Malaysiaminilover

Category: Car Loan

Advice, tips, and guide to all kind of car loan including new car loan, used car loan, or refinancing your car loan.

  • Refinance car loan for a home

    Lately, we received an email from Nong Min who is currently paying 10,000 baht (roughly US$318) for her monthly car payment. Nong Min would like to buy a house for herself but she is facing some difficulty to obtain a new home loan because the monthly car payment has taken up nearly 1/3 of her monthly income. At the same time, she doesn’t have much savings to pay the down payment for the house. She is seeking for some advices after reading one of our previous articles “Refinancing car loans into home loan”. Now here is some of the calculation we do for her.

    In Thailand, if you are having one loan that has taken up 1/3 or more than 1/3 of your monthly income, you will have some difficulty in getting another loan. However, you can play a little trick in order to get both things you want at the same time as long as the income is stable and going to be stable for long.

    • Monthly salary: 38,000 baht ($1200)
    • Monthly car payment: 10,000 baht ($318)
    • Remaining car loan: 240,000 baht (24 months)
    • Current car value: 650,000 baht
    • Savings: 50,000 baht
    • House value: 1.6 million baht
    • Down payment needed: 16,000 baht

    Base on the current car market value, Nong Min can refinance her car and get 650,000 – 240,000 = 410,000 baht cash. She can pay 400,000 baht for the house down payment and save the 10,000 baht into her savings for emergency purposes. With 400,000 baht down payment, the bank is now considering giving her the credit. As for the car, it is easier to refinance at the maximum of 9 years. Now the refinance goes like this.

    • New monthly car payment: 650,000 @ 3% @ 9 years = 7,643 baht
    • House loan monthly payment: 1.2 million baht @ 5% @ 30 years = 6,450 baht
    • Remaining savings: 60,000

    Base on the new calculation above, Nong Min now has a total monthly payment at 14,093 baht, which is just slightly over 1/3 of her monthly income at the acceptable range. She can now own both house and car at the same time. In this case, the car loan should go as many years as you can because the interest rate is only 3% while the housing loan is 5%. Other than that, what you should be well prepared is a minimum of six months stable salary income statement, six months permanent address, as well as good credit scores.

  • Refinance car loan – When you need it?

    You are almost finishing paying off your car loan and you received a call from your creditors asking you to consider a refinance car loan. Often they will give you a deal sounds like a good deal. Extra cash, low interest rates, and easy payment are what attract the most. Now ask yourself, do you really need these? If the interest rate has no big different and you are not urgently need cash, don’t get your ass itchy and start to pay your car loan again. (more…)

  • Car Loan – An advice to listen before taking one

    It’s a beautiful day and you are on your journey to a resort to enjoy your holiday. While you are driving your car, suddenly “Boom!!!” One of your car tires blowouts and luckily you did not drive fast and able to get the car towed to nearest workshop. Now problem has come if you are on tight budget every month paying your car loan, credit cards, house loan or house rental.

    Most of the people did not really allocate some money for car maintenance, or in other words, they did not even follow the basic car maintenance schedule to take care of their car. Otherwise, blown tire will not happen. Here comes the question, aren’t every car come with owner’s manual that tells the owner when to give the car a basic check and replace what is needed to be replaced?

    Mainly, there is only a reason when people do not maintain their car, money. InAmerica, if the car loan is higher than roughly 13% of your monthly income, it is consider high. If you are able to loan a car with monthly car payment of $400 dollars, you should consider getting a car within $300 to $350 monthly car payment. Save up the $50 for car maintenance. In US, a standard 16” tire could cost from $80 to $110. When you get a blown tire because of the tire thread has wear out, you MUST change all the other tires together. That means you will have to at least prepare $400 for the tire and another $100 for labor, car alignment adjustment as well as balancing. Keep in mind that $500 is just for tire maintenance, the calculation haven’t include basic maintenance like engine oil change, transmission oil, air filter, brake pads, brake fluid, and among others.

    In a nutshell, consider properly before signing up any car loan, try not to make it higher than 11% of you or your total household income. Check properly the warranty dealer give to you. There are many things always did not included in the warranty or extended warranty. Car tire blowouts are always the top cause of any car accidents, therefore, keep your car in best condition is a must. If you want to drive a luxury car, make sure you drive it in a rich way that money to maintain it is never be a concern.

  • Refinancing car loans into home loan part 2

    If one has thought about refinancing car loans into home loan, it has proven that he or she has pretty enough smart juice in the brains to look for loophole in our life. This is part 2 of 2. Click here to see part 1 and a successful case study 1. (more…)

  • Refinancing car loans into home loan

    If one has thought about refinancing car loans into home loan, it has proven that he or she has pretty enough smart juice in the brains to look for loophole in our life. Mortgage loan or home loan is always 20 or 30 years or even more, but all kind of car loans are usually less than 10 years even the $1.5 million Bugatti Veyron. Have you thought of why? This article has two part, you can also read part two here. (more…)