Wise to do early settlement?

[IcYFl4mEz]

The int is about 9k plus for 7 year loan. I will save about 3k plus if i do early settlement. Also meaning that interest for the past 2 years paid will be 6k plus. Will it make a big difference if i do settlement next year which is at the 3rd year of the loan,

save 3k, but how much to pay off?
if 30k or so just pay off.

 

[North Tree]

I settled mine with 3 years left to go. The feeling is song dahs! Now I truly own my car!!

 

[Lolicious]

I settled mine with 3 years left to go. The feeling is song dahs! Now I truly own my car!!

� until lta send you renewal letter
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[mp4005 help]

The int is about 9k plus for 7 year loan. I will save about 3k plus if i do early settlement. Also meaning that interest for the past 2 years paid will be 6k plus. Will it make a big difference if i do settlement next year which is at the 3rd year of the loan,

Sounds like 50k to 60k loan. Interest rates was 2.xx% back then.

There is a 1% early redemption fee or $500 to $600 in addition to the 80% of rule of 78

 

[Sty_123]

********* until lta send you renewal letter
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Nobody truly owns a car in Singapore. Everyone driving is a car is renting from Singapore Government.

 

[Deioruomu]

If you know how to invest with the outstanding amount that is higher than your car loan interest %, you should not settle early. Invest that money and your loan interest will be free.

Depends on how you see it. If you prefer to be debt free for the sake of "peace of mind" (which is not wrong), then go ahead and settle it early.

 

[mel1888]

I settled mine with 3 years left to go. The feeling is song dahs! Now I truly own my car!!

Until COE expires.

 

[myviowner]

I settled mine with 3 years left to go. The feeling is song dahs! Now I truly own my car!!

Full cash up front, song for 10 full years dude...

 

[hawthorne]

If u already budgeted to down the entire car in cash liao, no loan is always better than got loan. Even the bank pwn u rule with rule of 78, u still pay less in total

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[m@maboi]

personally, i feel it is based on the loan quantum too. no right or wrong but of course, like one said, no loan is better than having a loan. But as you already service your loan, so u need to factor in rule 78 and the relevant 'penalty' that come along with full settlement.

work your math, u will surely save if full settlement but only the amount u save works out to only one month of petrol money. so is it worth to full settle or put the money elsewhere for rainy days?

CIMB saving account pay 1.5% for amount till 100k. not bad if you ask me.

 

[hwmook]

Pay off early worth it. The interest rates of 1.99% is incurred yearly based on your principal loan amount.

I also left 3 years to clear my car loan. Stuck monthly 1400. Must set aside.

Car loans interest is different from mortgage. Car loan is simple interest so 1.99% is actually effective interest rate of ~4%.

 

[YouHappyCanLiao]

Not worth it, worst if its finance without rule 78.

 

[gtreds]

personally, i feel it is based on the loan quantum too. no right or wrong but of course, like one said, no loan is better than having a loan. But as you already service your loan, so u need to factor in rule 78 and the relevant 'penalty' that come along with full settlement.

work your math, u will surely save if full settlement but only the amount u save works out to only one month of petrol money. so is it worth to full settle or put the money elsewhere for rainy days?

CIMB saving account pay 1.5% for amount till 100k. not bad if you ask me.

CIMB savings account is not full 1.5%.It will not add up to 1.5%.