May 20 2020, 11:11 AM
QUOTE(crazycrazyman @ Aug 4 2019, 08:46 PM)
What about the effective interest rate that the author mentioned in the article?
I did a quick calculation. It seems 9 years has a better effective rate and it's giving youa better cash flow.
example interest rate @ 2.7%I did a quick calculation. It seems 9 years has a better effective rate and it's giving youa better cash flow.
5 years = 2.7% x 5 = 13.5%
9 years = 2.7% x 24.3%
Yes, 9 years maybe your interest rates will be lower but my guess by a bit. Bank needs to manage risk as well apart from making money.
Most standard cars come with 5 years warranty. So if you are going for 9 years, the at the 6th year... you continue to pay loan but you have a new commitment which is the car maintenance in case anything fails.
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