Rule of 78 shows you have paid at least 48% of the 7 year total interest.

Which means this is no point for me to settle the car loan earlier?

Btw I thought car laon interest is "already charged" and divided by months/year. Unlike housing loan that we can clear principal amout to reduce interest.

Yes its charged but interest it's not equally divided into 7 years.

Interest portion is higher at the beginning.

Is it wise to settle now?
The interest is around 3%, why don't I park my money in somewhere else instead of settle it ler?

According to bro rapple, you have paid 48% of your interest.
So you can do a calculation if you pay off earlier and save the 52% interest is better or instead of paying off the loan, use your cash pile generate more income to offset the 52% interest and earn more in the processs.

Edit to your last post: it is 3% pa but since it is calculated upfront, the effective interest rate is much more than that.

This post has been edited by justanovice: Mar 6 2017, 06:26 PM

The car loan early settlement can only be done by "1 lumsum settlement" to settle the rest of amount I owe them. Am I right?

Yes bro. Must settle 1 shot early settlement else no point ..

Thanks bro, I'll email bank to check how much of interest I can save from early settlement.

What do u think about the comparison early settlement of:
Car loan vs housing loan?

Should I use those money (car loan I owed) to clear the rest of car loan or reduce the principal amount of housing loan?

Hi all, it's me again.

My car loan info:
1) borrow 55000, 7 years loan
2) left 5 years, owing bank 51329
3) interest rate 2.99
4) total interest=11k++

Is this means I've paid off all of the interest (11k++) in the first two years? Thus this's no point for me to settle it anymore?

Please advise.

I dunno the calculation la but I loan 9 years now left 6 years balance 55k if I settle its price is only 47k.

So the savings is worth it. Please call your bank to understand more.