Rebate if shorter installment term

[yakanyaw]

I purchased a brand new toyota SUV last august 2007. my agreement with toyota is to pay the balance in 2 years. but if i can complete the payment in one year period only, will there be a corresponding discount (rebate)?

can anyone pls help me understand (roughtly) how much more should i pay, if i have already paid 9 months installments. my monthly ammortization is 42T pesos for 2 years.

Thank you.

[fireblade]

Not that significant

The interest earnings for 2 years have already been booked by the bank. Have pre-terminated my loans before but the discount was negligible. Was able to get more stretch after talking to a highly placed officer for more discount

[v6dreamer]

I dont know about rebate on the loan but what I understand your rebate on the SUV is the amount discounted from the dealer from the sticker price. For example:
Brand new SUV- 1000,000 sticker price and you negotiated for a rebate(discount) for 100,000 from the original price that is your rebate. The SUV now is 900,000 not 1,000,000.

About your loan, assuming you put down 400,000 as a down payment on yhe SUV and the remaining balance of 500,000 is payable in 2 yrs. Now the question is how much is the annual percentage rate(APR) in your loan for that two years? APR is the actual annual rate of interest reflecting the yearly total cost of the interest on loan. If you pay off earlier than the stated 2 yrs. you have save a more than a year of interest. Look at also from your bank(financer), they must disclosed this to you in this manner to show what you are actually paying.

[smooth]

with some banks (and depending on your relationship with the bank), you might actually incur a penalty if you preterminate the loan.