Jump to content

Gimmicks?


Dowz
 Share

Recommended Posts

Just wondering, i see on the newpapers, many ads like

 

'drive a bmw, only 303 per month' like the advertisement on today's straits times

or an audit ' at 200+ per month'

 

what gives? what's the catch?

 

and the ads are by the ADs.

 

anyone knows?

↡ Advertisement
Link to post
Share on other sites

The first thing that came to my mind is this

 

If you want to pay low installments monthly, you would have to make a huge downpayment in the first place. Any other things, check with the SE

Link to post
Share on other sites

The easiest way to call the SE and ask. Since I am not buying bmw or audi, so don't bother...

 

But, what cross my mind is: Make a down payment (eg 40%), pay only interest for 1st 2 yrs (in this case $200- $300 per mth), then pay interest and principal from 3rd yr onward. So if you planing to change car 2 yrs later and use it to offset the balance, it could be quite a good deal. (Just my own guess [:/] )

Link to post
Share on other sites

mark up the car price, set it as discount for you upfront or work the discount to offset the monthly installment for 1st year.. there's plenty of way to skin a cat...

 

then there's also T&C. a car that cost 150k will cost 150k, no matter what. you will have to pay that amount + interest.

Link to post
Share on other sites

My best guess is that the minimum loan is around 30k.... add the interest then divide by 120 months (the max load period of 10 years), you get monthly repayments of $300+

Link to post
Share on other sites

Turbocharged

Just wondering, i see on the newpapers, many ads like

 

'drive a bmw, only 303 per month' like the advertisement on today's straits times

or an audit ' at 200+ per month'

 

what gives? what's the catch?

 

and the ads are by the ADs.

 

anyone knows?

 

 

u bother to digest it?.. seriously, i never bother to ... .....as some pointed out, when a car cost 100K, the buyer have to fork out the 100K + interest somehow over the years....... it's just a matter of now or later... so, if one is thinking he could drive a BMW or Audi with just ~$200-300 per mth, even for 10yrs loan and wondering is it a zero down payment deal, he is not from this small dot or "living in a wonderland" or simply naive.... [laugh]

Link to post
Share on other sites

My best guess is that the minimum loan is around 30k.... add the interest then divide by 120 months (the max load period of 10 years), you get monthly repayments of $300+

 

Nope - to qualify for these schemes, they want you to put as little down as possible and borrow as long as possible...

 

It's just how they play with the "discount" that they give to the buyers...

 

Instead of giving it straight to the buyer (usually as overtrade), they spread it over the first year to enable marginal buyers to pay very low instalments...

 

In the past, BMW also used balloon instalments which step up very rapidly after the first year...

 

In the end, there's no first lunch [:(]

Link to post
Share on other sites

Neutral Newbie

Always believe there's no free lunch, period.

Most probably need u to take 10 yr loan and only enjoy low instalments for the first or maybe 2nd year, then the rest of the years you have to pay more to cover up the remaining loan. When I say "more", it means more in terms of instalments as well as interest accumulated by the remaining high outstanding loan.

 

Really no free lunch, just marketing gimmick. In fact, you end up paying more in total as compared to normal loans, due to the interest charged on the ballooned outstanding loan still unpaid.

Edited by Dunno
Link to post
Share on other sites

i see, thanks brudders.

 

just wondering how is it possible for 300+ p.m for a BMW. if so, all fresh graduates can get a beemer already. :D

Link to post
Share on other sites

i see, thanks brudders.

 

just wondering how is it possible for 300+ p.m for a BMW. if so, all fresh graduates can get a beemer already. :D

 

No need fresh grad, anyone who wants to own a car can buy beemer [bounce2]

Link to post
Share on other sites

What???

How come they never offer such a good loan del like this in Feb when I was buying my BMW.

THis low monthly payment is very good for me as I just start work.

I can save more each month and can go holiday and eat better.

Current car loan is squeezing me by the throat....have to depend on my BF for many essential things when we go out dating!

 

Link to post
Share on other sites

What???

How come they never offer such a good loan del like this in Feb when I was buying my BMW.

THis low monthly payment is very good for me as I just start work.

I can save more each month and can go holiday and eat better.

Current car loan is squeezing me by the throat....have to depend on my BF for many essential things when we go out dating!

 

didn't know you are so open and gay about it [confused]

Link to post
Share on other sites

Neutral Newbie

There's a saying, "the only free lunch in the world is at the end of a hook".

 

Like what everyone else said, the car will ultimately cost you more than S$120k, no matter how you try to slice it. Everyone knows that such an arrangement that allows you to pay very little now is going to cost you big time in the long run (in terms of interest paid). So this gimmick is really targeting those who are very desperate to get their dream car, or very optimistic about their future earning power.

 

Most experienced bros in this forum will tell those buyers "not to chew off more than you can bite".

↡ Advertisement
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...