Balloon Scheme loan

[Deckbuild]

my cousin in law was quite excited abt this scheme... can finally buy his dream C180. Dunno buy already or not...

 

Not worth at all for buying brand new car, unless you referring to the old C180, your cousin have to hold on to that car till scrap.

[Mos_rex]

If its like dat then no worry...just treat it as a car rental lor.

 

But if your last installment is higher than your PARF then how ?

 

Bro..the balloon scheme that i know of is once car is due for de-registration you need to give back the PARF (55% OMV value) so i don't see the issue of having higher instalment than the PARF as loan is based on the car selling price minus the PARF value at time of de-registration. You will only need to worry if you decide to sell back the car before the loan tenure is up. (Correct me if i am wrong)

[Vinchoy]

Any dealer can advise me! I own a 2007 Honda Fit 1.3A, finance full settlement is $42k++. Intend to change to a 2000cc car, either cefiro/accord/camry looking at those in year 2005 (can also consider sonata also). So just drive 2-3yrs then scrap. I estimate base on car dealer trade-in price, maybe i need to top-up $4k-$7k. Below is my car details:

 

Original Registration Date: 31 Oct 2007

First Registration Date: 31 Oct 2007

Transfer Count: 0

Actual ARF Paid: $13,914.00

Intended PARF Rebate Details

PARF Eligibility: Yes

PARF Eligibility Expiry Date: 30 Oct 2017

PARF Rebate Amount: $9,739.00

Intended COE Rebate Details

COE Expiry Date: 30 Oct 2017

COE Category: A - Car (1600cc & below)

COE Period(Years): 10

QP Paid: $16,999.00

COE Rebate Amount: $8,074.00

Total Rebate Amount: $17,813.00

 

So my question is:

1) Can i trade-in my car, get a 2000cc car at $0 cash? Dont want to come out cash, possible?

2) Dont mind taking balloon scheme, but also need to do a overtrade inorder not to top up cash to settle current finance.

3) If without viewing my car, any dealer can estimate how much my honda fit can trade in for?

 

Please email me at [email protected].

 

Thanks.

Vincent

[2009k]

Balloon scheme gives the impression that your monthly cash outlay is lower. But you are almost be paying twice the interest rate.

 

Looks good on the monthly expenditure, but you get nothing back at the end. Think of it like Term Insurance.

[Giggseph]

is balloon scheme still available at current market???

[Chucky2007]

is balloon scheme still available at current market???

You need one?

[Wira]

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.

 

so it seems for balloon loan scheme interest rate is also higher compared to normal loan ?

[Wira]

double post

Edited March 29, 2013 by Wira

[Wira]

this scheme very bo hua. The factor in the parf value before including interest, den remove parf value to divide by number of months. but u already paying interest on the parf.

 

Isnt it the same when you buy normal scheme as you already paying interest on PARF but only get it back at end of COE tenure and the govt didnt even give you interest.

 

But i don like it that balloon scheme charges so much higher interest.

[Throttle2]

IMO, if one yearns for a car regardless whether it is an expensive one or just a B & B car and NEED such 'help' (scheme) from banks / finance companies to enable them to own one, then such buyer likely may not have the means to drive such car under normal circumstances.

However, for a car buyer who wishes to buy a car and CAN AFFORD to pay in full or take a normal loan without having to resort ONLY to such scheme to enable them to own the car, then, the decision to accept such scheme makes better sense since such buyers MAY HAVE A REASON (whatsoever that reason may be), to go for such scheme.

However, such buyers who can afford will be far and few between while there may be more of buyers who cannot actually own a car or a luxury car which they may WANT but does not have the means under normal circumstances. Hence, such scheme is often attractive to buyers without the means rather than those who have.

Just my 2 cents.

 

Dont be modest, your two cents definitely worth more.

 

[Kazuo]

Isnt it the same when you buy normal scheme as you already paying interest on PARF but only get it back at end of COE tenure and the govt didnt even give you interest.

 

But i don like it that balloon scheme charges so much higher interest.

 

Don't everything also blame government la bro.

They don't earn interest from your loan. The finance company does.

 

Anyway, this scheme still valid meh?

Now the headache is the upfront downpayment. No longer the monthly repayment amount.

[Johny_walker]

http://www.mycarforum.com/public/style_emoticons/#EMO_DIR#/wave.gif

Yeah!

But I think max 50% financing would be better

Your wish came through.

[Peckhs]

Bumping an old thread.

I am looking for a copy of hire purchase agreement for the balloon scheme loan. I understand only Century Tokyo Leasing is doing such loan now.

I only need a copy of the complete set of agreement for some reference purposes. I am willing to pay a small token for the copy, eg $50 or $80.

Please kindly PM me if you have taken a balloon scheme loan recently.

Thank you.

 

Peck

[D_bergkam]

Is it true that under a balloon scheme, the downpayment is equal to the PARF value?

[Forte3737]

Up for awareness as hyundai and kia are offering this

[Ivan_06]

Up for awareness as hyundai and kia are offering this

Mitsubishi also offers this.

[evidence]

its called "balloon Scheme" coz its like a balloon waiting to burst...in this case 4yrs 11 mths later then u see it burst....

 

its either u burst or ur car burst........

[Imac]

its called "balloon Scheme" coz its like a balloon waiting to burst...in this case 4yrs 11 mths later then u see it burst....

 

its either u burst or ur car burst........

More often, the scheme will end at the end of 5th Year.

 

Buyer just let the finance company take back the car, he then choose another new car, sign another balloon scheme and carry on with life.

 

Considering that you only paying DP $11-12K now...and instalment $400-500 monthly...some people will find this scheme attractive as it suit their budget/lifestyle.

 

It is not that bad if you sit down and calculate carefully, eg.

 

1. every 5 year can change new car.

2. save on your DP at least $30-$40K.

3. low monthly instalment $400-500.

4. most car have 5 Year Warranty, so you are worry free during this contract period.

 

Negative is that you only get to drive this car for 5 years instead of 10 years, and there is no PARF($10-15K) at 10 years.

Edited May 1, 2016 by Imac