Advice on car loan

[coconutty]

I have a question and require some advice regarding car loans. Let's say I took up a car loan(90% loan) for 10 yrs and have paid for my instalments for like 1 1/2 yrs already, but now that I find the car a drag on my finances, I wish to get rid of it. What avenues do I have, assuming I don't have the money to repay my loan in full at all now?

What happens if I choose to ask the finance company to take back the car(terminate agreement), how more do I have to pay after giving back the car.

Can I sell the car in the market? Like to used car dealers etc?

Can I transfer the ownership to someone else e.g. family members/relatives?

Thanks!

[chipmunk]

I have a question and require some advice regarding car loans. Let's say I took up a car loan(90% loan) for 10 yrs and have paid for my instalments for like 1 1/2 yrs already, but now that I find the car a drag on my finances, I wish to get rid of it. What avenues do I have, assuming I don't have the money to repay my loan in full at all now?

What happens if I choose to ask the finance company to take back the car(terminate agreement), how more do I have to pay after giving back the car.

Can I sell the car in the market? Like to used car dealers etc?

Can I transfer the ownership to someone else e.g. family members/relatives?

Thanks!

1)U can certainly choose to sell the car in the resale market but you got to top up quite a lot more to pay up the existing loan.

2) For sure u are able to transfer ownership to your relatives or family members but who would want to take over the ownership as it is more worthwhile to buy a new car instead.

3) Letting the finance coy to repossess the car might be a good option but i am not sure of its complications.

Do talk to an industry expert if you really need help on this.

[coconutty]

Yah... the first 2 options are not very feasible given the prices of new cars compared to a few yrs ago.

Anyone else in the industry/have experience with this have any advice to share regarding letting the finance coy to repossess the car?

[yaoyao]

coy which repossess cars will resell it to open mkt bidding
norm ard 70% of its mkt rate
so you are better off selling it urself

and
assuming tt amt is used to cover your remaining loan,
u will still own the finance company an outstanding sum

hence the term break even point

my advise for u is best to find someone to take over the car
jus tx the car and the loan over

at least if can do tt, no more outstanding

however now mkt full of such cases due to the revamped 55% parf...

diff also

-.-

[bolts]

I have a question and require some advice regarding car loans. Let's say I took up a car loan(90% loan) for 10 yrs and have paid for my instalments for like 1 1/2 yrs already, but now that I find the car a drag on my finances, I wish to get rid of it. What avenues do I have, assuming I don't have the money to repay my loan in full at all now?

What happens if I choose to ask the finance company to take back the car(terminate agreement), how more do I have to pay after giving back the car.

Can I sell the car in the market? Like to used car dealers etc?

Can I transfer the ownership to someone else e.g. family members/relatives?

Thanks!

The solution is to get a higher-paying job and stick with the car.

Because, I doubt very much that car prices will go back up to pre FTA days. One of the requirements of the FTA agreement is to drop the ARF to zero.

[booest]

my advice is to continue this car lor...
or ask a relative who wants a card to help.

e.g he drive... lah.. if the loan installments is
S$1000 then ask him to pay S$800 and you pay S$200 lor...

i think that is best... ask around lah.. i am sure if it is a ok car in good condition this is best.. until you want to sell or take back the car lor..

[coconutty]

Ok thanks for the advice guys!

[booest]

Ok thanks for the advice guys!



wish you all the best..
you can post your car and let's have a look... :D

the thing is to minimise lost..

[PhiBer]

Selling 2nd-hand cars in SG now is very bad idea..
Only way to recover mostly is to do export of the car to countries in higher demand.

I'm not really an expert in this field, but my sis runs a car dealership, doing export/import, financing, etc..
if u need some advice, i will be glad to pass u her contact.. :)

[yeaster]

definitely do not let the finance company take over the car. you will lose out a lot. you will get charged service fee by the finance company this way. I rather you try your luck with a 2nd hand car dealer.

depending on where and when you took your loan and the penalty clauses for early settlement, you might although highly unlikely that you can break even if you manage to find a car dealer to buy in your car at a good price.

i suggest you get a settlement figure from your finance company first and then see whether any car dealers are willing to buy over your car at that price or slightly lower. making a small loss is better than having a huge strain on your finances.

another alternative is to switch finance company. source around see whether any other finance company do offer lower interest rates and switch over. this option is if you feel that you can still cope with financial burden.

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[CyberTron]

I dun think switching finance company makes huge difference unless the loan amount is huge....else after the penalty from the loan loan, your savings from a new loan might be < $10 a month.

Ya best option is find someone to take over your car and existing loan, quite unlikely unless is ya close relative or family members.

Else, work out how roughly u need to cough out if ya sell ya car say 6 or 12 months down the road (be realistic on your selling price.... expect just scrape body value + paper value), and start saving that amount of money. Else borrow that money (hopefully interest free) from family members and repay that amount through installment.

[jerryklarke]

Ok, I'm 22 years old and I want to buy my first car, so I need about $15,000. I just got a job but I don't start for another 3 weeks. I will be earning about $600 a month. I have no other bills to pay, and my parents will be giving me the money for insurance and half of the car payment, so paying it will be no problem. What do you need to get a first time car loan with a cosigner?

[fleek]

Ok, I'm 22 years old and I want to buy my first car, so I need about $15,000. I just got a job but I don't start for another 3 weeks. I will be earning about $600 a month. I have no other bills to pay, and my parents will be giving me the money for insurance and half of the car payment, so paying it will be no problem. What do you need to get a first time car loan with a cosigner?

You will need at least a pay of 24K PA to get a decent car loan, with your pay of $600 a month, I don't think you can get a car loan. The servicing of the loan will wipe out your entire salary. Not to mention petrol costs.