Chowyunfatt Turbocharged July 1, 2009 Share July 1, 2009 Many forumers in MCF sure is rich .... Not Rich...Prudent...I guess the down turn has a part to play in all of us being cautious. ↡ Advertisement Link to post Share on other sites More sharing options...
7007 2nd Gear July 1, 2009 Share July 1, 2009 When buying in cash, I always make sure there is no disadvantage i.e must be the same price as those taking mini loan else no deal loh! AD usually will relent but no or less gifts only. The amount of interest I save is definitely much higher. Link to post Share on other sites More sharing options...
Chowyunfatt Turbocharged July 1, 2009 Share July 1, 2009 dude, so whats your point of starting thsi thread, really To get reassurance from everyone that he has indeed made a right choice by paying cash for his Car, I think... Then again, what the heck do I know... Link to post Share on other sites More sharing options...
Zniper 2nd Gear July 1, 2009 Share July 1, 2009 wah, seriously a lot of mcfers here are rich... for me, loan is a muz for car and housing... even if got spare cash able to pay fully, i will still not pay full... moreover, when u get loans agents will be more happy to giv u anyting u wan on ur ride (ok, some may say tat these tings dun cost as much as interests)... i will set aside spare cash for someting else - guess... Link to post Share on other sites More sharing options...
RadX Moderator July 1, 2009 Share July 1, 2009 All depends on how much cash you have to throw around. A friend of mine paid full cash for his Porsche Cayman ($270K)! Think the rationale is pay as much as you can afford upfront 'cos the interest on car loans is just extortionate. So if you can afford to pay full, pay full. You will lose less in the end. hmmm...do I know you?? Yeah, dun be a slave to the bank Link to post Share on other sites More sharing options...
Zniper 2nd Gear July 1, 2009 Share July 1, 2009 To get reassurance from everyone that he has indeed made a right choice by paying cash for his Car, I think... Then again, what the heck do I know... haha... there is not right or wrong choice in the decision u made in life... if u already made the decision already dan come and ask around, dun tink it's stupid? it's like when u noe the 4D no open already dan kept asking urself y u nv buy tat number even tat number nv come into ur mind b4... Link to post Share on other sites More sharing options...
7007 2nd Gear July 1, 2009 Share July 1, 2009 Depends. If the alternative use of ur cash is to put under the pillow or leave it in POSB earning 0.00001% interest, yes, then pls pay in full. Frankly, car loan in SG is considered dirt cheap. Paying in cash doesn't mean u dun pay interest. U are paying wif opportunity cost. And this can possibly amount to many times above what car loan interest is. In short, use money to make money; not lock it into a depreciating piece of metal. true true! But in current situation short term investment is very scary and unpredictable, long term is lagi worse.. who know who will be next lehman bro... Is there any guarantee good investment protecting the principle??? Link to post Share on other sites More sharing options...
Gs300999s Clutched July 1, 2009 Share July 1, 2009 depnds . . < 50k full cash, more than that, 2-3 years loan 50% max. I earn more interest in my AUD FD (8%)than the loan rates. But this year drop liao !!! Link to post Share on other sites More sharing options...
Accuphase 1st Gear July 1, 2009 Share July 1, 2009 I asked the same question before. In the end I took up a 40K loan @ 3 years. Sure I could save on the interest if I pay full. But my financial condition isn't stable so 40K vs Under 3K of interest for 3 years works fine for me. At least I still got 40K in my pocket for emergency use. YMMV. Link to post Share on other sites More sharing options...
Law_ong Neutral Newbie July 1, 2009 Share July 1, 2009 When buying in cash, I always make sure there is no disadvantage i.e must be the same price as those taking mini loan else no deal loh! AD usually will relent but no or less gifts only. The amount of interest I save is definitely much higher. hmm...care to share which AD u went that gave u same price as those taking mini loan? i been to few and they just simply bo chup. maybe its just me Link to post Share on other sites More sharing options...
Hiphiphoray 6th Gear July 1, 2009 Share July 1, 2009 (edited) The way i see, its a matter of how much u are willing to lose, more than whether one can afford to pay full or take loan. Pay full cash for a 100k car and save on interest......sure why not. But after 3-4 years, u sell off at less than half the price. U lose 60k within 3-4 years.....just like that. Will the bank interest matters ?????? Unless u are looking at driving yr car at least 7-8 years, your question doesnt makes sense. My advise is to get a 2-3yr old car and drive it till the 7th or 8th year. Easy on your pocket whether its full cash or full loan. Edited July 1, 2009 by Hiphiphoray Link to post Share on other sites More sharing options...
Rm2s 5th Gear July 1, 2009 Share July 1, 2009 Many forumers in MCF sure is rich .... It depends on the amount. Full cash for anything below 45K is like people who put down 30% for a 150K car. So is the guy who buy a 45K car and pay in cash richer than the guy who pay 45K downpayment for a 150K car? Personally I think it is relative. I view car as an expense, as long as I won't have to top up cash when I am selling (meaning, never take loan that is 70% or higher and 7 years or longer) taking loan is fine. It is part of my monthly expenses (instalment, petrol, parking, what nots). Link to post Share on other sites More sharing options...
7007 2nd Gear July 1, 2009 Share July 1, 2009 hmm...care to share which AD u went that gave u same price as those taking mini loan? i been to few and they just simply bo chup. maybe its just me In 2007 I bought Ody from KM @$98K with guarantee COE. I only need pay $150 for sun-film on my own. Link to post Share on other sites More sharing options...
Throttle2 Supersonic July 1, 2009 Share July 1, 2009 depnds . . < 50k full cash, more than that, 2-3 years loan 50% max. I earn more interest in my AUD FD (8%)than the loan rates. But this year drop liao !!! plse compare SGD with SGD dont compare cross currency. there are huge capital risks involved. if you dont even understand these basic risks, good luck..... Link to post Share on other sites More sharing options...
Throttle2 Supersonic July 1, 2009 Share July 1, 2009 I asked the same question before. In the end I took up a 40K loan @ 3 years. Sure I could save on the interest if I pay full. But my financial condition isn't stable so 40K vs Under 3K of interest for 3 years works fine for me. At least I still got 40K in my pocket for emergency use. YMMV. thats a fair way of looking at it. but a better way is to buy a cheaper car since you already say financially you not stable. Link to post Share on other sites More sharing options...
Law_ong Neutral Newbie July 1, 2009 Share July 1, 2009 In 2007 I bought Ody from KM @$98K with guarantee COE. I only need pay $150 for sun-film on my own. same price for the mini loan? never went KM, too premium for me Link to post Share on other sites More sharing options...
Shemmy Clutched July 1, 2009 Share July 1, 2009 For me, i don't really mind taking 10 years loan for cars. Frankly, i can't really be bothered abt the interest. Very heart pain for me to see my savings drop just to buy a car. But for houses, then must pay at least half cash. Link to post Share on other sites More sharing options...
Throttle2 Supersonic July 1, 2009 Share July 1, 2009 It depends on the amount. Full cash for anything below 45K is like people who put down 30% for a 150K car. So is the guy who buy a 45K car and pay in cash richer than the guy who pay 45K downpayment for a 150K car? Personally I think it is relative. I view car as an expense, as long as I won't have to top up cash when I am selling (meaning, never take loan that is 70% or higher and 7 years or longer) taking loan is fine. It is part of my monthly expenses (instalment, petrol, parking, what nots). it's not about being rich, it's about balancing leverage versus financial position. some people truly need to pay instalments just to buy household appliance. do we look down on them? No. but if this same people then go and splurge on cars on full loans and screw their financial position up , do we pity them? No. do we help them? No. what do we do? we learn not to do what they do. thats all, actually. ↡ Advertisement 2 Link to post Share on other sites More sharing options...
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