COE Bidding – 1st Round of April 2019

[Albeniz]

Best is to pay full, in cash.

[ppanamera]

Now the loan interest rate is 2.48 per cent. Which instrument to invest in?

I think can start with finding a cheaper loan.

 

Following that, I value some upside and liquidity more than paying upfront.

 

I do not know what kind of emergency I will have and how much I will need.

 

Apart from ssb, the past few months I am vested in razer, tencent and fb.

[Julian1014]

There is interest rebate and the prerequisite is to get inhouse finance. Your upfront cash can be your emergency fund/investment fund. Vehicle installment can be repay using invesment or salary. Defaulting the loan installment will need to pay the bank around 2k. Why not pay the different of interest for fluidity for the length of the loan?

[Lotr8445r]

Some folk that pay full cash upfront believe that they are smarter & richer?

 

I just feel that none is superior to the other. No time like those folk that pay upfront to calculate this & that, just to see which method is more gain to them.

[Stalk3r]

Some folk that pay full cash upfront believe that they are smarter & richer?

 

I just feel that none is superior to the other. No time like those folk that pay upfront to calculate this & that, just to see which method is more gain to them.

Agree. Each to it's own. Everyone situation is different. Some prefer no liabilities, while some have better opportunity cost than full up front. Sometimes no choice forced by dealer but again, can always walk out.

 

As long happy can liao.

[Club21z]

Ya happy can already.

Pull full cash up front feels shiok debt free.

Loan and keep the cash in bank/investment for savvy one.

See which one u choose. No hard and fast rule.

[freeFacts]

For those who scoff at learning to save, invest and pay in full for liabilities, I say: Don't knock it until you have tried it. Are you able to save that amount? Are you patient and able to budget? Are you able to admit that you cannot afford something?

 

It is a known fact that those with low or no debt make better decisions from having a clearer mind. One is not weighed down with anxiety and worries over what tomorrow brings. I think we will become better and more responsible drivers too if we don't take loan for car.

 

I found myself more relaxed and less kiasu. Give way more and no need to speed and "show who is boss", "teach them a lesson" etc. Less instances of feeling slighted and see-no-up by folks who cut in or park like idiots.

 

Why not take action to change your future by trying to save for the COE at least? Then monitor yourself if you are willing to dump that full amount for a basic car. Maybe you will think twice and go for a fully-paid used car instead. Both ways you come out better and grow as a rational, responsible working adult citizen, right? Can't lose.

[GTO-1]

For those who scoff at learning to save, invest and pay in full for liabilities, I say: Don't knock it until you have tried it. Are you able to save that amount? Are you patient and able to budget? Are you able to admit that you cannot afford something?

 

It is a known fact that those with low or no debt make better decisions from having a clearer mind. One is not weighed down with anxiety and worries over what tomorrow brings. I think we will become better and more responsible drivers too if we don't take loan for car.

 

I found myself more relaxed and less kiasu. Give way more and no need to speed and "show who is boss", "teach them a lesson" etc. Less instances of feeling slighted and see-no-up by folks who cut in or park like idiots.

 

Why not take action to change your future by trying to save for the COE at least? Then monitor yourself if you are willing to dump that full amount for a basic car. Maybe you will think twice and go for a fully-paid used car instead. Both ways you come out better and grow as a rational, responsible working adult citizen, right? Can't lose.

100% agree with your sentiments, but everyone is different. I know people that take the stance that "no need to save, gahmen save for us". And you know what? They are right via CPF.

 

I also know that rich people also take on liabilities very deliberately. In other words you can't get rich by not taking on debt. Sure, they probably aren't using that liability on a car, but all debt isn't bad debt.

 

I'm in the former though. I prefer not taking on debt, because I'm risk adverse. But that also is probably part of the reason I'm not rich. Also, it's ironic is that if you don't take on debt you can't have a credit rating - so you can't get loans approved.

Edited April 8, 2019 by GTO-1

[BanCoe]

now buy Cat E sure huat .......... I wish it go up high high , so that i can sell my car

What u going to do with cash ?? Buy Cat E open cat car?? Or put in FD

[RogerNg_185295]

Its not possible not to take on debts at life certain stages. Buying a flat, condo, landed house need to some of leverage financing. Even a basic BTO flat can see people take on loan of more than 20 years.

 

Once you lose the job or kena retrenched, the consequences is damm serious. With HDB loan, there is room for negotiation. With banks, its quite difficult.

100% agree with your sentiments, but everyone is different. I know people that take the stance that "no need to save, gahmen save for us". And you know what? They are right via CPF.

I also know that rich people also take on liabilities very deliberately. In other words you can't get rich by not taking on debt. Sure, they probably aren't using that liability on a car, but all debt isn't bad debt.

I'm in the former though. I prefer not taking on debt, because I'm risk adverse. But that also is probably part of the reason I'm not rich. Also, it's ironic is that if you don't take on debt you can't have a credit rating - so you can't get loans approved.

 

[Stalk3r]

100% agree with your sentiments, but everyone is different. I know people that take the stance that "no need to save, gahmen save for us". And you know what? They are right via CPF.

 

I also know that rich people also take on liabilities very deliberately. In other words you can't get rich by not taking on debt. Sure, they probably aren't using that liability on a car, but all debt isn't bad debt.

 

I'm in the former though. I prefer not taking on debt, because I'm risk adverse. But that also is probably part of the reason I'm not rich. Also, it's ironic is that if you don't take on debt you can't have a credit rating - so you can't get loans approved.

Then it becomes a qns of whether its a liability that we can manage. But anyways, out of topic.

 

My 2 cents is if we die die need a car and can afford it (in procuring and maintaining), anytime is a good time to buy. Because we will die if don't have.

 

Otherwise we make do with alternatives.

 

I think trying to understand the market is like telling everyone I know what my other half is thinking all the time. Next to impossible.

 

Although, market forces follow a very basic demand and supply principle, market is also irrational.

Edited April 8, 2019 by Stalk3r

[Fitmugen]

I don’t know what kind of investments pay more than effective car interest rate, and no need to monitor one. S$ fixed deposit only 1.7%? So also dunno what kind of opportunity costs if don’t pay car in full

[freeFacts]

Having been retrenched couple of times before, I was glad I had the self-control to save and have the patience to put aside part of that savings towards the buy-car fund. The dividends from stocks help too, and its obvious also that when one is retrenched, the economy is lousy, and stocks are cheaper. Go figure.

 

Learning the self-control, budgeting and planning required to save the full price of a COE is a good way to reach for a target.

 

I am nearing 55 already and have lost count of the times people tell me they take high car loan because they rather have the lump sum to "invest". I think it is best to invest in yourself by learning to save towards a goal.

 

I am not saying don't buy new car. I am suggesting the best way forward is to learn to budget and save and invest. Learn to delay instant gratification so that you can get better life and better things a little later.

[freeFacts]

100% agree with your sentiments, but everyone is different. I know people that take the stance that "no need to save, gahmen save for us". And you know what? They are right via CPF.

 

I also know that rich people also take on liabilities very deliberately. In other words you can't get rich by not taking on debt. Sure, they probably aren't using that liability on a car, but all debt isn't bad debt.

 

I'm in the former though. I prefer not taking on debt, because I'm risk adverse. But that also is probably part of the reason I'm not rich. Also, it's ironic is that if you don't take on debt you can't have a credit rating - so you can't get loans approved.

 

New cars are absolute liabilities. Rich people take on debt to buy capital goods, commercial properties, plant equipment and intellectual property. Those are appreciating, revenue-generating goods. Not liabilities.

 

New cars, especially with the COE tax, is a noose, if one is stretching too much to service the loan and hoping to gain status and prestige. Don't try to look rich. Be rich.

I don’t know what kind of investments pay more than effective car interest rate, and no need to monitor one. S$ fixed deposit only 1.7%? So also dunno what kind of opportunity costs if don’t pay car in full

 

Start with saving the full sum of the COE. Have you done so? What have you learned about your spending habits?

 

The COE is a tax, so do not borrow money to pay a tax. You are double screwing yourself.

[Fitmugen]

Having been retrenched couple of times before, I was glad I had the self-control to save and have the patience to put aside part of that savings towards the buy-car fund. The dividends from stocks help too, and its obvious also that when one is retrenched, the economy is lousy, and stocks are cheaper. Go figure.

 

Learning the self-control, budgeting and planning required to save the full price of a COE is a good way to reach for a target.

 

I am nearing 55 already and have lost count of the times people tell me they take high car loan because they rather have the lump sum to "invest". I think it is best to invest in yourself by learning to save towards a goal.

 

I am not saying don't buy new car. I am suggesting the best way forward is to learn to budget and save and invest. Learn to delay instant gratification so that you can get better life and better things a little later.

Agree fully bro. I also got people (esp insurance people) tell me aiyo why pay down your property or car loan. Invest easily get 4% return. I’m like... invest what har? The only bao jiak 6% return one I know is Hyflux...oops

[Mkl22]

New cars are absolute liabilities. Rich people take on debt to buy capital goods, commercial properties, plant equipment and intellectual property. Those are appreciating, revenue-generating goods. Not liabilities.

 

New cars, especially with the COE tax, is a noose, if one is stretching too much to service the loan and hoping to gain status and prestige. Don't try to look rich. Be rich.

 

 

Start with saving the full sum of the COE. Have you done so? What have you learned about your spending habits?

 

The COE is a tax, so do not borrow money to pay a tax. You are double screwing yourself.

Not all bad buying a new car. You present a biased view. At almost rock bottom depreciation of a coe car is approx 4K. A new Jazz was approx 6k. For the extra 2k a year buys you some fuel savings and maintenance hassles.

[TeamAMG69]

Haha agree fully buddy.

In SG, you drive for max 45 minutes at one go, how luxury and comfortable also no point. By the way, Merc and BM are the cars with most sales. Why bother buying and driving such common cars.

 

P.S. I am not salty. I drive a new Toyota with no loan. Want to buy any conti also no issue

 

conti cars - means diff things to diff people, 

 

VW, Seat Skoda - are also conti cars

 

SEAT Toledo - SGD $75,999 - i think many MCF owners also can pay cash

 

RR, Lambo, AM, Porky - are also conti cars - if you really pay cash - i salute you 

Tecnically the RSI, Stochastics and Macd etc are indicating bullish momentum.

 

Fundamentally, the LTA's announced reduction in coe supply is causing inequilibrium given better demand, blah blah, blah.

 

There are always bound to be differing views by different buying segments.

 

However the golden rule remains:- "The market is never wrong" 

 

 

[TeamAMG69]

Need to take maximum loan to extend warranty to 5 years and enjoy "free" servicing for 5 years. I did not negotiate further as I went a few doors away to buy from a competitor.

 

this is FAKE NEWS given by AD

 

who is your BMW SE? I can recommend you my (aka i not BMW SE), but i can go with you into BMW, Merc showroom, 

 

if you are really sincere and have ready cheque, i can guarantee you all these "min loan amt" / years can all be NEG

 

ps: (depending on model and price, based on what i know, Merc AMG, 100K loan over 1 yr) - you can still enjoy all the overtrade discount, roadshow special, etc

 

for BMW, say 3 Series, my guess you can do the same even for non M series, take for example 50K on a 3 series, over 1 year, can be done also, but the SE must be really hungry to close for you.