Car loan, pls advise

[The_Bear]

could it be that he got no garantor?

never, ever be a guarantor for anyone for car purchase. or anything else for the matter. I have seen too many tragic ending.

[The_Bear]

Hi, in that case would anybody advice me, for example a 2nd hand car. The price stated is 45000, it is registered on 1 Jan 2005 with COE price at 16000. So is it correct that 45,000 is the final price you pay? Yes, plus transfer fee for 2nd hand car. But you can always negotiate with the dealer.

 

If I am to take in a 5 years loan at 2.2% for example, I will have to finance the car at $766.50 monthly? IF you can get a 100% loan, the monthly repayment will be $832.50 for 60 months. But its unlikely you can get full 5 years & 100% (as explained above by others). The car is more than 5 years old. 5 years & 5 months old, to be exact. A 4 year loan is more likely.

 

And so if I am to take in a 10 years loan at 2.2%, it will be $383.25 monthly and I will have to renew the COE at the end of 2015? You cannot take a 10 year loan of the car because the COE expires in 4 year and 7 months, any way, the calculation is wrong. In the event you decide to renew COE in 2015, you probably have to come up with the cash to pay the PQP.

 

Am I correct for the above calculation? No, No & no.

 

[The_Bear]

I also think it is very high.... And I was buying a Honda Fit.

 

the current interest rate is around 2.2% to 2.4% p.a. you might want to review your credit ratings and income in accordance to the loan quantum.

[Shanhz]

some factor in an additional 1 month int in lieu or watever additional fees on top of the 20% penalty..i know mine has....if u hv the t&c, u may b able to see it there. cheers.

 

1 mth interest is only about $100-200 for a typical loan. negligible

[Galantspeedz]

DO NO TAKE IN-HOUSE RULE! I learn it the hard way! particularly from this dealer called FiveSpeed Motor Trading at No. 3, Jalan Mas Puteh, http://www.sgcarmart.com/used_cars/listing.php?DL=1169. They rip me off for my full settlement by more than 2K! Here is what happened. In the end the trouble, and everything is not worth it! They can do whatever they want and it is difficult for u to resolve it unless u r rich enuff to hire a lawyer and fight all the way. There's what happened:

 

I did my full settlement, I was told it is 42,997 I disagree with the amount but had to do it first as I need to handover the car. I requested for a total breakdown of their charges but they refuse to! I have send a fax request, sms, call them...etc, no bloody responds from them.

 

If one were to calculate the full settlement using the Rule 78 the amount should be $40,748.80. The following is the calculation breakdown:

 

Loan Amount = $46,000

 

Interest Payable @ 2.4% per annum = $1104

 

Interest Payable for 7 Years = $7728

 

Total loam amt with Interest = $53,728

 

Installment per month = $640

 

Installment Paid = $640 x 12 = $7680

 

Early settlement

 

Outstanding Loan with interest = $53,728

Edited May 25, 2010 by Galantspeedz

[Shanhz]

DO NO TAKE IN-HOUSE RULE! I learn it the hard way! particularly from this dealer called FiveSpeed Motor Trading at No. 3, Jalan Mas Puteh, http://www.sgcarmart.com/used_cars/listing.php?DL=1169. They rip me off for my full settlement by more than 2K! Here is what happened. In the end the trouble, and everything is not worth it! They can do whatever they want and it is difficult for u to resolve it unless u r rich enuff to hire a lawyer and fight all the way. There's what happened:

 

I did my full settlement, I was told it is 42,997 I disagree with the amount but had to do it first as I need to handover the car. I requested for a total breakdown of their charges but they refuse to! I have send a fax request, sms, call them...etc, no bloody responds from them.

 

If one were to calculate the full settlement using the Rule 78 the amount should be $40,748.80. The following is the calculation breakdown:

 

Loan Amount = $46,000

 

Interest Payable @ 2.4% per annum = $1104

 

Interest Payable for 7 Years = $7728

 

Total loam amt with Interest = $53,728

 

Installment per month = $640

 

Installment Paid = $640 x 12 = $7680

 

Early settlement

 

Outstanding Loan with interest = $53,728 – $7680 = $46048

 

Interest Owned = $7728 - $1104 = $6624

 

Assuming Rule 78 penalty at 20% of interest unpaid = $6624 x 20% = $1324.8

 

Outstanding Loan = 46048 – 6624 + 1324.8 = $40,748.80

 

 

40,748.80-42997 = $2,248.20 (the diff)

 

They are still refusing to give the breakdown and I have lodge a complaint with CASE but still no respond!

 

rule of 78 should be [r(r+1)/R(R+1)]*interest amount

 

in your case, should be [72(73)/84(85)]*7728=5689

20% penalty should be 5689*20%=1138

full settlement amt should be 46000+7728-7680-5689+1138=41497

 

for most banks, there is also 1-2% penalty on the loan amount within certain period of redemption. since yours is 1 yr, most likely kenah, so $460 or 920. so the full settlement amt is closer to 42k+.

 

alternatively, the diff between 42997 and 41497 appears to be exactly $1500. maybe some penalty or whatever which you might wan to check your loan agreement. usually banks will not cheat you one. unless calculation mistake which happened to me once with UOB. but that was once out of 5-6 times that i full settled in the past.

Edited May 25, 2010 by Shanhz

[Dscheng]

Ya i think the settlement fee are quite standard. The diff is the rates only. Quite a complicated calculation, ahhah.

[Little_prince]

in house interest rate is almost double market rate!

 

source for it yourself...

 

fit very easy to find... how much they offer you? unless it's really such a fantastic deal dun bother..... just move on

[Thunder7890]

I nearly take a car loan from this 'Five Speed Motor' a year ago when was told that their interest rate is one of the lowest when I checked in the market and because I did not get the used car directly from them, they wanted to charge me the admin fee of $500.

 

I told them to fly kite and later found out that they are one of the blood sucker company. Never buy and get involve with them anymore.

[Enialenat]

the interest rate now is 2.20%. admin fee is optional....

[Wuga98]

i think all in house loan is not cheaper but when dispute arises, you will always get the short end of the stick.

[Dsp85]

Sorry for tagging along with your post as its kinda unrelated but I could not create a new topic myself.

 

I would like to warn everyone of this credit company call Shun Heng Credit Pte Ltd located at AML #05-09 for dishonesty.

 

I took my car loan from their in house financing and recently opted for full settlement with them. They quoted me a much higher amount than what I calculated.

 

When I when down to look at the breakdown, they say I keep making noise so they gave me a discount of $400. I was thinking, this kinda thing can give discount?

 

After I challenge their calculation which they fail to make their calculation, they gave me a third amount with a further discount of $1000. And when I look through their calculation, there is a $1000 processing fee appearing out of no where which is also not stated in their terms and conditions. I demanded for an explanation and their boss say that this is understood across the industry and no need to state inside the terms and conditions. what crap is that...

Then he even challenge me to go take acton against him. At the point of time, I have no choice but to go ahead with the full settlement as I already made all the arrangement for my new car.

 

I tried many ways but CASE cannot handle such case and the limitations of them is only mediation. Small claims tribunal does not handle hire purchase related matters. The difference between the correct amount and his quoted amount is about $1,700. Now this amount is so small that if I am considering taking this case to court, the legal fee is definitely gonna be higher than the claim itself.

 

Need advice urgently......

[Ehchang8]

never heard of processing fee $1000. but think there is a penalty if u settle if before a certain date.

 

u like to show us what formula u used to calculate the balance ?

[Jojo1]

I dun think you can do anything about it... since you had already settled your payment. Only thing you can do now is to learn from this experience and avoid this credit co and spread as far as possible about this co. Sooner or later they will collapse if they are going to continue to rip off ppl's money. At the end of the day, laugh at their collapse.

 

I learn my mistake from the hard way too... I bought a car from Eurospeed.. anyone intending to buy cars there, DUN EVER GO THERE! that is a typical shop that is not white.... my interest is very high (prob I going for exotic cars)

 

When I wanna do early settlement, they refuse to reveal how to calculate and of cause after some pressuring then they reveal but trust me, is hell complicated!!! Because interest is tagged with the principle amount loan, so the amount you giving them monthly should be paid for both interest and principal.. which they claim is a standard calculations in banks and most ppl had misunderstood that pay interest first then principle amount (are they right or wrong?) Admin fee (pay for WAD?) la, penalty for early settlement within 3 years la... all sorts of penalty here and there la.. lump it up, it is close to the remaining sum that I had outstanding if I choose to continue with the loan till it ends...

 

For me I learned a big lesson with this car dealing co.. and always everyone is there standing by to chop you like a radish... Buying my first dream car is an experience for me to wise up when purchasing cars in future... Though most people say that rarely will see ppl want to fork up the full lump sum to clear for the car like parting 30k-40k at one go, but still, I will rather choose to clear the full amount of the car for my next purchase.. if not, taxi will be my next alternative. =)

Edited July 19, 2010 by Jojo1

[Dsp85]

Sorry for tagging along with your post as its kinda unrelated but I could not create a new topic myself.

 

I would like to warn everyone of this credit company call Shun Heng Credit Pte Ltd located at AML #05-09 for dishonesty.

 

I took my car loan from their in house financing and recently opted for full settlement with them. They quoted me a much higher amount than what I calculated.

 

When I when down to look at the breakdown, they say I keep making noise so they gave me a discount of $400. I was thinking, this kinda thing can give discount?

 

After I challenge their calculation which they fail to make their calculation, they gave me a third amount with a further discount of $1000. And when I look through their calculation, there is a $1000 processing fee appearing out of no where which is also not stated in their terms and conditions. I demanded for an explanation and their boss say that this is understood across the industry and no need to state inside the terms and conditions. what crap is that...

Then he even challenge me to go take acton against him. At the point of time, I have no choice but to go ahead with the full settlement as I already made all the arrangement for my new car.

 

I tried many ways but CASE cannot handle such case and the limitations of them is only mediation. Small claims tribunal does not handle hire purchase related matters. The difference between the correct amount and his quoted amount is about $1,700. Now this amount is so small that if I am considering taking this case to court, the legal fee is definitely gonna be higher than the claim itself.

 

Need advice urgently......

 

Loan Amount: $77,988

Interest: $21,154

HP Term: 84

Unpaid Terms: 49

Monthly Installment: $1181

 

Penalties as stated inside T&C: 20% of rebate interest, 1 month interest or 1 month notice for early settlement, Prepayment fee of 1% on the prepaid amount

 

My Calculation:

 

Interest rebate: $7258

Penalties: $1451 + $251 + 1%

Balance: $41,335

Full Settlement: 77988 + 21154 - 41335 - 7258 + 1451 + 251 + 1% = 52,251 x 1.01 = $52,773

 

Their Calculation:

 

Unpaid terms will be 49 - 2= 47 (Some crap regarding companies policy way of calculation, have to calculate 2 months ahead)

 

Interest rebate: $6683

Penalties:$1336 + $251 + 1% (where they say 1% is 1% of the loan amount, whatever...)

Balance: $41,335

Processing Fee: $1000 (No where stated in the T&C)

Full Settlement: 77988 + 21154 - 41335 - 6683 + 1336 +251 + 779 + 1000 = $54,490

[Maxoo]

processing fee $1000? THATS ALOT..

[Jojo1]

admin fee mine is $800 i was like WTF!!!!&*^&*@($&*^$^

 

$1000 = daylight robbery liao...

 

for my case when i selling off my car, asking for F/S, they will say the money you pay part go to interest n part go to principle... which most of us think that first few month is paying interest then principle which is not correct la... all the stupid thing they calculate here and there.... somemore nv explain how they calculate...

 

So end of the story is either u give them the money to settle it once and F**K them, hoping them to collapse... or be firm n persistent enough, you can argue some money off on processing fee... $1000 is crazy liao... $800 is crazy but bo pian have to take it... i think the more u argue, the more frustrated you get and the other party will just give you the impression that you want or not is like tt... because you definitely had signed some paper for their keeping.

 

Anyway, do you have any late payment? coz late payment also has penalty...

 

if not, wad I do for me I will take it that tt amount is for their medical expense :angry: :angry: (evil*)

Edited July 20, 2010 by Jojo1

[Windchoco]

i think u need to page for our in house bankers sia.. so complicated calculation..