Car Loan Interest Rate

[Flameice85]

Hi all,

 

Anyone knows what is the car loan interest rate nowadays?

Is it going up?

 

Some PI tends to offer very attractive price but the interest rate like very high.

[Fruit-tart]

Yes. Its going up, and will keep going up bahh.. If I not wrong, current car loan interest rate is around 3.5-3.8%..?? its from as low as 3.5-3.8% onwards..?? but then i saw something: effective interest rate, which is like 8% up..dunno wats effective interest rate though..lol..

Edited January 11, 2016 by Fruit-tart

[hsl118]

Just sharing today's interaction at KM:

 

- Ocbc loan at 2.78%

- Quoted Citi Direct at 1.58%, response from SE Nicholas: "oh no problem go ahead, we will have to mark up the selling price by 10k though"

 

Note please do calculate your own EIR.

[Kusje]

Just sharing today's interaction at KM:

 

- Ocbc loan at 2.78%

- Quoted Citi Direct at 1.58%, response from SE Nicholas: "oh no problem go ahead, we will have to mark up the selling price by 10k though"

 

Note please do calculate your own EIR.

 

I don't understand this shit.

 

You mean their profit from OCBC is 10k? If not, why can't they just charge the difference?

[hsl118]

I don't understand this shit.

 

You mean their profit from OCBC is 10k? If not, why can't they just charge the difference?

 

Bro none of them could explain apart from saying this is company tie up with bank, you get $500 off if you take in-house bank loan.

 

Decided to move on when he started saying he dunno why buyers like to compare PI's Vezel to KM's HRV, if the 11 BHP so important at high rpm might as well pay more for CRV.

 

They didn't used to be like that.

[Axela72]

typically there are discount if you use the bank tie with the AD.This discount has already be amortized into the selling price of the car. 

 

When I see mine, it show 2.5k discount from using their bank. do my own math and decide whether will I profit more if I use Citi direct instead. . In the end, I used back AD one since it is almost the same but hassle free

 

Bro none of them could explain apart from saying this is company tie up with bank, you get $500 off if you take in-house bank loan.

 

Decided to move on when he started saying he dunno why buyers like to compare PI's Vezel to KM's HRV, if the 11 BHP so important at high rpm might as well pay more for CRV.

 

They didn't used to be like that.

 

[Vinceng]

Bro none of them could explain apart from saying this is company tie up with bank, you get $500 off if you take in-house bank loan.

 

Decided to move on when he started saying he dunno why buyers like to compare PI's Vezel to KM's HRV, if the 11 BHP so important at high rpm might as well pay more for CRV.

 

They didn't used to be like that.

Vezel/ HRV kerb weight is so heavy at > 1.2 tonnes. Every additional horse power helps. And Vezel is using a newer engine.

 

Vezel comes in same body with a more powerful and newer engine, yet cheaper, why wouldn't buyers compare?

[Doppel]

Just sharing today's interaction at KM:

 

- Ocbc loan at 2.78%

- Quoted Citi Direct at 1.58%, response from SE Nicholas: "oh no problem go ahead, we will have to mark up the selling price by 10k though"

 

Note please do calculate your own EIR.

Actually, that is unethical:

 

Increasing the selling price when you do not take financing through them.

 

It is akin to adding 2% at some shops when you would like to pay by credit card.

[Vinceng]

These schemes where you need to take loan and insurance from the distributor to enjoy the additional discounts are not cast in stone. Depends on how hungry they are for business.

 

Back in 2009 when my bro in law bought his car from a Jap car distributor, he bargained and they gave him the relevant discounts even though he sourced for his own loan and insurance, and saved a hefty sum.

[Forte3737]

These schemes where you need to take loan and insurance from the distributor to enjoy the additional discounts are not cast in stone. Depends on how hungry they are for business.

 

Back in 2009 when my bro in law bought his car from a Jap car distributor, he bargained and they gave him the relevant discounts even though he sourced for his own loan and insurance, and saved a hefty sum.

Toyota will never allow, as far as I know

[Vinceng]

In any case, these big distributors have the margin. The mark up or profit margin for a basic car like the NISSAN Note CVT is $16,000 or 24% !!! These info are all avail in sgcarmart.

[GLZT]

Actually, that is unethical:

 

Increasing the selling price when you do not take financing through them.

 

It is akin to adding 2% at some shops when you would like to pay by credit card.

Its actually illegal to do that, but if you call it cash discount, its legal. I think the SE is too crude, say mark up by 10k after saying go ahead. So sarcastic.

[Red_ryder]

Yes. Its going up, and will keep going up bahh.. If I not wrong, current car loan interest rate is around 3.5-3.8%..?? its from as low as 3.5-3.8% onwards..?? but then i saw something: effective interest rate, which is like 8% up..dunno wats effective interest rate though..lol..

 

Most AD offering around 2.78%, some 2.28%. Effective interest rate over 5 years is higher because of how the interest is calculated. 

 

Example - $100,000 loan over 5 years, 1% interest for easy calculation. 

 

Total interest paid = 0.01 x $100,000 x 5 yrs = $5000. 

 

Effective interest rate = 5000/100,000 = 5%. 

 

So although the interest rate is 1%, you actually paid 5% interest over the 5 years. Unlike housing loan, car loan interest is taken over the original principle. 

[Wt_know]

in the price breakdown, i think there is a column say "finance rebate"

if don't take their loan  ... they will just remove the rebate

 

Actually, that is unethical:
Increasing the selling price when you do not take financing through them.
It is akin to adding 2% at some shops when you would like to pay by credit card.

 

the beng dealer talk cock la ... he don't know sg car owner is so obssesed with bhp meh

people mod intake, exchaust, spark plug, simi tuning chip, voltage stabiliser, simi snake oil just to gain 10bhp .... lol

 

Vezel/ HRV kerb weight is so heavy at > 1.2 tonnes. Every additional horse power helps. And Vezel is using a newer engine.
Vezel comes in same body with a more powerful and newer engine, yet cheaper, why wouldn't buyers compare?

 

Edited January 12, 2016 by Wt_know

[Runforyourlife]

Yes. Its going up, and will keep going up bahh.. If I not wrong, current car loan interest rate is around 3.5-3.8%..?? its from as low as 3.5-3.8% onwards..?? but then i saw something: effective interest rate, which is like 8% up..dunno wats effective interest rate though..lol..

 

Wa this one must quote, must make him famous den he can earn more referrals.

 

[Enye]

Most AD offering around 2.78%, some 2.28%. Effective interest rate over 5 years is higher because of how the interest is calculated. 

 

Example - $100,000 loan over 5 years, 1% interest for easy calculation. 

 

Total interest paid = 0.01 x $100,000 x 5 yrs = $5000. 

 

Effective interest rate = 5000/100,000 = 5%. 

 

So although the interest rate is 1%, you actually paid 5% interest over the 5 years. Unlike housing loan, car loan interest is taken over the original principle. 

 

eff interest rate is not calculated this way lah

 

[Red_ryder]

eff interest rate is not calculated this way lah

 

 

Oh, my mistake. Can elaborate or point to website on how it is calculated? My calculation on actual amount of interest paid is correct right? 

Edited January 12, 2016 by Red_ryder

[Enye]

Oh, my mistake. Can elaborate or point to website on how it is calculated? My calculation on actual amount of interest paid is correct right? 

 

google is your best friend

 

total interest is correct though

 

but actually in mcf, effective interest rate should be 0 ie full cash

 

Edited January 12, 2016 by Enye