Car Loan experts please come in

mikeeeey

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Actually its more on the breakeven part.

I know NUTS about such mathematical stuff but last time always hear pple say car drive for 5years (plus minus) then can change. Its "worth it" in a sense that no need to fork out additional cash and just continue the loan?

I got a question here:

Got a vellfire that's turning 4 years old soon.

back then it cost about 200k. COE was 62k

At what point is it considered the "breakeven"?

reason I'm asking is cos back then it was 50% loan only for 5 years (IIRC). So the whole theory of 5 years to breakeven (for a 10yr loan car) is not applicable?

Hope to hear some advices.
 

tankgunner

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breakeven is when you don't need to top up in order to get rid of your car.

if you are not taking more than 5 yrs loan and down payment 50%, don't worry about it.
 

mikeeeey

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Thanks bro for your reply.

Actually more interested in getting a new car. But the whole loan thing is too confusing for me. Lol.
 

tankgunner

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Thanks bro for your reply.

Actually more interested in getting a new car. But the whole loan thing is too confusing for me. Lol.

which part is confusing?

for car loan, the effective interest rate is about double the listed interest rate.
eg 2.5% but effectively, you are paying about 5% interest.

and try not to get into negative equity when owning a car...... esp during this uncertain time.
 

ZhuTou!

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By right breakeven is without losing extra money but u wont be able to do it unless u profit from selling ur car or full cash payment the car
Nowadays just pray not to lose more money, profit is not possible, few yrs later not sure tho

When u buy car, just calculate the annual depre
No need to think about the breakeven thing

Buy buy buy mai tu liao :o

Sent from Turbo Inside!!! using GAGT
 

doody_

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Breakeven is a story people invented to justify changing new car :o
 

kebinu

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You can even make money from selling this car base on the break even theory.
 
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