Does your car have negative equity?

[Zanter]

Many car distributors are selling cars with rebates if u take out their in-house loans. Like mazda motors, if u want a discount, then u have to be bound by a 7 year loan @ minimum 70% car price.

 

I guess if u sell off the car earlier, you will be penalised. So calculating everything including interest etc, if you were to sell your current car at the 2nd hand market, do u need to top-up the finance? If not when will be your break even year?

 

Interesting to see who plan to buy a new car soon

[Ano727]

For some people, cash flow is more important. So they go for zero or low DP, and long term loan. For some people, exposure is more important.

 

For some, they avoid risk of suddenly losing job, so they want to avoid long term loan, and some prefer to pay cash upfront or at least very short term loan.

 

In my case, first time buy. Went for 0%DP and 7yr loan also from MM (DBS).

[Seabass_sg]

I booked my Mz3 a week plus ago... I took $35k loan and 4 yrs... as I also no want to be tied down by too long and after taking into consideration the interest i would need to pay if i took 70% and 7 yrs is just not worth it..

[Sparespares]

agreed, i belong to the avoid loan category.....

[Tarzan666]

I oso dunno wats the value of my car nw...how 2 check???

onli knoe outstanding loan amt..

[Russ]

No loan taken so no negative equity

 

First 10 years of working life - had old 2nd had cars.

Only got a new car after that.

 

Don't believe in debt.

[Sparespares]

finally!

someone that subscribes to the debt free ideology....

my friends have been laughing at me for that....

[Seabass_sg]

if one can afford it better not to take loan or too much loan of coz unless u can put the $ to better uses that earns returns that exceeded the interest rate u are paying for the loan lah...

[Sparespares]

hmmm, are u my friend?

why u sound like them?

[Adawang]

I dunno if + or - equity, but believe its +

Every month pay installment and that is the only installment

that I have to pay.

Happy, can already

Edited January 16, 2007 by Adawang

[Seabass_sg]

Hee.. this is the logic one of my friend told me lah... i just using it here... but how many of us can have such returns from investments? CPF Special Accounts at 4% ?? But cannot take out until u retire..

Edited January 16, 2007 by Seabass_sg

[Corgan]

from what i know, one has to only take a min of 30k and 1yr for TC and you will still be eligible for the rebate..

[Seabass_sg]

Ya different companies diff policy... i got a friend bought latio he took the min loan and 1 yr loan period in the end he earn on the interest rebates but that 1 yr siong lor... the installments $2k plus

[Corgan]

true la.. but some ppl rather pay off asap than pay over a period.. up to each individual's wants and capabilities to pay bah.

[Seabass_sg]

Agree as each of us have our own budget and constraints... so take watever plan that fits ur needs the best but do not over estimate ur financial capacities too... 10 yrs loan might look good but u end up paying more for the car... even if they give u cash rebates first...

[Alfc]

finally!

someone that subscribes to the debt free ideology....

my friends have been laughing at me for that....

 

hey u r not alone. i subscribe to that idealogy too.

think we belong to the risk averse "better safe than sorry" type. cant risk it at expense of family's bread and butter.

[Alfc]

Hee.. this is the logic one of my friend told me lah... i just using it here... but how many of us can have such returns from investments? CPF Special Accounts at 4% ?? But cannot take out until u retire..

 

sadly even 4% cannot cover interest paid for car loan cos effective interest rate for a "3%" car loan is actually abt 6-7% annualised.

[Russ]

It depends why you are taking the loan.

 

If you are taking the loan because to get a discount, then effectively you are NOT in debt.

 

If you are taking the loan because you can get better return elsewhere, but the investment elsewhere is secured, you are also NOT in debt.

 

If you are taking the loan because without it, you have no money to buy the car, then you are in debt.

 

From personal experience, really good feeling not having any debt. The only short period I was in debt was when I bought my flat. Paid off after 5 years, now free from debt !!