 Forum > Car related > Breakeven calculator
Author Message Thomas
Posts: 271

 Edited on 29-Nov-2006 8:58:09 AM
Wanna know when you can breakeven your loan amt?

http://www.oneshift.com/pdb/selectcar.php?funcid=5&cb=index.php

Sian.. mine still need to wait until Dec 08 to breakeven!!!!

 Honda - Power up my WET dreams orangeboy
Posts: 284

 29-Nov-2006 2:16:19 PM
Mine is 3 months earlier than yours... mebbe we can bulk purchase our new cars together in 2008 =) orangeboy
Posts: 284

 Edited on 29-Nov-2006 2:23:43 PM
My next car should be a SUV =P Thomas
Posts: 271

 1-Dec-2006 8:55:18 AM
quote:

Originally posted by orangeboy:
My next car should be a SUV =P

On lar... just hope I can tahan until that long :P

 Honda - Power up my WET dreams Ivan Liew
Posts: 163

 14-Dec-2007 1:56:33 PM
the breakeven calculator is gone ...

any idea how much is the penalty for early redemption of car loan?  Kheng Fatt
Posts: 191

 17-Dec-2007 10:46:00 PM
quote:

Originally posted by orangeboy:
My next car should be a SUV =P

Yo boon heng, 2008 is just 14 days away!!! Thomas
Posts: 271

 17-Dec-2007 11:10:44 PM
quote:

Originally posted by Ivan Liew:
the breakeven calculator is gone ...

any idea how much is the penalty for early redemption of car loan?

I have attached the formula provided on Hong Leong Finance website. If you are not too mathematically inclined, you can just call your finance company to ask for the amount if you pay early. You can be sure that the amount will be less than (total loan amount - Total amt paid so far).

Q3: How do you explain the interest rebate calculation using the Rule of 78 method?
Aa3: Interest Rebate Calculation:
The interest rebate calculation is based on the below formula:

- Interest Rebate (R) = n(n+1) X TC / t(t+1) where R = Term Charges Rebate, n = unexpired term ( in months ), t = total repayment period, TC = Term Charges

For example:
- Amount Finance = S\$100,000, Interest rate = 2.7% p.a. flat rate, Loan (number of yrs) = 7 yrs (84 mths), Hirer full settles after 5 yrs, unexpired hiring period is 2 yrs or 24 mths

Thus, interest rebate is computed as follows:- Interest Rebate (R) = 24(24+1) X (S\$100,000 X 2.70% X 7) / 84(84+1) = S\$1,588.26

 Honda - Power up my WET dreams Ivan Liew
Posts: 163

 26-Dec-2007 12:25:16 AM
quote:

Originally posted by Thomas:
quote:

Originally posted by Ivan Liew:
the breakeven calculator is gone ...

any idea how much is the penalty for early redemption of car loan?

I have attached the formula provided on Hong Leong Finance website. If you are not too mathematically inclined, you can just call your finance company to ask for the amount if you pay early. You can be sure that the amount will be less than (total loan amount - Total amt paid so far).

Q3: How do you explain the interest rebate calculation using the Rule of 78 method?
Aa3: Interest Rebate Calculation:
The interest rebate calculation is based on the below formula:

- Interest Rebate (R) = n(n+1) X TC / t(t+1) where R = Term Charges Rebate, n = unexpired term ( in months ), t = total repayment period, TC = Term Charges

For example:
- Amount Finance = S\$100,000, Interest rate = 2.7% p.a. flat rate, Loan (number of yrs) = 7 yrs (84 mths), Hirer full settles after 5 yrs, unexpired hiring period is 2 yrs or 24 mths

Thus, interest rebate is computed as follows:- Interest Rebate (R) = 24(24+1) X (S\$100,000 X 2.70% X 7) / 84(84+1) = S\$1,588.26

yup, knew about the interest rebate part, but normally how much's the early redemption penalty?  Thomas
Posts: 271

 Edited on 26-Dec-2007 5:22:10 PM
quote:

Originally posted by Ivan Liew:
quote:

Originally posted by Thomas:
quote:

Originally posted by Ivan Liew:
the breakeven calculator is gone ...

any idea how much is the penalty for early redemption of car loan?

I have attached the formula provided on Hong Leong Finance website. If you are not too mathematically inclined, you can just call your finance company to ask for the amount if you pay early. You can be sure that the amount will be less than (total loan amount - Total amt paid so far).

Q3: How do you explain the interest rebate calculation using the Rule of 78 method?
Aa3: Interest Rebate Calculation:
The interest rebate calculation is based on the below formula:

- Interest Rebate (R) = n(n+1) X TC / t(t+1) where R = Term Charges Rebate, n = unexpired term ( in months ), t = total repayment period, TC = Term Charges

For example:
- Amount Finance = S\$100,000, Interest rate = 2.7% p.a. flat rate, Loan (number of yrs) = 7 yrs (84 mths), Hirer full settles after 5 yrs, unexpired hiring period is 2 yrs or 24 mths

Thus, interest rebate is computed as follows:- Interest Rebate (R) = 24(24+1) X (S\$100,000 X 2.70% X 7) / 84(84+1) = S\$1,588.26

yup, knew about the interest rebate part, but normally how much's the early redemption penalty?

I guess for our cars, we fall under the Hire purchase act. We need to first work out the total amount payable to bank.

Let’s assume some numbers here: Car loan is \$50,000, Loan period is 7 years, interest p.a is 2.2% and you are repaying after 5 years

Original Car loan                                                           \$50,000

Principal + interest                                                        \$57,700

Less: Installments paid                                                  \$41214.29

Less: rebate of unearned interest (rule 78)                       \$647.06

Total amount payable to bank to fully redeem car

loan:  \$15838.95

Well, whether you need to folk out additional cash depends on whether your car has breakeven or not. You do not have to top-up any cash for the transaction if the paper value of car (COE rebate + OMV rebate) and interest redemption is able to cover the outstanding amount. If you redeem the loan before the so-called break-even, this means you'll have to pay cash upfront to cover the outstanding amount.

Calculation of redemption balance upon

 Parf Rebate \$10,727.00 Add: COE rebate \$8,991.00 Add: Rule of 78 Rebate \$647.06 Less: Outstanding loan \$15,838.66 If >\$0, no additional payment require \$4,526.40

Positive amount means no additional cash require

Negative amount means need to folk out additional cash.

To get PARF + COE rebate, go to:

Redeption penalty is based on your contract with your finance company. So do check your contract ;). I have formulated a table for this particular exercise to easy calculation of all numbers (Let’s hope I never make any mistakes on the formula :P). Give me your email if you require the spreadsheet

 Honda - Power up my WET dreams

Forum > Car related > Breakeven calculator