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Need some expert analysis on this matter. Was at the CATs carnival and intend to get a Honda car. Pretty good price on Honda Jazz 1.5A $77k. The SE says ONLY if I take a loan of 7 years, then the car will comes with 3+2=5 years of warranty and 3 FREE servicing. The bank loan interest is 1.99%. But if I were to take only 4 years loan, then it will only be 3years factory warranty and NONE free servicing(have to pay myself for the first 1000km and subsequent ones) The question I want some answers is Assuming a 50k loan of 7 years vs 4 years....what is the advantage of gaining the 2 extra years of warrranty and 3 free servicing? What is the differences should I take 7 years loan and then do a full redemption at the 2nd year or take a 4 years and full redemption at 2nd year? 7 years loan for $50k Total owe amount = $50k + 7*1.99*50k =$56,965 Monthly = $56965/84 = $678.15 monthly After 24 months of payment bank loan remaining will be = $56965 - 678.15*24 = $40689.3 4 years loan for $50k Total owe amount = $50k + 4*1.99*50k = $53,980 Monthly = $53980/48 = $1124.58 monthly After 24 months or payment bank loan reamining will be = $53,980 - $1124.58*24 = $26,990 Now the mian question is how much the bank will want for the full settlement for the two cases? Will it be the exact figure remaining or is there a rule78 discount? I dont understand the rule78(if the bank still practice it), and I want to learn it before I go book the car this week! Will taking the 7 years loan be more worth it to cover the first three servicing costs? (lets not discuss in the extra two years of warranty, as I am not concerned about it, as I intend to sell the car after 3-4 years) Assuming 1000km is $200, and 5000km is $200 and 10000km is $300. Total is ~$700. Will taking the longer loan cover the servicing cost vs taking a short loan? Thanks for any guidelines or advice.