Worth it to sell 5 year old car (with high COE) and buy new

[Heartlander]

This is a more viable option for someone who die die want to own a car yet can't afford or don't want to make a down payment for the car.

 

I don't see why renting a car is cheaper than buying a slightly used car still under warranty, especially for B&B cars.

 

Maybe I'm missing out something, but can enlighten me on this?

Ok let me elighten you.

 

If you want to buy a car, either brand new or 2 to 3 years old, how are you going to pay for it? The loan will be substantial. For those without substantial saving, how are you going to get a loan from bank to repay monthly?

 

With this PHV lobang, what you need is only $500 bucks.

 

Th entrance to owning a reasonably new, or brand new by paying a bit more with contract, to owning a B&B car has been lowered to only $500. It is not about cheaper.

Edited July 25, 2019 by Heartlander

[13177]

Many people no need substantial saving, they depend on monthly salary to repay the installment. Bank also dont know whether you have saving or not and still approve the loan if you meet the requirements. 

[car50]

This has been debated many times over in different threads here

Needs vs Wants, affordability and convenience

Everyone has different priorities in life

 

For those of us who started by taking buses and saving ultimately to get a tiny car for either needs or wants, maybe we appreciate a little more the joy of owning a car 

 

 

 

 

If not for school run between daycare - pri sch - workplace, i would not have bought car. This is currently only the 2nd car I owned in 20 years... first one was a cheap 1 year COE left type and i had nearly 20 year gap. The Grab/Uber revolution really changed peak hour taxi... ya its not cheap but still cheaper than driving.

As a single, hdb was always bigger priority. Then with young family taxi was just fine especially once Grab/Uber arrive. When I see young 20-something buy car before house i shake my head... just coz its more within reach doesnt mean its a good destination for ur $$$. If u put those installments into a saving plan instead of a car u would be $100-150k better off at end of 10 years. Just a bit inconvenience for that amount of money? Damn worth it.

sorry lah i uncle.

 

[Heartlander]

Many people no need substantial saving, they depend on monthly salary to repay the installment. Bank also dont know whether you have saving or not and still approve the loan if you meet the requirements.

Apply car loan need employment details right? For those PHV drivers, not sure banks will approve such loan or not. When i tried to sell my previous ride, 1 of the Quotes car dealer told me he buying for PHV driver and the deal is dependent on whether bank will approve the loan or not. I never check with bank so no know.

 

But what the PHV lobang offers is certainty of cars, peace of mind no need to worry about normal mundane aspects of car ownership. What is more, you can upgrade to newer car now and then after the contract, if there is, and the rates remain attractive. I will envy leh, new car to drive every year or 2. Or can change different cars frequently just to experience them.

Edited July 25, 2019 by Heartlander

[ferrytales]

Ok let me elighten you.

 

If you want to buy a car, either brand new or 2 to 3 years old, how are you going to pay for it? The loan will be substantial. For those without substantial saving, how are you going to get a loan from bank to repay monthly?

 

With this PHV lobang, what you need is only $500 bucks.

 

Th entrance to owning a reasonably new, or brand new by paying a bit more with contract, to owning a B&B car has been lowered to only $500. It is not about cheaper.

Lol another flawed argument, let's just take a simple car of 75k for avante s as an example, depreciation is around 6.8k as parf value is 7.3k. Worse case scenario of 30% dp, 70% loan for 7 years which will effectively wipe out your parf value. Depreciation is now at 7.5k annually.

 

Rent an avante s at maybe 50/day, 1 year u burn 18k and 10 years u burn 180k.

 

You can buy more than 2 avante at this price even if you factor in insurance/loan/maintenance.

Edited July 26, 2019 by ferrytales

[Roh96]

For a person whose backside will itch every 2 years, renting a car could be better.

He can burn $180K in 10yrs but able to try say 5 models (one model every 2 yr).

You try changing 5 cars in 10 yrs and see how much it cost you.

 

Lol another flawed argument, let's just take a simple car of 75k for avante s as an example, depreciation is around 6.8k as parf value is 7.3k. Worse case scenario of 30% dp, 70% loan for 7 years which will effectively wipe out your parf value. Depreciation is now at 7.5k annually.

Rent an avante s at maybe 50/day, 1 year u burn 18k and 10 years u burn 180k.

You can buy more than 2 avante at this price even if you factor in insurance/loan/maintenance.

 

[Heartlander]

Lol another flawed argument, let's just take a simple car of 75k for avante s as an example, depreciation is around 6.8k as parf value is 7.3k. Worse case scenario of 30% dp, 70% loan for 7 years which will effectively wipe out your parf value. Depreciation is now at 7.5k annually.

 

Rent an avante s at maybe 50/day, 1 year u burn 18k and 10 years u burn 180k.

 

You can buy more than 2 avante at this price even if you factor in insurance/loan/maintenance.

You have grossly twisted what I put down. Did I claim this PHV option as the cheapest method to own a car?

 

I merely state that anyone without a job can own a car, brand new or 2 to 3 years old with and without contract, nowadays with just $500 cash for downpayment. No need to fork out money to pay loan or road tax or insurance or servicing, no need to worry about repair or tear-and-wear parts, etc.

 

This group of people normally are written off when it comes to owning a car as who having a good mind will buy one when he is out of job?

 

Sure the person is paying more, but in return there are some pros:

- no need to worry about car itself ( this is important because everything about car is not cheap be it servicing or repair, and good for those car newbies who are clueless )

- can terminate the ownership anytime if no contract, or after the 1 yr or 2 yr contract entered ( if you sell the car you buy, you will suffer huge loss, and no need to face the stress of car loan if health got issues etc)

 - can try out different cars now and then

- can always drive relatively new cars ( if buy car, will feel sian after 2 years for most people)

 

Look at it from another angle:

If the PHV driver decides just to work extra 1 to 2hrs/day to earn $20 more:

in a month --> $600

in a year --> $7.2k

in 10 years --> $72k

Almost enough to buy another Avante!

 

So what I state here is that just by working 1 to 2 hr longer per day, the PHV driver can enjoy the benefits of above. 

 

Actually with this PHV concept, a car is no longer a depreciating asset that all of us have, but a goose that lay golden eggs. Just depend on how hard working the person is.

 

Anyway I am not going to waste any more time replying this type of postings. I am very free curently as stuck at home for this week so got time to entertain. Cheers.

[Theoldjaffa]

Lol another flawed argument, let's just take a simple car of 75k for avante s as an example, depreciation is around 6.8k as parf value is 7.3k. Worse case scenario of 30% dp, 70% loan for 7 years which will effectively wipe out your parf value. Depreciation is now at 7.5k annually.

 

Rent an avante s at maybe 50/day, 1 year u burn 18k and 10 years u burn 180k.

 

You can buy more than 2 avante at this price even if you factor in insurance/loan/maintenance.

U go read heartlander's post properly can

[Jamesc]

Thank you to many old birds praise my post, 35 praise points. I am just stating wat is facts! Luckily many old birds support and appreciate. I think in life all is base on "Logic" and be realistic! We all must understand "there is no free lunch in this world, at least very very rare, not many", also no such thing as want to buy cheap and sell high! There is a "market" for everything unless your "product" is very outstanding with some triumph ace card! Cheap fast good -> only can choose 2 of the 3.

 

The fact is if the ADs car agents here are not selling enough to fullfill their quota commitment den prices will drop to compensate. If they are selling enough den price will maintain. If selling a lot den price won't be cheap. Once again, is "Logic" demand vs supply.

 

Hope car prices remain affordable, COE remain affordable so the economy can sustain!

 

Regards!

Stop calling us old birds.

 

There are some mei meis in the forum.

 

We want to be known as young at heart old birds.

 

Thank you.

 

For a person whose backside will itch every 2 years, renting a car could be better.

He can burn $180K in 10yrs but able to try say 5 models (one model every 2 yr).

You try changing 5 cars in 10 yrs and see how much it cost you.

And for those itchy all over my suggestion is a nice sports car to attract the young ladies.

 

[sammi91]

End of the day it’s what people willing to fork out for what they’re getting.. very subjective one leh

[Wolverine23]

One more point. Brand new car technology makes it a much better drive feel!

[Hamburger]

One more point. Brand new car technology makes it a much better drive feel!

It depends. 

 

Chasis dynamic has not evolve much and a good handling car of a decade old would still drive like a charm. 

 

Safety's spect, yes. Especially the frontal collision that is a genius invention. 

[Mkl22]

Lol another flawed argument, let's just take a simple car of 75k for avante s as an example, depreciation is around 6.8k as parf value is 7.3k. Worse case scenario of 30% dp, 70% loan for 7 years which will effectively wipe out your parf value. Depreciation is now at 7.5k annually.

 

Rent an avante s at maybe 50/day, 1 year u burn 18k and 10 years u burn 180k.

 

You can buy more than 2 avante at this price even if you factor in insurance/loan/maintenance.

Aiyo lots of stupid people who pay more then!!! Thank you for your enlightenment.

Failed to see things from all angles.

 

Hmm.... reminds me of our govt.

[BenTong]

PHV felali I want

[Vinceng]

Lol another flawed argument, let's just take a simple car of 75k for avante s as an example, depreciation is around 6.8k as parf value is 7.3k. Worse case scenario of 30% dp, 70% loan for 7 years which will effectively wipe out your parf value. Depreciation is now at 7.5k annually.

 

Rent an avante s at maybe 50/day, 1 year u burn 18k and 10 years u burn 180k.

 

You can buy more than 2 avante at this price even if you factor in insurance/loan/maintenance.

 

Some people rent for the following reasons -

 

1) Short term means to have access to a car

2) They may not need  a car for the long term

3) They are financially challenged to cough out the initial outlay - downpayment. 

4) Easier financially to live by the day based on daily rental $50

5) They do not wan to be bugged down by maintenance costs, insurance  and road tax, and low selling price when they want to sell the car 

[Victor68]

Lol another flawed argument, let's just take a simple car of 75k for avante s as an example, depreciation is around 6.8k as parf value is 7.3k. Worse case scenario of 30% dp, 70% loan for 7 years which will effectively wipe out your parf value. Depreciation is now at 7.5k annually.

 

Rent an avante s at maybe 50/day, 1 year u burn 18k and 10 years u burn 180k.

 

You can buy more than 2 avante at this price even if you factor in insurance/loan/maintenance.

I thought this is simple logic? If a rental company has to pay for the car you rent, unless he bought it at a fraction of what you need to pay for the same car, his profits is the difference lor. Otherwise, your relationship with him would need to examine. haha