QUOTE(DigitalTech @ Apr 5 2007, 02:35 PM)
My friend, do you if you only put RM5k down payment, if anytime you want to sell your car, you will be forking quite a big sum of money?
Do you know once you start your car engine the first time, you already lose 20% of the value?
Don't just calculate whether you can afford to pay the mthly instalment. Calculate the depreciation and interest accumulated after 9 years. By the 9th year, you probably can buy 2 cars. trust me.
Hire purchase for cars are calculated flat. that means even after you paid half of the loan, they still count 3.38% of Rm44k. get it? The effective interest rate is 6.14%.
Please bear in mind that other cost you need to take into account, such as petrol, road tax, insurance, maintenance. Easily you need to allow RM500 mthly. So all in you have to prepare RM1k.
I'm not to discourage you to buy a car, but you need all these facts before deciding. Owning a car is fun and convenient. But ask ourself, can we postponed the purchase and save more money?
Totally agreed with ya 100%. Last time i take stupid car loan for 7 years...regret like shit later.
Car loans is not like house loan. House loan take more is ok coz if u got money later, can make partial payment to reduce ur interest by very significant amount.
Car loan is flat...means if u settle early, you still have to pay the interest for the rest of the agreed loan tenure.
My advice to the young:
DO NOT TAKE A CAR LOAN > 3 YEARS. If you can't afford the monthly payment due to the short tenure, save up ur money so that u can put a bigger downpayment and make repayment in 3 years (4 max). You'll save a lot of money in the long run.
Imagine: if you loan 40K. 44K X 4.3%=1892. If u loan 9 years, ur interest would be RM17,028
If you say put in a bigger downpayment. Say RM15K, 29K * 4.1%=1189 * 3 years=Your interest is RM3,567 only.
That's saving of RM13K++, not to mention paying a car loan for 9 years is just so ridiculous...by 5 years time, you'll be cursing that u still have to pay the bank another 4 years when ur car value is less than half the ori value...
So work backwards on the max monthly repayment u can afford, and set a target to save the downpayment needed to achieve the target of 3 or 4 years loan.
You'll be so glad you did it a few years down the road.
Added on April 6, 2007, 9:20 am
QUOTE(kingmaker_20 @ Apr 5 2007, 04:18 PM)
Wait for the 9th year to buy two cars?greedy?And how if you already kong before the 9th year?Just don't think too further,you must look what you have now,not what you can have later or the 9th year.
People who don't plan ahead financially usually ends up broke. Cars is a liability not an asset. If u invest in properties, the price might goes up 10 years later, with cars, 10 years later, you are a proud owner of a piece of rusted metal. Only thinking of what you want know without planning for the future is a recipe for disaster.
With less commitment towards a car, your money can be put elsewhere in other investment to make it grows. Money dump into car will just vanish into thin air.
Unless you're very rich and can pay cash without a loan(and it shouldn't decrease ur saving account to ZERO), don't neven think of buying a fancy car!!! Just get the cheapest u can afford.This post has been edited by Matrix: Apr 6 2007, 09:24 AM