Early Redemption Clause

[Upandcoming]

known as the bxxxxxxt Admin Charges...

 

tt means as mentioned in Posting #2 you have to 'surrender' 20% of your Interest Rebate and on top of that 1% of the orginal loan amount is charged too. that means using Post#2 example...u add 1% of original loan amount to whole final answer. ok?

[Upandcoming]

generally look at value of loan and car...not cc. cheers

[Thermodynamics]

So in this case, is it advisable for me to go for this kind of hire purchase agreement with such conditions? Are there pros & cons?

[Upandcoming]

bro,

 

no right or wrong leh...generally all HPA (Hire Purchase Agreements) come with early redemption penalties like Rule 78 (the 20% kena eat up thing we talk about) and othr miscellaneous like Admin Charges etc...

 

so I believe la that the key is in taking a loan that is manageable by you...if you overloan or loan max just to afford a car that will drive you into such problems worsened if you change early.

 

Some banks do however offer slightly better offers...At OPEL for one when I last saw, it was Hong Leong - first 6mths with bank, after that no early redeption penalty; citibank first 1 year)

 

some other banks like Maybank at some point had 2 years after that 25th month n on no more Rule78 =)

 

CHeers happy hols