second hand car market all time low, as new car price low
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heard now only got 10k second hand car transactions, compared to last year (all time low by then) 30k. As this year has few months left, it is predicted to break the all time low record.
the second hand dealers talked something about high COE of old car gives better sense of security. i don't understand what was he saying.
can anyone help me?
i have this feeling that second hand owners don't want to suffer much loss, so they just slightly lower the car price to remain competitive with new car. However, i feel it is not worthy. A price of 3-4k difference, getting 2-3 year old car is not worthy. true? some calculation is of course welcome.
thank you -
i have this misconception of HIGH/LOW COE too..
here's what i perceive it is..correct me if im wrong
when one buys a car...some money goes to the car maker/agent and some goes to the govt..the portion that goes to the govt are in terms of COE and ARF
Hence when i wanna trade in a car, i'll be able to get a 'rebate' from the remaining value of my current ARF and COE..however this rebate is not in the form of cash and thus can only be used to cover the cost of ARF and COE of the new car..
so to say..COE of a new car now for eg..$14k and ARF $12k..total $26k...if i wanna change car 4-5 yrs down the road...say COE in the future will be $25k..
The rebate i'll be able to get will be calculated and definitely be lower than the original $26k...thus this rebate can actually barely cover the cost of a new car in future if u wanna upgrade..
vice versa...a car with a high COE and ARF/PARF value...a 4 yr old car now will have a value of roughly $35k, a good gauge.. Thus when this rebate is used to buy a new car now...it will practically cover the cost to be paid to the govt..this i suppose is the ''security'' those 2nd hand car dealers are referring to..
however, i have a qns..if say i have a rebate of $35k..where will the remaining $10k go to since current COE and ARF value is, for eg ard $25k...will it be forfeited??
pls correct me if im wrong...coz i base the above info from my own research...didnt really consult anyone on this -
I think old car's depreciation curve is more linear. Once you calculate the annual depreciation, the actual differ between first few yrs is only slightly more than the last few yrs. When you sell, that is when you benifit from the higher COE.
For new cars, the depreciation for 1st few years is much higher. Even if it cost only 3-4k more than a 2nd hand car, when you try to sell it after 2yrs, you might end up getting less than the same 2nd hand car that you use to compare.
hence, if you are the type who likes to change cars every 2 yrs, then buying 2nd hand car does limit you losses thru depreciation.
but if you are the old faithful type, then a new car would be a good option. -
When I brought up yr point to a friend, he ask me few questions. If the second hand is only cheaper than the new car by few K, think no one will buy the second hand car, then finally the second hand car will be scrap. by scraping the car, the owner will be loosing quite an amount too, maybe loosing the same amount as a new car buyer but dont enjoy driving a new car. Is this possible??Originally posted by fondue:I think old car's depreciation curve is more linear. Once you calculate the annual depreciation, the actual differ between first few yrs is only slightly more than the last few yrs. When you sell, that is when you benifit from the higher COE.
For new cars, the depreciation for 1st few years is much higher. Even if it cost only 3-4k more than a 2nd hand car, when you try to sell it after 2yrs, you might end up getting less than the same 2nd hand car that you use to compare.
hence, if you are the type who likes to change cars every 2 yrs, then buying 2nd hand car does limit you losses thru depreciation.
but if you are the old faithful type, then a new car would be a good option.
Secondly, if I am taking a loan, higher paper (higher COE) will cause a higher interest payable cos I need to load more. Am I right or I have miss out sometime??
I have a couple of friends were being offered slightly over they paper+body for their 1.5-2 yrs old Japanese car. But on newspaper, all selling so near to new car price!!!
For those who sold to the dealer really let the dealer chop chop chop into eight pieces!!! -
My newbie thinking, correct me if I am wrong.
I think this is true. Second hand car seller will benefit if the new car price is still the same high as few years ago. For example, 4 years ago, a 2-3 years old Nissan Sunny was 20k lower than brand new Nissan Sunny. People might still choose second hand one.Originally posted by coolblue6699:When I brought up yr point to a friend, he ask me few questions. If the second hand is only cheaper than the new car by few K, think no one will buy the second hand car, then finally the second hand car will be scrap. by scraping the car, the owner will be loosing quite an amount too, maybe loosing the same amount as a new car buyer but dont enjoy driving a new car. Is this possible??
Now, brand new and second hand differs by 3-4k, no one will bother about it. End up, people buy new car, second hand car owner scrap his car at paper value. If the second hand car owner actually bought the car as second hand, he might benefit, else back to square coz he paid much higher few years back.
The interest part is really interesting. Yaloh, anyone calculates that? Maybe interest rate is higher.Originally posted by coolblue6699:Secondly, if I am taking a loan, higher paper (higher COE) will cause a higher interest payable cos I need to load more. Am I right or I have miss out sometime??
I have a couple of friends were being offered slightly over they paper+body for their 1.5-2 yrs old Japanese car. But on newspaper, all selling so near to new car price!!!
For those who sold to the dealer really let the dealer chop chop chop into eight pieces!!! -
This is my understanding ... let me break it down. Same brand and model.Originally posted by findingnewidea:heard now only got 10k second hand car transactions, compared to last year (all time low by then) 30k. As this year has few months left, it is predicted to break the all time low record.
the second hand dealers talked something about high COE of old car gives better sense of security. i don't understand what was he saying.
can anyone help me?
i have this feeling that second hand owners don't want to suffer much loss, so they just slightly lower the car price to remain competitive with new car. However, i feel it is not worthy. A price of 3-4k difference, getting 2-3 year old car is not worthy. true? some calculation is of course welcome.
thank you
New Car Purchase Price : S$60K
Actual Paper Value (this is very important) : PARF + current COE + Body Value = S$13000 + S$15000 + S$5000 = S$33K
Your New Car Purchase + Interest will cost you = S$75K (est)
Your Negative Equity = S$75K - S$33K = S$42K
In other words ... your new car is only valued at 33K on its first day you drive out of the showroom. You owe bank S$75K. If anything happens (accident / stolen) ... you will have to pay the bank that 42K you still owe them.
To breakeven with a new car ... you need at least 6 yrs of instalment payments. Meaning no new car for you for 6 years, you have to stick to this new car you bought for 6 long years.
2nd Hand Car Purchase Price (2003 model) : S$50K
The first owner bought the car likely at 70K plus, with added interest will cost him about S$80K for the car.
Actual Paper Value (this is very important) : PARF + current COE + Body Value = S$13000 + S$31000 + S$2000 = S$46K
Your 2nd Car Purchase + Interest will cost you = S$65K (est)
Your Negative Equity = S$65K - S$46K = S$19K
The first owner lost about 80K - S$46K = 34K in 2 yrs of ownership ... the car is valued at 46K on your day of purchase. You owe bank S$65K. If anything happens (accident / stolen) ... you will have to pay the bank that 19K you still owe them.
To breakeven with a new car ... you need at least 3 yrs of instalment payments.
Thus 2nd hand car is a safer buy cause you owe bank less monies.
1) You can change to another car in 3 yrs vs 6 yrs for a new car
2) You owe a much lesser amount with the bank. Should anything happen, 19K is easier paid off than 42K
3) The brunt of the loss is paid by the 1st owner.
Thats the "safety" feature most 2nd hand car dealers are talkin about. -
wow..very comprehensive..good job!!
however, i still have a question...so say my paper value now is $37 (2002 Sunny)..if i were to change to a new car..the $37k can only be used to cover the ''paper value'' of the car i want to buy issit?? Which means it's not worthwhile since papervalue of a $60K car now is ard $28-30k right??
and if im on a 7 yr loan of 40K since jan2002..how do I calculate the loan structure for a new car??
For eg:
cost of car: $62k
paper: $29k
$62k - $29k = $33k
so this is the amount of money i have to pay right? And say i'll take a loan of $25k over 7 yrs..wouldnt I be paying lesser than wad I have to pay monthly now? -
high COE dont gif u higher security. dont listen to those bullshit. the higher e COE the more ur depreciation is every year.. jus do ur sums and u will know. the lower ur COE the better. but of coz e purchase price has to be low too..Originally posted by findingnewidea:heard now only got 10k second hand car transactions, compared to last year (all time low by then) 30k. As this year has few months left, it is predicted to break the all time low record.
the second hand dealers talked something about high COE of old car gives better sense of security. i don't understand what was he saying.
can anyone help me?
i have this feeling that second hand owners don't want to suffer much loss, so they just slightly lower the car price to remain competitive with new car. However, i feel it is not worthy. A price of 3-4k difference, getting 2-3 year old car is not worthy. true? some calculation is of course welcome.
thank you -
Bro it depends ... depreciation can sometimes look attractive but really its not. Its tied to how long you wanna own the car.Originally posted by jonathan_n80:high COE dont gif u higher security. dont listen to those bullshit. the higher e COE the more ur depreciation is every year.. jus do ur sums and u will know. the lower ur COE the better. but of coz e purchase price has to be low too..
For example ... if you buy a new car S$60K and lock in a 10 yr loan on it. Yes your depreciation is lower @ 5K per year .... but then again , to attain that, you gotta drive it and maintain it for 10 yrs.
If you decide to change within 4 yrs .... you are doomed. Your depreciation for your 4 yrs of ownership goes through the roof
In my line .... I meet many potential buyers who wanna change cars after 3 yrs of ownership, only to realise they cant because they have to top up finance about 20K.
ps : I am not a 2nd hand car dealer. -
Ok your car is 37K in paper value.Originally posted by sunnyMAN:wow..very comprehensive..good job!!
however, i still have a question...so say my paper value now is $37 (2002 Sunny)..if i were to change to a new car..the $37k can only be used to cover the ''paper value'' of the car i want to buy issit?? Which means it's not worthwhile since papervalue of a $60K car now is ard $28-30k right??
and if im on a 7 yr loan of 40K since jan2002..how do I calculate the loan structure for a new car??
For eg:
cost of car: $62k
paper: $29k
$62k - $29k = $33k
so this is the amount of money i have to pay right? And say i'll take a loan of $25k over 7 yrs..wouldnt I be paying lesser than wad I have to pay monthly now?
New car purchase scenario :-
1) I ask you .... I take in your car @ 37K.
2) How much you still owe finance ?
If nothing ... then 37K is yours to keep or you put in a 10K downpayment and keep 27K. If you owe finance more than 37K .... Rule 78 and Penalty for Early Redemption ..... then you must top up the diff. Sometimes this amount can be as high as 20-30K.
3) 40K since 2002. Check with your finance how much you still owe them. Then calculate the diff with your present Sunny. Like I say ... if your sunny is fully paid, no worries liao. Use the full paper, if not .... better to check.
For eg: (salah liao)
cost of car: $62k + interest = S$70K (example)
paper: $29k
$70k - $29k = $41k
In my line ... I see hordes of people comin in to change car after 2 yrs of ownership .... only to discover what kinda shit they got themselves into when they purchased their new car 2 yrs ago.
Most paiseh ... walkout of showroom knowing they cant buy a car for at least 4 more years. That 31K COE they bought their car with 2 yrs back have "locked them in". -
true, but 2nd hand car dealers will adjust the selling price of a car with low COE so that the depreciation is on par or just slightly lower than a similar car with higher COE, but if you take away the COE component, you'll find that you are actually paying more for the car with COE.Originally posted by jonathan_n80:high COE dont gif u higher security. dont listen to those bullshit. the higher e COE the more ur depreciation is every year.. jus do ur sums and u will know. the lower ur COE the better. but of coz e purchase price has to be low too..
In this situation, you save a bit on dep. if you drive over the remaining life-span. If you sell it earlier, you'll find that t fetchs a lower price because of the low COE.
So, it all boils down to how good you are at bargining, and it helps to buy direct from owner cos chances are, used car dealers will offer them the same low price. -
Well, I am sure the 2nd hand car sells for less than new car, so your absolute loan amont should be less. The interest may be slightly higher, buy the loan period will be shorter.Originally posted by coolblue6699:Secondly, if I am taking a loan, higher paper (higher COE) will cause a higher interest payable cos I need to load more. Am I right or I have miss out sometime??
You just need to do your sums and see what works for you. -
yap if the owner wan to sell a low COE car it fetchs lower value but thats basically because the owner paid a low price for e car too.. IMO i think e price for 2nd hand car should be priced jus slightly above paper value. else it wont be attractive .. esp e COE car.Originally posted by fondue:true, but 2nd hand car dealers will adjust the selling price of a car with low COE so that the depreciation is on par or just slightly lower than a similar car with higher COE, but if you take away the COE component, you'll find that you are actually paying more for the car with COE.
In this situation, you save a bit on dep. if you drive over the remaining life-span. If you sell it earlier, you'll find that t fetchs a lower price because of the low COE.
So, it all boils down to how good you are at bargining, and it helps to buy direct from owner cos chances are, used car dealers will offer them the same low price. -
This sounds good, but nowadays 2nd car is only selling at 2-3k lower than new car price. It is not 10k as mentioned in the calculation.
Originally posted by sghotimports:
This is my understanding ... let me break it down. Same brand and model.
[b]New Car Purchase Price : S$60K
Actual Paper Value (this is very important) : PARF + current COE + Body Value = S$13000 + S$15000 + S$5000 = S$33K
Your New Car Purchase + Interest will cost you = S$75K (est)
Your Negative Equity = S$75K - S$33K = S$42K
In other words ... your new car is only valued at 33K on its first day you drive out of the showroom. You owe bank S$75K. If anything happens (accident / stolen) ... you will have to pay the bank that 42K you still owe them.
To breakeven with a new car ... you need at least 6 yrs of instalment payments. Meaning no new car for you for 6 years, you have to stick to this new car you bought for 6 long years.
2nd Hand Car Purchase Price (2003 model) : S$50K
The first owner bought the car likely at 70K plus, with added interest will cost him about S$80K for the car.
Actual Paper Value (this is very important) : PARF + current COE + Body Value = S$13000 + S$31000 + S$2000 = S$46K
Your 2nd Car Purchase + Interest will cost you = S$65K (est)
Your Negative Equity = S$65K - S$46K = S$19K
The first owner lost about 80K - S$46K = 34K in 2 yrs of ownership ... the car is valued at 46K on your day of purchase. You owe bank S$65K. If anything happens (accident / stolen) ... you will have to pay the bank that 19K you still owe them.
To breakeven with a new car ... you need at least 3 yrs of instalment payments.
Thus 2nd hand car is a safer buy cause you owe bank less monies.
1) You can change to another car in 3 yrs vs 6 yrs for a new car
2) You owe a much lesser amount with the bank. Should anything happen, 19K is easier paid off than 42K
3) The brunt of the loss is paid by the 1st owner.
Thats the "safety" feature most 2nd hand car dealers are talkin about.
[/b] -
there is always room for bargaining. Its buyer's market now, so if you know the export value, most dealers would consider selling if the offer is higher than export value.Originally posted by findingnewidea:This sounds good, but nowadays 2nd car is only selling at 2-3k lower than new car price. It is not 10k as mentioned in the calculation. -
Dude ... what I am giving you is only as an exampleOriginally posted by findingnewidea:This sounds good, but nowadays 2nd car is only selling at 2-3k lower than new car price. It is not 10k as mentioned in the calculation.
Now ... dont look at the 10K diff or lesser , you'll make a huge rookie mistake there.
Look at the Bold & Italic Values
New Car Purchase Price : S$60K
Actual Paper Value (this is very important) : PARF + current COE + Body Value = S$13000 + S$15000 + S$5000 = S$33K
2nd Hand Car Purchase Price (2003 model) : S$50K
Actual Paper Value (this is very important) : PARF + current COE + Body Value = S$13000 + S$31000 + S$2000 = S$46K
See ... even the diff is only 2k or 3k, the 2nd hand car (46K) has a higher Scrap Value than the New Car (33K) -
Have a question, during the weekend my friend and I went to see a used S40T5, is a 2/05 car (10 months) asking 109K OMV 36k COE 23K. no spoiler, no solarflim, got xenon light, car phone.
New car list price at 132K and after all discount blar blar blar is 125K with OMV 35K. It also come with 6 mths road tax, free solar flim, low spoiler and potential 2-3K cash discount from the manager. No xenon and car phone.
I feel that 109K is way too ex, any suggestion on what is the reasonable price for the used car?? 90K?? 95K?? 99K?? My friend looking at this car. No car to trade in.
thanks for any remark. -
sghotimports bro, thanks for sharing
i have a really newbie question here. If I buy a brand new car and use it for 10years. my understanding is COE value will become 0. How about PARF value? Body value?
If COE becomes 0, then it will mean i better buy a brand new car and drive it for 10 years, rather than buying a second hand car (2-3year) and use for 7-8 years and still end up with $0 COE. Am I right?Originally posted by sghotimports:
Dude ... what I am giving you is only as an example
Now ... dont look at the 10K diff or lesser , you'll make a huge rookie mistake there.
Look at the Bold & Italic Values
New Car Purchase Price : S$60K
[b]Actual Paper Value (this is very important) : PARF + current COE + Body Value = S$13000 + S$15000 + S$5000 = S$33K
2nd Hand Car Purchase Price (2003 model) : S$50K
Actual Paper Value (this is very important) : PARF + current COE + Body Value = S$13000 + S$31000 + S$2000 = S$46K
See ... even the diff is only 2k or 3k, the 2nd hand car (46K) has a higher Scrap Value than the New Car (33K)[/b] -
Oh simple ....Originally posted by coolblue6699:Have a question, during the weekend my friend and I went to see a used S40T5, is a 2/05 car (10 months) asking 109K OMV 36k COE 23K. no spoiler, no solarflim, got xenon light, car phone.
New car list price at 132K and after all discount blar blar blar is 125K with OMV 35K. It also come with 6 mths road tax, free solar flim, low spoiler and potential 2-3K cash discount from the manager. No xenon and car phone.
I feel that 109K is way too ex, any suggestion on what is the reasonable price for the used car?? 90K?? 95K?? 99K?? My friend looking at this car. No car to trade in.
thanks for any remark.
New Volvo = S$130K with discount (assumed)Real Cost of the New Volvo = S$150K with interest (assuming 10 years loan)
Volvo Car Value = PARF REBATE + COE + BODY VALUE = 30K (82.5% of OMV) + 15K + 10K (all est) = S$55K.
You friends shortfall on the 1st day he collects his keys = Loan Amount Owing - Actual Car Value = S$150K - S$55K = S$95K
2nd Hand Volvo = S$109K
To get the true value of this 2nd hand Volvo .... go and get how much is the COE the 1st owner bought it for and its OMV.
Then use the same calculations as above and you'll know who has the higher markups
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Lol!
Buy a car?
Waste money only!! -
No worries .... email [email protected] if you need to talk to me in private.Originally posted by findingnewidea:sghotimports bro, thanks for sharing
i have a really newbie question here. If I buy a brand new car and use it for 10years. my understanding is COE value will become 0. How about PARF value? Body value?
If COE becomes 0, then it will mean i better buy a brand new car and drive it for 10 years, rather than buying a second hand car (2-3year) and use for 7-8 years and still end up with $0 COE. Am I right?
Ok ... you are correct after 10 years , your COE is 0. Your PARF depending on the car still has a value of around S$7K - S$30K, but like I said depending on the car. Jap and Korean car most likely will be around S$7K - S$17K. Conti cars have much higher PARF values.
Body value ... you are at the mercy of the exporters. I have seen how my exporter works. Someone wants to buy a new car from me, but need to get rid of his current car .... exporter chops. He decides how much your body value is ... either you accept or you dont. If you dont, you cant get that new car from me. So lan lan ... have to accept lor.
Jap Body Value after 10 years is ZERO .... yes thats right ZERO
Conti Body Value after 10 years (depending on make) have about 2K-5K on it.
10 years driving the same car ?? Dude you dont own a car do you ??
Believe me .... you will never drive that car for 10 years. Only 1% of all car owners actually drive their car for 10 years. Most change after 5 years , some change after 3 years. Its called the ITCH
Everyone around you is changing to a new car ... you start itching. I myself have never driven any of my cars for more than 4 years. I know how to minimize my losses.
The diff is .... if you buy 2nd hand, you can likely change car within 3 yrs of ownership. New cars cannot .... must drive at least 5-7 years. In 5 - 7 years, many new models come out. ITCHY ITCHY ITCHY
Every single day I get someone walking into my showroom .... look see look see, and they drive in with a 3 yr old car. As soon as they tell me they took a 10 year loan on that car .... I'd advise them appropriately. They cant change cars until the 7th year of driving
Most walk away .... too paiseh to turn back -
Most definitely, but again depends on how you look at it. If its a need, then its not a waste of money cause it fill a need. If its a want, then probably lose money.Originally posted by vindicated:Lol!
Buy a car?
Waste money only!!
Just like I find buying the latest handphones, branded jeans and shirts a total waste of money too
Handphones : As long as can call swee liao. Thats what phones are all about.
Branded goods : If your face looks like Kumar , no amount of branded goods is gonna change the way you look to someone like Brad Pitt -
sghotimport bro, you are awesome. you are one the few guys can really answer my question here.
looks like you are a car agent, never mind, you know the best the market mechanism.
let me try to describe my scenario to you.
i am thinking to buy a car. i don't really care about stylish. i want practical and affordable + minimum loss
i need the car for work. i will be driving the car heavily - maybe one day will be more than 60km (i guess you might know I want to take fuel consumption into consideration)
the next thing is performance or stuff versus value ratio. A cheap car with lousy everything means bad ratio too.
like what you said, i might be selling off my car in 5 years time. But, the problem is I might not buy another car, as I intend to leave Singapore. I know this will be a key point to the decision. Can you help me to analyse, if i don't buy another new car after 5 years, or if i want to buy another car after 5 years, or if i want to keep the car for 10 years - total 3 situation
basically, i want to know whether a brand new car is good for me, or a second hand car is good for me. If 2nd hand car is good, must buy old scheme car or new scheme car? let's take this is the first to answer before we move to the next relevant question.
thank you thank you. -
Thanks ... just helping out. Yeah I am a new car agent. I try to help out as much as I can and know, just like how I assist my clients. For me, client rapport is very important, I dont wanna sell to a client if I got this feling that he is gonna end up in trouble from my purchase in years to come. Yeah believe it or not, I'd encourage him not to buyOriginally posted by findingnewidea:sghotimport bro, you are awesome. you are one the few guys can really answer my question here.
looks like you are a car agent, never mind, you know the best the market mechanism.
let me try to describe my scenario to you.
i am thinking to buy a car. i don't really care about stylish. i want practical and affordable + minimum loss
i need the car for work. i will be driving the car heavily - maybe one day will be more than 60km (i guess you might know I want to take fuel consumption into consideration)
the next thing is performance or stuff versus value ratio. A cheap car with lousy everything means bad ratio too.
like what you said, i might be selling off my car in 5 years time. But, the problem is I might not buy another car, as I intend to leave Singapore. I know this will be a key point to the decision. Can you help me to analyse, if i don't buy another new car after 5 years, or if i want to buy another car after 5 years, or if i want to keep the car for 10 years - total 3 situation
basically, i want to know whether a brand new car is good for me, or a second hand car is good for me. If 2nd hand car is good, must buy old scheme car or new scheme car? let's take this is the first to answer before we move to the next relevant question.
thank you thank you.
i need the car for work. i will be driving the car heavily - maybe one day will be more than 60km (i guess you might know I want to take fuel consumption into consideration)
Practical and Affordable is key. If you are looking for that, then there are some things you must consider.
Toyota has the best FC , but it is also quite expensive to start with. Kia has bad FC, but it is cheap. With these 2 scenarios .... consider this.
You buy Toyota, you pay for the brand name upfront in cash. Yes ... a Toyota Altis is almost S$12K more expensive than say a Kia Cerato. With this diff .... even if the Toyota Altis FC is much better, you are already putting S$12K ahead of your purchase. What I can say is .... you are most definitely not gonna be spending more than S$12K on petrol by driving the Kia.
So consider this point above. I get loads of customers who say .... ohhh Toyota good cause FC good , car engine can last. I ask them .... is it worth paying S$12K more , and incurring interest on that 12K ?? They tiam tiam cannot answer liao. Car engine can last ... goodness me, sometimes we forget we only own the car for only about 4 years on average. If you gonna own the car for a lifetime, I say go for the Toyota, else consider other cheaper options.
like what you said, i might be selling off my car in 5 years time. But, the problem is I might not buy another car, as I intend to leave Singapore. I know this will be a key point to the decision. Can you help me to analyse, if i don't buy another new car after 5 years, or if i want to buy another car after 5 years, or if i want to keep the car for 10 years - total 3 situation
Bro ... there is no scenario to analayse here. If you intend to use the car for 5 yrs only. Get it on a 7 yr loan scheme, if can get 5 yr loan scheme lagi better. End of loan ... scrap car and get about S$15K - S$20K in cash. Then you can decide, if you wanna buy new car ... use tha cash received from your scrap car and put it as downpayment for the new car. If not gonna buy, keep the money.
If you end up wanting to keep the car for 10 years .... no worries as you have finished instalment payments after 5 years. You can drive instalment-free for the next 5 years of the car's life. However, be prepared to start changing parts due to wear and tear. Most wear and tear items start asking to be replaced into the 6th year of the car's life or 120 000 km.
basically, i want to know whether a brand new car is good for me, or a second hand car is good for me. If 2nd hand car is good, must buy old scheme car or new scheme car?
This is tough to answer. Do you want to owe the banks so much interest ? If not, go 2nd hand. If you dont mind and got backup funds sitting in some Swiss bank, then go new. Your funds earn interest. You can offset this interest you gain from your deposits with the new car interest.
This is what I am doing now .... and believe it or not, my last new car was in 1990 The rest all 2nd hand -
Alright I've paid for 4 yrs of my installment which equates to $31 248..my loan plus interests amt to $54 600 (thereabout)Originally posted by sghotimports:Ok your car is 37K in paper value.
New car purchase scenario :-
1) I ask you .... I take in your car @ 37K.
2) How much you still owe finance ?
If nothing ... then 37K is yours to keep or you put in a 10K downpayment and keep 27K. If you owe finance more than 37K .... Rule 78 and Penalty for Early Redemption ..... then you must top up the diff. Sometimes this amount can be as high as 20-30K.
3) 40K since 2002. Check with your finance how much you still owe them. Then calculate the diff with your present Sunny. Like I say ... if your sunny is fully paid, no worries liao. Use the full paper, if not .... better to check.
For eg: (salah liao)
cost of car: $62k + interest = S$70K (example)
paper: $29k
$70k - $29k = $41k
In my line ... I see hordes of people comin in to change car after 2 yrs of ownership .... only to discover what kinda shit they got themselves into when they purchased their new car 2 yrs ago.
Most paiseh ... walkout of showroom knowing they cant buy a car for at least 4 more years. That 31K COE they bought their car with 2 yrs back have "locked them in".
I dun quite understand wad u mean if I've paid up the loan of more than the present paper value ($37k) than I'm fine..can u explain again??
SO presently for my case, if I wanna change car,,how much do I have to top up? And can the previous loan balance be brought forward to my new car's loan??
meaning..
New car price - watever I get in return from my old one - downpayment for new car + balance of previous loan(in this case abt $20k) = the amt I have to loan
bcoz from a layman's view..
a new car = $62k
my rebate = $37k
downpayment = $5k
amt i have to pay = $20k
old car's outstanding loan = $20k
new loan = $20k + $20k = $40k
which is the amt of money im current loaning..meaning I still pay the same installement but for a new car??
I believe the above is not completely true coz im still unsure abt the rebate part and whether i can carry forward my loan..pls show my some light brother
thanks man