Autoloan Breakeven

[aquaSynthesis]

Hi guys,

can anyone advice me how do I calculate my breakeven? I tried the one in onemotoring or something like that but i got myself blur.

printed out the value of my car from onemotoring, waiting for my full settlement statemement .

can anyone advice me?

i'm looking to get a new car.

[bryan]

I always thought that 'breakeven' means that the loan is mantained until a point where it matches the market value of the vehicle so that if you sell it, you don't owe the bank any outstanding amount when you do a full settlement?

[mictok]

Give you finance company a call and ask them if you decided to do an early settlement how much it will be,let the amount be X.
Find out from any dealer how much you can trade in your car, they will ask for number plate and year of manufacture,let the value be Y.
Take Y-X=Z
If Z is positive,that means you can get back some money when you sell the car.
If Z is negative,you have to top up the amount to the finance company.
A rough guide is if you car is a full loan of 10 years repayment,it will breakeven between 7-8 years.
If full loan of 7 years repayment,it will break even on the 4-5 years.
If you paid an upfront cash of $10k,$20K or more,the breakeven year is shorter.