
Originally Posted by
Egan101
The discount is factored within the payment scheme thus you don't need to shell out money. Also, the dealer will shoulder the LTO registration, first year of insurance, and chattel mortgage. What you will be paying for is just the monthly amortisation.
To get the difference between the usual car loan and this low/zero down scheme, just do the calculations below. It's a choice between lower total cost over the term of the loan (regular car loan) or the ease of acquisition (Low/Zero Down).
Regular car loan
Initial cost = down payment + LTO registration + 1st year of insurance + chattel mortgage
Recurring cost = monthly amortisation (multiply by term of loan) + annual cost of insurance
Low/Zero Down Car Loan
Initial Cost = Low DP (or no money out for Zero Down)
Recurring cost = monthly amortisation (multiply by term of loan) + annual cost of insurance