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Car loan max limit delay


Rao
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Guys please share how long ur loan can be delayed.

 

example can delay up to 2 months before they send letter to reposssed etc.?

 

another question is if i pay few months in advance will they nudge you for the coming months installments?

i heard this b4 just to 2x confirm

 

thanks

 

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Neutral Newbie

varies from bank to bank i believe.

my friend's vehicle got towed after delay for 2 months.

after that, they only wait for a month before towing (repeat).

 

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Guys please share how long ur loan can be delayed.

 

example can delay up to 2 months before they send letter to reposssed etc.?

 

another question is if i pay few months in advance will they nudge you for the coming months installments?

i heard this b4 just to 2x confirm

 

thanks

 

usually max 3 months b4 they action.

 

yes, they will still chase for upcoming payment

Edited by Tom_kkh
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My Honda jazz, DBS only asked me for my first payment exactly one month after I collected my car. I did not pay any money to DBS beforehand. Weird, as usually the bank will ask for first payment when taking the loan, all my previous car purchase have to fork out the first month loan before collecting car.

 

Anyway if we pay up after two month delay, can ask bank for waiver of the penalty interest or not?

 

 

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But once delay, 2 months... they will put a remark in the credit bureau.

 

Next time buy any car, dun be surprised that even income is $8K+ bank also reject...

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Yup DBS loan is like that, no need to pay any deposit

 

and first payment is 1 month after get car.

 

Also they gave me a loan of 2.4%.

 

My housing loan was 3%.

 

So depreciating asset like car can

 

have a lower interest rate than a home. :D

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Hi Guys.

 

I asked this question cause the loan i am looking into mention to me the delay period is 10days from the due date.

I find it very ridiculous..

 

Pls comment.tks

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Different banks different practices so please call the bank to confirm. Typically , repo would be the last thing banks want to do. Nothing specific so don't quote me but aga aga about the same . This is just a general guideline

 

 

The repo process usually goes like this

 

1. You receive a late payment warning by mail. Typically 2 weeks after the due date.

 

2. You might receive a follow up call for the above warning around the same time.

 

3. You will be given a grace period (look at your credit disclosure statement for the period) Typically 2 weeks from the followup call if you entertain the call , if you never bother to answer how you are going to do the settlement then skip 4.

 

4. You may receive one more warning (usually by mail)

 

5. You may discover your car missing from your home, work, or even at the mall. (Repo experts usually cruise by your home and work and even look for your daily habits to determine when and where would be the best place to repossess your car )

 

6. You receive a notice that your car has been repossessed and what your rights are including how to get it back.

 

7. If you can figure out a way to pay, you'll have to pay the repossession fees, towing charges, impound charges, storage fees and various other fees incurred by the company that repossessed the car. This can easily run several hundred dollars.

 

8. If you cannot pay the repo fees, you'll lose the car completely! It's sold at auction and the proceeds are applied to the balance of your auto loan and the fees mentioned above. If the balance is not paid off you'll be informed of the balance and that you are still responsible for paying it off. If there is money left over after the car loan balance and all repossession fees are paid, don't expect to get any of the profit; the company can legally keep it.

 

9. Your credit report is updated to reflect the account as a "repossession"

 

I more or less googled and edited coz i lazy to type the whole process myself. But more or less the same for most banks.

 

My suggestion , if you got problem repaying , call the bank dun wait for them to call. Based on good faith , we might extend the period of repayment but if you act blur , you can't blame the bank for the stuff they do.

 

Hopefully this is useful for everyone.

Edited by CH_CO
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Yup DBS loan is like that, no need to pay any deposit

 

and first payment is 1 month after get car.

 

Also they gave me a loan of 2.4%.

 

My housing loan was 3%.

 

So depreciating asset like car can

 

have a lower interest rate than a home. :D

 

Dude, car interests is calculated in a different manner from mortgage interests!

Car interests never factor in capital reduction while mortgage does.

In layman term, car interests are calculated in full upfront and divided equally across 7 or 10 years.

Based on 2.4%, i think your effective interests is about 6-8% compared to your housing loan of 3%.

Kindly correct your statement before misleading others. Cheers.

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Yup DBS loan is like that, no need to pay any deposit

 

and first payment is 1 month after get car.

 

Also they gave me a loan of 2.4%.

 

My housing loan was 3%.

 

So depreciating asset like car can

 

have a lower interest rate than a home. :D

 

 

2.4% is probably a "flat" front end discounted rate meaning they charge 2.4% x number of years upfront which is effectively more like 4.8% balance reducing rate which most mortages are based on.

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Hi Guys.

 

I asked this question cause the loan i am looking into mention to me the delay period is 10days from the due date.

I find it very ridiculous..

 

Pls comment.tks

 

 

which bank in the right mind will tell u they will only action after two or three months default?

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I more or less googled and edited coz i lazy to type the whole process myself. But more or less the same for most banks.

 

My suggestion , if you got problem repaying , call the bank dun wait for them to call. Based on good faith , we might extend the period of repayment but if you act blur , you can't blame the bank for the stuff they do.

 

Hopefully this is useful for everyone.

 

Spoken from a firse person perspective.... [sweatdrop]

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Spoken from a firse person perspective.... [sweatdrop]

 

Don't kek kao la , should be they , my ang mor not goot can?

Edited by CH_CO
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