Buying Used Car: Pay in full or Installments?
-
Hi All,
Me newbie on this and need some advice.
Which one is more practical?
1) Currently can spare ~30K in cold hard cash for an average 3 y.o used car.
2) Or will I just keep the cash handy and pay installments every month?
3) Frens suggest better still... take up a full loan on a 60K new car and get tied down financially for the next 7 - 10 years?
I'm the sort who preferred to live within my means.
Thanks for any suggestions.
-
Be mentally prepared to get a myriad of responses.
For me, paying in full will always beat paying by instalments. Quite common sensical actually.
But that will never happen on me, so if I have around $30k, I will look out for a new car that costs not more than $60,000. I will use that $30,000 as downpayment, pay the rest under instalments for no more than 5 years.
I am quite skeptical about used car actually. Maintenance and stuff can be a chore. Furthermore, there are still a range of new cars to choose from, within the $60,000 range and below, currently.
It all depends on your financial situation.
Just my 2 cent's worth though....
-
I would pay in full as much as possible, but if I have 30k on hand, I'll go for a first hand.
-
Originally posted by ditzy:
I would pay in full as much as possible, but if I have 30k on hand, I'll go for a first hand.
You come back and show me how it's done in Singapore. -
buy China car lah..cheaper..
-
Originally posted by deepak.c:
You come back and show me how it's done in Singapore.I meant to say use 30K on a first hand, balance by installment, as few years as possible.
-
Originally posted by ditzy:
I meant to say use 30K on a first hand, balance by installment, as few years as possible.
Oh......another way is to move to US.
-
i would recommend :
1) take as long of a loan as possible - 6 yrs @ 2.5% p.a. would be good if you can. assuming car is 30k your total interest is $4500. This makes your monthly instalment about $480.
2) keep about $5000 as liquid cashflow. Put in a savings account. The NTUC Thrift account, POSB MySavings account, SCB's e-saver all comes to mind here. (higher interest than normal savings account)
3) Invest the remaining $25000 in the stock market. Or if you are risk adverse, buy some form of a unit trust.
In 5-6 years, we should be out of recession. You should have made money in the stock market. Assuming you have paid off your loan by then, you should still have some money left.
-
Are you a seasoned driver? If no, i would advice second hand for a start. Try out different cars every 2-3 years, quite a shiok. And your colleagues will say, "hey you change car again!"
If you have more than 100k at your disposal, then i recommend paying in full. With 30k, if i were you, i would buy a second hand car and pay about 15k deposit. The other 15k can be used for emergency.
-
Yes in my opinion, getting a 2nd hand car is better. There is a big difference in price. A full car loan with 5 years repayment would be ideal while you invest the rest of your money.
Of course, you need to keep some as spare cash as well.
-
Yes,
I will suggest going for a 2nd hand too..
I would advise a 2nd hand 1-3 years car.. and to make sure your 30k can pay off the whole amount..
New car I don't advise.. due to the rate of depreciation.
You can actually gain more buying used car because people buying a new @50k.
After a year or two of depreciation, car value left like 30+ or 40k..
That is the time you can take advantage of it and buy it cheap.
Why let the bank earn your hard-earned money when you can pay it in full?
But at least make sure of the mileage of the car.. If it's lesser than 20k for a 2-year drive,
it's a steal..
:)
-
If TS really buying 2nd-hand car, then you got to pay attention to details like mileage, warranty, any signs of defects, who the agent u are dealing with (trustworthy or not) and so on.....
There is never a 100% perfect car in my opinion and perhaps TS might want to read the article @ http://www.sgcarmart.com/news/writeup.php?AID=11 for a general exposure and weigh their pros and cons of buying a used car and a new car, in order to get the best deal out of it.
-
Originally posted by lianamaster:
If TS really buying 2nd-hand car, then you got to pay attention to details like mileage, warranty, any signs of defects, who the agent u are dealing with (trustworthy or not) and so on.....
There is never a 100% perfect car in my opinion and perhaps TS might want to read the article @ http://www.sgcarmart.com/news/writeup.php?AID=11 for a general exposure and weigh their pros and cons of buying a used car and a new car, in order to get the best deal out of it.
Agreed.
-
Hi All,
Thanks for all the kind advices...
Actually, thinkin more of buying a used car as I dun want to commit myself to a lenghty financial burden for X no. of years.
Just want to pay for one and get it over with and pay just the monthly running costs...($500-600 rite?) and yeah... plus the road tax / insurance etc etc.
Feasible for someone with a monthly disposable income of $1K?
-
Originally posted by Pappy Lee:
Hi All,
Thanks for all the kind advices...
Actually, thinkin more of buying a used car as I dun want to commit myself to a lenghty financial burden for X no. of years.
Just want to pay for one and get it over with and pay just the monthly running costs...($500-600 rite?) and yeah... plus the road tax / insurance etc etc.
Feasible for someone with a monthly disposable income of $1K?
Ok.... what car you have in mind?
-
Well, TS needs to consider:
- Road Tax
- Insurance
- Petrol
- Season Parking
- Servicing/Maintenance
- ERP charges
- Fines of any sort
- Public Parking Costs
They might well cost over $1000 depending on your age and what car you are driving.
-
Originally posted by Pappy Lee:
Hi All,
Thanks for all the kind advices...
Actually, thinkin more of buying a used car as I dun want to commit myself to a lenghty financial burden for X no. of years.
Just want to pay for one and get it over with and pay just the monthly running costs...($500-600 rite?) and yeah... plus the road tax / insurance etc etc.
Feasible for someone with a monthly disposable income of $1K?
The short answer is No.
-
Originally posted by lianamaster:
Well, TS needs to consider:
- Road Tax
- Insurance
- Petrol
- Season Parking
- Servicing/Maintenance
- ERP charges
- Fines of any sort
- Public Parking Costs
They might well cost over $1000 depending on your age and what car you are driving.
Was thinking of a '06 Renault Megane sedan ~$31K
Thanks for the breakdown... my estimates for the monthly-
- Petrol $250? (assuming daily 40km)
- Season Parking $140
- Servicing/Maintenance dunno
- ERP charges $60 (but maybe can siam)
- Fines of any sort dunno
- Public Parking Costs $50
Monthly estimates at least $500 oredi, but can stretch it to $600.For insurance and road tax, assume it to be ~$2K yearly?paiseh if my calculations are too conservative...
-
Originally posted by Pappy Lee:
Hi All,
Thanks for all the kind advices...
Actually, thinkin more of buying a used car as I dun want to commit myself to a lenghty financial burden for X no. of years.
Just want to pay for one and get it over with and pay just the monthly running costs...($500-600 rite?) and yeah... plus the road tax / insurance etc etc.
Feasible for someone with a monthly disposable income of $1K?
If you have a 1K disposable income, and you really want/need a car,
I suggest you go for COE car.
But lower CC models like starlet 1991..
=)
-
Originally posted by Pappy Lee:
Let me do a breakdown...
- Road Tax ($66 mthly, $792 yearly)
- Insurance ($200 mthly, about $2500 yearly)
- Petrol ($250 mthly as stated))
- Season Parking ($140 mthly as stated)
- Servicing/Maintenance ($200 mthly)
- ERP charges ($60 mthly as stated)
- Fines of any sort (assuming dun have)
- Public Parking Costs ($50 mthly as stated)
Hence total average cost per month is about $966. Best to set aside slightly more than $1000 for a piece of mind.
-
Originally posted by lianamaster:
Let me do a breakdown...
- Road Tax ($66 mthly, $792 yearly)
- Insurance ($200 mthly, about $2500 yearly)
- Petrol ($250 mthly as stated))
- Season Parking ($140 mthly as stated)
- Servicing/Maintenance ($200 mthly)
- ERP charges ($60 mthly as stated)
- Fines of any sort (assuming dun have)
- Public Parking Costs ($50 mthly as stated)
Hence total average cost per month is about $966. Best to set aside slightly more than $1000 for a piece of mind.
Aiyo, you set aside a bit too much lar.. Hahaha...
My version of breakdown for a Starlet 1991:
- Road Tax ($49 mthly, $588 yearly)
- Insurance ($150 mthly, about $1800 yearly)
- Petrol ($250 mthly as stated))
- Season Parking ($75 mthly as stated)
- Servicing/Maintenance ($250 mthly)
- ERP charges ($80 mthly as stated)
- Fines of any sort (assuming dun have)
- Public Parking Costs ($70 mthly as stated)
Hence total average cost per month is about $924. Best to set aside slightly more than $1000 for a piece of mind.
=D
-
Originally posted by p228:
Aiyo, you set aside a bit too much lar.. Hahaha...
My version of breakdown for a Starlet 1991:
- Road Tax ($49 mthly, $588 yearly)
- Insurance ($150 mthly, about $1800 yearly)
- Petrol ($250 mthly as stated))
- Season Parking ($75 mthly as stated)
- Servicing/Maintenance ($250 mthly)
- ERP charges ($80 mthly as stated)
- Fines of any sort (assuming dun have)
- Public Parking Costs ($70 mthly as stated)
Pappy Lee wanted a 2006 Renault Megane at $31,000. The figures, other than road tax and insurance, are given by TS, not me....
-
Originally posted by lianamaster:
Pappy Lee wanted a 2006 Renault Megane at $31,000. The figures, other than road tax and insurance, are given by TS, not me....
OOPS........
HAHAHA...
But take note that, continental car maintenance is higher.. so 300 may be just fine.
-
Originally posted by p228:
OOPS........
HAHAHA...
But take note that, continental car maintenance is higher.. so 300 may be just fine.
Alright. Hope TS learns something out of it and consider seriously.
-
Originally posted by lianamaster:
Pappy Lee wanted a 2006 Renault Megane at $31,000. The figures, other than road tax and insurance, are given by TS, not me....
2006 Renault Megane 31K ... a bit hard to get lar bro