Cash back

[LastDance]

How does cash back scheme work?

 

eg. advertised as 3.5% - 4.5% interest and cash back up to $15000

If car price is $50000, means they deduct $15000 from $50000?

 

What's the minimum loan period to qualify for such schemes?

Will they allow downpayment? If yes what's the max?

[Guest max_nhk]

Depends in the load provider. Some comes from the total amount of interested (e.g. the longer u drag the loan, the more the cash back), while others based on the approved loan amt.

 

Just stay away from this, take the lowest interest loan plan.

 

Loan details varies, gotta ask the sales exec yourself.

[paiseh]

Cash back works this way:

 

if u wan cash back, the interest P.A is 4% or 4.5%.

 

assuming u r buying accord euro R, price is 93k, interest is 4%, 10 yr loan

 

hence, $93,000 x 0.40 = $37,200 is the interest u pay thru out the 10 yr loan

 

so cash back comes in when u get back 30% of $37,200 which is $11,160. this amount can be used to offset the amount your current car owes.

 

this is a scheme good for ppl who wans to get rid of their car + buy new car

 

lets say u still owe $12k, which means u can only buy cars that are above $90k, else cash back not enough to cover even when u take a 4.5% interest rate P.A

 

hope this helps. coz my family also stuck in this situation

[paiseh]

if u dun need cash back, interest rate P.A is just a mere 2.88%, cheaper den bikes

 

but u can do your calculations. coz if u r toking abt monthly installments, it will be probably an extra $80 - $150 per month

[LastDance]

so if i dun have a current car, how will this cash back work? deduct from new car price?

[paiseh]

u just get back eg. $12k cash lor.

[paiseh]

i ask my fren come in explain to u better. coz he sells car one

[bluroblur]

Just to add from wat paiseh said.... different company or dealer might have different package of cash back...u might wan to ask for more detail from ur agent or dealer..