Early Car Loan Settlement - 20% Penalty

[SimonTan]

I am not sure about my Jazz loan with DBS, whether got the rule78 or what.

 

Actually once I take the loan I already expected to pay the full interest(considering it as total car prices), any lowered payment for early redeemption, should be considered as savings.

 

The SE told me got lock in 18 months before I can do any redemption.

Seems like some cash rebate type of thing that PI used to practice.

Else I wonders how the hell they can sell the Jazz at a so-called 'loss'.

 

[Atlantis80]

Hmm.. interesting question.

For cars below $55k (excluding COE), it is governed by the HP Act. Given that the HP Act is more stringent than HP Common Law in terms of protecting the consumer's rights, does the bank or FI actually have the right to impose the additional 20% penalty on top of the rule of 78 penalty? The consumer is already penalised once by the rule of 78 during early settlement. Does the Act prevent him from being penalised a second time?

 

[Hoe]

Based on the above it is better to pay off your loan after the 1st payment?

[Oloberwonder]

Huh i highly suggest to not get loans eh, the interest rate in particular is already so anal to begin with

[hsl118]

Huh i highly suggest to not get loans eh, the interest rate in particular is already so anal to begin with

This is all hypothetical, all mcfers pay full cash

[Privacy]

that's right. i paid cash lol

[Ahbengdriver]

I also paid cash.  Petrol included.  

[Chucky2007]

I also paid cash. Petrol included.

No use credit card for discount? If only use cash then don’t have additional 5-7% discount.. bohua leh.. but i Guess u are rich so the $5-7 every $100 don’t hurt at all