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How to break even faster?


Kokster
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Neutral Newbie

Hi fellow forummers,

 

Please advise:

 

How can I break even on my car loan faster?

 

Took out a car loan with GE Money but 4 years into the loan, would like to break even faster due to improved financial conditions. What is the best way to go about doing so? Tried looking to refinance loan but this is no longer popular with current interest rates.

 

Anybody here can offer expert advice?

 

Thanks!

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  On 11/30/2009 at 2:24 PM, Kokster said:

Hi fellow forummers,

 

Please advise:

 

How can I break even on my car loan faster?

 

Took out a car loan with GE Money but 4 years into the loan, would like to break even faster due to improved financial conditions. What is the best way to go about doing so? Tried looking to refinance loan but this is no longer popular with current interest rates.

 

Anybody here can offer expert advice?

 

Thanks!

 

change car

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Unless you wanna change car, else may not be worth it. If you redeem your loan in full now still gotta bear the rule of 7 charges from the bank. In short, why not make your money work harder for you meanwhile until you want to change car?

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Neutral Newbie

i still don't get it how changing car will help cos I will need to pay the difference between outstanding loan and actial value of car...pls help me understand how that would be a better option

 

anyway..since full settlement is out of the question and GE money will not re-adjust my installment amt even though i am willing to pay more...should i make advance payments - say my loan now is 600 and I pay additional 600 eveny month - will dat be viable?

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  On 11/30/2009 at 4:13 PM, Kokster said:

i still don't get it how changing car will help cos I will need to pay the difference between outstanding loan and actial value of car...pls help me understand how that would be a better option

 

anyway..since full settlement is out of the question and GE money will not re-adjust my installment amt even though i am willing to pay more...should i make advance payments - say my loan now is 600 and I pay additional 600 eveny month - will dat be viable?

Yep. U can do that.

 

but the extra you pay for interest is still the same.

So what's the point of paying more?

This is not housing loan le.. u tink suka suka can change the contract terms?

 

My advice is just carry on driving and pay the same. The extra just pay more for ur housing or other stuff or save up more.

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Re-invest your excess $ that you have now, that's the only way.

 

For car loan, early redemption have penalty & it's not worth. When you buy the car, you should pay the maximum down payment within your affordability & take minimum years on the loan.

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I guess the only way is to somehow make you car WORTH more than the loan.

 

Wait for 2010 April, when the COE is further reduced and the economy boomz upwards, the demand for properties and cars will shoot up the sky.

By that time the COE will hopefully cost $50k, that will effectively means that you have technically broke even. All thanks to the efficient gov and its strict car policy.

So just support the current gov and tell them to impose more strict rules....not only your car will break even sooner....your properties will shoot up high and all Singporeans will be at least Half-millionaires (assuming average HDBs cost $500k and above)!

 

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Neutral Newbie
  On 11/30/2009 at 2:24 PM, Kokster said:

Hi fellow forummers,

 

Please advise:

 

How can I break even on my car loan faster?

 

Took out a car loan with GE Money but 4 years into the loan, would like to break even faster due to improved financial conditions. What is the best way to go about doing so? Tried looking to refinance loan but this is no longer popular with current interest rates.

 

Anybody here can offer expert advice?

 

Thanks!

 

To break even on your car loan it is is depend what model, how much loan and how long you took when you bought your car. If you took full loan or over loan with 10 yrs, thats no way to break even.

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  On 11/30/2009 at 6:45 PM, Waffenss said:

Re-invest your excess $ that you have now, that's the only way.

 

For car loan, early redemption have penalty & it's not worth. When you buy the car, you should pay the maximum down payment within your affordability & take minimum years on the loan.

 

Agree on that. Re-invest or just save the extra cash for liquidity.

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