I purely agree don't make car installment >7 yrs......
I am suffering the car loan right now......... >.<""
DigitalTech,
What is your opinion for the best duration for loan ~ 70k??
U seem very expert !!
Car Loan Interest Rate
Car Loan Interest Rate
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Apr 11 2007, 05:06 PM
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#1
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Junior Member
36 posts Joined: Apr 2007 |
I purely agree don't make car installment >7 yrs......
I am suffering the car loan right now......... >.<"" DigitalTech, What is your opinion for the best duration for loan ~ 70k?? U seem very expert !! |
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Apr 12 2007, 11:40 AM
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#2
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36 posts Joined: Apr 2007 |
50% down payment is good............ but, if i got 30k, i am sure put dump to housing loan instead of Car loan.
Housing loan % > Car Loan %.......... My monthly budget for installment is around 2.2k. Housing loan took me 1.2k (actual need 0.9k). left 1k for car.......... If i loan 70k - 2.65% - 7yrs - monthly = rm 987.92 If i made it to 5 yrs, monthly = rm 1321.25......... still within budget if i pay the exact 0.9k for housing loan. But, the housing loan installment will took me forever......... |
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Apr 12 2007, 12:15 PM
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#3
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36 posts Joined: Apr 2007 |
QUOTE(DigitalTech @ Apr 12 2007, 11:51 AM) Do you own a car already? Are you upgrading your current car now? Yup, got "super protom" wira..... year 2002. Nut, the noise when driving is "better than" 20yrs HONDA........... I would suggest you to open a Std Chd Mortgage One home loan account. You put all your money into this account and consolidate to offset interest. Long run you will see how much you save. If you really need a car, try to get a affordable one with low maintenance and good fuel consumption. All the rest of the money put into your home loan. Mortgage one calculates daily rest. The more money you put in, the more money you save. ultimately you must try to payoff you home loan asap. Home loan interest will kill you softly. However property will have capital appreciation overtime. But everybody needs to have at least 1 home. I tell you, if your home instalment is 1.2k, the principal component only RM200.00. The remaining 1k is interest. Meaning you are working hard for the bank. If you constantly remind yourself this way, you will work very hard to payoff whatever loan asap. Consolidate your accounts is the way to go. another thing is car loan are calculate flat. So you need to work out the effective interest. But usually still lower than home loan. The downside is car depreciate and home appreciate. I just switch to Citybank - flexi home loan recently. and just dump 20+k last month...... Can take back what ever extra dumped $$ whenever i want..... my house regular monthly installment is ~rm933, but i made it 1.2k. i knew the principle issue, thanks for remind me... |
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Apr 13 2007, 02:55 PM
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#4
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36 posts Joined: Apr 2007 |
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Apr 13 2007, 05:23 PM
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#5
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36 posts Joined: Apr 2007 |
QUOTE(Matrix @ Apr 13 2007, 05:00 PM) NO. You're liable to pay up interest+principal even if u pay up earlier. They'll only give you a small discount like a few hundred bucks. Unlike Home Loan, the more u pay up, you're principal loan reduced, thus interest reduced and you can settle the rest of the principal without paying any interest after the initial tie-down period (3 to 5 years depending on ur contract). Ya loh, if u made your car loan at 7yrs, then just pay regularly to finish it.That is why, car loan sucks. Don't go for long loan for cars. It's just not worth it. And if u already have a long loan, don't pay off early either coz ur money can be use to make money in the bank and elsewhere instead of giving it to the bank for a small discount. Ex: If you still owe 30K(total loan principal + interest) to a bank for 5 years and you pay it off, you'll probably get a 1K discount tops. However, if u put RM30K in the bank for 5 years, even at 4% interest, with accummulated interest, you can earn RM6.5K !!! So just pay slowly and don't settle early if u owe bank long car loan. If got extra money, pay for housing loan, most of it is daily interest(check 1st). U pay today, the interest charge go down tomorrow. |
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