When buying new/used,do you take up car loan or pay in full?

[flashbang]

My advice to new young couples - buy your house first, car is secondary. Have car or no car is not going to die. No house, then stay where? Istana?

Out there, Tony Tan's kids are probably buying a car now and saying "Ya exactly, stay at Istana."

[Forte3737]

Out there, Tony Tan's kids are probably buying a car now and saying "Ya exactly, stay at Istana."

I thought Istanal only president can stay?

[sk06]

Sorry, can't start new thread so have to post here.

 

Need some advice from some finance experts here of whether advisable to get car loan in my case.

 

Without a car loan, I need to pay $4K extra for the car price. If take loan, I save $4K.

 

But to take $50K car loan, comes with these terms for early settlement:

1)  Rule 78 rebate

2)  penalty of 1% on outstanding loan

3)  penalty of 20% of the rebate on 1)

 

Which is better?  Don't take loan and pay extra 4K?  Or take the 50K loan and repay say in one month's time?

 

Thanks.

 

 

[13177]

If you have money to full pay a car, what is $4k extra means to you?!

[Enye]

Sorry, can't start new thread so have to post here.

 

Need some advice from some finance experts here of whether advisable to get car loan in my case.

 

Without a car loan, I need to pay $4K extra for the car price. If take loan, I save $4K.

 

But to take $50K car loan, comes with these terms for early settlement:

1)  Rule 78 rebate

2)  penalty of 1% on outstanding loan

3)  penalty of 20% of the rebate on 1)

 

Which is better?  Don't take loan and pay extra 4K?  Or take the 50K loan and repay say in one month's time?

 

Thanks.

 

don't take loan and don't pay extra 4k

 

easily negotiated if you ready to commit 

 

[sk06]

If you have money to full pay a car, what is $4k extra means to you?!

 

I'm not a millionaire.  Every cent is my hard-earned money. Don't say $4K, even $400 still means a lot to me.

don't take loan and don't pay extra 4k

 

easily negotiated if you ready to commit 

 

 

Tried already. Not negotiable.

[flashbang]

I'm not a millionaire. Every cent is my hard-earned money. Don't say $4K, even $400 still means a lot to me.

 

 

Tried already. Not negotiable.

What is the terms of the loan? You post the details here I help you count.

[13177]

I'm not a millionaire.  Every cent is my hard-earned money. Don't say $4K, even $400 still means a lot to me.

 

Tried already. Not negotiable.

Used your bonus to pay off? Bonus is  consider extra money and not hard-earned money?!

[Enye]

I'm not a millionaire.  Every cent is my hard-earned money. Don't say $4K, even $400 still means a lot to me.

 

Tried already. Not negotiable.

 

which AD is that?

 

either change SE or consider other cars

 

[1fast1]

Sorry, can't start new thread so have to post here.

 

Need some advice from some finance experts here of whether advisable to get car loan in my case.

 

Without a car loan, I need to pay $4K extra for the car price. If take loan, I save $4K.

 

But to take $50K car loan, comes with these terms for early settlement:

1)  Rule 78 rebate

2)  penalty of 1% on outstanding loan

3)  penalty of 20% of the rebate on 1)

 

Which is better?  Don't take loan and pay extra 4K?  Or take the 50K loan and repay say in one month's time?

 

Thanks.

 

If you can afford to pay off the car in full, then it becomes a simple calculation. Opt only for the minimal quantum and period of the loan to get the discount. If the interest on the loan comes to less than the discount (especially by a lot), then it would be stupid not to take the loan wouldn't it?

 

Of course, try negotiation first. But if the salesman remains absolutely firm, and if you stand to save money by taking the loan, then that makes more sense. The key is whether you can afford the car without the loan at all. If the answer is yes, then just take the option that costs you less.

 

I was faced with the same situation for my Wish from Borneo Motors. The salesman absolutely refused to throw in the loan discount of $2500 unless I took a loan with them (no matter how much I insisted). So I took the absolute minimum - $30k loan over a year, having calculated that the interest will come to much, much less than the amount I would save.

[Angcheek]

 

 

If you can afford to pay off the car in full, then it becomes a simple calculation. Opt only for the minimal quantum and period of the loan to get the discount. If the interest on the loan comes to less than the discount (especially by a lot), then it would be stupid not to take the loan wouldn't it?

 

Of course, try negotiation first. But if the salesman remains absolutely firm, and if you stand to save money by taking the loan, then that makes more sense. The key is whether you can afford the car without the loan at all. If the answer is yes, then just take the option that costs you less.

 

I was faced with the same situation for my Wish from Borneo Motors. The salesman absolutely refused to throw in the loan discount of $2500 unless I took a loan with them (no matter how much I insisted). So I took the absolute minimum - $30k loan over a year, having calculated that the interest will come to much, much less than the amount I would save.

 

That car for marketing ? Keke

Edited March 16, 2016 by Angcheek

[Little_prince]

this is My Car Forum

 

of course pay full cash lah.

 

if take loan then it is NOT YOUR CAR.

 

hahaha

[WillyWonka]

If you have money to full pay a car, what is $4k extra means to you?!

 

Sorry. I have to disagree with you.

 

Having the money to pay in full does not necessarily means he should just spam money without thinking of any possible consequences.

 

We should all strive to make money work the hardest for us.

[Fruit-tart]

well, i think if can pay in full cash at one go, then why not?? best got a new rule, not only 40% or 50% downpayment, but i suggest 8-% or 100% downpayment for cars ... cuz 40% or 50% downpayment like not very good, the dealers can "manipulate" and play with the coe system, bid higher, then like that consumers have no choice, and will be "forced" to take loans(cuz nt enuf money mahh)... then dealers will bypass car loan curbs, and offer those inhouse loan and financing(which comes at higher interest rates)...

 

 

so i think if have stricter restrictions (e.g 80% or 100% - pay in full), it will be better..

[WillyWonka]

Sorry, can't start new thread so have to post here.

 

Need some advice from some finance experts here of whether advisable to get car loan in my case.

 

Without a car loan, I need to pay $4K extra for the car price. If take loan, I save $4K.

 

But to take $50K car loan, comes with these terms for early settlement:

1)  Rule 78 rebate

2)  penalty of 1% on outstanding loan

3)  penalty of 20% of the rebate on 1)

 

Which is better?  Don't take loan and pay extra 4K?  Or take the 50K loan and repay say in one month's time?

 

Thanks.

 

Other than the extra $4k, you should also compute the total interest incurred while taking a loan. This will probably make you see better and clearer.

[1fast1]

 

 

That car for marketing ? Keke

Wifey school run, Malaysia family trip, occasional daily driver to save wear on the horse, etc.

[Runforyourlife]

well, i think if can pay in full cash at one go, then why not?? best got a new rule, not only 40% or 50% downpayment, but i suggest 8-% or 100% downpayment for cars ... cuz 40% or 50% downpayment like not very good, the dealers can "manipulate" and play with the coe system, bid higher, then like that consumers have no choice, and will be "forced" to take loans(cuz nt enuf money mahh)... then dealers will bypass car loan curbs, and offer those inhouse loan and financing(which comes at higher interest rates)...

 

 

so i think if have stricter restrictions (e.g 80% or 100% - pay in full), it will be better..

 

Ya since i cannot afford a car i must make sure all the rest also cannot. superb comment, loving it. Supporting 80% - 100% payment in full!

[Angcheek]

Wifey school run, Malaysia family trip, occasional daily driver to save wear on the horse, etc.

 

It will be really something if people were to see a horse picking up groceries .... hahha 

 

how old are the young padawans ?  your "Wish" is not to contribute to the jam i hope hahaha