Car loan settlement
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 Jul 28 2009, 10:23 AM
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#1
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Senior Member
5,691 posts Joined: Mar 2006  
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Using that rule of 78 formula, I calculated my 9-year car loan and found that 50% of the interest is charged in the first 2.5 years.
Exactly halfway, where I am now (4.5 years) through the loan tenure, 75% of the interest is charged, so only 25% of the interest is refundable, sigh. |
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Jul 31 2009, 02:48 PM
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#2
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Senior Member
5,691 posts Joined: Mar 2006
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QUOTE(ch_leong @ Jul 31 2009, 02:32 PM) 2. Do you know settle you car loan earlier you can save interest? Let say u take 5 year loan and now you at 3rd year. if you settle it at 3rd year, they will fine you 1 year interest and deduct the last year interest for you. Check out the $ you can save from Hong Leong website. https://www.ecloan.com.my/calculator/loan_settlement.asp. Your reasoning seems a bit off. Some other forumers have given the Rule of 78 formula earlier in the thread, which when lookign through your Hong Leong website source, seems that that is the exact formula the calculator is using too. CODE T = fullperiod.value; N = eval(T) - eval(paidperiod.value); C = (loanamount.value * intrate.value/100) * fullperiod.value/12; T1 = n * (n + 1); T2 = eval(T) * (eval(T) + 1); T3 = T1 / T2 * C; totalrebate.value = calcRound(T3); Anyway I did some playing around with the formula, and in general it seems if you redeem your loan halfway through the payment period you are only rebated 25% of the interest. |
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