Enquires about buying of new car, insurance and info on some cars.

[Rliewky]

Firstly ....

 

Welcome to MCF ....

 

2ndly .... WOW!! Free car from mum ....

 

From my experience ... for Boxster ... the insurance is about $3K-$4K for somebody with 50% NCD and age about 40yrs old.

 

I believe you should be under 24yrs old .... if I'm not wrong .... they'll not cover you if the car is under your name on a normal basis. Will probably need to appeal.

 

Not all insurer take in this brand model also.

 

You can consider BMW 645i ....

[Whiteblackred]

bro..so what you're meaning is that if i pay by loan and lets say 2 or 3 years later i'm bored of the car already, i will have to pay penalty? but even so, will that mean i spend less than lets saying paying the car in full and later selling it after the 2 or 3 years at a lower price? i guess thats what my friend is trying to say...

[Whiteblackred]

but slk kinda common. thanks for the suggestion anyway bro. but since hardtop like you said, i will keep the slk in mind. though i dont mind coupe also

[Whiteblackred]

thanks for the reminder bro. will keep that in mind. thats why i will sell my current ride and try to keep maintainance of the new ride as low as possible.

[Skyway]

bro, the purchase price and later on selling price is not affected by the loan. Just tat when u sell the car, u have to pay a penalty and a certain % of the unpaid interest. So if can afford, pay full cash is the best regardless of wat type of car u getting.

[Nhyone]

Can paying by installment be cheaper than full cash? The answer is yes if you take up the minimum loan period. This is because the finance company gives the car company a rebate, which they then pass to you.

 

For a normal loan, no. So, Whiteblackred, you might want to ask your friend to explain what he meant.

 

How a normal rule-of-78 loan works: suppose you borrow $50k at 3% interest for 7 years. The total interest is $10.25k and you'll have to pay $720 monthly.

 

Now suppose you decide to pay in full after 3.5 years. You still owe $30.3k, less the outstanding interest of $2.66k. And very likely you get back only 80% of the interest rebate due to the agreement (to prevent refinancing). Sidenote: at this point, you have paid 75% of the interest. And if you've taken any upfront interest rebate, you may need to cough them back.

 

If you don't need to pay interest, your loss is $25k if you use linear depreciation.

 

So, cash is definitely cheaper.

 

Always read the agreement carefully before you sign.

[Ender]

Since your parent can afford to pay in pull, then no point taking loan.. You're paying extra back to the bank for loaning money to you which you're already have.. Don't understand you're friends logic, even if you change car in 3 yrs time, not only you pay the bank interest for 3yrs, you also pay penalty for early termination. How can this be better?

 

Pay in full, where got stuck with the car for 10yrs??. You still can sell or trade-in what with no bank penalty somemore..

Edited April 22, 2007 by Ender

[Whiteblackred]

thanks bro..for taking the time to explain it to me. really appreciate it.

[Whiteblackred]

my guess is at that time what he meant was that if i terminate early, i pay only 3+yrs interest, penalty for early termination. "escaping" the remaning 6+years of instalments. as in.....

 

3yrs of instalments + penalty of early term. < full payment - sale of car after 3yrs

[Ender]

I think for frien's case should be

 

3yrs of instalments + Remaining owed to the bank+penalty of early term. > full payment - sale of car after 3yrs

 

You'll still pay more for the car in the end... So in all you probaly pay this,

Full price of car + Interest for 3 yrs+ Penalty for early termination....

 

 

But many cases whenpaying in full, the dealer will always markup the price so high to discourage you. In this case, just take minimum loan and year.

Edited April 22, 2007 by Ender