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Pay off car loan or not?


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Twincharged
10 hours ago, Ct3833 said:

What you said about beh loon is true. But look at it the other way around, if one does not buy a car now, he would have spent some of the money that supposedly meant for installment into something else, like a more expensive holiday, buying other luxury items, better food etc , end up he  would still have not enough money for full cash five years  later.

But then you need people who like to spend on borrowed money. They make the world go round. Look at the Americans. Majority in debt all the time and a large number on credit card debt. 
If everyone is full cash and tight fisted, then our economy will grind to a halt. 

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(edited)
1 hour ago, Mkl22 said:

But then you need people who like to spend on borrowed money. They make the world go round. Look at the Americans. Majority in debt all the time and a large number on credit card debt. 
If everyone is full cash and tight fisted, then our economy will grind to a halt. 

It is so true as well. But now with the coronavirus, dont know how many jobs are going tp lose their jobs especially if the situation  prolonged, we will see huge financial defaulting cases from business to property to car loan. Lets hope to see vaccine soon, otherwise , I dare not to imagine.

Back on loan, I think property loan is still worth taking up even if one has sufficient cashflow, it is not difficult to generate equivalent or higher return from investment  with the same amount of money owed because the interest rate for property is  still fairly  low now, but one has to make sure he balance his portfolio including CPF saving and good grade bonds,  otherwise  the result may be counter intuitive. 

Edited by Ct3833
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26 minutes ago, Ct3833 said:

It is so true as well. But now with the coronavirus, dont know how many jobs are going tp lose their jobs especially if the situation  prolonged, we will see huge financial defaulting cases from business to property to car loan. Lets hope to see vaccine soon, otherwise , I dare not to imagine.

Back on loan, I think property loan is still worth taking up even if one has sufficient cashflow, it is not difficult to generate equivalent or higher return from investment  with the same amount of money owed because the interest rate for property is  still fairly  low now, but one has to make sure he balance his portfolio including CPF saving and good grade bonds,  otherwise  the result may be counter intuitive. 

Getting ready with my cash...... muayhahahahaha

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11 hours ago, Ct3833 said:

Me too, must be principle guaranteed. 

Principal guaranteed is easy.

question is guaranteed by who?

muayhahaha

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(edited)
On 3/3/2020 at 6:31 PM, pinkapple said:

What do you think? I have 2.28% with 60k left, FD is 1.7%, investment in funds can be 4-5%

 

I would say pay full lah after the 1st year loan if you can.

 

 

Edited by Renegade777
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On 3/3/2020 at 6:31 PM, pinkapple said:

What do you think? I have 2.28% with 60k left, FD is 1.7%, investment in funds can be 4-5%

What do you think now?

has the sudden turn of events changed your mind

you hv 4.5% with $60k left

how much you hv in fixed Depo? This is the i portant question to answer. If you have a couple of millions, why be bothered with a puny $60k ? Or even $120k or $240k for that matter. 

your investment in funds would already be down easily 20% with 4-5% returns likely to be halved.

So what is your decision?   No right no wrong. Your money your life

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My 4-year car is fully paid.

Does anyone know which banks or registered financial institutions provide loan for pledging my car as collateral?

Thank you.

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Turbocharged
2 hours ago, sti2020 said:

heng ah, all my cars fully paid off no loan

Harlow, this is normal standard in MCF. Loan is considered as abnormal :D

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6 minutes ago, Yeshe said:

Harlow, this is normal standard in MCF. Loan is considered as abnormal :D

loan is ok if cannot afford one shot pay in full

but if can one shot pay in full yet still loan, is questionable

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Turbocharged

No, don't take car loan.

Pay by 1 lump sum and there is no need to think about it any more.

 

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Supercharged

6 more mths to debt free!![:p]

but worry about car out of warranty....[laugh]

dunno how much and when gotta spend to fix up. Tell myself, the car instalment use it to maintain the car....plan to keep the car for 10 yrs or more...[nod]

yes, where possible....os one bro put it, debt free is....felling is priceless!![nod]

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On 5/4/2020 at 3:47 PM, Yymail22 said:

My 4-year car is fully paid.

Does anyone know which banks or registered financial institutions provide loan for pledging my car as collateral?

Thank you.

Why need to pledge car as collateral?

anyway, no reg financial insti will do that as car in Singapore is not real asset.

Sell it and buy a cheaper one with loan lor.

 

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Twincharged
5 minutes ago, Throttle2 said:

Why need to pledge car as collateral?

anyway, no reg financial insti will do that as car in Singapore is not real asset.

Sell it and buy a cheaper one with loan lor.

 

Sell to wife or another relative and take loan lor. 

Anyway, i am thinking to fully pay off this. One less debt to complicate TDSR and calculations about savings every month. 

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Twincharged
On 5/4/2020 at 7:56 PM, sti2020 said:

loan is ok if cannot afford one shot pay in full

but if can one shot pay in full yet still loan, is questionable

Sometimes they give discount based on loan mah. 

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On 5/5/2020 at 9:55 AM, Spidey10 said:

6 more mths to debt free!![:p]

but worry about car out of warranty....[laugh]

dunno how much and when gotta spend to fix up. Tell myself, the car instalment use it to maintain the car....plan to keep the car for 10 yrs or more...[nod]

yes, where possible....os one bro put it, debt free is....felling is priceless!![nod]

When you house fully paid car fully paid, your face: [sunny]

sleep that time, you sleep deep deep, no worries

eat that time, you eat song song, no indigestion 

walk that time, like walking on air, steps are light

everyone can see your face 万佛朝宗 :XD:

 

not 成何体统Ah :XD:

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