Changing car to solve breakeven issue

[Dualie]

oh.. my assumption is base on, plenty of car need to be scarp in approx 3 years time. thus, we little or no increase in quota. But with the many scrap will result in more COE being available. haha.. it is not for making money, purely to correct my first mistake and not bumbing into another 1.

 

I'm also driving a 2007 car. Just curious what is basis for the above assumption?

When you say profit, U mean no need to top up for your outstanding car loan?

 

My current ride is a Megane. Not the most reliable car around but I've every intention of driving till 10yr.

Unless your estimated repair cost is sky high, I don't see how getting a new car can be advantageous.

You'll lose big in term of depreciation, plus outlay for down-payment, transfer fess...

 

Since you think you're going to have a major repair 3 yrs down the road, it's better to start saving now.

When any repair is needed, it'll not come as a financial shock to you.

Better still, do some preventive maintenance to ensure your car's good condition...

 

 

[Kar_lover]

oh.. my assumption is base on, plenty of car need to be scarp in approx 3 years time. thus, we little or no increase in quota. But with the many scrap will result in more COE being available. haha.. it is not for making money, purely to correct my first mistake and not bumbing into another 1.

 

Yes but all those ppl who scrap their cars will be buying replacement cars at that time as well so there will also be a flood of buyers at that time too. And if (touch wood) govt goes for negative growth then even worse.

[Weewee1976]

Keep the Jazz and standby at least $2k for a brand new CVT. Better choice than getting a 2nd hand Getz.

[Timex1441]

depreciation of the two getz is abt $4300 per yr; depreciation of 2007 jazz is abt $5800 per yr, hence difference of $1500 per yr.

the getz is probably more fuel hungry, n with higher mileage, need to spend more $ on maintenance, so ur $1500 depreciation saving will be negated.

[13177]

If your concern is only on the monthly installment, then whether u are driving what car also not much different.

 

I think selling off Jazz and buy a Getz not a very wise choice. Seriously it is a big downgrade. Maybe you can consider buying newer korean model like Avante or jap brand like Toyota or Mitsubishi.

Edited February 22, 2011 by 13177

[Alvinnoob]

Thanks guys for all the opinion, does make alot of sense to hold and re-look at it 3yrs time.

 

the basis of my assumption is base on, ppl are holding on to their ride longer now. Due to the shortage of COE. Thus this group of people, will most likely scrap and look for a new ride 3yrs down. And if the many de-register COE. More COE will be free up to be bid.

[Jamesc]

I also thot Getz would be a downgrade from a Jazz.

 

However having driven the Getz 1.1 for 4 years,

 

I realise that Getz is really an under rated car.

 

The 1.1 is under powered but is really reliable

 

and maintenance is cheap. FC is about 15 km/l.

 

http://www.carsurvey.org/reviews/hyundai/getz/r84937/

[Nf0rc3r]

With a 20k loan i assume u r using that "Little profit" From selling ur jazz to pay the few k extra upfront first.

That means u r essentially getting no profit to downgrade ur car and move up your breakeven date.

 

Why would u want to do that since ur taking full loan i assume u plan to drive till 10 years no?

[Watwheels]

I think TS wants to break away from the 10yr loan. Whether what car he's getting next is not important. IMO it's not a bad idea since he will be taking a smaller loan presumably in a shorter term. He get to change car again once the short loan is paid up.

[Picanto]

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 !

 

 

have you thought of what will happen if you buy a 2nd hand problematic car? you will end up spending more. sometimes not everything can be counted in dollars and cents.

[Silver_blade]

Agree...in TS's case..better to stick to the current car. If have spare cash in hand...better to redeem part of the outstanding loan. Selling a relatively young car and get a much older used car may create another set of 'problems'.

[Ladykillerz]

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 !

 

it seemed to me that you have a well plan situation.

your Jazz will break-even with that disgusting 10yrs loan. indeed, hard to come by.

 

many ppl, including me, are reluctant to so-called "downgrade" and since you don't mind getting an older car, just go ahead.

anyway, the price for the Getz is so damn worth buying and not as if you are changing from Ferrari to Maserati.

 

just go ahead and do what you see fit.

[Alvinnoob]

With a 20k loan i assume u r using that "Little profit" From selling ur jazz to pay the few k extra upfront first.

That means u r essentially getting no profit to downgrade ur car and move up your breakeven date.

 

Why would u want to do that since ur taking full loan i assume u plan to drive till 10 years no?

 

nope, i've sufficient cash to downpay even more without touching the little profit. just don't wish to part with so much cash. so round down to a 20k loan.

[Alvinnoob]

have you thought of what will happen if you buy a 2nd hand problematic car? you will end up spending more. sometimes not everything can be counted in dollars and cents.

 

This is my biggest concern !!!

 

[Alvinnoob]

Agree...in TS's case..better to stick to the current car. If have spare cash in hand...better to redeem part of the outstanding loan. Selling a relatively young car and get a much older used car may create another set of 'problems'.

 

 

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.

[Alvinnoob]

it seemed to me that you have a well plan situation.

your Jazz will break-even with that disgusting 10yrs loan. indeed, hard to come by.

 

many ppl, including me, are reluctant to so-called "downgrade" and since you don't mind getting an older car, just go ahead.

anyway, the price for the Getz is so damn worth buying and not as if you are changing from Ferrari to Maserati.

 

just go ahead and do what you see fit.

 

YES.. take alot to convince myself to accept it. but biggest worry is chances of a flooded car or problematic. thats why i consider manual only. since they're consist of more mechanical than electronic.

[Mkl22]

If got enuff $$$, just redeem the loan.

 

A lot of time, people like to think can use the cash to generate more income. Only applicable if your return is at least 10%. Car loan is the most horrible loan of all loans.

 

precisely. if there are other more guaranteed ways of making more money by "borrowing" from the car loan. Don't you think the banks would have already done so instead of lending you the money to get such "paltry" returns?

[Ladykillerz]

YES.. take alot to convince myself to accept it. but biggest worry is chances of a flooded car or problematic. thats why i consider manual only. since they're consist of more mechanical than electronic.

 

i think the break-even for that 10yrs loan is more worthy than the wear-and-tear parts.