Sep 8 2012, 09:33 AM
QUOTE(forrest76 @ Aug 22 2012, 11:19 AM)
Say I have 100K in hand and I want to buy a 120K car.
Scenerio 1
Interest rate = 3%
Down payment = 100K
Loan amount = 20k
Tenure = 5 years
Total interest pay to bank after 5 years = 3K
Scenerio 2
Interest rate = 3%
Down payment = 20k
Loan amount = 100k
Tenure = 5 years
Total amont of interest pay to bank after 5 years = 15K
Balance money put in FD = 100k - 20k = 80k
FD interest = 4% (compound)
Total interest in bank after 5 year = 17.3k
*********************************
Is my assumption correct? Does it make more sense to put min down payment for car? And put the extra money else where with more than 4% return?
This is true is you have the RM80K up front to put in FD since the day you buy the car.Scenerio 1
Interest rate = 3%
Down payment = 100K
Loan amount = 20k
Tenure = 5 years
Total interest pay to bank after 5 years = 3K
Scenerio 2
Interest rate = 3%
Down payment = 20k
Loan amount = 100k
Tenure = 5 years
Total amont of interest pay to bank after 5 years = 15K
Balance money put in FD = 100k - 20k = 80k
FD interest = 4% (compound)
Total interest in bank after 5 year = 17.3k
*********************************
Is my assumption correct? Does it make more sense to put min down payment for car? And put the extra money else where with more than 4% return?
Added on September 8, 2012, 9:37 am
QUOTE(epie @ Sep 8 2012, 06:49 AM)
bro,
i also used proton iswara, bought it new in 2002 and also took 5years loan, finished my loan in 2007
now i'm still using it
have been clocked about 250k mileage
but i dun think i need to spend so much money for the car (fixing) as u did
i suggest u buy a new car,if u wanna peace of mind
for me i'm planning to get a new car and still doing research on wat car i can afford and best value for money
and it is bcos i need comfort not bcos my car give me headache or trouble
Ya, man. The old iswara is a work horse. My 2001 Iswara almost never masuk workshop... except for oil change la. Before you say I don't use the car much, my total mileage is about 398K already.i also used proton iswara, bought it new in 2002 and also took 5years loan, finished my loan in 2007
now i'm still using it
have been clocked about 250k mileagebut i dun think i need to spend so much money for the car (fixing) as u did
i suggest u buy a new car,if u wanna peace of mind
for me i'm planning to get a new car and still doing research on wat car i can afford and best value for money
and it is bcos i need comfort not bcos my car give me headache or trouble
This post has been edited by lawrencesha: Sep 8 2012, 09:37 AM
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