Change car every 3 year? Think again !

[Amazon777]

i use to change cars every year becos i get bored easily.

thats why i didnt get new car otherwise would have lost a lot more.

 

then one day i finally bot a new Volvo $126k but still after less than 3 years got bored and sold. Lost $51k.

 

So, i decided i wont buy new car anymore unless it is $60-70k category and for someone else to drive.

 

aiyah bottomline, change cars sure to lose money, it's only whether you lose less or more. Just try to minimise and make sure that you dont bite off more than you can chew.

 

Pretty common to loss that amount for conti car, at least yours is new. Few years back, my biggest casualty/damage is loss $25K driving a used BMW 520 for only 6 months. Had to sell it 6 months later as the repair bill came to $5K. Cut loss total $30K for 6 months driving And I was like 28yrs old then, my colleagues were telling me why drive "Ah Pek" car. Nowadays, for new car only go for $50K to $60K Jap car. Currently, both my Jap car fall into this price range. But I did make $13K from a BMW E30 after driving it for 9 months, my other used 2 x BMW E36 and E46 all loss money but not as bad as the stupid BMW 520. I bought my E46 from a property agent who loss $75K driving it for 2yrs in 2002 as he paid close to $180K. For Jap car, my worst experience is loss $40K for 4yrs for a new Corolla G9.

 

Actually was pretty streetsmart during my early days from the mid 90's after I join the working force, always pay in cash for those 8 to 9yrs cars, did not loss much, later buy those 4 yrs old cars Jap/Kor make and scrap it at 5th year mark, also did not loss much, but buy those new car definitely will burn a hole in your pocket and never buy new Conti, coz will bleed, let the riches buy and suffer the huge initial depreciation and we buy over from them. Recently, was fidgeting with the idea of a 3.5/4 yrs old Volvo S40 2.4 as it is selling pretty close to scrap, but decided to put it on hold after seeing the high petrol prices. BMW E90 prices seem to be holding well, Volvo resale is pretty bad. I do know of a chap, who buy used 3 to 4 yrs old Ferrari in cash and scrap/export it at the 5th year mark and these are the streetsmart richies

Edited July 19, 2008 by Amazon777

[Felipe]

Hi all,

 

I have been hearing people saying change car every 3 years since after 3 years no more warranty, but is it really worth to do so?

 

Does not apply now! Paper value so low,how can they think abt selling .

They'll loose a lot

from my experience trying to sell my car, not all cars are sold on paper value. if its conti, not merc or bmw or new model, expect to get quoted paper value after 3 years.

 

but i do notice that most jap cars even after 3 years are not sold on paper value. after 5 years maybe. tats y resale value still stands for japs. many ppl think resale value dont matter these days. it still does. overall, jap represent better value

[Felipe]

i use to change cars every year becos i get bored easily.

thats why i didnt get new car otherwise would have lost a lot more.

 

then one day i finally bot a new Volvo $126k but still after less than 3 years got bored and sold. Lost $51k.

 

So, i decided i wont buy new car anymore unless it is $60-70k category and for someone else to drive.

 

aiyah bottomline, change cars sure to lose money, it's only whether you lose less or more. Just try to minimise and make sure that you dont bite off more than you can chew.

 

the only car i didn't get bored driving even after 3 yrs was my manual alfa. but priorities change so too bad.

 

anyway, car is lose lose. it's only how bad u lose and the only time u lose the least is when u drive without a loan. u only pay running costs. but to be honest, how many sporeans are in that position?

 

so technically, if u on 7 yr loan, u drv past 7 years and only pay running cost. 10 yr loan? they have to wait 10 years to finally lose the least amount of money

Edited July 19, 2008 by Felipe

[Stary]

Hehehe, but for most Singaporeans , a car is not Point A to Point B lah, dude.

 

Cannot be. If a car is not just Point A to point B for most Sporeans, then the Corolla wouldn't be the best selling car in Spore already.

[Stary]

When you buy a car, you should drive it for as long as possible.

Learn some basic maintenance skills and where to do your servicings cheaply.

Assuming you do not have complicated electronically controlled car, you can avoid AD.

 

The longer you own the car, the lower the depreciation over the years.

 

Before you changed that car, think about what you are using the car for?

Most of us just wants the car to bring you from point A to B. As long as it is working, it has served that purpose.

It doesn't matter how new or old it is. It may not be as comfortable or state-of-the-art latest model, but think about all the extra money you can saved in the bank, instead of getting another loan...unless you are cash-rich.

 

You guys should take note that the Ikea Chairman is still driving his 20 year old car and Warren Buffett almost did the same until people all tell him to change.

 

The rich are frugal and drive as long as possible but peasants change car all the time. That's why they remain as peasants.

[Throttle2]

maybe it's sentimental for them?

but for every example you can give of rich people driving old beat up cars , i can give you 3 examples of them owning luxury ones. hoho

 

however i must admit, i'm a peasant......and after 15 months of driving my 5er i'm looking a change.

[Throttle2]

if point A to B then can get a vios? or many other cheaper cars which are just as fine.

 

Corolla , you till pay a premium although slight.

 

But you got qtr of a point there.

[Evoluzio]

Correct. So buy a car that you won't get sick of, and drive it forever.

[Throttle2]

everytime, i buy a car, i tell myself to keep for at least 3 yrs but then by the end of the first year i sian already.....

 

same for my bikes....

 

i dont think there is such a thing as a car that i wont get sick of ultimately.

maybe i should get more sentimental with my cars?

[Hayashi]

Bro,In singapore,unless the car is fully paid up,basically "the car" is legally not yours.You are actually renting it,and maintaining it on behalf of the bank.

One has to slave at work just to "RENT" the car for "7" or "10" years and if one default on payment for two and a half months....well your car will get towed away ....

.Sooooo......you will probably lose in your first two years, your initial 10k or 15k, depanding on your car model. SO UNLESS your car is FULLY paid up,,Someone please convince me that changing a car every three years is more economical and cheaper...

Thanks guys!!!

[Seevic]

Correct. So buy a car that you won't get sick of, and drive it forever.

 

haha. This dun apply in spore though.

[Throttle2]

dude, i have good experience in this.

in the last 8 yrs owning 6 cars, all are fully paid up mostly on the first day i buy or within 2 yrs of ownership and even then i can confirm, as long as you change, you lose !!

 

haha

 

however, in the past becos of the high 80% parf, you dont lose so much when you sell.

maybe lose only straight line depreciation + 10%...

 

nowadays lose big big

Edited July 19, 2008 by Throttle2

[Kb27]

Funny thing is that in the US, it might actually be cheaper to buy a new car than trying to maintain an old one.

New car there is cheap, no layer upon layer of tax unlike here. Their labour is expensive unlike here.

 

In SG, you sell your new car and almost all the taxes you pay are gone.

The only happy people is the gahmen and the distributors.

[Zyrofillica]

bought a car in US while im here working. 1000 dollars for a 88 honda civic. its much cheaper to maintain an old car here than to buy a new one. And the new ones are already much cheaper to buy than over in crazypore!

 

many many old cars here. still surprised they are running too. 10yr old cars have like 150000miles on them while my 88 has 230000miles.

 

when i go back to singapore, ill appreciate my 4 yr old 80000km galant so much more.

[Jl1500k]

untill now still got many people changing car after 3 years is because those pp are rich and earn big money. So they dun mind lost 30K or more.

[Genie47]

Its not sentimental. I doubt it is about sentimentalism. One thing is for sure, they are smart rich people. Buffett lives his investment philosophy. He walks the talk. The Ikea Chairman lives his company's philosophy, mass produce cheap, flat pack furniture that is cheap to buy and maintain.

 

I can think of another. Sheng Siong's patriarch. Drive beat up delivery truck and doesn't own a watch because a handphone has a clock.

 

Those rich people owning luxury cars? Yes they are but they can never reach the levels that Buffett achieves and it doesn't last.

 

This is a testimony to thrift and not stingy. Thrift makes you happy. Being stingy makes you miserable.

Edited July 19, 2008 by Genie47

[Yaloryalor]

Hi all,

 

I have been hearing people saying change car every 3 years since after 3 years no more warranty, but is it really worth to do so?

 

I changed my Lacer after driving for 3 years and 3 months, bought 81K and sold at 40K!

 

Now buy new car and no resale value liao.. So this logic not valid anymore!

Edited July 19, 2008 by Yaloryalor

[Speedsun]

If everyone is so prudent in one's money or majority like Buffett spending pattern, I don't believe the companies Buffett invested would be much profitable. Will Buffett still be the richest man today?