Theobserver 2nd Gear March 5, 2012 Share March 5, 2012 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. Don't think it is a new scheme. I have heard of the ballon scheme many years ago. Seems like it is making a comeback ↡ Advertisement Link to post Share on other sites More sharing options...
Maroon5 5th Gear March 5, 2012 Share March 5, 2012 i thk fr the response in this thread, i can alr agar predict the coe and used car prices liao. Link to post Share on other sites More sharing options...
Crazybugger 1st Gear March 5, 2012 Share March 5, 2012 i thought balloon scheme simply means that for the first 1 yr or so, you pay a lower installment. then for subsequent years, the installment gets bigger and bigger? Link to post Share on other sites More sharing options...
QQDreamer 4th Gear March 5, 2012 Share March 5, 2012 can exisiting loan be refinance using this balloon scheme? Link to post Share on other sites More sharing options...
Soya Supersonic March 5, 2012 Share March 5, 2012 All this gimmicks are to fool those who can't realli afford a car into thinking they can. Gahmen shld juz bring back the financing rule of max 70% loan, max 7 yrs since they proudly say in parliament "we live within our means". Link to post Share on other sites More sharing options...
RadX Moderator March 5, 2012 Share March 5, 2012 All this gimmicks are to fool those who can't realli afford a car into thinking they can. Gahmen shld juz bring back the financing rule of max 70% loan, max 7 yrs since they proudly say in parliament "we live within our means". i agree....and half the car showrooms can close down too....all be taxi driver Link to post Share on other sites More sharing options...
Mockngbrd Supersonic March 5, 2012 Share March 5, 2012 can exisiting loan be refinance using this balloon scheme? u can giv tokyo leasing a call and ask. All this gimmicks are to fool those who can't realli afford a car into thinking they can. Gahmen shld juz bring back the financing rule of max 70% loan, max 7 yrs since they proudly say in parliament "we live within our means". what to do? COE so high... need to find ways to get ppl to buy/sell cars Link to post Share on other sites More sharing options...
Throttle2 Supersonic March 5, 2012 Share March 5, 2012 All this gimmicks are to fool those who can't realli afford a car into thinking they can. Gahmen shld juz bring back the financing rule of max 70% loan, max 7 yrs since they proudly say in parliament "we live within our means". Yeah! But I think max 50% financing would be better Link to post Share on other sites More sharing options...
TVT Supercharged March 5, 2012 Share March 5, 2012 i thought balloon scheme simply means that for the first 1 yr or so, you pay a lower installment. then for subsequent years, the installment gets bigger and bigger? Yalor, that was my understanding too. Hence the name "balloon scheme" - just like an inflating balloon, it (the loan amount) becomes bigger and bigger year-by-year. Many years ago, I remember one very expensive conti car AD used this scheme to attract buyers. First year payment was less then $1K a month, looks very attractive to anyone on the street. But comes 2nd to 3rd year, the loan amount increases. Link to post Share on other sites More sharing options...
Soya Supersonic March 5, 2012 Share March 5, 2012 Looks like the bad ol' days of the 90s are back: Sky high property prices, sky high COE prices, balloon scheme for car financing, bubble tea.... And we know how all that ended. Link to post Share on other sites More sharing options...
Neutralsg 5th Gear March 5, 2012 Share March 5, 2012 dont know much about this "Balloon Scheme" loan thing, saw a few 2nd hand dealer offer this loan. anyone care to explain wth is "Balloon Scheme"? how the thing goes? calculation? anything that consumer mus know about this "Balloon Scheme" loan... good side, bad side... cheers now down pouring on tampines... drive safe The first time I came across this scheme was in 1997. I post a link here about a book written by CH Tan for those interested to know more. I think it was Performance Motors who first offered this scheme to enable those who yearned to own a BMW but have difficulty to own one due its high price. The objective of BMW then, I presume was to increase their market share. In today's context, it appears that it is aiming for those who yearn for a car or expensive car but cannot afford to own one without such 'financial assistance' I fully agree with the many experienced bros here like Radx, Throttle etc.. that the gahmen should discourage high loan through decreasing the loan percentage of a car. Otherwise, many who are living on a shoe string budget will be in for a shock or even face bankruptcy when they do not have the holding power financially or financial power to dispose the car; in the event of downturn in their financial position. We must remember that there had been cases of car owners who cannot change or sell their cars without having to 'top up' the difference between market and loan value. Apparently, the trend among many today, is to change a car when their vehicle 'break even' or have the perception that they can 'profit' by doing so. Therefore, don't fall for such scheme unless you are prepared for its downside. Cheers! Have a great week ahead! Link to post Share on other sites More sharing options...
Neutralsg 5th Gear March 5, 2012 Share March 5, 2012 Looks like the bad ol' days of the 90s are back: Sky high property prices, sky high COE prices, balloon scheme for car financing, bubble tea.... And we know how all that ended. The bubble will burst for certain. It is only a question of WHEN! Right now, many are still drinking, wining and dancing forgetting the music will have to stop before it get started all over again. Link to post Share on other sites More sharing options...
Gz0707 4th Gear March 5, 2012 Share March 5, 2012 (edited) My ex-colleague took the BMW loan in 1997. He was about 50+ yr old and long wanted a BMW. i dunno how it ended (lost touch), but I think for him to take a balloon loan was not wise, unless he had a gratuity or some pension to help him pay it off at the end (he worked in GLC company). also keep in mind in 1998 a basic EXi Civic cost around 95k, so cars were not cheap then. Edited March 5, 2012 by Gz0707 Link to post Share on other sites More sharing options...
Zuoom 1st Gear March 5, 2012 Share March 5, 2012 prob would work in a rising market. but if things go south.. then how? Link to post Share on other sites More sharing options...
So_nice 6th Gear March 5, 2012 Share March 5, 2012 hmm..think dun waste time lah. still got 4 years+ before car COE finish. buy a set of new rims and a new exhaust should keep me happy for the next 1 yr or so. lol Link to post Share on other sites More sharing options...
Spidey10 Supercharged March 5, 2012 Share March 5, 2012 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. Bro, quick question - Let's say u drive it till scrape, then what? the scheme did not factor in the scrape value...hence we scrape it, we don't get anythign back but the financing co will get the scrape $$? what if we want to continue using the car > 10 yrs? Link to post Share on other sites More sharing options...
Jetabout777 1st Gear March 5, 2012 Share March 5, 2012 How about the body value of the car at scrap? Technically, the financing company has entitlement to the parf only, so is it safe to assume that owners are entitled to the body value? Link to post Share on other sites More sharing options...
Jerrimie Clutched March 5, 2012 Share March 5, 2012 den 9th year 11th month renew coe let bank chui can? ↡ Advertisement Link to post Share on other sites More sharing options...
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