Need Advice - To change ride or continue with it?

[Wickham]

need expert's advice on my current dilemna - to change my ride or continue with it?

 

come late feb 09, my car will be 5-year old. mileage only at 70,000km. condition still good despite it being hit front and back several years ago.

broke-even about 2 years ago and will get back about $8-10k if i sell the car now.

current downpayment per month = $570, 7-year loan at 1.6%.

stopped driving to work since changed job to city (traffic jams and lack of parking).

only drive on fridays and weekends, and yes, i need a car to get around alot socially.

 

several concerns -

1) should i change my ride cos it's reaching its 5-year mark?

2) will i lose more money if i continue with my ride?

3) is it true that if i sell my car in its 7-8th year, the financial situation remains the same as now?

 

if i were to change my ride, i am planning a relatively "new" used car ie. about 1-year old or less.

i just wanna be prudent and save up for other big-ticket expenses but dun know if keeping my ride is the way to go.

 

i cant seem to find the excel spreadsheet posted a while ago which can tabulate the numbers to address some of my concerns.

it can track how much i get back on a yearly basis.

 

any help is most appreciated. thanks!

[Blackreplica]

Save your money

 

You will always lose more money on a brand new (or 1 year old car, in your case) car than if you keep the one you already have. Forget about depreciation, scrap value, breakeven. Swapping an old car which is fully depreciated and runs fine for a new one which will depreciate horrendously in its first 5 years is always the less financially prudent option.

 

If your car still runs fine and doesnt give you problems, why waste the money? The new car rush lasts a month or two, the loan payments you make every month lasts a lot longer.

 

Reassess your options at the 10 year mark if you can.

Edited January 12, 2009 by Blackreplica

[Nhyone]

Convert to OPC.

Edited January 12, 2009 by Nhyone

[Vinceyeo]

Convert to OPC.

 

I assume you meant he sell off his current ride and get an OPC? Else at most is save annual roadtax if he converts his current ride now. Not worth it IMHO.

[Pyramid_sg]

Agree with black replica. I think it would be prudent to keep your ride at this economic climate. If your car runs fine and you still need to drive around socially, then it makes sense to keep it. Getting a new ride is always a temptation, but you will always lose out on its initial depreciation, IMHO.

[Newsman]

Blackreplica.....sound wise.

[Mikeyeo]

Hi Wickham, first of all, work out your family expenses a month to assess whether you have surplus cash to upgrade your current car. If you have, just go ahead but don't stretch your car loan to 7 years. Try to lower to 5 years max.

 

You mentioned that you don't drive to work as your office is in the city, it means that your car is not used in the day time. That being the case, why not consider a new car and register under OPC or get an OPC car that is 1 or 2 years old.

I believe that the overall savings can be quite substantial but I do not know whether the road tax and insurance are cheaper or not. If the latter are, you have further savings.

 

If you need to use your OPC car during weekdays peak hours, it costs you S$20.00 a day.

 

To be honest, most of us car owners including myself do not keep our cars long. When the car is about 5 years, we are contemplating of changing to a newer one.

 

Also for owners that take 7 to 10 years loan for the car, be prepared to lose lots more money. If you are in this category, the more you have to work up your sums. Again, if you have the financial means to pay up the interests and the principal sum loaned, go ahead and buy with your spouse's blessings.

 

 

 

 

 

[Mikeyeo]

Hi Wickham, first of all, work out your family expenses a month to assess whether you have surplus cash to upgrade your current car. If you have, just go ahead but don't stretch your car loan to 7 years. Try to lower to 5 years max.

 

You mentioned that you don't drive to work as your office is in the city, it means that your car is not used in the day time. That being the case, why not consider a new car and register under OPC or get an OPC car that is 1 or 2 years old.

I believe that the overall savings can be quite substantial but I do not know whether the road tax and insurance are cheaper or not. If the latter are, you have further savings.

 

If you need to use your OPC car during weekdays peak hours, it costs you S$20.00 a day.

 

To be honest, most of us car owners including myself do not keep our cars long. When the car is about 5 years, we are contemplating of changing to a newer one.

 

Also for owners that take 7 to 10 years loan for the car, be prepared to lose lots more money. If you are in this category, the more you have to work up your sums. Again, if you have the financial means to pay up the interests and the principal sum loaned, go ahead and buy with your spouse's blessings.

 

[Kelpie]

need expert's advice on my current dilemna - to change my ride or continue with it?

 

come late feb 09, my car will be 5-year old. mileage only at 70,000km. condition still good despite it being hit front and back several years ago.

broke-even about 2 years ago and will get back about $8-10k if i sell the car now.

current downpayment per month = $570, 7-year loan at 1.6%.

stopped driving to work since changed job to city (traffic jams and lack of parking).

only drive on fridays and weekends, and yes, i need a car to get around alot socially.

 

several concerns -

1) should i change my ride cos it's reaching its 5-year mark?

2) will i lose more money if i continue with my ride?

3) is it true that if i sell my car in its 7-8th year, the financial situation remains the same as now?

 

if i were to change my ride, i am planning a relatively "new" used car ie. about 1-year old or less.

i just wanna be prudent and save up for other big-ticket expenses but dun know if keeping my ride is the way to go.

 

i cant seem to find the excel spreadsheet posted a while ago which can tabulate the numbers to address some of my concerns.

it can track how much i get back on a yearly basis.

 

any help is most appreciated. thanks!

 

It also depends what car is yours?

 

Regards

 

[Mikeyeo]

Dear Moderator, I have accidentally posted my article twice but don't know how to delete one. I wish to seek your assistance on this. Thank you.

[Chickensoup]

need expert's advice on my current dilemna - to change my ride or continue with it?

 

come late feb 09, my car will be 5-year old. mileage only at 70,000km. condition still good despite it being hit front and back several years ago.

broke-even about 2 years ago and will get back about $8-10k if i sell the car now.

current downpayment per month = $570, 7-year loan at 1.6%.

stopped driving to work since changed job to city (traffic jams and lack of parking).

only drive on fridays and weekends, and yes, i need a car to get around alot socially.

 

several concerns -

1) should i change my ride cos it's reaching its 5-year mark?

2) will i lose more money if i continue with my ride?

3) is it true that if i sell my car in its 7-8th year, the financial situation remains the same as now?

 

if i were to change my ride, i am planning a relatively "new" used car ie. about 1-year old or less.

i just wanna be prudent and save up for other big-ticket expenses but dun know if keeping my ride is the way to go.

 

i cant seem to find the excel spreadsheet posted a while ago which can tabulate the numbers to address some of my concerns.

it can track how much i get back on a yearly basis.

 

any help is most appreciated. thanks!

The short answer is Keep Your Current Ride.

 

From 5th year mark, you actually lose the least as you are left with paper value + body (3K to 5K). You had already bear the full impact for the 1st 5 years. Since only 70k mileage, just continue......enjoy life.

[Alechi]

Keep ...

But if your salary is 5 digits and higher - carry on

[Bmwcar]

The short answer is Keep Your Current Ride.

 

From 5th year mark, you actually lose the least as you are left with paper value + body (3K to 5K). You had already bear the full impact for the 1st 5 years. Since only 70k mileage, just continue......enjoy life.

 

I agreed with you :)

 

Currently, the export body offered by dealer is damn low :(

[Chickensoup]

I agreed with you :)

 

Currently, the export body offered by dealer is damn low :(

Body price is actually Bonus. Nowadays those with 55% or 50% scrap, the 5th year paper value is very very low.

Take a new Civic 70K with OMV say 16K.

5th year scrap is only 15K thereabouts, body maybe 5K at best. Total 20K.

First 5 years lost 50K and next 5 years only 12K more (Scrap is 8K).

If mileage not so high, better drive on....but the itchy backside factor comes in.

 

So the concept of 5 year must scrap is not true anymore. Last time 80% PARF system, the calculation is different. Scrap 5th year 130% of OMV and COE was very high then.

[Ev0lutionz]

Just keep your ride...

[Route88]

need expert's advice on my current dilemna - to change my ride or continue with it?

 

come late feb 09, my car will be 5-year old. mileage only at 70,000km. condition still good despite it being hit front and back several years ago.

broke-even about 2 years ago and will get back about $8-10k if i sell the car now.

current downpayment per month = $570, 7-year loan at 1.6%.

stopped driving to work since changed job to city (traffic jams and lack of parking).

only drive on fridays and weekends, and yes, i need a car to get around alot socially.

 

several concerns -

1) should i change my ride cos it's reaching its 5-year mark?

2) will i lose more money if i continue with my ride?

3) is it true that if i sell my car in its 7-8th year, the financial situation remains the same as now?

 

if i were to change my ride, i am planning a relatively "new" used car ie. about 1-year old or less.

i just wanna be prudent and save up for other big-ticket expenses but dun know if keeping my ride is the way to go.

 

i cant seem to find the excel spreadsheet posted a while ago which can tabulate the numbers to address some of my concerns.

it can track how much i get back on a yearly basis.

 

any help is most appreciated. thanks!

 

 

 

Your current ride has a low mileage. I would keep it and drive till the car is breathless.

 

 

Economy factor now is at a disadvantage,might not know wat going to happen esp. ur job.

 

Consider the feel good factor,like repaint ur car to make it look new

 

 

[Ghostrider]

need expert's advice on my current dilemna - to change my ride or continue with it?

 

come late feb 09, my car will be 5-year old. mileage only at 70,000km. condition still good despite it being hit front and back several years ago.

broke-even about 2 years ago and will get back about $8-10k if i sell the car now.

current downpayment per month = $570, 7-year loan at 1.6%.

stopped driving to work since changed job to city (traffic jams and lack of parking).

only drive on fridays and weekends, and yes, i need a car to get around alot socially.

 

several concerns -

1) should i change my ride cos it's reaching its 5-year mark?

2) will i lose more money if i continue with my ride?

3) is it true that if i sell my car in its 7-8th year, the financial situation remains the same as now?

 

if i were to change my ride, i am planning a relatively "new" used car ie. about 1-year old or less.

i just wanna be prudent and save up for other big-ticket expenses but dun know if keeping my ride is the way to go.

 

i cant seem to find the excel spreadsheet posted a while ago which can tabulate the numbers to address some of my concerns.

it can track how much i get back on a yearly basis.

 

any help is most appreciated. thanks!

 

Another 2 more years and your loan will be fully redeemed. And with the situation now....you sell now and sell later down the road, its not gonna make a diff.

 

If I was in your situation, I would keep the car and carry on the installment for another 2 years. At least now with your car almost completely redeemed (touch wood) and in case you need to sell your car...at least you know that you will not be in debt as opposed to buying another "new" car that will start your financial committment all over again for 5~7 yrs.

 

Trust me...once you fully redeem your ride and every month you dun need to pay installment....is heaven !! Just pay road tax, insurance & petrol can go liao. Park there also won't waste money....

 

Think of it this way...now you sell you get back 8~10K...keep the car finish the loan...every month you save $500 X 36 = $18000 + scrap value....isn't that better ?

 

[Bmwcar]

I have the same problem to my car.

 

The first 5 years depreciated the most...S$80K down the drain....there goes my hard earn money

Edited January 13, 2009 by Bmwcar