Balloon Scheme loan

[Mockngbrd]

yea... thats what i heard from the dealer... i think it works only if u really really need to have lower monthly installments cos u are paying higher interest rates

[So_nice]

hmm wait..

 

wat if car total lost how? all $$$ go straight to the bank huh

[Nooby]

I believe the inflation rate will be higher than the interest rate. So this scheme like really not bad.

[So_nice]

time to login sgcarmart..lol

[Yattokame]

so if i drive till coe expire, i get $0 back from my car omv (parf rebate?) coz i take the parf value to offset my car price for loan? is that correct?

 

 

that's right

[Yattokame]

hmm wait..

 

wat if car total lost how? all $$$ go straight to the bank huh

 

yup, same early settlement method as per normal loan but interest is higher

[Yattokame]

the scheme actually works better for older cars, as the loan quantum is lower but PARF remains the same regardless of the age.

[Yattokame]

Then who is the one holding on to the PARF value?

The loan company?

 

Tis should be legalized long ago!!

Right now we are paying interest on the PARF value due to high loan amount(that artificially added in the PARF amount).

 

I support ballon scheme, as the loan amount is lower!

 

errr

 

loan amount not smaller, just installments lower

 

of course, the catch is that u better drive the car till its COE expires, or you'd be paying a more hefty early settlement (than the usual loans)

 

you still loan the full price, then remove the parf value

so early settlement is still based on full loan

 

yes, the loan company holds your parf paper

 

I used to ask banks if they can do something like this because the bloody piece of parf is really useless to me and the quantum is inflated because of it.

 

I'm quite supportive of this scheme too but of course nothing is free.

 

1) you are tied down till COE expires on an older car (can only do for cars >3yrs)

2) interest rates are higher

3) the scheme is still very new so it needs more momentum to get going

Edited March 5, 2012 by Yattokame

[Ken1898]

Which dealer offer this balloon scheme?

[QQDreamer]

any one can advise if this balloon scheme is avaliable for exisiting loan? which means current car finance loan can change to this scheme? How abt those people wanted to overtrade their rides for 2nd hand cars? This scenarios is it applies as well?

[Yattokame]

Balloon.pdf

 

got this file from one of the leasing companies.hope it helps

 

the person I spoke to was Annie Loke 96686266

 

just sms/call her to ask if u want.

Edited March 5, 2012 by Yattokame

[Blackyv]

To me, anything with the name balloon on it doesn't sounds friendly to pocket..

[SimonTan]

Let's clarify.

This only works for those who take loan till the very last day of car age?

 

Meaning if a 4 years old car....die die must take 6 years loan?

Because If take only four years loan, then car still left 2 years to drive at the end of 8th years, then the question of who own the PARF value will be debatable?

 

Seems like a good scheme to own and drive a old car with high OMV, perhaps like a Porsche or BMW 7 or Sclass?

 

 

[Mockngbrd]

To me, anything with the name balloon on it doesn't sounds friendly to pocket..

they should have called it "growth & share" or "parf offset" package

[Geniuspear]

tis scheme quite gd if really old car ( feel last impact of 2.68% ) yet high omw. example, i saw 1 rx8 abt year 2005, omv like 35k+ normal installment abt 1k, wid balloon only 700+... really reduce alot

[Geniuspear]

double post... deleted

Edited March 5, 2012 by Geniuspear

[Detach8]

this is interesting, i have never heard of it. is it a new thing?

 

means you actually loan the full value but your installments is on the depreciation only...

 

this is for those who cannot even afford to downpay the PARF rebate

 

for a kimchi car like 2006 Verna, the PARF is $5-6k. if can't even downpay that amount, not very wise to buy car actually.

[Gnixer]

those less than 5 yrs Bo hua liao?

what if u loan 6 or 7 yrs then sell on 4th or 5th yr?