Same old Problem: buy new or used (pls help)

[Landex]

2 hands sure beat 1 hand down!!

 

 

 

[Keithpapa]

[reply]Just sharing on income vs car price to be prudent. Just a guide, loan less than 7 -5years at 70% to 80%. Well, oso have friends that paid off in cash or only one-year loan which is min requirement by BM or others.

income abv $200K = >2.0 to 3.0litre car

income abv $100K-200K= 2.0litre car

income $70K -$98K=

[Nighthawkcity]

if u r gonna take max loan n max tenure..

 

DUN BUY!!!!

 

if nt, buy oredi nxt time confirm

 

 

yah lor.. muz be only either 1..

 

max loan better take max 7yrs, best 5yrs

max tenure is actually 7 yrs.. if the sum dun add up, u cant afford the 7yr loan installment, dun take such a big car.. many 2nd hand cars in range of 40k, good jap 1.5-1.6l range.

[Nighthawkcity]

Just sharing on income vs car price to be prudent. Just a guide, loan less than 7 -5years at 70% to 80%. Well, oso have friends that paid off in cash or only one-year loan which is min requirement by BM or others.

income abv $200K = >2.0 to 3.0litre car

income abv $100K-200K= 2.0litre car

income $70K -$98K=<2.0 to 1.6 litre car

income $$60-$70K =<1.6 to 1.3 litre car

income $$50k to $60K = <1.3

income $40-$50Kto =1.3 to 1.0 lite car

 

that is factor into all the monthly maintenance, insurance, petrol, road tax, car parking etc...

 

I have known of investment bankers making $0.5M/yr and don't drive, prefer to take MRT to Raffles place for convenient, no need to find parking and always on time to office.

Also a senior level exec abt $450K/yr only driving Volvo S60 and another $250K driving Altis.

 

Why? These are financially very savvy people who know that car depreciates , and rather use the money saved to invest further to increase the wealth even more! And planning to retire at 45 or 50 years old. It is very common for such prudent people which always believe in using $$$ to make more $$$.

just sharing, 2 cents worth of thot!

 

think there are too many > 2l cars on the road alr.. cos i dun think so many pple earning above 100k pa..

[Thermodynamics]

bro Landex, this is just a guide only lah....... if those who are financially very savvy and prudence or disciplined, they use $$$ to make more $$$ lah,,,,,,,

do understand many people out there still prefer to spend 30% of annual income (take high or max loan) on car which to those financial savvy people they will not do.

 

Generally, to be on the very safe side of affording a car, not more than 15% of annual income ....... rest of $$ invest in some $$ making stock or whatever.....

 

Talk is cheap.

[Voxy28]

I will take no. 2.

 

Anyway, you can be financially savvy but do you live to spent it? I would say stretching it to 20% of your total income would be alright if you are a car nut. Basically if you save that much and buy a crap car, you end up spending to mod your car which is a worse proposition. So choose a car you like and can stretch a bit to own rather than to be too prudent and get a crap car which you suffer driving everyday.

 

Got a financially savvy friend who got diagnose with cancer. He now change from a Vios to a Subaru Legacy GT or something....... life is too short, but do spend WISELY.

Edited September 19, 2007 by Voxy28

[Lobangking88]

Just sharing on income vs car price to be prudent. Just a guide, loan less than 7 -5years at 70% to 80%. Well, oso have friends that paid off in cash or only one-year loan which is min requirement by BM or others.

income abv $200K = >2.0 to 3.0litre car

income abv $100K-200K= 2.0litre car

income $70K -$98K=<2.0 to 1.6 litre car

income $$60-$70K =<1.6 to 1.3 litre car

income $$50k to $60K = <1.3

income $40-$50Kto =1.3 to 1.0 lite car

 

that is factor into all the monthly maintenance, insurance, petrol, road tax, car parking etc...

 

I have known of investment bankers making $0.5M/yr and don't drive, prefer to take MRT to Raffles place for convenient, no need to find parking and always on time to office.

Also a senior level exec abt $450K/yr only driving Volvo S60 and another $250K driving Altis.

 

Why? These are financially very savvy people who know that car depreciates , and rather use the money saved to invest further to increase the wealth even more! And planning to retire at 45 or 50 years old. It is very common for such prudent people which always believe in using $$$ to make more $$$.

just sharing, 2 cents worth of thot!

 

 

Yup true, some are setting up a car rental company, buys says 20 cars x (lancer auto was going at 45k last 2mths ago)

20 x 45 : $900k

Rent it out to long term corporate clients for 1 year @ $1.7k per mth x 20cars : $408k per year

Multiply that by 3 years $1.224mil

 

Insurance, they normally go 3rd party so its around $400 per mth.

Insurance : $8k

Tax : $20k a year

Regular SErvicing : $4k per year

Cost : $32k per year x 3 :92k, lets round out to $100k

 

$1.224mil -100k(Servicing Cost) - $900k(Buying cost) : Profit $224 000

 

Scrap the cars abroad after 3years, maybe say get back $30k per car ?

$30k x 20cars= 600k

 

You did make a gd profit of around $824 000 after 3 years.

 

Anyone wanna set up one ?

Yield is v attractive.

Of course haven't considered staff salary etc.

Edited September 19, 2007 by Lobangking88

[Vyap]

bro Landex,

yeap, we must educate our kids not to grow up to live on debt financing, many ppl are living on borrowed future $$ (economist's view point), let's hope our future generation not living in borrowed time & indebted to the banks! Societal pressure has made many ppl wanting to live on material showcase . We need to ensure of kids' future is not based on materialistic perceptions or the halo-effects!

Do respect that always will be ppl wanting to live & enjoy life now to the fullest. Confucius quote: suffer or work hard at present, but enjoy the harvest of your labor at later life. Of course, to enjoy wealth later, we must maintain & focus on fitness, eating properly and exercise regularly........

[Landex]

yah lor.. muz be only either 1..

 

max loan better take max 7yrs, best 5yrs

max tenure is actually 7 yrs.. if the sum dun add up, u cant afford the 7yr loan installment, dun take such a big car.. many 2nd hand cars in range of 40k, good jap 1.5-1.6l range. [/reply]

[Nighthawkcity]

[Notsoblurr]

Anyway, you can be financially savvy but do you live to spent it? I would say stretching it to 20% of your total income would be alright if you are a car nut. Basically if you save that much and buy a crap car, you end up spending to mod your car which is a worse proposition. So choose a car you like and can stretch a bit to own rather than to be too prudent and get a crap car which you suffer driving everyday.

 

Got a financially savvy friend who got diagnose with cancer. He now change from a Vios to a Subaru Legacy GT or something....... life is too short, but do spend WISELY.

 

If you spend too much on car with little saving . . .

 

All of a sudden, you are diagnosed with critical illness or accident and you need $$$ for hospital bill . . .

 

You have to jump down from building else your family will suffer for your short term enjoyment. . . car . . .

[Tyer]

I agree too. It is always better to keep some money for raining days.

[Albeniz]

If you spend too much on car with little saving . . .

All of a sudden, you are diagnosed with critical illness or accident and you need $$$ for hospital bill . . .

You have to jump down from building else your family will suffer for your short term enjoyment. . . car . . .

 

That's why I believe in some forms of insurance coverage.

Basic term insurance, at least.

[Nina]

I just bought a used car, and these are some of the problems you could have and many of them you can't easily see:

 

Engine

- damaged oil sump

- deteriorated drive belt

 

Fuel System

- bent fuel pipe under

- dent intercooler

 

Exhaust system

- deteriorated exhaust pipe mount rubber

 

Suspension

- deteriorated rear arm bush

 

Chassis and body

- dented front left door

- dented front right door

- dented rear left door

- dented rear right door

- fits poorly boot-trunk seal

- fits poorly front right door adjust

- general paint and body work poor condition

- lose shape door trunk seal

- missing under engine panel

- repainted body

- repaired A, B, C-pillar high

- repaired body engine compartment

- repaired front cross member lower upper

- repaired front left fender high

- repaired front right fender high

- repaired rear left fender high

- repaired rear right door high

- repaired rear right fender high

- repaired roof high

- repaired trunk lid high

- replace rear structure body

- scrape / dent longitudation member

 

Braking system

- bent brake pipe under

- parking brake retardation is below limit value

 

Tires

- missing spare wheel

- nail stab rear right tire

- scraped rim

 

Electric System

- broken combination light

- defective battery

- defective from wiper system

- front and rear nozzle washers do not work

- headlight direction not correct

 

Transmission

- oil leak from gearbox

 

Interior

- loose front console box

- loose front left side panel cover plastic

- loose rear left side panel cover plastic

- missing rear safety belt

- scratch front console

[Deadsoulz]

jus curious, r u referring to the car in ur avatar ; evo 8?

[Nina]

Yes the Evo VIII

[Tanjkp]

From the info, U got a lemon.

Look 100% was accident car.

 

Dat' Y buying those powerful model / Beng mobile neva buy 2nd hand - U don noe what had happenned.

[Nina]

The EVO is not being sold in Thailand, so I can't buy a new one. Only option was a used one.