Question on OPC rebate

[Jman888]

If such a situation arises, I guess the only alternative is to sell off the car and pay off the outstanding loan amount and interest then.

 

Anyway, does this imply that for conversion from normal to revised opc scheme, it is necessary to either refinance or pay off the outstanding loan balance to the bank?

 

to convert from normal to opc, LTA will refund you $1100 every 6 months, but you continue to repay your instalment with the bank.

[Cyric]

to convert from normal to opc, LTA will refund you $1100 every 6 months, but you continue to repay your instalment with the bank.

 

Precisely, I just need to continue paying off the installments to the bank. The only issue I forsee for the bank is in the event I cannot pay my installments and the bank repossess the car, it will be under the revised opc scheme which is of lesser resale value. However, I can still change back to the normal scheme under such circumstances provided that the car has been under the revised opc scheme for more than 6 months.

 

I am concerned about the point raised by unFair regarding the bank recalling my loan if I change to the revised OPC scheme. Since the bank still owns the car under the hire purchase loan, I assume that the bank has the right to force me to refinance the loan upon conversion or recall the loan if I choose not to. Refinancing the car to change to the revised scheme is definitely not cost effective.

 

Can anybody suggest who should I approach to clarify the refinancing issue?

 

 

 

[Jp66]

http://www.lta.gov.sg/motoring_matters/mot...mes_offpeak.htm

 

*Amount cap at $17k

no no, it is $22k if you convert to OPC immediately after registered as normal car. The $17k is for the numerator, so max is $1.1K per 6 months.

[Jp66]

to convert from normal to opc, LTA will refund you $1100 every 6 months, but you continue to repay your instalment with the bank.

provided you are very sure you want to drive the OPC for 10 years and make full payment (no loan), then it is worth converting.

 

But hor, u know ah gong dam 'chao kuan' one, sikali announce 'SG will implement satellite ERP island wide next year, OPC will cease to exist, thus no more $1.1K rebate every 6 months"

 

I was one of the casualty in 1993, ah gong did said "All WEEKEND cars will automatically convert to NORMAL cars when ERP is implemented island wide....", my weekend car already in scrap yard liao but until today ERP is yet to cover half of SG.......

Edited July 14, 2010 by Jp66

[Jman888]

Precisely, I just need to continue paying off the installments to the bank. The only issue I forsee for the bank is in the event I cannot pay my installments and the bank repossess the car, it will be under the revised opc scheme which is of lesser resale value. However, I can still change back to the normal scheme under such circumstances provided that the car has been under the revised opc scheme for more than 6 months.

 

I am concerned about the point raised by unFair regarding the bank recalling my loan if I change to the revised OPC scheme. Since the bank still owns the car under the hire purchase loan, I assume that the bank has the right to force me to refinance the loan upon conversion or recall the loan if I choose not to. Refinancing the car to change to the revised scheme is definitely not cost effective.

 

Can anybody suggest who should I approach to clarify the refinancing issue?

 

 

it will still remain as the normal car resale value, don't think you need to worry about that part when come to selling. If you are concern about future repayment, maybe it is better to sell now. there will not be a refinance option from normal to OPC or OPC to normal.

Edited July 14, 2010 by Jman888

[Ehchang8]

Precisely, I just need to continue paying off the installments to the bank. The only issue I forsee for the bank is in the event I cannot pay my installments and the bank repossess the car, it will be under the revised opc scheme which is of lesser resale value. However, I can still change back to the normal scheme under such circumstances provided that the car has been under the revised opc scheme for more than 6 months.

 

I am concerned about the point raised by unFair regarding the bank recalling my loan if I change to the revised OPC scheme. Since the bank still owns the car under the hire purchase loan, I assume that the bank has the right to force me to refinance the loan upon conversion or recall the loan if I choose not to. Refinancing the car to change to the revised scheme is definitely not cost effective.

 

Can anybody suggest who should I approach to clarify the refinancing issue?

check with your finance company. opc car is of lesser value (reduce coe and parf value). banks usually don't loan out a amount that is higher than your car value. since car is of lesser value now, they might want to reduce the loan amount.

when u convert opc to normal, there is an amount (approx. 1.7k x number of years left) that u have to pay immediately.