Anonymous

29 Mar 2020

∙

What's the best payment plan for a car in this current market?

I just bought a car, around $130k. Dealership imposes a penalty > interest rates, so I opted for the minimum loan of 1 year, interest rate about 2.38%.

With the current downward trend in stock markets, I changed my mind and considering max loan. If I use my money to invest in index funds, I will likely get a far better return after 3-5 years. The returns could pay for the car itself.

Other banks offer lower interest rates too. What are experts advice on my best course of action? Thanks!

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Pang Zhe Liang

29 Mar 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

There are a few things that we need to know in order to give you specific advice.

This is because not all banks will entertain car re-financing. As such, we need to know the age of the car as well as the outstanding loan for the car. Moreover, determine the early settlement fee to see if it is worth the switch.

Without all these details, it is impossible to do any calculation and have a conclusion to this end.

I share quality content on estate planning and financial planning here.

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