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Settle Car Loan, worth to pay in one short?!
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keonglck79
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 Jun 19 2008, 11:18 AM
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Getting Started
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QUOTE(SKY 1809 @ Jun 19 2008, 11:03 AM) You do get a rebate and it could be calculated by a standard special formula. The banks earned more interests on earlier years then ( more weight on it ) than later years. Diff from housing loan which is on reducing balance method. Sorry i lost the formula. Should get back to you once I have it. Or else contact your banker to confirm. You will definately get a rebate from bank. example if you borrow $35k nine year for 4% interest, that mean each year interest is $1400, if you early settlement for 3 year, the bank will give u rebate $4200. However, if you have housing loan, advice to dump your money to settle the housing loan. |
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keonglck79
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Jun 19 2008, 02:40 PM
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Getting Started
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QUOTE(SKY 1809 @ Jun 19 2008, 11:36 AM) Are you sure ? I do not think banks are so generous to get you back RM 4,200. Correct me if I am wrong. This is what i get when i made early settlement of my car loan previously, the bank used the above formula to calculate the rebate on my full settlement amount. Last time i early settle my car loan for 2 year, they discount back the 2 year interest on my full settlement amount. |
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keonglck79
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Jun 19 2008, 03:07 PM
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Getting Started
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QUOTE(tinkerbel @ Jun 19 2008, 02:54 PM) @keonglck79, Did the bank charge U a penalty fee or some form of administrative fee? No, they did not charge me any fee, mine is CIMB bank, other bank have no idea ? |
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keonglck79
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Jun 19 2008, 04:29 PM
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Getting Started
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QUOTE(Jean72 @ Jun 19 2008, 03:15 PM) I am sure you will have to pay certain penalty fee. I did that before. From my understanding, if you made full settlement on first or second year, the bank maybe will charge u penalty (still depend on your loan T&Cs), for my case did not have any penalty charge coz my loan is already >3 years.
Added on June 19, 2008, 4:32 pmQUOTE(samquah @ Jun 19 2008, 03:53 PM) i just setted my car loan loan amount was 68k. + interest was rm11k@ 7 yrs so taotal amount is rm79K after almost 8 months paying, i kena toto first prize. paid of my 8 month old car cash. bank gave me rm8K rebate Wah ! u so lucky man !  This post has been edited by keonglck79: Jun 19 2008, 04:32 PM |
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