When I placed my order TM promised to have finance packages and insurance companies on side. Of-course this hasn't happened yet. Has anyone got any contacts for finance and insurance? I have info from the Wing Hang Bank at 2%.
Any leads would be most welcome.[/QUOTE
Believe these car financing quotes are based on a “flat” interest rate; i.e., the repayment’s interest calculation is fixed upfront based on the unamortising principal amount and doesn’t go down as you pay off the principal amount o/s over time. Hence, the 2% p.a. “flat” rate translate to around 4.2% p.a. “effective” rate assuming a 3 years repayment period. The mortgage rate is usually quoted as an “effective” rate in HK for example.
In case you’re wondering, these banks / NBFIs can borrow at around 1-1.5% at today’s market rate and make a spread on funding your car purchase. Though there is a maturity mis-match risk carried by the banks / NBFIs, this could be a separate essay in itself…