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Strategies on buying used car


Cook1234
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I am from NY

33

15 year

manager

5,000-7,000$

I think that a lot

For driving pleasure

sedan, sport car, coupe

Thanks for the reply.

This forum is based in Singapore.

 

I think to buy a pre-owned car in the states is pretty easy with USD15,000.

 

Probably you can do some research via Google.

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Hi Bro! [thumbsup]

What is the best used car, you can buy under 15000$?

 

 

In Singapore, the best used car you can buy under $15000 are 9+ year old entry level cars such as Toyota Vios, Honda Civic, etc. Personally, I recommend Honda Civic.

 

However, the car’s COE (i.e. rights to own a car) will expire when the car reaches its 10-year mark. To continue driving it, you need to pay another (currently) approximately $30k for the rights to drive the car for another 10 years.

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In Singapore, the best used car you can buy under $15000 are 9+ year old entry level cars such as Toyota Vios, Honda Civic, etc. Personally, I recommend Honda Civic.

 

However, the car’s COE (i.e. rights to own a car) will expire when the car reaches its 10-year mark. To continue driving it, you need to pay another (currently) approximately $30k for the rights to drive the car for another 10 years.

 

He's from the USA.

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The sales person only takes few hundred dollars out of the loan amount. 
Not a lot lah.

Only about 1% average.
That is commission from the finance company. Not from your pocket.

From your pocket is the sales price of the car and if you trade in , the traded in price of your old car.

That is much more  substantial than from the finance companies'

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In Singapore, the best used car you can buy under $15000 are 9+ year old entry level cars such as Toyota Vios, Honda Civic, etc. Personally, I recommend Honda Civic.

 

However, the car’s COE (i.e. rights to own a car) will expire when the car reaches its 10-year mark. To continue driving it, you need to pay another (currently) approximately $30k for the rights to drive the car for another 10 years.

Hey Bro! I found a similar car.Thinking about buying. https://incacar.com/used/cars/chevrolet/corvette/2002-Chevrolet-Corvette-425763/ What is your opinion?

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Hi I would like to ask u guulys since I'm new at buying a coe car. Is it true if we overloan because I took 100% loan so they need to minus off the 30% than base on the 70% loan approve they going to charge us some kind of a tax. Example I bought a car at 32800 they mark up till 49k than they minus the difference and charge me 18% tax. They said to pay for income tax or what. Not for GST. they said their company is not GST registered. Very confusing.

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this is why "overloan" is a dumb strategy

Basically the dealer is charging you a tax because he can because you don't have enough money to buy the car you want. 

 

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Hi I would like to ask u guulys since I'm new at buying a coe car. Is it true if we overloan because I took 100% loan so they need to minus off the 30% than base on the 70% loan approve they going to charge us some kind of a tax. Example I bought a car at 32800 they mark up till 49k than they minus the difference and charge me 18% tax. They said to pay for income tax or what. Not for GST. they said their company is not GST registered. Very confusing.

 

its illegal... what you described is money laundering.. albeit at a small scale

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OK but they didn't mention all this when the loan approve already. They only mention after the loan approve said they calculate wrongly after I put another $1500 deposit. What should I do to get the deposit back? I already pay 2k. I'm new at buying a car. This is my first car. I wanted to buy a coe car as the coe is affordable now. Ended up I need to pay more to the dealer instead. They said can put it in the loan. Than my monthly installment will go higher.

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OK but they didn't mention all this when the loan approve already. They only mention after the loan approve said they calculate wrongly after I put another $1500 deposit. What should I do to get the deposit back? I already pay 2k. I'm new at buying a car. This is my first car. I wanted to buy a coe car as the coe is affordable now. Ended up I need to pay more to the dealer instead. They said can put it in the loan. Than my monthly installment will go higher.

Who are they?
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Hi I would like to ask u guulys since I'm new at buying a coe car. Is it true if we overloan because I took 100% loan so they need to minus off the 30% than base on the 70% loan approve they going to charge us some kind of a tax. Example I bought a car at 32800 they mark up till 49k than they minus the difference and charge me 18% tax. They said to pay for income tax or what. Not for GST. they said their company is not GST registered. Very confusing.

Regardless the type of loan, all the operating expenses including tax and duties should have been included in the price except GST. They should not do this trick to you just because you are new in buying car.
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OK but they didn't mention all this when the loan approve already. They only mention after the loan approve said they calculate wrongly after I put another $1500 deposit. What should I do to get the deposit back? I already pay 2k. I'm new at buying a car. This is my first car. I wanted to buy a coe car as the coe is affordable now. Ended up I need to pay more to the dealer instead. They said can put it in the loan. Than my monthly installment will go higher.

You should not pay more than what you have been quoted initially. Tell them you wont pay, they have to honor their price and they go find their own way to absorb their shortfall if any. In fact they have probably over inflated the sell price to some extent but this is not the point here.

So one way is to get them stick to the price.

Second is tell them to pay you back your money since they could not honor their price. Dont allow them to tell you penalties, if any, they should be the one paying you penalties.

If you are prepared to give in, the amount has to be substantially small and make sure they will.notgive you further stunt once agreed.

Watch out for tricks like you have to pay admin fee, top up road tax etc etc.

How much extra are they asking you to pay anyway?

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Hi I would like to ask u guulys since I'm new at buying a coe car. Is it true if we overloan because I took 100% loan so they need to minus off the 30% than base on the 70% loan approve they going to charge us some kind of a tax. Example I bought a car at 32800 they mark up till 49k than they minus the difference and charge me 18% tax. They said to pay for income tax or what. Not for GST. they said their company is not GST registered. Very confusing.

 

I don't know whether I interpret it correctly

I think the dealer is try to tell you this.

 

Revenue is based on car selling price.. Suppose to be $32.8K. However due to 100% loan, they need to hike it to $49K.

For the difference, $16.2K, their revenue (sales) in their accounting is increased by additional $16.2K.

 

Based on accounting, with increase in revenue/sales and cost & etc remains the same, they will need to pay additional corporate tax on the component ($16.2k).

Hence, will be need to impose the corporate tax percentage X $16.2K on you.

 

This is what I guess.

But corporate tax should be 17%, if I am not wrong.

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OK but they didn't mention all this when the loan approve already. They only mention after the loan approve said they calculate wrongly after I put another $1500 deposit. What should I do to get the deposit back? I already pay 2k. I'm new at buying a car. This is my first car. I wanted to buy a coe car as the coe is affordable now. Ended up I need to pay more to the dealer instead. They said can put it in the loan. Than my monthly installment will go higher.

 

They calculate wrongly their problem. You only need to pay what is stated in the contract. If there is a shortfall, either they refund you and cancel the deal or they top up themselves.

 

Also it's a COE car, why take 100% loan?

 

Edited by Jammy_buttons
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Ya u are correct its 17% tax dont know what tax. They said not GST but most car dealer dont do such things. First Tine i heard.@MCFmrhonda

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@JCSL

 

I think the above MCFer may be able to help you. 

 

Iirc correctly, the tax is the income tax payable by the company due to the inflated sale amount.

 

Because though they sell you at xx amount but they have to declare xx + overtrade amount to bank and this also means under revenue, they have to declare as xx+overtrade income 

 

but the 17% should be on the overtrade amount rather than full amount

 

Corporate Tax Rates

With effect from Year of Assessment 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.

Year of Assessment (YA)

Tax Rate

From 2010

17%

2008 to 2009

18%

2005 to 2007

20%

 

https://www.iras.gov.sg/irashome/Businesses/Companies/Learning-the-basics-of-Corporate-Income-Tax/Corporate-Tax-Rates--Corporate-Income-Tax-Rebates--Tax-Exemption-Schemes-and-SME-Cash-Grant/

Edited by Galantspeedz
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