Help me calculate the car loan stuff.....

flash9933

7 Aug 04, 11:21

Originally posted by ryann24:
i brought a second hand car...... paying $55650... OMV is 1800plus

Monthly Installment is around $800 for 100 % car 7 years car loan which is $67200

How much is the interest rate?? Is it worth it??

Let "k" be your interest rate ....

[( k/100 Ã— 7 years) + 1 ] Ã— 55650 = 67200

..... k = 2.96%

very high interest rate ... did you pay any cash for transfer, insurance, first installment and any admin fee? in not, probably the dealer added these costs into the loan amount. btw, wat car did you buy, and wat is the COE value?

Ride wind

7 Aug 04, 15:26

Originally posted by GLX:
2nd hand cars loans' interests are higher. And it is compounded on the front value throughout the years...

So 2nd car is not fixed rate? Please enlighten us with a simple eg.

Gazelle

7 Aug 04, 19:07

Originally posted by ryann24:
i brought a second hand car...... paying $55650... OMV is 1800plus

Monthly Installment is around $800 for 100 % car 7 years car loan which is $67200

How much is the interest rate?? Is it worth it??

a) The interest rate which you are paying is 2.965%, which mean total interest you will be paying is about $11,550.

b) At 2.6%, which was quoted by DBS, your installment will work out to about $785 per month, and total interest payable is $10,323

- The total difference between a and b is about $1226.93, which I believe must have been used to cover for the transfer fee.

Since you are taking 100% financing with inflated interest rate, you are actually owning a car with negative value. I would suggest that you take care of your car properly and make sure you drive it for at least 5 years. it is important for you to read about RULE78 and find out when is your breakeven point, ie. when your car value (resale market or scrap value, which ever is higher) = oustanding loan amount.

cadaver_sg

8 Aug 04, 07:21

Yep, I made a mistake, sorry. Went to ask today, 2nd hand car loans are indeed higher, in the 2.9% range.