10 year car loan. comments.
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I had many friends getting new and bigger car like Camry ,Cefiro, BMW etc. Many of them took the 10 years car loan. Stretching the monthy payment low. And many intended to drive for 10 years. Possible for japan car?? i doubt. What if they intend to change cars after 4-5 years. Will there be any cash left after clearing their bank loan?
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That depends on how much downpayment you paidOriginally posted by moonraider:I had many friends getting new and bigger car like Camry ,Cefiro, BMW etc. Many of them took the 10 years car loan. Stretching the monthy payment low. And many intended to drive for 10 years. Possible for japan car?? i doubt. What if they intend to change cars after 4-5 years. Will there be any cash left after clearing their bank loan?
If you had paid 10% downpayment with 90% loan for 10 years, almost most definitely need more than 5 yrs to break even, average of 7-9 yrs to even think of getting cash back.
but then again this is for scrapping the car, selling it 2nd hand after 5 yrs is another thing -
I am very sure that the bank will pray hard to have you borrow as much as you want and the longer repayment period the better... I do not think a car owner can break-even with a 10 years loan if owner decided to sell in 5 years, maybe he/she still needs to fork out more cash to pay the bank first. Of course, if new car price is soaring high, then there is a chance the old car could be sold at a good price and cover the differences... Anyway, don't think this could happen in the near futureOriginally posted by moonraider:I had many friends getting new and bigger car like Camry ,Cefiro, BMW etc. Many of them took the 10 years car loan. Stretching the monthy payment low. And many intended to drive for 10 years. Possible for japan car?? i doubt. What if they intend to change cars after 4-5 years. Will there be any cash left after clearing their bank loan?
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The interest of the loan will kills you, and make the car look very expensive........ not worth it. Never encorage my friend to take 10 yrs loan one...............
By the time you scrap your car, you'll not even get to see your original log card.
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1 year or 10 years does not matter so much as long as the loan sum is less than $55k. In such case, Hire Purchase Act is applicable thus no 'compound interest' is payable. Therefore, if ever you wanna sell the car, the loan is prematurely terminated, it is ok.Originally posted by moonraider:I had many friends getting new and bigger car like Camry ,Cefiro, BMW etc. Many of them took the 10 years car loan. Stretching the monthy payment low. And many intended to drive for 10 years. Possible for japan car?? i doubt. What if they intend to change cars after 4-5 years. Will there be any cash left after clearing their bank loan?
With regular maintenance, I don't see why Japanese cars can't last longer than continental. In fact, words have been going around that BMW will have transmission problem once pass the 5th year. -
At least your friends choose nice big cars. I have a friend who bought his hyundai accent no downpayment and choose the 10 years scheme
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im more concerned abt the amt i need to pay mthly. so my downpayment will be determined by tt i guess... hopefully instalment every mth ard 500-600.
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How about a 7 yrs loan?... any comment on this?Originally posted by Ah Wei:The interest of the loan will kills you, and make the car look very expensive........ not worth it. Never encorage my friend to take 10 yrs loan one...............
By the time you scrap your car, you'll not even get to see your original log card. -
Hi AllOriginally posted by newking:That depends on how much downpayment you paid
If you had paid 10% downpayment with 90% loan for 10 years, almost most definitely need more than 5 yrs to break even, average of 7-9 yrs to even think of getting cash back. but then again this is for scrapping the car, selling it 2nd hand after 5 yrs is another thing
Will you increase your downpayment to reduce the depreciation value of your car per year ?
Pls see below.
Car Price $54,999
Loan Period 7 years @ 2.2%
Which one will you choose ?
1. Downpayment $5,499.90 (10%) Monthly Installment $680.02 , Depreciation / year = $5900
2. Downpayment $16,499.70 (30%) Monthly Installment $528.91 , Depreciation / year = $5700
3. Downpayment $27,499.50 (50%) Monthly Installment $377.79 , Depreciation / year = $5500
4. Downpayment $38,499.30 (70%) Monthly Installment $226.67 , Depreciation / year = $5350
5. Downpayment $49,499.10 (90%) Monthly Installment $75.56 , Depreciation / year = $5180 -
hey, i got tis fren who did the same thing... scali same fren?Originally posted by ahkang:At least your friends choose nice big cars. I have a friend who bought his hyundai accent no downpayment and choose the 10 years scheme 
frankly, i disagree with using a 10yr loan to get a more expensive car.... driving a car in singapore is not cheap... should buy 1 within our means.... esp if the economy decides to take a plunge again (touch wood!), we will end up losing more than wat we expected when we got no choice n got to sell the car.... + bigger car means higher insurance, road tax, fuel consumption, etc.... got to take note of all these when buying.... -
Just some food for thought, if u opt for a 10-year car loan, wouldn't it be better that u go and rent a car for 10 years? some cars monthly rental rates abt 600+++. Then as and when the car not in good condition can change cars, no obligations.
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you got such lobangs?Originally posted by Goondu74:Just some food for thought, if u opt for a 10-year car loan, wouldn't it be better that u go and rent a car for 10 years? some cars monthly rental rates abt 600+++. Then as and when the car not in good condition can change cars, no obligations.
everywhere i look i cant find 600+ to 800! I want auto cars....
I am serious, got lobang msg me... -
go to saturday's classified ads, look under vehicles for hire, the older jap cars like mazda astina and newer kia clarus should fit yr budget. But the condition i cannot guarantee lah[/quote]
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can't afford somemore wanna drive...haha...