Trying to sell my car!
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my Honda Fit is 2.5 yrs old, bought at S$82k (incl bodykit, leatherseats etc) in 2003, borrowed some $65k then, for loan term of 10 yrs, 2.65% interest rate (really high for that time!). Now outstanding loan still left $60k (!!!) i checked on motoringone that my PARF and COE rebate if i deregister in Dec is abt $38k.
Question:
1. if i want to sell my car, does this mean i can only get $38K?
2. if so, then i really lugi big time -- paid $17k upfront and now still have to pay up another $22k? it means i lose $39k over <3 yrs!
and isnt that very unfair? the loan was for 10 yrs, but if i sell b4 10 yrs, i have to pay the interest of 10 yrs??? 10x0.0265x65k = $17,225 is a lot over 3 yrs!
Or did i get something wrong here?
pls enlighten me! -
Hi,Originally posted by sweetie05:my Honda Fit is 2.5 yrs old, bought at S$82k (incl bodykit, leatherseats etc) in 2003, borrowed some $65k then, for loan term of 10 yrs, 2.65% interest rate (really high for that time!). Now outstanding loan still left $60k (!!!) i checked on motoringone that my PARF and COE rebate if i deregister in Dec is abt $38k.
Question:
1. if i want to sell my car, does this mean i can only get $38K?
2. if so, then i really lugi big time -- paid $17k upfront and now still have to pay up another $22k? it means i lose $39k over <3 yrs!
and isnt that very unfair? the loan was for 10 yrs, but if i sell b4 10 yrs, i have to pay the interest of 10 yrs??? 10x0.0265x65k = $17,225 is a lot over 3 yrs!
Or did i get something wrong here?
pls enlighten me!
Please be prepared because the cold hard facts are not exactly pleasant to know......
Seems like you're one of the many who are caught at the losing end of our "car casino" ( otherwise known as "car market" ). I'll try to answer your questions in point form....
(1) If you SCRAP your car by yourself by driving it to a scrapyard, you will get $38k back...in which case, yes, its a big loss. You must also remember that you cannot get the $38k back in cash....its just an electronic record in LTA's computers that they are holding $38k of your money. The ONLY thing you can do is to buy another new car with it. Its important to remember that you cannot get the scrap value back in cash, if you de-register the car yourself.
(2) If you ask a car dealer to SCRAP it for you, they will discount about 6.5-7.0% from your scrap value - unfortunately, this is the market rate now. The rest is their profit. The only advantage is that you will get cash back.
(3) If you SELL your car to buyer directly, the very rough asking price now will be as follows: http://www.sgcarmart.com/main/info-2foaBeQB-1000.html. Actual selling prices will be up to a few thousand below asking price. Used cars don't sell so fast now, so some patience is needed.
(4) If you SELL it to a car dealer, the price will be quite a few thousand lower than the asking price as shown above - because the car dealer needs to make a profit. However, I have doubts if used car dealers will be keen to take your car in now...because they're all overstocked with cars which can't move. If you go to the Automobile Megamart at Ubi, you will see 6 stories of used cars....and maybe 10 potential customers walking around.
(5) I'm afraid that you're also right in that after selling/scrapping, you still have to pay the bank for the remaining loan - at one go. I don't know about your loan agreement, but some banks do give rebates for interest if you settle the loans early - better to check with your bank.
(6) Unfortunately, brand new cars lose most of their value (highest depreciation) in the first 2-3 years of their lives. Sometimes, even 40-50% of it within 3 years. Your case is not that bad already....I know people who lose S$50k in 2 years!
(7) Well, it is not really unfair, because the buyer is expected to know the conditions before he/she enters the deal. But I know it comes as a shock and it hurts like hell. Lots of people have gotten caught in situations like yours, so you're not alone.
I'm sorry for throwing bricks at you, in giving you directly these cold hard facts. I hope its not an urgent case that you need to get rid of your car.
My advice to you is to keep the car for now if you can.....till its at least 5 years old, then examine selling/scrapping it again to see if its better (by then, the depreciation per year would have dropped significantly). If its really urgent, then try to share the car with a family member - eg. try to get your brother/sister/parent/spouse/whoever to use the car half the time, and help to pay for the instalments.
Post Script
I'm going off on a tangent here.....(nothing to do with your case).....
This case illustrates what many people here have asked questions about. As I've always stressed....just because the COE is low, doesn't mean that brand new cars are good buys. In any business decision (cars, shares, forex, etc), you not only need to know the buying price, but also the selling price.
Also, it is never advisable to take a loan with too long a tenure, or with too big an amount. -
Geeee...... why do my posts always appear to be so long? Am I really that long-winded??
Must be my age lah.....sigh....
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yo sweetie..ur ride is the vtec version? if u need help on selling do drop me a pm..got lobang.
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Good luck to you.
Selling things like properties or cars in Singapore, is always a big loss! -
hi sweetie, can i know why you want to sell off your car? tired of it or got new targer?
I feel honda fit is a nice sweet car that is cost efficient to drive. If it is because it turns dull after these years of usage, then send it for repainting or polishing to make it into shiny showroom condition.
Should cost only a few hundred dollars. THen do some touchups like adding sports rim if you havent got it, tint its glasses... -
Advise to keep car. Now here is another example of why never take 10 year loan. Loan S$65k, now still have S$60k to go, basically only return interest the first 2 years.
Actually, can consider re-finanicing at a lower loan interest rate to lessen the load per month for now. -
i'm just bought the OPC vios recently. After downpayment of $8K+, i still have to loan $32K for 4 years. Based on an interest rate of 2.5% pa, i would need to pay $3.2K interest in total. Can't imagine him paying $17K+ interest over 10 years, it just sounds scary (i.e. that makes 26.5% of the loan quantum)Originally posted by wbucket:Advise to keep car. Now here is another example of why never take 10 year loan. Loan S$65k, now still have S$60k to go, basically only return interest the first 2 years.
Actually, can consider re-finanicing at a lower loan interest rate to lessen the load per month for now. ..
I am rather flabbergasted by the singapore car market. Its like u can get a normal car for $70K this month and then in a couple of month's time, u can get the same car at $50K+. For those who paid $70K then will have to service the $20K extra loan for nothing.. even though their COE value is higher.
My advice.. never never take max loan for max tenure. U will be prone to negative equity and become broke in no time.. unless u are well-to-do of course.
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keep the car since u bought it..
dont sell unless u in nid of cash badly -
i'm not trying to digress from the topic here.. but how much do you guys think one should fork out his nett pay (after CPF deductions) for the car expenses each month in order not to be overstretched? 20%? 30%?Originally posted by WiNtEr'SkiLL:keep the car since u bought it..
dont sell unless u in nid of cash badly -
Its really quite hard to say, isn't it? There are so many variables here....Originally posted by nick28:i'm not trying to digress from the topic here.. but how much do you guys think one should fork out his nett pay (after CPF deductions) for the car expenses each month in order not to be overstretched? 20%? 30%?
(1) It depends on the person's lifestyle, eg. what other commitment he has, etc.
(2) It depends on how much the person likes cars. People are usually willing to spend more on things they like. Whereas some just see a car as a tool for moving from A to B, so they will spend the minimum.
(3) It depends on the person's income. One who earns $2000 a month will probably have to spend more (percentage-wise) to own a car, compared to one who earns $10,000 a month.
(4) And then there is the cash-flow vs. time factor. I consider this very important and always try to finish my loans as soon as possible. No job is secure nowadays, so while I know I can probably keep my job for the next 3 years, I can't tell if I will still have it after 6 years. So I try to finish my loan in 3 years.....I pay quite a lot (between 15-20% of my take-home pay) for 3 years only. But after that, I can relax for the rest of the car's lifespan.
(5) etc etc.... -
hope u dun mind me probing.. how much do u need to pay for car expenses every month and which car do u own? I think one can relax a little but not totally after repaying the loan as there are still recurrent expenses such as petrol and car park to pay..Originally posted by gentlerock:Its really quite hard to say, isn't it? There are so many variables here....
(1) It depends on the person's lifestyle, eg. what other commitment he has, etc.
(2) It depends on how much the person likes cars. People are usually willing to spend more on things they like. Whereas some just see a car as a tool for moving from A to B, so they will spend the minimum.
(3) It depends on the person's income. One who earns $2000 a month will probably have to spend more (percentage-wise) to own a car, compared to one who earns $10,000 a month.
(4) And then there is the cash-flow vs. time factor. I consider this very important and always try to finish my loans as soon as possible. No job is secure nowadays, so while I know I can probably keep my job for the next 3 years, I can't tell if I will still have it after 6 years. So I try to finish my loan in 3 years.....I pay quite a lot (between 15-20% of my take-home pay) for 3 years only. But after that, I can relax for the rest of the car's lifespan.
(5) etc etc.... -
Its alright....I like probing too, sometimes....but not with guysOriginally posted by nick28:hope u dun mind me probing.. how much do u need to pay for car expenses every month and which car do u own? I think one can relax a little but not totally after repaying the loan as there are still recurrent expenses such as petrol and car park to pay..
I drive a Forester 2000cc. For my lifestyle, total cash flow out (averaged by cost per year over 12 parts) is estimated around S$ 1600-1700 per month. More than half goes to instalments, but thats only for 3 years, after which the monthly cash outflow (strictly speaking, not costs) will drop a lot.
This includes instalments, road tax, radio licence, petrol, insurance, regular servicing and other more predictable coss.
This excludes parking, repairs or unexpected maintenance, tolls and other more unpredictable costs. -
i must say u are quite well-to-do to afford this kinda lifestyle. Or should i say your have a great passion for cars?Originally posted by gentlerock:Its alright....I like probing too, sometimes....but not with guys
I drive a Forester 2000cc. For my lifestyle, total cash flow out (averaged by cost per year over 12 parts) is estimated around S$ 1600-1700 per month. More than half goes to instalments, but thats only for 3 years, after which the monthly cash outflow (strictly speaking, not costs) will drop a lot.
This includes instalments, road tax, radio licence, petrol, insurance, regular servicing and other more predictable coss.
This excludes parking, repairs or unexpected maintenance, tolls and other more unpredictable costs.
Me can only afford an OPC vios -
Aiyoh my friend....Originally posted by nick28:i must say u are quite well-to-do to afford this kinda lifestyle. Or should i say your have a great passion for cars?
Me can only afford an OPC vios
If I were well to do, I'd be driving an X5 and would've bought it without loans too.
Oh, and I'd have a Vector as a second car too, parked in my private in-house workshop, complete with private mechanics who work only for me.
A few Rolls Royces on the side for weekend use may be nice too, with lady chaffuers uniformed in bunny suits.
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wahaahaa... i must say you are very choo bee and humorous. So u in sales line? im in garmen line if u know what i mean?Originally posted by gentlerock:Aiyoh my friend....
If I were well to do, I'd be driving an X5 and would've bought it without loans too.
Oh, and I'd have a Vector as a second car too, parked in my private in-house workshop, complete with private mechanics who work only for me.
A few Rolls Royces on the side for weekend use may be nice too, with lady chaffuers uniformed in bunny suits. -
Yeah, I do sales, marketing, technical support, field repairs, deliveries, beg customers for money....and everything else which no one else wants to do.Originally posted by nick28:wahaahaa... i must say you are very choo bee and humorous. So u in sales line? im in garmen line if u know what i mean?
You see, the good thing about working for the garmen is security. In 3 years time, I may not have my job. Whereas chances are that you will still have your position way beyond that. Wait, wait....are you here to spy on me? I promise I didn't say anything bad about the garmen. -
haha.. hey u still have not paid your income tax for last year and you are driving a forester? Just kidding.. i think u must be making at least $10K.Originally posted by gentlerock:Yeah, I do sales, marketing, technical support, field repairs, deliveries, beg customers for money....and everything else which no one else wants to do.
You see, the good thing about working for the garmen is security. In 3 years time, I may not have my job. Whereas chances are that you will still have your position way beyond that. Wait, wait....are you here to spy on me? I promise I didn't say anything bad about the garmen. -
$10k a month? Wahhh...you think I work for NKF arh?Originally posted by nick28:haha.. hey u still have not paid your income tax for last year and you are driving a forester? Just kidding.. i think u must be making at least $10K.
Hey, that day I saw a QX plate Toyota Mark X. Very nice leh. Maybe can try asking your boss for one...? -
Thanks so much gentlerock... long winded in this case is better bcos i am really blur and need to know details...
It is really a big big shock to me... i didnt think carefully the last time when i bought the car. i tot having a longer tenure allows me an easier time in monthly instalments... alamak... now then i realised the biggest beneficiary out of this whole thing is... the bank!
ok.. next step is to check with the financing company to see how much rebate i can get if i repay 7 yrs early!
can anyone share their experience in early redemption?Originally posted by gentlerock:Hi,
Please be prepared because the cold hard facts are not exactly pleasant to know......
Seems like you're one of the many who are caught at the losing end of our "car casino" ( otherwise known as "car market" ). I'll try to answer your questions in point form....
(1) If you SCRAP your car by yourself by driving it to a scrapyard, you will get $38k back...in which case, yes, its a big loss. You must also remember that you cannot get the $38k back in cash....its just an electronic record in LTA's computers that they are holding $38k of your money. The ONLY thing you can do is to buy another new car with it. Its important to remember that you cannot get the scrap value back in cash, if you de-register the car yourself.
(2) If you ask a car dealer to SCRAP it for you, they will discount about 6.5-7.0% from your scrap value - unfortunately, this is the market rate now. The rest is their profit. The only advantage is that you will get cash back.
(3) If you SELL your car to buyer directly, the very rough asking price now will be as follows: http://www.sgcarmart.com/main/info-2foaBeQB-1000.html. Actual selling prices will be up to a few thousand below asking price. Used cars don't sell so fast now, so some patience is needed.
(4) If you SELL it to a car dealer, the price will be quite a few thousand lower than the asking price as shown above - because the car dealer needs to make a profit. However, I have doubts if used car dealers will be keen to take your car in now...because they're all overstocked with cars which can't move. If you go to the Automobile Megamart at Ubi, you will see 6 stories of used cars....and maybe 10 potential customers walking around.
(5) I'm afraid that you're also right in that after selling/scrapping, you still have to pay the bank for the remaining loan - at one go. I don't know about your loan agreement, but some banks do give rebates for interest if you settle the loans early - better to check with your bank.
(6) Unfortunately, brand new cars lose most of their value (highest depreciation) in the first 2-3 years of their lives. Sometimes, even 40-50% of it within 3 years. Your case is not that bad already....I know people who lose S$50k in 2 years!
(7) Well, it is not really unfair, because the buyer is expected to know the conditions before he/she enters the deal. But I know it comes as a shock and it hurts like hell. Lots of people have gotten caught in situations like yours, so you're not alone.
I'm sorry for throwing bricks at you, in giving you directly these cold hard facts. I hope its not an urgent case that you need to get rid of your car.
My advice to you is to keep the car for now if you can.....till its at least 5 years old, then examine selling/scrapping it again to see if its better (by then, the depreciation per year would have dropped significantly). If its really urgent, then try to share the car with a family member - eg. try to get your brother/sister/parent/spouse/whoever to use the car half the time, and help to pay for the instalments.
Post Script
I'm going off on a tangent here.....(nothing to do with your case).....
This case illustrates what many people here have asked questions about. As I've always stressed....just because the COE is low, doesn't mean that brand new cars are good buys. In any business decision (cars, shares, forex, etc), you not only need to know the buying price, but also the selling price.
Also, it is never advisable to take a loan with too long a tenure, or with too big an amount. -
If you're a guy....you're most welcomed, pal!Originally posted by sweetie05:Thanks so much gentlerock... long winded in this case is better bcos i am really blur and need to know details...
If you're a girl.....you're mostest welcomed, muak muak!
Joking arh....don't take it seriously.
Actually, there is one other party who makes much, much more than the banks.Originally posted by sweetie05:It is really a big big shock to me... i didnt think carefully the last time when i bought the car. i tot having a longer tenure allows me an easier time in monthly instalments... alamak... now then i realised the biggest beneficiary out of this whole thing is... the bank!
Provided that your loan agreement allows you to have rebates for early settlement, most banks will only allow for rebates AFTER 3 years.Originally posted by sweetie05:ok.. next step is to check with the financing company to see how much rebate i can get if i repay 7 yrs early!
The danger is.....I think some banks have penalty clauses for early settlement before 3 years.
Yes, yes, please check with your bank. Or refer to your loan contract. -
Hi Alberteinstein,
thanks... i think it is a nice sweet car too, but a jap car can never compare to a continental car. moreover, it is developing a few major problems in the gear box and gan tong...
so i would like to sell it and get a continental car instead.
but when i look at the numbers, it just doesnt make sense...
unless i can get someone to carry on the loan, and i pay him say $5-10k?Originally posted by alberteinstein:hi sweetie, can i know why you want to sell off your car? tired of it or got new targer?
I feel honda fit is a nice sweet car that is cost efficient to drive. If it is because it turns dull after these years of usage, then send it for repainting or polishing to make it into shiny showroom condition.
Should cost only a few hundred dollars. THen do some touchups like adding sports rim if you havent got it, tint its glasses... -
Biggest winner? aaa.. u talking about my company issit?Originally posted by gentlerock:Provided that your loan agreement allows you to have rebates for early settlement, most banks will only allow for rebates AFTER 3 years.
The danger is.....I think some banks have penalty clauses for early settlement before 3 years.
Yes, yes, please check with your bank. Or refer to your loan contract. -
tats it. if next time i ever buy a car, i will pay it in CASH.Originally posted by gentlerock:Provided that your loan agreement allows you to have rebates for early settlement, most banks will only allow for rebates AFTER 3 years.
The danger is.....I think some banks have penalty clauses for early settlement before 3 years.
Yes, yes, please check with your bank. Or refer to your loan contract. -
its easier said than done. for the price of cars in Singapore, how many can actually pay cash in full upfront unless u are referring to picanto or kelisa?Originally posted by sweetie05:tats it. if next time i ever buy a car, i will pay it in CASH.