Sir8 Neutral Newbie July 1, 2009 Share July 1, 2009 Don't get the attention of IRAS. ↡ Advertisement Link to post Share on other sites More sharing options...
Shemmy Clutched July 1, 2009 Share July 1, 2009 That's very true. Not all exotic car owners pay in cash. Sometimes better to avoid complication. Link to post Share on other sites More sharing options...
Throttle2 Supersonic July 1, 2009 Share July 1, 2009 Don't get the attention of IRAS. muayhahahaha As the saying goes, if your conscience is clear, you wont be afraid if someone knocks on your door at 3am . Link to post Share on other sites More sharing options...
Leepee 1st Gear July 1, 2009 Share July 1, 2009 Save 40k in interest!! My Gawd....you must be buying an expensive car. Assuming taking 7 years for a $200,000 loan.....(200,000x0.028%x7yrs)=$39,200 savings! If I HAD $200,000 spare cash....I would be flipping on property....example putting a $200,000 downpayment on a house/condo(costing ~ $1 million) with a TOP date of 2013 be better? I am sure the house will appreciate at least $100,000 by 2013 which is only 4 years away. Still got ($100,000 - $39200)= $60,800 spare cash at the 7th year! Never be a lender nor a borrower. I saved some S$40K of interests by paying full for a car I need. I can never get the same amount putting this amount in the bank. It is subjective to individual, but in my case, this works. Link to post Share on other sites More sharing options...
Soya Supersonic July 1, 2009 Share July 1, 2009 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??? No investment is 100% sure thing. Assuming one is wise and diligent in his/her investment choice, there's still a chance of an upside. But $$ put onto a car is 100% downside. Put $$ in local FD oso 100% downside. In fact, current scary situation in fact is where investment opportunities lie. Link to post Share on other sites More sharing options...
Throttle2 Supersonic July 1, 2009 Share July 1, 2009 Save 40k in interest!! My Gawd....you must be buying an expensive car. Assuming taking 7 years for a $200,000 loan.....(200,000x0.028%x7yrs)=$39,200 savings! If I HAD $200,000 spare cash....I would be flipping on property....example putting a $200,000 downpayment on a house/condo(costing ~ $1 million) with a TOP date of 2013 be better? I am sure the house will appreciate at least $100,000 by 2013 which is only 4 years away. Still got ($100,000 - $39200)= $60,800 spare cash at the 7th year! And that is the reason why you dont have $200k spare cash Link to post Share on other sites More sharing options...
Throttle2 Supersonic July 1, 2009 Share July 1, 2009 No investment is 100% sure thing. Assuming one is wise and diligent in his/her investment choice, there's still a chance of an upside. But $$ put onto a car is 100% downside. Put $$ in local FD oso 100% downside. In fact, current scary situation in fact is where investment opportunities lie. the upside in a car is the enjoyment and convenience loh..... Link to post Share on other sites More sharing options...
Marcostan 4th Gear July 1, 2009 Share July 1, 2009 (edited) Buy car in CASH is the smart way. U can save a lot in interests on the car loan. If u can take risk then the insurance can only get 3rd party only and also save in your premium. (50% less or more). Those who say you stupid is only because they cannot afford to pay in cash........... For $100,000 7 years' loan, interest alone is $19,600 at 2.8% and if you pay in cash you may only top up the selling price by 2 to 3k (depend on the dealer). Your saving is +/- $16,000.00. Why not? But make sure you are clean clean with IRAS, if not they will come after you. Edited July 1, 2009 by Marcostan Link to post Share on other sites More sharing options...
Throttle2 Supersonic July 1, 2009 Share July 1, 2009 Those who say you stupid is only because they cannot afford to pay in cash........... Shhhhhhhhh !!!! Link to post Share on other sites More sharing options...
Hiphiphoray 6th Gear July 1, 2009 Share July 1, 2009 Save 40k in interest!! My Gawd....you must be buying an expensive car. Assuming taking 7 years for a $200,000 loan.....(200,000x0.028%x7yrs)=$39,200 savings! If I HAD $200,000 spare cash....I would be flipping on property....example putting a $200,000 downpayment on a house/condo(costing ~ $1 million) with a TOP date of 2013 be better? I am sure the house will appreciate at least $100,000 by 2013 which is only 4 years away. Still got ($100,000 - $39200)= $60,800 spare cash at the 7th year! His interest savings is the costs of my 2nd hand 2.4ltr Sonata. Link to post Share on other sites More sharing options...
Rickster 5th Gear July 1, 2009 Share July 1, 2009 Usually agents do not give out discounts and freebies so easily if you pay cash. It's common knowledge, they get a cut from the bank when you take a loan. Sometimes, it's 'cheaper' to take a loan though. Pay the maximum allowed, then take the minimum loan for the shortest period (eg 1 Year). Since you already have the cash, then disburse the remainder over the short period. The agent gets his commission so you can bargain a little bit more. Of course, you got to do the math for each car/agent if it really makes sense as there are too many variables. Thats wat my parents does. They have always bought cars with 1 yr loan (to avoid the extra 2-3K additional if pay 100% cash). Link to post Share on other sites More sharing options...
SZY Clutched July 1, 2009 Author Share July 1, 2009 My records are super clean with IRAS. I own a car, I thought of changing my car, I though of buying another car if so ppl are complaining y i ask this qn... Maybe I shld start a poll and result would be evident... Link to post Share on other sites More sharing options...
Rawjak Neutral Newbie July 1, 2009 Share July 1, 2009 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. upppzzzz.... Link to post Share on other sites More sharing options...
Picanto 3rd Gear July 1, 2009 Share July 1, 2009 There are always some financial advisor or consultant telling us it is always better to "spread your money around" and take loan, pay minimum, invest in this and that. Multiplier effect mah good for economy. So if everyone of us pay everything in cash, we dont invest and spend money, use credit cards, banks/financial institution will have no business and they will not have a job liao from the financial consultant viewpoint, they want us to invest with them. and they earn a commission from that. that's why they say its stupid to pay full cash for cars. Link to post Share on other sites More sharing options...
Perrier 1st Gear July 1, 2009 Share July 1, 2009 And that is the reason why you dont have $200k spare cash Very well said. Link to post Share on other sites More sharing options...
Accuphase 1st Gear July 1, 2009 Share July 1, 2009 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. You are right, I should have bought a cheaper car instead. But I bit the bullet to go for my dream car.... It's a risk that I am willing to take. Link to post Share on other sites More sharing options...
Fortress Clutched July 1, 2009 Share July 1, 2009 Like I said depending on your needs and spending. I need a car at that point and I have my houses. Link to post Share on other sites More sharing options...
Kotila Clutched July 1, 2009 Share July 1, 2009 To buy with cash or loan? You have to do some home work. Some PI gives rebate fo loan taken and some add to their list price if loan not taken. It all depends on the deal with the PI. Important is to work out the sums. ↡ Advertisement Link to post Share on other sites More sharing options...
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