if i take car loan for 5 years, then decide to do full settlement during the second year, will i need to pay the balance 3 years interest ? is there any penalty fees for doing early settlement ?

Bro, can you elaborate what you meant by penalty already charged to your car loan when you took it ?

The banks are regulated; they don't "blind blind whack me rm1100".

This is how 'rule of 78' is calculated in charging the total interest in an early settlement:
5 years loan or 60 months.
Total summation of 60 months: 60+59+58+57+56+55+...+6+5+4+3+2+1 = 1830

Which means if settlement in 60th month, total interest to pay = 1830/1830 x RM6000
Which means if settlement in 5th month, total interest to pay = (60+59+58+57+56)/1830 x RM6000

Which means if settlement in 13th month, total interest to pay = (60+59+...+49+48)/1830 x RM6000 = 702/1830 x RM6000 or about RM2301.64

You have already paid about RM1200 in interests in the previous 12 months, so it is RM2301.64 less 1200.

BTW. You managed to cough out 48 months of installments... congrats 

BTW. You saves nothing. It is like going to a sale. You think you saves 30-70% when you bought something you don't really need. You might as well saves 100% by not buying it. 

I need to do some calculation..

Does the money kept in account, or FD, or ASB?
I prefer loan to the max, cause the money can be use for better things...in sense of business capital...

   

LOL. How can we "quantify" the savings when it is not a saving but an expenditure?

If like that, then should have taken a 7 year loan. With some quick calculations, the cost of interest is almost the same (just slightly more), but you can then boast that you "save" RM6000. 

If like that, then should have taken a shorter or bigger loan, and a higher monthly installment. Then you can have the perception that you have even more to save or spend each month after full settlement. 

Anyway, you are diverting from the initial fact that you found it necessary, for whatever reason known to yourself, to have the loan and then fully settle it in the 13th months. There is an interest cost to pay for the privilege of having the loan, and in your opinion, it is worthwhile for you to have it (the loan).

Nobody is disagreeing your opinion or disputing that it is silly or stupid to do so. I, too, have taken a loan when I can pay the whole amount in one shot; albeit it was a short term of 18 months.

So you don't have to sugar coat your actions that you 'save' so-and-so much to support what you have done or to put blame on the bank on overcharging "blind blind whack" you. Otherwise Showtime747 will think the bank "have done a successful job to con" you.

No, most (practical) people will NOT agree on this. No such thing as "more control". Either you take "control" of the cash flow and budget, or have "no control". You took a 5-year loan, which was most suitable to you then. You did not take a longer loan than necessary, say 7 years, did you?

Yes, circumstances changed and you see it wise to settle the loan as soon as possible. No need to do any calculations... whether there is any savings or not, does it really matters if the objective is to end the loan and be debt-free? But this is your personal choice.

Some other will invest the sum of money into other means, maybe some will (mistakenly) think they will get better value by putting it into FD. 

If you mean 80 as in age... then the only way not to join is to die young. 

With major advancements in medical science, it will not be uncommon to live beyond 100...

tumpang topic ,

If i put 100k down payment for a 150k car . will i kena check? i have the cash but my pay slip wont approve for the installment of 150k so i reduce it to 50k loan .
thinking to cash 150k straight but worry LHDN will come . My bank statement can proof my Transaction but is not making sense with what my job income currently cox is not frm my company and i not doing any business .