Payment of Mercs

[Guest kai]

Hi bros,

Do you pay your car with bank loan or in full? If you pay by bank loan, how much would you borrow? :confused:

[Guest Sanjay]

kai wrote:

Hi bros,

Do you pay your car with bank loan or in full? If you pay by bank loan, how much would you borrow? :confused:

i suggest to borrow 100%... and the 10% downpayment that you intended to make, keep it in fix deposit... when you sell your car, you would have to fork out the 10% anyways to make up for the shortfall in the selling price to dealer vs bank loan. also when y ou take insurance, take lease gap cover as well, that way, in case the car is totalled, the insurance pays what is due to bank.... besides interest is so cheap...

[Guest jtang]

This is quite personal leh...might as well ask how much I have in my bank.

Anyway, I'm old schooled....borrow as little as possible, clear it as fast as possible. Better still, don't borrow. Why bother to keep your money in FD or savings?? Interest is almost zero, in fact inflation makes your savings a liabilty.

[Guest kai]

jtang wrote:

This is quite personal leh...might as well ask how much I have in my bank.

Anyway, I'm old schooled....borrow as little as possible, clear it as fast as possible. Better still, don't borrow. Why bother to keep your mony in FD or savings?? Interest is almost zero, in fact inflation makes your savings a liabilty.

But those deals from C&C must take a loan right?:Cry:

[Guest jtang]

kai wrote:

But those deals from C&C must take a loan right?:Cry:

If you work your sums correctly....you save more by forgoing those special deals.

[Guest bomby]

For car.. it is always a liability. So taking full loan.. 10yr loan.. only the bank earn nia and your car can never appreciate in value.

So normally pay as much as I can.. and if got extra $$ push to repay loan as quickly as possible.

[Guest Sanjay]

kai wrote:

But those deals from C&C must take a loan right?:Cry:

mate... every 100k USD or about SGD$120k gives you about 10% return in the financial market.. thats 3 times more than what you pay on interest... something to consider...

[Guest kai]

jtang wrote:

If you work your sums correctly....you save more by forgoing those special deals.

Yes, that is true....:Cry: But then why so many people going for the deal with high overtrade? :shocked:

[Guest bomby]

Sanjay wrote:

mate... every 100k USD or about SGD$120k gives you about 10% return in the financial market.. thats 3 times more than what you pay on interest... something to consider...

But there is a risk involved in this return... so if you are luckily.. or have sound investment, then fine.. else you might lose more and still need to pay interest.

Call me old.. but there is no free lunch in this world..

[Guest jtang]

Sanjay wrote:

mate... every 100k USD or about SGD$120k gives you about 10% return in the financial market.. thats 3 times more than what you pay on interest... something to consider...

Bro Sanjay, which financial market gives 10% returns?? For this level of return it has to be ultra risky. I'll be giving my private banker a shelling if he doesn't know anything about this 10% return instrument.:becky:

[Guest kai]

jtang wrote:

This is quite personal leh...might as well ask how much I have in my bank.

Anyway, I'm old schooled....borrow as little as possible, clear it as fast as possible. Better still, don't borrow. Why bother to keep your mony in FD or savings?? Interest is almost zero, in fact inflation makes your savings a liabilty.

Bro itang,

I like your old schooled style :becky: I will be very uncomfortable with a loan actually :Cry: I understand to pay off the loan will get a penalty too :Cry:

[Guest 6008]

Bro Kai . What abt yourself ? How much you bought your car , how much did you loan and how long will your loan be ???

[Guest vincemerz]

I use to like to pay full so don't need worry...

But now come to think off it,might as well borrow at 1.88 then buy conservative bonds that pay 4% to match off and need money still can sell the bond unlike car hard to sell easily and fast.

Cheers.

Generally u need at least 2 times more return than 1.88 to make it worth while after taking into account penalty if redeem early.

7 to 10 years loan effectively your interest is about 3.3 to 3.8 percent.

If 6 year loan about 2.88 percent effective interest.

[Guest 6008]

vincemerz wrote:

I use to like to pay full so don't need worry...

But now come to think off it,might as well borrow at 1.88 then buy conservative bonds that pay 4% to match off and need money still can sell the bond unlike car hard to sell easily and fast.

Cheers.

Generally u need at least 2 times more return than 1.88 to make it worth while after taking into account penalty if redeem early.

7 to 10 years loan effectively your interest is about 3.3 to 3.8 percent.

If 6 year loan about 2.88 percent effective interest.

Hey guys ! This is a genuine advice from a banker . Hehehe..... :becky:

[Guest lightning]

vincemerz wrote:

I use to like to pay full so don't need worry...

But now come to think off it,might as well borrow at 1.88 then buy conservative bonds that pay 4% to match off and need money still can sell the bond unlike car hard to sell easily and fast.

Cheers.

Generally u need at least 2 times more return than 1.88 to make it worth while after taking into account penalty if redeem early.

7 to 10 years loan effectively your interest is about 3.3 to 3.8 percent.

If 6 year loan about 2.88 percent effective interest.

bro Vince...for once you made real good contribution...

no offence...joking only lah :bounce:

[Guest vincemerz]

Faint.......

[Guest vincemerz]

But sometimes mentally when you are debt free, u actually feel better and do much better things out there , performing better at ur job etc.

So it's still personal.

Trying to match all these sometimes is just secondary. The mindset happy most important.

[Guest lightning]

vincemerz wrote:

But sometimes mentally when you are debt free, u actually feel better and do much better things out there , performing better at ur job etc.

So it's still personal.

Trying to match all these sometimes is just secondary. The mindset happy most important.

bro Vince... well done :becky: you are in top form today...another word of wisdom :bounce:

[Guest io5885]

Go Vince Go :cheer2:... Go Vince Go... :cheer2: Go Vince... :cheer2:GO Go GO.. :cheer2:

[Guest kai]

vincemerz wrote:

I use to like to pay full so don't need worry...

But now come to think off it,might as well borrow at 1.88 then buy conservative bonds that pay 4% to match off and need money still can sell the bond unlike car hard to sell easily and fast.

Bro Vince, tell us which bond is worth buying now? :becky:

[Guest kai]

vincemerz wrote:

But sometimes mentally when you are debt free, u actually feel better and do much better things out there , performing better at ur job etc.

So it's still personal.

Trying to match all these sometimes is just secondary. The mindset happy most important.

Yeah, that is how I feel about being debt-free. I hate the feeling of having a debt :Cry:

[Guest hannson]

vincemerz wrote:

I use to like to pay full so don't need worry...

But now come to think off it,might as well borrow at 1.88 then buy conservative bonds that pay 4% to match off and need money still can sell the bond unlike car hard to sell easily and fast.

Cheers.

Generally u need at least 2 times more return than 1.88 to make it worth while after taking into account penalty if redeem early.

7 to 10 years loan effectively your interest is about 3.3 to 3.8 percent.

If 6 year loan about 2.88 percent effective interest.

hi !!

You make 2 excellent points here.

1. Car loan of 1.88% = EFFECTIVE Interest rates (per annum) ranging from 2.88% to 3.8% depending on loan duration (some may forget about the relationship between EIR and loan duration).

2. Park the "Deposit" if you are able to earn a higher EFFECTIVE Interest rate compared to your car loan

[Guest vincemerz]

hannson wrote:

hi !!

You make 2 excellent points here.

1. Car loan of 1.88% = EFFECTIVE Interest rates (per annum) ranging from 2.88% to 3.8% depending on loan duration (some may forget about the relationship between EIR and loan duration).

2. Park the "Deposit" if you are able to earn a higher EFFECTIVE Interest rate compared to your car loan

Tangs tangs!

I'm Mr Calculator some say... Hahah

[Guest vincemerz]

kai wrote:

Bro Vince, tell us which bond is worth buying now? :becky:

Cant provide specific advice here...

I can get my team to liase with you.

Need do risk profile etc can't just product push la.

[Guest vincemerz]

lightning wrote:

bro Vince... well done :becky: you are in top form today...another word of wisdom :bounce:

Tangs tangs