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Old 20-06-2019, 08:41 AM   #11
mel1888
Master Member
 
Join Date: Dec 2015
Posts: 4,634
Normal Case, Say $40K loan, 7yr, 2.28%... Interest payable $6,384 over 7yrs.

After paying for 36mths (3yrs), if you sell your car and make full redemption, the left over interest unpaid is $3,648.... based on Rule 78, you can get back Interest rebate of $2,102.96 (depending on T&C, there might be 20% penalty charge).

SO in your case, even if you sell your car.... you will need to pay $2,102.96.


After 36mths, full settlement amount is:-

Normal without 20% penalty....$24,402.18
Normal with 20% penalty.........$24,822.77
No rebate..............................$26,505.14
Does interest rebate mean the interest he saves?
If so why he still need to pay tho.
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