Hi, i intend to sell my car and get a used car but I still have loan with the bank abt $40K. if i trade-in and get a used car that is cheaper do i have to pay anything else? coz my main point is to either lower my monthly repayment or no need to pay anything at all.

Using Motorist.sg 26/10/2017 14 Views

1 Answer

Admin

It depends on the trade-in value of your current car. if the trade-in value is higher than $40K (Eg. $50k) and the used car is cheaper (Eg. $30k), then the loan will be offset, meaning you'll get back $10k from selling your car, and this amount can be used as a downpayment for the used car that you're buying.

0 Upvote Downvote Reply 10 months ago
Ida

Hi Jeremy, thanks for the explanation. But why do I have to pay downpayment for the used car if the trade-in value is $50K and the used car price is $30K. Wouldnt it means that (1) I can settle off the loan which is $40K (2) i do not need to pay anything for the used car (3) i have excess of $10K. Is this correct?

Like 10 months ago
Jeremy

Existing car's value (to sell): 50K Loan on existing car: 40K Used car's value (to buy): 30K Selling your car: You will get 50K Deduct existing loan: 50K-40K = 10K on hand. Buying a 30K used car: Downpayment 9K (Downpayments are usually 30% of car price, subject to individual T&C) Excess: 10K-9K = 1K you'll get back To prepare: Monthly instalments

Like 10 months ago
motorist.sg

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