so much cash to take up only the minimum loan. i can't pay in 1 year loan too coz i don't have so much spare cash each month. so your perfect theory isn't practical to me this poor guy.Originally posted by kmkm:if it's still the same now and u r buying Vios, best is to take 1 yr loan (now still min 20k?) to qualify for the rebate (now still 2k?) so that u dun end up paying more interest than the rebate value.
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In this case you will have to work backwards with how much fixed instalment you are comfortable to pay each month and the target loan period to arrive at 1) Max loan you can service for the car price, or 2) Max car price you can afford. Consider other options in case Vios or Sunny is still too ex for your financing plan.Originally posted by findingnewidea:kmkm bro, i don't have so much cash to take up only the minimum loan. i can't pay in 1 year loan too coz i don't have so much spare cash each month. so your perfect theory isn't practical to me this poor guy. -
Do you drive now? No spare cash per month, you sure you can afford car in the first place. If max loan, max years is your only option, then you have no choice, would you. Anyway, rough guide is for every 10k you loan for 10 years, there is about a 3k interest. Thus no-one would advise you to loan max years.Originally posted by findingnewidea:kmkm bro, i don't have so much cash to take up only the minimum loan. i can't pay in 1 year loan too coz i don't have so much spare cash each month. so your perfect theory isn't practical to me this poor guy. -
i intend to pay 25% downpayment, roughly 12-13k. taking up 5 years loan.
every month got to pay around $700+
i thought this is what normal people will do??
many people take only 1 year loan? -
for your reference, i downed 20% for my OPC, took a loan for 4 years. Installments come up to about $700+ a month.Originally posted by findingnewidea:i intend to pay 25% downpayment, roughly 12-13k. taking up 5 years loan.
every month got to pay around $700+
i thought this is what normal people will do??
many people take only 1 year loan?
On average, people will down about 20 to 30% unless they belong to the cohort who die die want to own a car even though their financial capability is not so there yet. -
I take 30k 1yr loan to get $1500 rebate. Total interest payable is only $750 so i save $750.Originally posted by findingnewidea:i intend to pay 25% downpayment, roughly 12-13k. taking up 5 years loan.
every month got to pay around $700+
i thought this is what normal people will do??
many people take only 1 year loan?
The rest I loan from family and pay them 2% compound interest
I save on interest while family gets higher return than Fix Deposit.
When I have more money, I can clear the loan without penalty.
Everybody happy. -
clever guy. then you have to fork out how much downpayment?Originally posted by fondue:I take 30k 1yr loan to get $1500 rebate. Total interest payable is only $750 so i save $750.
The rest I loan from family and pay them 2% compound interest
I save on interest while family gets higher return than Fix Deposit.
When I have more money, I can clear the loan without penalty.
Everybody happy.
every month got to pay how much to the bank? -
just avoid the 10 year loan. it will burn a deep hole in ur pocketOriginally posted by findingnewidea:want to know what is the best/common practice?
thinking to buy vios or sunny -
Loan repayment for 30k 1 yr is 2.6k / month.Originally posted by findingnewidea:clever guy. then you have to fork out how much downpayment?
every month got to pay how much to the bank?
Down payment ? Car price - loan lor !!
As for the loan from family ..... can negotiate wat ! After all, their money only sitting in the bank. -
For vios, if you take 50k loan for 10 yrs, your montly payment is $540 at 3% interest. So at the end of 10 yrs you actually paid 65k instead of 50k for the car. Thats a huge difference. So try not to take 10yr loan.
BM do not have restriction on PARF paper ownership, so if you are buying vios, you can use all the cash you can afford to buy parf paper on on the open market at a discount, and use the full value to pay for the car.
Eg.
Suppose you can down 10k cash.
Buy 10k of parf paper from the open market or bros here at x% discount (2nd hand car dealers are buying in at 6~8% discount). If you can get it at 5% discount, then you only pay 9.5k for the 10k parf paper. Savings of $500 upfront.
Your SE can use the full 10k parf paper to pay for coe n ARF.
But check with SE on what is the max amount you can use. My friend could use almost 2ok for his vois, so he save close to 1k this way.