If and when interest on car loan goes up.

[Piyopico]

I guess it's a matter of time.

 

How much higher do you think it will go?

 

I do not recall it being higher than 3% though but I am referring to AD rates.

[Angcheek]

I only know SIBOR is going up ... will it affect car loan ?

[Ingenius]

I remember in early 90s it was >5% .

[Latio2005A]

I only know SIBOR is going up ... will it affect car loan ?

 

To put simply:

SIBOR is like "wholesale" rate. So if SIBOR is up, the cost of funds will go up, the competition for funds will corespondingly go up, and this applies to all financial loans, car loan included.

[Angcheek]

 

To put simply:

SIBOR is like "wholesale" rate. So if SIBOR is up, the cost of funds will go up, the competition for funds will corespondingly go up, and this applies to all financial loans, car loan included.

 

Any idea whats driving SIBOR up ... its been flat for a while . Its going to have negative impact in the market (not just cars) , recession coming soon. or World Bank running dry ?

[Tiger1]

I used to know car loan interest at 6%.

[Latio2005A]

 

Any idea whats driving SIBOR up ... its been flat for a while . Its going to have negative impact in the market (not just cars) , recession coming soon. or World Bank running dry ?

 

I can't answer you acurately cos I no expert. My guess:

 

1. Funds supply and demand.

2. Inflation control - A stronger S$ by MAS results in cheaper imports and helps control inflation. However, a stronger S$ = stronger demand and hence drive up interbank funds and increase rates again.

[Piyopico]

Full cash^tm

Not all AD allow full cash wor.................

 

If you insist then ok la but freebies less ba.

 

Second hand cars already levying 3%?

[Aaronlkl]

Cars in SG already so expensive. Taking a loan to buy one would add on to the final price tag. As far as i'm concern, i'll either pay full or don't buy.

 

That why i usually buy what i could afford.

 

Ps: afford means buying with no loan.

[So_nice]

Full cash or nothing

[Angcheek]

So many Richie rich .... i cant afford to pay my house in full cash ......

[Forrestcat]

So many Richie rich .... i cant afford to pay my house in full cash ......

 

Cannot liddat compare, i bought a 7 year old car and paid in full as the amount is not that much as compared to a 1 year old car which i cannot afford to pay in full. So i only buy what i can afford to pay in full as what some brothers mentioned here

 

[Darryn]

Interest rate doesn't matter -

 

It is finance rate that you have to care about

 

The way interest is calculated on car loan in Singapore is illegal in many places - in any proper and transparent contract it would be "reducing table" (I hope I got this right, can't be arsed checking)