Changing car to solve breakeven issue

[Alvinnoob]

Car.xls

 

Anyway, wanna share this spreadsheet. took it from a bro, and made some changes.

[Wie]

Haha, that's what I was thinking too, My current avante about 2 yrs old.. Was thinking to sell it and just top up 8k to get a older car so no installment issue in future. But my gf say me crazy... Lol

[Picanto]

This is my biggest concern !!!

 

Take no action at all. continue to drive the same car. then you will have less worries. stop thinking about dollars and cents

[Kar_lover]

yes, main intention to get out of 10yrs loan.. which i've been seeking for ways since 2 yrs back. banks use to do refinance service. but they no longer do it when i last check 2yrs ago.

 

Just for your info, when you "get out" of ur 10yr loan there is still a rule 78 and admin fees etc. so u may not be "getting out of it" very much anyway.

[Alvinnoob]

hahaa.. yeh, know about that

[Kar_lover]

Hi TS

 

As expected, yesterday COE exercise gone up significantly. Dats why i told you the few recent drops in COE was a market correction of the extremely high Dec exercise. COEs will not be dropping much in the future and more likely to say or go up.

 

The resale value of your car is safe.

 

 

[Whitecvt]

Hi Guys,

back in 2007, i've purchase a Jazz 1.4 CVT, with a 10yrs loan. Base on scrap value, i'm only able to breakeven in August 2015. But currently i'm able to sell off with little profit.

 

Am considering to change to a 2nd hand Getz. With a 20k 4yr loan, breakeven with little over 2yr. And for the fact that this is a manual ride, chances there would be little problem on the gear box. any opinion on this? or any current or ex driver of getz? how is the ride and FC?

 

http://www.sgcarmart.com/used_cars/info.ph...259&DL=1420

http://www.sgcarmart.com/used_cars/info.ph...254&DL=1420

 

thank you !

 

Financially, i'd say go for it -though you didnt say how much you could profit.

my friend also just sold his 2 yr avante for a 10k profit (bought 45, sold 55k) and changed to a 5 yr old Mark X for 'free'

 

iF you dont mind driving a Getz (yes its somewhat of a downgrade, underrated car nevertheless) then by all means..

the 1.6 is pretty powerful though. parts are cheap(er).

[Mattjoe]

I used to drive getz. Keep yr car- or else change to a jap car. It't not fuel efficient, so at today's petrol price you will end up paying a lot more. Also insurance for this car is high. So while price is lower, running cost is higher. Also car has no power going up slope.

[13177]

I used to drive getz. Keep yr car- or else change to a jap car. It't not fuel efficient, so at today's petrol price you will end up paying a lot more. Also insurance for this car is high. So while price is lower, running cost is higher. Also car has no power going up slope.

How come the insurance is higher for Getz?

[Alvinnoob]

Hi Guys, thanks for all the feedback. I've decided to keep Jazz. And upgrade to some other ride if a suitable pop on the carmart. but no idea yet.. what is an excutive ride

[Chelsea901]

Hi Guys, thanks for all the feedback. I've decided to keep Jazz. And upgrade to some other ride if a suitable pop on the carmart. but no idea yet.. what is an excutive ride

 

it is those working as an excutive. btw, if you wanna upgrade, you might wanna check out on civic or altis.

Edited February 25, 2011 by Chelsea901

[Alvinnoob]

Am looking at crossroad or edix. But leaning towards crossroad since the other had eol. But the prices now seem crazy !!

[13177]

Am looking at crossroad or edix. But leaning towards crossroad since the other had eol. But the prices now seem crazy !!

Crossrd seems better than edix, in terms of design.

[Caravan]

Financially, i'd say go for it -though you didnt say how much you could profit.

my friend also just sold his 2 yr avante for a 10k profit (bought 45, sold 55k) and changed to a 5 yr old Mark X for 'free'

 

That's paying more for depreciation/year actually.

[Noobdriver]

erm...anyone mind explaining to me what does breakeven of a car means?

 

Means if sell car then no need to top up cash?

[The_Bear]

erm...anyone mind explaining to me what does breakeven of a car means?

 

Means if sell car then no need to top up cash?

 

Breakeven means you sell at the price you bought having not lost any money in the car over a period of time.

 

i.e you bought the car at $100,000. 3 years later, you sell it for $100,000. Breakeven

 

But if you have taken a loan and there are interest incurred, you breakeven point will be higher.

 

i.e you bought the car at $100,000 but took a loan of $50,000 @ 2% for 6 years. Interest charges will be $6,000. Therefore, you pay $106,000 for the car. You'll need to sell at $106,000 to breakeven. If the loan was $90,000@2% for 10 years, then the new breakeven point will be $118,000.

 

This breakeven is nearly impossible to achieve except when the COE rises sharply as we see in the last 2 years.

 

Then there is financing breakeven. It refers to the breakeven point of car value against the outstanding loan amount. At this point the car's market value is equal to the outstanding financing amount and the car can be sold off without having to pay additional money to the financing institute. All cars reach their financing breakeven point sooner or later.

[Noobdriver]

Breakeven means you sell at the price you bought having not lost any money in the car over a period of time.

 

i.e you bought the car at $100,000. 3 years later, you sell it for $100,000. Breakeven

 

But if you have taken a loan and there are interest incurred, you breakeven point will be higher.

 

i.e you bought the car at $100,000 but took a loan of $50,000 @ 2% for 6 years. Interest charges will be $6,000. Therefore, you pay $106,000 for the car. You'll need to sell at $106,000 to breakeven. If the loan was $90,000@2% for 10 years, then the new breakeven point will be $118,000.

 

This breakeven is nearly impossible to achieve except when the COE rises sharply as we see in the last 2 years.

 

Then there is financing breakeven. It refers to the breakeven point of car value against the outstanding loan amount. At this point the car's market value is equal to the outstanding financing amount and the car can be sold off without having to pay additional money to the financing institute. All cars reach their financing breakeven point sooner or later.

 

Thks for the clear explanation!

[Good-Carbuyer]

Hi Guys,

back in 2007, i've purchase a Jazz 1.4 CVT, with a 10yrs loan. Base on scrap value, i'm only able to breakeven in August 2015. But currently i'm able to sell off with little profit.

 

Am considering to change to a 2nd hand Getz. With a 20k 4yr loan, breakeven with little over 2yr. And for the fact that this is a manual ride, chances there would be little problem on the gear box. any opinion on this? or any current or ex driver of getz? how is the ride and FC?

 

http://www.sgcarmart.com/used_cars/info.ph...259&DL=1420

http://www.sgcarmart.com/used_cars/info.ph...254&DL=1420

 

thank you !

I believe cars value depreciate with time. If there is such unique profit-making opportunity, take profit. Just be sure that the profit margin is around the peak, if you can.