Apr 3 2012, 02:19 PM
QUOTE(cherroy @ Apr 3 2012, 11:34 AM)
I am explaining how to find out or to see the effective or real car loan interest is.
I am not telling how to calculate how much monthly repayment is.
Seem like someone don't understand, what being highlighted.
I understood what you were trying to convey right away. Maybe doncityz needs to read your post properly.I am not telling how to calculate how much monthly repayment is.
Seem like someone don't understand, what being highlighted.
Added on April 3, 2012, 4:48 pm
QUOTE(cherroy @ Feb 19 2012, 10:33 PM)
Wrong.
Unless your investment can yield your more than 5-6%, you are going to lose against the car loan interest.
And to achieve more than 5-6% in current investment environment is not easy task.
Most importantly, most people cannot even save enough, more money in hand, spend it, rather than using it for investment.
Forget about put the money in FD or saving, you are going to lose against your car loan interest.
Don't not think that car loan 2.xx% is your effective interest rate. You are not paying 2.xx% interest, even your saving give you 3.5%, you still lose against it.
Say, I have 30k savings in total. And I wanna buy a car that costs 42k.Unless your investment can yield your more than 5-6%, you are going to lose against the car loan interest.
And to achieve more than 5-6% in current investment environment is not easy task.
Most importantly, most people cannot even save enough, more money in hand, spend it, rather than using it for investment.
Forget about put the money in FD or saving, you are going to lose against your car loan interest.
Don't not think that car loan 2.xx% is your effective interest rate. You are not paying 2.xx% interest, even your saving give you 3.5%, you still lose against it.
Should I pay 50% downpayment which works out to 21k, and then take the rest in loan? Or should I just take as much loan as the bank can offer, i.e. 85-90% so I can minimize downpayment and keep the rest of the money in investment (conservative invested here, mostly in bond funds which yields 5-8% returns)?
This post has been edited by Aurora Boreali: Apr 3 2012, 04:48 PM
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