How to calculate full settlement

[Hitman]

Nope .... I checked with my financing bank about it. They say I am not affected by it. I checked with them even before I took the loan. You know lah ... I very stingy type one

 

The thing is ... for me I change car every 3 years on average. I have never ever driven a car for more than 4 yrs before changing one, based on the old system that is. High downpayment but lower loan amounts. So based on this .... I make sure that the banks dun implement that ruling on me cause I know the car I am buying will only last me approx 4 yrs

 

Now with the new ruling .... I have to revise my tactics liao

[Looneytune]

lucky u! dun think u stingy type lah..just very smart with money .

dunno if they still buy this tactic now. but must say its a good one! eh..if no rule78, how they rebate u unused interest when u fully redeem?

[Happyboy99]

Full settlement according to the rule 78 should be done in this manner...

 

Loan taken = $64000

Interest = 64000 x 0.0245 x 10 = $15680

Monthly = (64000 + 15680)/120 = $664

Oustanding after paying for 2 yrs = 664 x 96 (8 yrs) = $63744

 

Interest rebate from rule 78 = [(15680 x 96 x 97)/(120 x 121)] x 0.8 = $8112

 

Full settlement = 63744 - 8112 = $55632

 

Hope this is clearer.

 

edit --> should I use 80% for the interest rebate? I can't remember. Its either 80% or 100%

 

use 100% if under Act.

use 80% if uncer common law, a.k.a non-Act.

 

my cal in previous post is assume his loan under Act.

 

loan amt is not the determine factor for Act or non-Act. It is the car price.

 

( car price - coe ) < $55K under Act

( car price - coe ) > $55K under non-Act.

 

you can buy a 100K car, coe of 30K and down payment 80K, loan $20K, still under non-Act.

[Hitman]

Basically ... it goes like this :-

 

I dun get any penalty for early redemption. So if I go for early redemption .... like if I sell my car ... then they will only charge me interest (fixed) for the number of loan years that I actually take.

 

You must also understand ... my assumption only though, at that time when I was taking a loan ... there were people taking car loans of up to 88K for a 1.6 litre car. Mine only 42K. Even the bank manager treated me like a kucing kurap borrower ... "Alamak, you loaning ONLY 42K ?" was his face expression

 

ps : The so boh chap with me .... tat I got the original Car Registration Papers and they are the ones holding the photocopy

Edited January 7, 2005 by Hitman

[Will_I_Am]

Wa lau .. mine 's exactly 50K loan! Any diff?

[Hitman]

I dun know ley ... best is to check with your financing bank. Ask them if you are under Rule 78 or not

[Will_I_Am]

Anyway, I just did my refinancing with DBS @1.6%. So nevermind lah

[Hitman]

Lucky you

[Looneytune]

most banks now got using rule78. my loan was $47k and had rule78.

like u, i oso jus did my refinancing @1.8% for 2nd owner cars.

[Hitman]

Like that ... how I wanna change car

[Looneytune]

jus change lah..as long as u dun take too high a loan & dun fully redeem in less than 2 yrs, still won't lugi alot. somemore so many banks offering refinancing. jus be sure u dun get tie down by their so-called incentives of cashback.

 

latest refinancing avail are: uob & dbs (1.6% for 1st owner, 1.8% for 2nd owner - so if u buy a used car, make sure u're not 3rd owner & abv).

just got mine approved 2days ago & yesterday completed full redemption & switched from ocbc to uob, with no tie-in & penalty for early redemption (normal rule78).

asked ocbc got any offer to match & they can't match the rates. offered me a cashback of $500 instead, and have to be tie down for 12 mths.

i asked them go fly kite & did my switch. now my mthly repayment dropped by $40/mth & early redemption (based on 24mths) oso saved another $500+. its significant saving cos my initial loan's interest was 2.7%pa.

[Hitman]

I think my car cannot refinance cause more than 5 yrs old liao.

 

But for the savings ... I am happy for you

[Happyboy99]

how long have you own the car already ? if you already own it for 5 yrs then the saving really not much.

[Hitman]

Thats why lor .... anyway might be changing soon.

[Will_I_Am]

Bro, not true leh, my 323 about 5.5 yrs when I did my refinancing 2 weeks back. Saved about 1.5K. I suggest you try :)

[Hitman]

You refinanced ??

 

Can gimme contact ... let me give it a shot

 

Thanks

[Happyboy99]

bro, I'm doing refinancing, just msg me your loan detail or post it here, i can help you calculte the saving.

 

1. car make

2. car purchase price on loan agreement

3. coe amt

4. old loan principle amt

5. old loan int rate

6. old loan total no of yrs or mths

7. old loan commence date

8. old mthly payment amt

[Schneider79]

Anyway, I just did my refinancing with DBS @1.6%. So nevermind lah

 

How much difference per month in term of refinancing??? got 100-200 difference???