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Cons of finishing car loan early?
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pisces88
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 Jul 13 2020, 01:23 PM
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QUOTE(3bucksshort @ Jul 13 2020, 01:17 PM) This is a question I was wondering if anyone could give some insight.. Yup agreed the savings is not much, but it would still be a saving rather than paying until the term ends no? For example: if the monthly installment is RM 600 and remaining 12 months, you would pay RM 7200 but if you settled it would be RM 6900 (maybe, just an example). If you have an extra 7k lying around (not taking a loan), would you opt for settlement or would you use the 7k for an investment? Investment, if you know how. If u plan to put in FD, i think also ok. Cos the savings memang around fd rate only. Another factor is whether u are planning to buy a house or another car soon, then maybe u wanna setttle old loan to free up ur ccris |
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max_cavalera
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Jul 13 2020, 01:28 PM
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QUOTE(Leong Kok Leong @ Jul 13 2020, 02:17 PM) bobi ang say no motivation to work and earn more money Bobi ang millionaire already. He tak kisah sudah. kimilau   |
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TOMEI-R
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Jul 13 2020, 01:56 PM
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QUOTE(ah_suknat @ Jul 13 2020, 01:09 PM) Yes but will the lower rates for personal loan safe me money? Go to your bank, check your full settlement vs outstanding balance. Then check your total repayment for personal loan. Then you would know if you could save on interest. |
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MR_alien
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Jul 13 2020, 05:05 PM
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QUOTE(ah_suknat @ Jul 13 2020, 12:37 PM) I wanna ask, now I got car bank loan with BSN with 3.15%, now i got offer personal loan from Bank Rkyt with 2.66%, so is it wise to get the loan and settle with BSN? Is there any cons? the amount that you're paying with BSN right now already included the 3.15% so switching to personal loan didn't save u anything at all if u ask me, u just added another 2.66% on top of your loan and i seriously don't recommend personal loan...read the T&C properly...theres usually a trap |
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stormer.lyn
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Jul 13 2020, 05:15 PM
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QUOTE(3bucksshort @ Jul 13 2020, 01:17 PM) This is a question I was wondering if anyone could give some insight.. Yup agreed the savings is not much, but it would still be a saving rather than paying until the term ends no? For example: if the monthly installment is RM 600 and remaining 12 months, you would pay RM 7200 but if you settled it would be RM 6900 (maybe, just an example). If you have an extra 7k lying around (not taking a loan), would you opt for settlement or would you use the 7k for an investment? For your hypothetical situation, I would settle my loan in full. 1. Peace of mind, because I don't like taking loans, but unfortunately it is necessary, 2. Don't forget the extra RM 600 that you don't have to pay every month.... |
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fantasy1989
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Jul 13 2020, 05:16 PM
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personal loan rate need to check with EIR
if EIR is higher than car loan rate then not recommended
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trapezohedron13
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Jul 13 2020, 05:22 PM
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QUOTE(LamboSama @ Jul 13 2020, 01:16 PM) Depends how old your loan is. If only 2 years left, most interest already paid. car loan diff than house loan lei |
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LamboSama
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Jul 13 2020, 05:29 PM
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QUOTE(trapezohedron13 @ Jul 13 2020, 05:22 PM) car loan diff than house loan lei Rule 78 my dear. https://mypf.my/2018/05/17/car-loan-hire-purchase/ |
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mushigen
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Jul 13 2020, 05:35 PM
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QUOTE(pisces88 @ Jul 13 2020, 01:23 PM) Investment, if you know how. If u plan to put in FD, i think also ok. Cos the savings memang around fd rate only.
Another factor is whether u are planning to buy a house or another car soon, then maybe u wanna setttle old loan to free up ur ccrisIf one has only one car loan and planning to buy his first house, say next year, will it be wise to keep paying for the car loan to get better "paying on time" history or do as you say? This is assuming the house loan installment amount is within his capability, even after taking account of his car loan installment. If he clears off the car loan today and only buys house next year, will there be too little credit history to support his loan application? |
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unknown_2
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Jul 13 2020, 05:35 PM
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QUOTE(ah_suknat @ Jul 13 2020, 12:37 PM) I wanna ask, now I got car bank loan with BSN with 3.15%, now i got offer personal loan from Bank Rkyt with 2.66%, so is it wise to get the loan and settle with BSN? Is there any cons? u check whether rule 78 applies to your current car loan o not. if no, then is worth. if yes, not worth. |
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cHaRsIeWpAu^^
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Jul 13 2020, 05:36 PM
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if you're dumb to ask question like this, better for you to clear your debt first.
i've seen many people 'act smart' on leveraging but actually they dont know shit about how interest rate works.
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pisces88
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Jul 13 2020, 05:50 PM
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QUOTE(mushigen @ Jul 13 2020, 05:35 PM) If one has only one car loan and planning to buy his first house, say next year, will it be wise to keep paying for the car loan to get better "paying on time" history or do as you say? This is assuming the house loan installment amount is within his capability, even after taking account of his car loan installment. If he clears off the car loan today and only buys house next year, will there be too little credit history to support his loan application? How old is the car loan? I assume already paid few years? |
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Zhik
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Jul 13 2020, 05:53 PM
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QUOTE(ah_suknat @ Jul 13 2020, 12:37 PM) I wanna ask, now I got car bank loan with BSN with 3.15%, now i got offer personal loan from Bank Rkyt with 2.66%, so is it wise to get the loan and settle with BSN? Is there any cons? obr berapa? |
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mushigen
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Jul 13 2020, 07:32 PM
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QUOTE(pisces88 @ Jul 13 2020, 05:50 PM) How old is the car loan? I assume already paid few years? Paid 2-3 years ady. |
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max_cavalera
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Jul 13 2020, 07:34 PM
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QUOTE(cHaRsIeWpAu^^ @ Jul 13 2020, 06:36 PM) if you're dumb to ask question like this, better for you to clear your debt first. i've seen many people 'act smart' on leveraging but actually they dont know shit about how interest rate works. Tai long businessmen, Mohon ajar ketard yang tidak pandai  |
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pisces88
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Jul 13 2020, 07:38 PM
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QUOTE(mushigen @ Jul 13 2020, 07:32 PM) Oh then already got enough record ma.. |
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trapezohedron13
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Jul 13 2020, 07:47 PM
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QUOTE(LamboSama @ Jul 13 2020, 05:29 PM) Oic, thank you for pointing it out. Wasn't aware of such thing. Sorry my bad ya |
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Zaryl
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Jul 13 2020, 07:51 PM
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Bank Rule of 78 says no
Pay by cash, SPRM & LHDN says hello
So just take that 9 year loan and pay according to the agreed tenure like a good boy.
The banks will be ever grateful to you.
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mushigen
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Jul 13 2020, 08:05 PM
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QUOTE(pisces88 @ Jul 13 2020, 07:38 PM) Oh then already got enough record ma.. This record got "expiry" date or not? Like say if the loan applicant last had a loan 12 months ago. |
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pisces88
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Jul 13 2020, 08:12 PM
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QUOTE(mushigen @ Jul 13 2020, 08:05 PM) This record got "expiry" date or not? Like say if the loan applicant last had a loan 12 months ago. Hmm i think u have credit card too right? It should be sufficient as payment record Hope got banker can answer ur question on the 'expiry' , im not 100% sure.. haha |
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