Car loan enquiry

[Newbies]

My loan is 50k for 7 years @ 2.5% p.a. monthly abt 700. Now everything is approved and im waiting for my car to cum. A few question tat needs help.

 

a.) if i wanted to pay another 20k more for my car is it possible tat the bank will recalculate the loan amount ?

 

b.) if now i wanted to pay off the 50k how will the bank charge me or is there any discounted interest cos i clear early ?

 

c.) if i have paid for 2 years down the road and got money to clear the outstanding amt will bank give discount ?

 

Pls advise

[Redwood]

Checkout the website below for redeem of loan.

 

http://www.moneysense.gov.sg/publications/..._Financing.html

[Apollo]

1/ everything is possible to change as long as u hv not take car yet. but if u have cash rebate, do check with ur SE wat is the min. loan tat qualify for that.

 

2/ did u check if they hv rule 78. usually most loans allow full recovery within 1st year.

 

3/ again did it hv rule 78. check with ur SE.

[Newbies]

a.) no cash rebate

 

b.) no rule 78. using the new IHP loan. but not familiar with it

[Surferguy1978]

a. i think you are enquiring about partial redemption. for my bank, they don't allow partial redemption..

 

b. i heard that almost all the banks enforce the rule 78. u can visit the various bank website and find out more details whether they enforce rule 78.

 

c. i also think of this options before. yes, you can clear but rule 78 comes in. in addition, you have to find out from your bank whether there are any penalty charges. for my case, if i intend to clear my loan within the first 3 years, i would be charge a penalty of $3000!!!

 

i feel like refinancing my car loan by shortening the loan period but now it getting more difficult because my car is coming to 3 yrs old already and i heard tat after 3 yrs no bank would want to offer refinancing...

[Surferguy1978]

what does IHP stand for?

[Apollo]

if no cash rebate, check again with SE if they hv tied the price/ discounted price to inhouse insurer. they sud b able to tell u clearly enuff.

 

new rules means u can redeem anytime. but ur interest rate is 2.38% or 2.5% quite low liaoz.

 

if u reduced to $30K for 2.5%, pay only $419..

[Apollo]

he haven't taken possession, loan amt can alway change. in fact, with reduction to below certain amt, tat may facilitate the need to dispense with a guarantor due to insufficient financial standing.

[Redwood]

Maybe IHP that you're referring to is amended HP Act applicable to agreements signed on or after 1 Nov 2004.

 

You may be interested in the attached (ZIP).

Car Finance.zip