Apr 24 2012, 12:25 PM
QUOTE(neo110 @ Apr 10 2012, 05:20 PM)
Hi gregy,
You are right on the interest diff is minimal but you miss out one point here.
Based on your calculation, you have RM15k for a RM115k car. After 3 years if you plan to sell your car.
If you took a 5 year loan - you get back RM31,885.25
If you took a 7 year loan - you get back RM13,386.20
If you took a 9 year loan - you get back RM3,105.40
Am sure after 3 years, you'll plan to have a better car which will cost more than RM115k, or even same value. But you won't have RM15k d/p as you first bought it 3 years ago. If you take a shorter loan tenure, see how much you get back in cash to upgrade or even for other usage
Moral of the story is, if you can't afford the more expensive car, get one which you can afford and not regret it later. It's never an advantage in taking a longer tenure for car loan.
i assume the 'you get back' part means after 3 years you do full settlement by selling the 3 year old car at 75k, and what you got in return, aye?You are right on the interest diff is minimal but you miss out one point here.
Based on your calculation, you have RM15k for a RM115k car. After 3 years if you plan to sell your car.
If you took a 5 year loan - you get back RM31,885.25
If you took a 7 year loan - you get back RM13,386.20
If you took a 9 year loan - you get back RM3,105.40
Am sure after 3 years, you'll plan to have a better car which will cost more than RM115k, or even same value. But you won't have RM15k d/p as you first bought it 3 years ago. If you take a shorter loan tenure, see how much you get back in cash to upgrade or even for other usage
Moral of the story is, if you can't afford the more expensive car, get one which you can afford and not regret it later. It's never an advantage in taking a longer tenure for car loan.
if so, then for a car which is 115k NEW and only after 3 years its value goes down to 75k, then i can conclude that the vehicle is not worth to buy in the first place (if you are to consider using it as a downpayment for a new ride after 3 years) unless you want to use it for your entire life
so i strongly suggest for anyone to use this method, buy a NEW car with great value after 3 years. and unfortunately in malaysia, the strongest is of Japanese contigents. not all but brand H and T. i am not turning this thread into another fanboy vs hater subject, so on the brands i stop here.
i know someone selling his City after 3 years owning it. his loan is on 9 years commitment and loan interest is about 2.3-something (2-3 years ago). what he is getting now is more than what he paid for his downpayment for the City.
so the key is, for people who want to change car every 3 years, to buy a new car with great value after 3 years
Added on April 24, 2012, 12:39 pmand ah, for the interest rate, it seems for proton the longer u borrow AND the lesser your downpayment, the LOWER interest rate is. dunno bout other makes but yesterday went to check on preve the SA told so
now cimb giving 2.7 something for 10% on 9 years. and 2.8 for 10% on 7 years
This post has been edited by mokhzaini: Apr 24 2012, 12:39 PM
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