Best Car Loan?

[chew@PPLe 0]

I've been surfing the banks website for car loan interest rates and they look all the same. Only difference seems to be the early repayment penalty. Does anybody has any advise? Also, is it possible to refinance car loans? Usually how much would that save us?

[wng 0]

I dun think it's advisable for you to refinance your car loan. You may end up losing more.

[kriegs 0]

car loan depend on a few key items like interest rate, tied down period, early settlement penalty (rule of 78), cash rebates, etc.

for re-finance, it used to be the in-thing few years back when some bank's car loan dun require a fixed duration or have a early settlement penalty. But now, most bank tied you down for 3 years.

If you are loaning for 7 years, after 3 years, there wont be much interest for the bank to earn.

[wng 0]

why get into refinance and pay upfront interest rate all over again. as when you pay yr installment during the first few days you are actually paying more interest than the principle amount based on the rule 78 calculation. the longer loan duration the more interest you pay. check with the financing institute on the effective interest rate before refinancing your car loan as calcuation of interest differ with housing loan.

[kriegs 0]

why get into refinance and pay upfront interest rate all over again. as when you pay yr installment during the first few days you are actually paying more interest than the principle amount based on the rule 78 calculation. the longer loan duration the more interest you pay. check with the financing institute on the effective interest rate before refinancing your car loan as calcuation of interest differ with housing loan.

car loan and housing loan differ. The interest of a car loan is calcuated upfront.

Unless the bank 'refund' you the interest for those years left, you will lose out.

[wng 0]

car loan and housing loan differ. The interest of a car loan is calcuated upfront.

Unless the bank 'refund' you the interest for those years left, you will lose out.

so have to check on the fine printing when you sign on the dotted line.

[korea 0]

I've been surfing the banks website for car loan interest rates and they look all the same. Only difference seems to be the early repayment penalty. Does anybody has any advise? Also, is it possible to refinance car loans? Usually how much would that save us?

not much different even if you refinance the car. no point. either you sell away the car and change another one or you continue to endure.

[zirhk3355 1]

not much different even if you refinance the car. no point. either you sell away the car and change another one or you continue to endure.

Wah, you also know about car's loans?? I thought your husband pays cash for everything one???

5-star hotel banquet also can pay cash, another few tens of thousands for a car should be sup-sup-soy lah, right??

Edited July 18, 2007 by zirhk3355

[korea 0]

Wah, you also know about car's loans?? I thought your husband pays cash for everything one???

5-star hotel banquet also can pay cash, another few tens of thousands for a car should be sup-sup-soy lah, right??

yup, my hb pays for the car loan but doesn't mean that i don't know anything about it. hahaha.

yup, sup-sup-soy but hor seldom will people pay full settlement for a metal piece lah. oh gosh, manz!

you must be screw loose liao.

my hb's friend who is so d-a-m-n rich and he also doesn't want to pay full settlement for his BMW car. hahaha.

[zirhk3355 1]

yup, my hb pays for the car loan but doesn't mean that i don't know anything about it. hahaha.

yup, sup-sup-soy but hor seldom will people pay full settlement for a metal piece lah. oh gosh, manz!

you must be screw loose liao.

my hb's friend who is so d-a-m-n rich and he also doesn't want to pay full settlement for his BMW car. hahaha.

Fallen into another trap to xia-suay yourself again.

If really rich, if really sup-sup-soy, NOBODY will take loan and pay interests in the first place. Do you take loan when you buy a PC? Yes, by *really* rich, to buy a car for them is like to buy a PC for NORMAL PEOPLE like you.

I guess your definition of *d-a-m-n* rich is very narrow; try reading more and find out what is the meaning of rich.

[korea 0]

Fallen into another trap to xia-suay yourself again.

If really rich, if really sup-sup-soy, NOBODY will take loan and pay interests in the first place. Do you take loan when you buy a PC? Yes, by *really* rich, to buy a car for them is like to buy a PC for NORMAL PEOPLE like you.

I guess your definition of *d-a-m-n* rich is very narrow; try reading more and find out what is the meaning of rich.

trap?? you're too childish liao lah. it doesn't mean rich then cannot take loan mah. haha. what are you talking about, manz. my hb's brother is a CEO of a bank but he still prefers to take loan when buying his car. my hb's friend is a boss of a shop (of course can't tell you which shop ) and he also prefers to take loan for his BMW car. aiyo, maybe your concept of rich is doesn't need to take a loan. but this is individual preference you see. hahaha. sometimes, really don't understand what you're talking about lor.

rich also must see what are the things you're spending in mah. not everything must pay full settlement, boy.

btw, i'm not here to argue with you about such thing lor. it's so childish lor.

oh ya, my ex-director boss bought a shaver also want to pay by installment. don't tell me he can't afford to buy a shaver?! haha.

[zirhk3355 1]

trap?? you're too childish liao lah. it doesn't mean rich then cannot take loan mah. haha. what are you talking about, manz. my hb's brother is a CEO of a bank but he still prefers to take loan when buying his car. my hb's friend is a boss of a shop (of course can't tell you which shop ) and he also prefers to take loan for his BMW car. aiyo, maybe your concept of rich is doesn't need to take a loan. but this is individual preference you see. hahaha. sometimes, really don't understand what you're talking about lor.

rich also must see what are the things you're spending in mah. not everything must pay full settlement, boy.

btw, i'm not here to argue with you about such thing lor. it's so childish lor.

Individual's preference? To pay interest to banks?

CEO of bank...hmmz; ok I know, because he take loan, he contributes to his bank's revenue, so end of the year got more bonus! So yeah, I am sorry, CEO of bank will prefer to take loan, of course...you are right.

But for the boss of a shop (???), erm...I am not sure liao. Just now I go down smoke and ask the Ah Huat Coffeeshop's boss, he also tells me that he don't take loan. But well...different boss got different situation, I guess...

Ok lor, sorry my definition different from you lor...we are from two different worlds...

[korea 0]

Individual's preference? To pay interest to banks?

CEO of bank...hmmz; ok I know, because he take loan, he contributes to his bank's revenue, so end of the year got more bonus! So yeah, I am sorry, CEO of bank will prefer to take loan, of course...you are right.

But for the boss of a shop (???), erm...I am not sure liao. Just now I go down smoke and ask the Ah Huat Coffeeshop's boss, he also tells me that he don't take loan. But well...different boss got different situation, I guess...

Ok lor, sorry my definition different from you lor...we are from two different worlds...

haha, you're wrong. my hb's brother doesn't take loan from his bank. he's in banking line and he knows how to jin da xi suan more than you.

my hb's friend's shops are in shopping malls. he has many outlets. probably, you also ever came across when you go shopping. haha.

oh ya, hb's friend has ever on tv program for interview before.

my cousin used to be dell vice-president and he also took loan for his car. you know why most people take loan for cars b'cos cars depreciate everyday so no point paying full settlement for metal pieces.

[ARCHer 0]

This is not only getting off topic, but also breaching the forum rules.

Anyway, back to the topic of refinancing.

If you want to know if it is worthwhile refinancing the car, just do the following comparison.

Assume that when you first bought the car, you took out a 5-year loan, and you are required to pay $X per month. After 2 years, if you want to refinance the loan, you may have to pay $Y per month for the remaining 3 years.

If X > Y, then you should refinance your loan.

If X < Y, then you should not refinance your loan.

Depending on interest rate movements, it can be worthwhile to refinance your loan. In fact, the simplest way of refinancing the loan is to call up the bank/finance company that you are currently taking a loan from, and tell them that you are considering refinancing your loan. If interest rates have moved down sufficiently, they will do the refinancing for you. That's because from the bank/finance company point of view, it is better to retain you as a borrower than for you to move to another bank.

As an anecdotal evidence, both my elder brother and younger brother refinanced their car loans. I think they end up with savings of between $40 to $80 per month for 3 years.

[MaCe 3]

This is not only getting off topic, but also breaching the forum rules.

Anyway, back to the topic of refinancing.

If you want to know if it is worthwhile refinancing the car, just do the following comparison.

Assume that when you first bought the car, you took out a 5-year loan, and you are required to pay $X per month. After 2 years, if you want to refinance the loan, you may have to pay $Y per month for the remaining 3 years.

If X > Y, then you should refinance your loan.

If X < Y, then you should not refinance your loan.

Depending on interest rate movements, it can be worthwhile to refinance your loan. In fact, the simplest way of refinancing the loan is to call up the bank/finance company that you are currently taking a loan from, and tell them that you are considering refinancing your loan. If interest rates have moved down sufficiently, they will do the refinancing for you. That's because from the bank/finance company point of view, it is better to retain you as a borrower than for you to move to another bank.

As an anecdotal evidence, both my elder brother and younger brother refinanced their car loans. I think they end up with savings of between $40 to $80 per month for 3 years.

for interestdumbdumbs like me, dont borrow the BEST.

if must borrow, quickly pay off the loan and stay FREE!