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<blockquote data-quote="yeehau86" data-source="post: 4312882" data-attributes="member: 48776"><p>Let me brief you on the financial side:</p><p></p><p>Loan 9 years doesn't mean because you will be using the car for long term, but there is one thing you need take note of : </p><p></p><p><strong><span style="font-size: 15px"><span style="color: Blue">Interest rate</span></span></strong></p><p></p><p>The longer you take to settle the loan, the more you need to pay for the interest rate. If you can pay 40 to 50% of down payment without compromising your daily expenses, I would suggest you to do it. Why?</p><p></p><p><strong><u>Situation A</u></strong></p><p>if you dropped 40 - 50% down payment already, meaning you only take 50 - 60% of the 115k for loan purpose (at most loan 60% x 115k = 69k). </p><p>Let's say IF the interest rate is 2%, one year you have to pay RM 1380 for the interest rate charges to the bank. </p><p>So by maturity, you need to pay RM 1380 x 9 = RM 12,420 extra to your total car cost. Meaning you have to pay RM 115,000 + RM 12,420 = RM 127,420 </p><p></p><p></p><p><strong><u>Situation B</u></strong></p><p>Pay 10% downpayment, loan 90%. Meaning loan RM 115k x 90% = RM 103,500</p><p>IF interest rate 2%, one year pay RM 103,500 x 2% = RM 2070 for the interest rate charges to the bank.</p><p>By maturity, the total of interest rate would be RM 2070 x 9 = RM 18,630</p><p>Meaning you have to pay RM 115,000 + RM 18,630 = RM 133,630</p><p></p><p>If you choose Situation A, you will save RM 18,630 - RM 12,420 = RM 6,210</p><p></p><p>I think this should be clear which situation is better.</p></blockquote><p></p>
[QUOTE="yeehau86, post: 4312882, member: 48776"] Let me brief you on the financial side: Loan 9 years doesn't mean because you will be using the car for long term, but there is one thing you need take note of : [B][SIZE="4"][COLOR="Blue"]Interest rate[/COLOR][/SIZE][/B] The longer you take to settle the loan, the more you need to pay for the interest rate. If you can pay 40 to 50% of down payment without compromising your daily expenses, I would suggest you to do it. Why? [B][U]Situation A[/U][/B] if you dropped 40 - 50% down payment already, meaning you only take 50 - 60% of the 115k for loan purpose (at most loan 60% x 115k = 69k). Let's say IF the interest rate is 2%, one year you have to pay RM 1380 for the interest rate charges to the bank. So by maturity, you need to pay RM 1380 x 9 = RM 12,420 extra to your total car cost. Meaning you have to pay RM 115,000 + RM 12,420 = RM 127,420 [B][U]Situation B[/U][/B] Pay 10% downpayment, loan 90%. Meaning loan RM 115k x 90% = RM 103,500 IF interest rate 2%, one year pay RM 103,500 x 2% = RM 2070 for the interest rate charges to the bank. By maturity, the total of interest rate would be RM 2070 x 9 = RM 18,630 Meaning you have to pay RM 115,000 + RM 18,630 = RM 133,630 If you choose Situation A, you will save RM 18,630 - RM 12,420 = RM 6,210 I think this should be clear which situation is better. [/QUOTE]
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