Posted 01 February 2011 - 01:26 PM
Over the years or can I say throughout the entire history of AW I'm sure you've come across many ppl who advocate taking short loans and why anything over a 5 yr tenure means you really can't afford the car. Well, lately I did some rough calculations and I've found that there really isn't a good enough reason to tie your money down just to shorten your "sentence" LOL... Here's why:
Car's original price = RM97,800 (Forte 2.0 FL)
Loan taken = RM86,000 @ 2.7% PA
Car's price after 5 yrs = RM50,000
Owner changes car after 5 yrs
Borrower A takes 5 yrs = RM86,000 x 1.135 = RM97,610, or RM1,626.80 / month
Borrower B takes 9 yrs = RM86,000 x 1.243 = RM106,898 or RM989.80 / month
After 5 yrs, selling the car at RM50,000:
Borrower A gets RM50,000
Borrower B gets (RM50,000 less RM43,500* settlement to bank) = RM6,500 (Wow! Big difference eh?)
*The amount of RM43,500 was taken from AW's loan settlement calculator, rounded up.
In reality, Borrower A paid an extra of RM637.00 per month vs Borrower B, amounting to:
(RM637 x 60) = RM38,220
So, his actual nett gain is:
(RM50,000 less RM38,220) = RM11,780
Hence, Borrower A's tenure advantage over Borrower B is only:
(RM11,780 less RM6,500) = RM5,280
So, in order to realize a nett gain of RM5,280 after 5 years, Borrower A has to fork out an additional RM637 per month. In other words, when considering a new car, you must ask yourself, do you have the willpower to set aside RM600+ a month in your bank while enjoying a lower repayment thus less stress, or would you prefer to take a short tenure and force yourself to pay that extra money to the bank or they will tarik your car LOL...
IMO people with good financial discipline should take a long tenure and manage their funds themselves.
Happy CNY and Happy Holidays!
Posted 01 February 2011 - 02:32 PM
Posted 04 February 2011 - 01:27 PM
On the other hand, with a saving of $637.60, B can use that to pay for another property, rent it out, and sell out after sometime & realised the profit (hope the property appreciates) but continue to use car of less than RM100k price range.
Posted 09 February 2011 - 09:17 PM
Pug 308 Turbo 6-sp. Now with news of the 308 facelift coming in April, even more reason to cancel my booking lol
Posted 10 February 2011 - 11:49 AM
If U really want the facelift 308 then, you don't have to cancel your order.
Posted 10 February 2011 - 11:58 AM
Wow... i am contemplating switching to Koup if it is priced at 115K
.... dun tell my wife....
Posted 10 February 2011 - 12:47 PM