Saturday, May 28, 2011

Car Loan - Shorter or Longer Tenure/With Down Payment or Full Loan?

The other day hubby and me were talking about car loan tenure - whether shorter tenure or longer tenure will be more beneficial. For a wage earner like me, I prefer to make larger down payment with shorter tenure. Which means that I will save a certain amount of money first before purchase a car and will try to settle the loan repayment within the shortest tenure possible. Of course, I must be comfortable with the monthly repayment. My main aim is to own the car as soon as possible and at the same time to reduce the loan interest. The shorter the loan tenure, the less interest I have to pay.

Hubby totally have a different point of view. He prefer to take full loan and to have the longest tenure available. His reasons as below:
1) The car value will depreciate. So, he said there's no point to rush to settle for something which the value will depreciate. The car is just another daily necessity, not an appreciating asset. So, he tries to minimize monthly repayment value by taking the longest tenure available. Longer tenure means smaller monthly repayment and small monthly repayment means he'll have additional cash for other matter (his business).

2) Full loan because he no need to fork out his money for down payment. He can use the money which supposed to be used as down payment as his business cash flow. This will increase his business profit (use money to make more money).

What is your view?

Sunday, May 22, 2011

Top 3 Money Making Industry

A friend shared with me that her boss told her 3 of the top money making industry as below (with some of mypersonal comment):

1) Oil & Gas Industry
It's true. There are only limited oil and gas reserved on this Earth. The lucky countries with those reserved oil and gas will take control of the price. Furthermore, with more people on the Earth with more cars and other type of vehicles, there will be an increase of oil and gas consumption. It is a need for one to commute from one place to another. Even the price increase, people still need it. There is no doubt, oil and gas is one of the most money making industries.

2) Tobacco Industry
It's true as well. Eventhough we no longer see amazing and expensive high quality tobacco or cigarette advertisement on the tv (was banned from Malaysia tv few years back), the tobacco company still see good sales volume. Even with the health warning printed on the cigarette boxes, the sales is still impressive. More, even the price has doubled or trippled from the past 10 years, we still see smokers buying their favourite brands. Another story which proved tobacco industry is one of the top money making industry is that a friend who works in an international tobacco firm received 6 months bonus!

3) Telecommunication Industry
Again, this is true. Because mobile telco are making money from the 'air'. Fixed line telco are having higher investment, but usually will get back their investment from the monthly rental fee which subscriber has to pay as long as they still need the service. In recent year, even a kindergarten kid is also holding a mobile phone. Imagine how many people on this Earth. Even if one person only spend RM1 on their mobile phone, the final figure would be really huge. How about the Internet technology? Most people, especially the younger generation would somehow need to connect to the Internet. Broadband market has been growing rapidly and this will continue.

Personally, I believe there are others high money making industry as well especially those illegal type of industry. But, that's out of my sharing here. Other legal high money making industry include investment and banking industry, health and pharmaceuticals industry, entertainment industry, and Internet marketing industry.

Do you have any comments? Any other industry which you think belong to the top money making industry?