[b]COMMENT WHETHER TO FULL_PAY OR HP A VIOS AT $20 000 LOAN?

NsR250 SG

Hi, would like to hear some advises from those exprience car owner.
As I'm consider whether to down pay all or loan 20k from BM?

jiayong SG

if i am not wrong, if u do a full payment at BM, the price is slightly different...slightly higher in fact. So check first ok?

think last time my dad had to pay like 2 - 3k more cos BM cant earn the loan interest...

heluim SG

if i am u.. i will get loan.. pay 10% loan the rest.. use the cash at hand for investment is alway better to haf more cash at hand..

jiayong SG

he has a point.

kmkm SG

I think u only get the $2K rebate if u take up min loan of $20K for min 1 yr at 2.2% interest. This means u pay $440 interest, n u get nett rebate of about $1.6K! Moreover, ur cash position is more liquid with the extra $20K cash over the next 1 yr. In fact, even if u take the same loan up to 4yrs its still better as the interest will only be $440 x 4 = $1,760; still less than the $2K rebate u will enjoy.

Unless u very sure u can reap more than 2.2% returns with ur excess cash/ investments, u may want to think twice about taking a huge loan.

NsR250 SG

Thanks, Jiayong, Heluim n KmKm. But after comparing the amount of interest the BM or rather HSBC charged. It will be $440 p.a. for 2.2% base on 20k loan.
If compare to bank fixed deposit int. It will be much more higher! Coz, currently it around 1 plus % p.a. for fixed deposit.

But it quite true lah! If got more $$ on hand it definitely better. Unless the investment is "Bao Tan" type. Hee...Hee...Then dun wait liao loh! Can have a new car again in 3 yrs time.

wsoon SG

If I have the cash, I would take the minimum loan and period to get the cash rebate cos although if you invest, you are likely to get a better return than 4-5% but it comes with risk. I would rather pay-up within and have the peace of mind.

Lancerlot SG

yah thats a better choice, when u pay the full amt, the instant earnings on investment is the interest that u don't have to pay. unless u so sure that got investment out there that can top this, better to take minimum loan n earn the rebate as well. enjoy ur new ride!