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3.5% cheaper then 2.5% interest ?


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Neutral Newbie

Hi guys, yesterday I went to Bedok with my parent, as there were road show by some PI car dealer, was quoted that the Honda Fit 08 can clock 20km/l [shocked]

 

Then later on, the SA told my dad that he advise us to take on 3.5% instead of 2.5% reason being, if we get the 3.5%, there will be a rebate while 2.5% no rebate. If we calculated with rebate, the 3.5% would be cheaper. Is that true ?

 

If yes, what's the pros and cons for getting 3.5% than a 2.5% ?

 

 

Thanks

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Neutral Newbie

yes its true... im keen to get the fit 08 too... its cheaper becos of the cash rebate then ur given due to the promotion but the downside is that u will be tie down for 5 yrs and the early repayment penalty will be higher..

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Neutral Newbie

it really depends on how much rebate you get isn't it? it you quote some figures, perhaps other forum may be able to contribute their opinions?

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Neutral Newbie

anyway don't think you can get 20km/l based on realistic driving conditions. that having being said, the fit is known for excellent fuel economy.

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Neutral Newbie

Yea, he did calculate 2.5% and 3.5% based on 60k for the price of Fit 08, and showed my dad. [sweatdrop]

 

If let's say i decided to change a new ride after 4~5yrs, is it worth getting the rebate ?

 

Sorry cos i'm not very good in calculating loans [:(]

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(edited)

Maybe you can calculate with rebate 3.5% interest with 10K down payment and 10 years loan is how much. Same for 2.5% without rebate with 10K down payment with 10 years loan base on the cost of the car is 60K.

You will see the figure different lor.

 

With rebate usually come with term and condition. There is penalty if you sell away or change ride within 5 years you need to pay them back base on pro-rated the rebate you had received earlier. [sweatdrop]

Edited by Jl1500k
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Hi guys, yesterday I went to Bedok with my parent, as there were road show by some PI car dealer, was quoted that the Honda Fit 08 can clock 20km/l [shocked]

 

Then later on, the SA told my dad that he advise us to take on 3.5% instead of 2.5% reason being, if we get the 3.5%, there will be a rebate while 2.5% no rebate. If we calculated with rebate, the 3.5% would be cheaper. Is that true ?

 

If yes, what's the pros and cons for getting 3.5% than a 2.5% ?

 

 

Thanks

 

the higher interest with rebate may bind you to a longer loan tenure.

work out the difference then compare and choose

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Neutral Newbie

OCBC.

 

 

Like i mention earlier just now, intend not to change ride between up to 4th yr, and if there is penalty, how much or rather how would they calculate it ?

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Supercharged
If yes, what's the pros and cons for getting 3.5% than a 2.5% ?

You should provide more details first: rebate %, min loan tenure, etc.

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Neutral Newbie

Not too sure exactly is it 30% as i heard yesterday, and as for min loan, din really ask as i were just talking to my mom bout the boot space between SSS and Fit 08 [sweatdrop]

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Hi guys, yesterday I went to Bedok with my parent, as there were road show by some PI car dealer, was quoted that the Honda Fit 08 can clock 20km/l [shocked]

 

Then later on, the SA told my dad that he advise us to take on 3.5% instead of 2.5% reason being, if we get the 3.5%, there will be a rebate while 2.5% no rebate. If we calculated with rebate, the 3.5% would be cheaper. Is that true ?

 

If yes, what's the pros and cons for getting 3.5% than a 2.5% ?

 

 

Thanks

 

If rebate is 30%, 3.5% X 0.7 = 2.45%.

 

I think better that you get the 2.5% one, you sure loss even more as long as you did not finish the loan before you change again.

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Hi guys, yesterday I went to Bedok with my parent, as there were road show by some PI car dealer, was quoted that the Honda Fit 08 can clock 20km/l [shocked]

 

Then later on, the SA told my dad that he advise us to take on 3.5% instead of 2.5% reason being, if we get the 3.5%, there will be a rebate while 2.5% no rebate. If we calculated with rebate, the 3.5% would be cheaper. Is that true ?

 

If yes, what's the pros and cons for getting 3.5% than a 2.5% ?

 

 

Thanks

 

I suggest you not take the rebate. I took a rebate from HL and have to sell the car after 3 years to avoid paying them the full rebate. After 3 years will be pro rated....so my advise is DON'T take! unless the T&C is different

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Neutral Newbie

How bout i sell the car ard 3yrs like you ? Does it more worth that way if i dun keep it for 4~5yrs ?

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then better get one experience car owner to go with you since you are new and first time car buyer. [gossip]

 

You must know what to ask especially when taking the rebate option. Later the PI see you green green sure con you to take this take that [sweatdrop]

 

The best don't conmmit and sign on the spot if not sure, go back seek for advise with someone to discuss. Alot of first timer go car show room blur blur kena [knife] also dun know [laugh]

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