Leasing vs buying a car (new)

[Jq1988]

If just rental, stop paying and return the Kereta.

[Soya]

No head no tail.

 

Neber say monthly installment how much?

 

Neber say interest how much?

 

Neber say loan tenure how long?

 

Neber say if balloon scheme or lease or hire purchase?

[Hamburger]

Leasing......enough said.

[Jman888]

even when you lease a copier machine, end of lease term you still dun get to own the machine. Must pay more than $10K to 'takeover' the old machine    

[Soya]

Leasing......enough said.

If lease then be prepared to get screwed if one breaks the lease prematurely

[Hamburger]

If lease then be prepared to get screwed if one breaks the lease prematurely

i also used to be screwed by finance company.

 

Took up the loan with car dealer's recommendation and want it to settle the loan earlier with around 10k balance left.

 

Was told by the finance Co that i need to pay a penalty on top of the usual HP rules.

 

End up did not settle as its cheaper to run down the repayment period.

 

Moral: Borrow from bank better with no such penalty incurred.

[Soya]

i also used to be screwed by finance company.

 

Took up the loan with car dealer's recommendation and want it to settle the loan earlier with around 10k balance left.

 

Was told by the finance Co that i need to pay a penalty on top of the usual HP rules.

 

End up did not settle as its cheaper to run down the repayment period.

 

Moral: Borrow from bank better with no such penalty incurred.

Any idea which bank doesn't impose additional penalty on top of Rule 78?

 

I know Maybank oso got this kinda smelly tactic of imposing 1 mth penalty + admin charge on top of Rule 78. So be careful.

[Freeder]

From what I've gathered recently, u pay 10% downpayment n balance 90% for 7 yrs for a 2016 car. The car belongs to the leasing company after paying the last installment.u got the option to buy back the car at the amt stated after the final installment.

[Hamburger]

Any idea which bank doesn't impose additional penalty on top of Rule 78?

 

I know Maybank oso got this kinda smelly tactic of imposing 1 mth penalty + admin charge on top of Rule 78. So be careful.

 

uob i remember dont have.

[No_worries]

Anyone had any experience with them would know about what I'm about to say.

 

I took a finance lease scheme from Hitachi from Dec 2014 onwards, 28 months later, after 28 installments, the outstanding amount is just reduced by less than 10k from the original loan amount. That is a hefty 25k penalty from the total amount of over 36k paid.

 

When I asked them for their detailed calculations. All I got was silence.

 

So if anyone come across financing done by them, my advice is just do it through a bank. Otherwise you'll get burned.

Let me guess , you bought a Hyundai from Komoco using the balloon scheme to bypass the 40 percent down payment and maximum 5 years loan scheme at that time? Edited May 4, 2017 by No_worries

[EXO]

Maybe I'm a little too old school, aren't you suppose to understand fully what kind of loan you are taking before actually signing on the dotted line?

 

You only start to wonder after 28 months?

[Bismarck]

Any idea which bank doesn't impose additional penalty on top of Rule 78?

 

I know Maybank oso got this kinda smelly tactic of imposing 1 mth penalty + admin charge on top of Rule 78. So be careful.

Yah. I kana this too when I want to settle early repayment. In the end I still go ahead and settle. Now Maybank and the AD who recommend it under my blacklist.

[Watwheels]

Back in 2014 MAS loan restriction was set at 60/40 or 50/50. Not many want to take the risk to take up such a car leasing scheme to go around the loan restriction.

[Soya]

Yah. I kana this too when I want to settle early repayment. In the end I still go ahead and settle. Now Maybank and the AD who recommend it under my blacklist.

Yep. Better stay clear of such smelly tactics. The penalty applies even if u only hv 1 installment left. WTF....

 

IIRC, DBS dun hv such hidden penalties.

[Kopites]

even when you lease a copier machine, end of lease term you still dun get to own the machine. Must pay more than $10K to 'takeover' the old machine

Leasing copier provide free maintenance. Hahaha just pay the toner.

 

I don't understand when don't pay down payment or full price. burden yourself down with finance liability merely for a ride? Enough say why our coe so high.

Edited May 5, 2017 by Kopites

[No_worries]

I just asked my subordinate who took up this scheme from Komoco in March 2014 to buy a new Elantra.

 

Here's how it works:

 

The price of the Elantra S Model is listed as $134k (March 2014) which include a $20k overtrade. They use the 20k overtrade to offset the down payment so my guy paid only $33.6k down payment instead of the 40% down payment of $53.6k. As the MAS financing allow only 5 years, the remaining 60% loan would require monthly instalment of $1531. But under the deferred payment scheme, my guy only pay $759 a month (5 years) as his car has a scrap rebate of $47550 at end of 5 years (2019).

 

When 2019 comes, he will either sell the car (get nothing back) or arrange to re finance the $47550 for another 5 years and drive till scrap in 2024.

 

Let me guess , you bought a Hyundai from Komoco using the balloon scheme to bypass the 40 percent down payment and maximum 5 years loan scheme at that time?

 

[EXO]

Almost $16k annual depreciation for an elantra. Wow.

 

I just asked my subordinate who took up this scheme from Komoco in March 2014 to buy a new Elantra.

 

Here's how it works:

 

The price of the Elantra S Model is listed as $134k (March 2014) which include a $20k overtrade. They use the 20k overtrade to offset the down payment so my guy paid only $33.6k down payment instead of the 40% down payment of $53.6k. As the MAS financing allow only 5 years, the remaining 60% loan would require monthly instalment of $1531. But under the deferred payment scheme, my guy only pay $759 a month (5 years) as his car has a scrap rebate of $47550 at end of 5 years (2019).

 

When 2019 comes, he will either sell the car (get nothing back) or arrange to re finance the $47550 for another 5 years and drive till scrap in 2024.

 

[Mustank]

Almost $16k annual depreciation for an elantra. Wow.

Fierce!!!