Nonewposts 4th Gear March 3, 2013 Share March 3, 2013 Just cuious to know how much loan do most mercedes and bmw drivers take for their ride. ↡ Advertisement Link to post Share on other sites More sharing options...
Chucky2007 Turbocharged March 3, 2013 Share March 3, 2013 You can drop by cycle & carriage and performance motor and ask them Link to post Share on other sites More sharing options...
Chucky2007 Turbocharged March 3, 2013 Share March 3, 2013 After you know the answer, please post here. I'm quite curious. I'm quite certain that they will be paying 50% downpayment and take at least 50 % loan Link to post Share on other sites More sharing options...
Nonewposts 4th Gear March 3, 2013 Author Share March 3, 2013 I meant before the restriction to the car loan last week. I always thought people who buy such cars don't even take loan at all since u must be rich to buy such cars Link to post Share on other sites More sharing options...
Windwaver Turbocharged March 3, 2013 Share March 3, 2013 Car loan is a bad move in Singapore. I'll always try to down as much as I can and avoid taking a car loan at any cost. The maximum I feel that should be comfortable is 20% of your nett take home income; anything more than that is something I will not consider at all. Link to post Share on other sites More sharing options...
Felipe 3rd Gear March 3, 2013 Share March 3, 2013 My se told me some lambo buyers down 500k. So i guess no matter how rich, some believe in using mortgage to their advantage. Link to post Share on other sites More sharing options...
Cook123 Supercharged March 3, 2013 Share March 3, 2013 i think they pay in full esp for cars above 500k Link to post Share on other sites More sharing options...
Chucky2007 Turbocharged March 3, 2013 Share March 3, 2013 Car loan is a bad move in Singapore. I'll always try to down as much as I can and avoid taking a car loan at any cost. The maximum I feel that should be comfortable is 20% of your nett take home income; anything more than that is something I will not consider at all. Its a prudent thinking but may not be easy. The car loan size not more than 50% of annual net income may be comfortable liao because the 5 year tenure car loan will translate to around 12% of the cost to income ratio over 5 years and after that no more loan. Link to post Share on other sites More sharing options...
Zyklon 5th Gear March 3, 2013 Share March 3, 2013 Common misconception: Some luxury car buyers take up a lot of loan because they are just wannabes. No money still want to buy luxury car. Truth: Think IRAS, sudden cash flow shortage, low interest, and s--t does happen. Link to post Share on other sites More sharing options...
Throttle2 Supersonic March 3, 2013 Share March 3, 2013 (edited) Just cuious to know how much loan do most mercedes and bmw drivers take for their ride. Mercedes and BMW can also have two categories. Low end and high end. Low end Mercys and BMWs flood the steets and HDB estates. Mostly on much higher loan with little or not liquid assets backing the loan. I know as many of these owners are personal friends of mine High end Mercys and BMWs flood the exclusive private estates. These can also be on high loan but at the back is a mountain or at least a hill. I know cos many are personal friends of mine Above are personal knowledge and experience which may not represent the specific truth. But for your reference I have owned 3 premium secondhand BMWs and 1 premium secondhand Mercedes before. Full cash settled all. Then again, when i owned secondhand coupe Japs, all also full cash settled. Hmmmm, conclusion. Depends on how down to earth the person is and his financial planning Edited March 3, 2013 by Throttle2 Link to post Share on other sites More sharing options...
1fast1 Supersonic March 3, 2013 Share March 3, 2013 (edited) i think they pay in full esp for cars above 500k Not necessarily true. When I was buying my used Porker (without loan), I met a guy who was buying a used Lambo Gallardo. He took a 300+k loan, which I think was more than 60% of the purchase price of the car. I don't know the situation for those buying totally new supercars. But I think quite a few of those take loans too, simply to have more liquidity. Prudent or not, I will not comment. But the simple fact of the matter is that even the very act of buying a car in Singapore is not the most prudent decision, from a purely financial point of view. Edited March 3, 2013 by Turboflat4 Link to post Share on other sites More sharing options...
Throttle2 Supersonic March 3, 2013 Share March 3, 2013 Not necessarily true. When I was buying my used Porker (without loan), I met a guy who was buying a used Lambo Gallardo. He took a 300+k loan, which I think was more than 60% of the purchase price of the car. I don't know the situation for those buying totally new supercars. But I think quite a few of those take loans too, simply to have more liquidity. Prudent or not, I will not comment. But the simple fact of the matter is that even the very act of buying a car in Singapore is not the most prudent decision, from a purely financial point of view. Guess we both belong to the xian ku hou tian category who believes that a car is not an asset but an expense. And we ourselves decide how much expense we want to accept upfront by putting a strict discipline on not spending speculative income. Cheers to a likeminded fella on this Forum. Link to post Share on other sites More sharing options...
Benarsenal Turbocharged March 3, 2013 Share March 3, 2013 You'll be surprised. Even Maserati also got people take full loan. Link to post Share on other sites More sharing options...
Nzy Twincharged March 3, 2013 Share March 3, 2013 (edited) No matter what type of car still have people taking full loan. Some people just don't know how to live within their means. They can be earning alot but spend alot as well. I know some of them who take full loan just to get a supercar although they could just get something cheaper and pay in full. For me I have be taught since young that car is not a need in Singapore. Don't ever take loan to buy car. When I was a kid, my father had cars all the while but whenever he brings us out he always insists on taking public transport. Only use the car when we are rushing somewhere or its raining heavily. Edited March 3, 2013 by Nzy Link to post Share on other sites More sharing options...
Wt_know Supersonic March 3, 2013 Share March 3, 2013 (edited) $30k annual income take 90/100% loan for a entry level BMW $300k annual income take 90/100% loan for a lambo/ferrari huge difference ... $30k income guy is stretching to the max $300k income guy probably has the money but use the money to earn more money ... ie stock, property rental, business, Edited March 3, 2013 by Wt_know Link to post Share on other sites More sharing options...
Vinceng Turbocharged March 3, 2013 Share March 3, 2013 Most people are highly geared and max out their loan as interest rates are low. Makes sense to max out car loan at 1.88% and use the cash to invest and make the money work for you, rather than pay in full cash. Link to post Share on other sites More sharing options...
TheRationalVoice 1st Gear March 3, 2013 Share March 3, 2013 (edited) No matter how little a loan is taken, the borrower is still worse off because of the Rule of 78 (worse off compared to taking a loan with simple interest). Sometime ago Parliament left it to borrowers to decide whether they wished to be bound by the rule or not. However, the choice was fictional because no lenders actually offered simple interest loans. Borrowers were forced to accept the rule, whether unwittingly or not. I say, the Rule of 78 must be abolished as far as auto loans are concerned. I am puzzled that while preaching "financial prudence" MAS failed to abolish this historical relic. Edited March 3, 2013 by TheRationalVoice Link to post Share on other sites More sharing options...
Throttle2 Supersonic March 3, 2013 Share March 3, 2013 Most people are highly geared and max out their loan as interest rates are low. Makes sense to max out car loan at 1.88% and use the cash to invest and make the money work for you, rather than pay in full cash. I can marginally agree if that really is the case , although there is additional element of risk involved Meaning, you hv the cash but choose not to pay all. However many actually dont, and are borrowing so that they can use their future speculative income, today. ↡ Advertisement Link to post Share on other sites More sharing options...
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