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Loan Balance of Car


Tanlc
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Neutral Newbie

Dear all,

 

Just for curosity, does anyone know how to calculate the remaining bank loan of the following car?

 

Bank Loan = $58k

Interest Rate = 2.3%

Date of Registration = 28 Jun 2004

Loan Period = 120 months

Monthly installment = $595

 

If I chose to de-register my car on 31 Aug 2006, the following are the info:

OMV = $13591

PARF Rebate = $13251

COE Rebate = $19084

 

What will be the amount$ loss that I will have to bear?

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Neutral Newbie
(edited)

Give a call to the bank. They will give you the amount you have to settle straight away.

Edited by Dgwee
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The Rule 78 formula is as follow:

 

1) Rebate = n(n+1)/N(N+1) x Total Interest, where N = HP Period, n = no of unpaid mths.

 

2) Settlement = Bal Loan - Rebate

 

Hope it helps.

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Neutral Newbie

Thanks TOEKNEE_33,

 

Based on your formula,

 

1) Rebate = $8,204

2) Settlement = $47,071

 

That means if I de-register my car in Aug, I will incur a loss of $1,145?

 

(OMV + PARF Rebate + COE Rebate) - Settlement = -$1,145?

 

Am I right?

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Dear all,

 

Just for curosity, does anyone know how to calculate the remaining bank loan of the following car?

 

Bank Loan = $58k

Interest Rate = 2.3%

Date of Registration = 28 Jun 2004

Loan Period = 120 months

Monthly installment = $595

 

If I chose to de-register my car on 31 Aug 2006, the following are the info:

OMV = $13591

PARF Rebate = $13251

COE Rebate = $19084

 

What will be the amount$ loss that I will have to bear?

 

Based on estimates, your car paper value is about $31K, outstanding loans about $48K .... let's say you can find a buyer that offers say $35K ... then you'll need to top up $13K lor... but if nobody wants your car... and you pass to dealer to scrap, then you many only get about $29K back... so you'll owe finance about $19K.

 

So ... the only question is only how much are you going to prepare to lose....

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Just for curosity, does anyone know how to calculate the remaining bank loan of the following car?

 

Bank Loan = $58k

Interest Rate = 2.3%

Date of Registration = 28 Jun 2004

Loan Period = 120 months

Monthly installment = $595

 

If I chose to de-register my car on 31 Aug 2006, the following are the info:

OMV = $13591

PARF Rebate = $13251

COE Rebate = $19084

 

What will be the amount$ loss that I will have to bear?

 

--------------------------------------------------------------------------------

 

 

Based on estimates, your car paper value is about $32K, outstanding loans about $48K .... let's say you can find a buyer that offers say $35K ... then you'll need to top up $13K lor... but if nobody wants your car... and you pass to dealer to scrap, then you many only get about $29K back... so you'll owe finance about $19K.

 

So ... the only question is only how much are you going to prepare to lose....

============================================================

 

Halt, that's based on theory, there are thing as "body" value -- mean value you can get for exporting the car since it's quite new. Some popular model can get as high as $10K. Check with those export agent, you'll get a closer loss amount.

Anyway for 10 yr loan, it's hard to breakeven.

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Parf + COE rebate = ~$31K

 

Take your loan minus 24mths installment = ~$48K

 

Now if you were to scrap your car and pass it to dealer, the deduct 6% off = ~$29K

 

Hope this is clear.

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Neutral Newbie

Thanks MILES!

 

But how do I know whether mine is Rule of 78 or Effective Rate calculation?

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if you take more than $55,000 loan - it will be under rule of 78.

less than $55,000 loan - will be under effective rate.

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i dun think so....

 

is your car price is above 55k excluding COE..then u are under rule 78...

but if ur car price is 55k include coe...u r not under rule 78

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