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advice for a 'new' car buyer?

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Hi all! I cant post a new topic yet but I am actually looking to get a used car. My idea is that I wanna get from point a to b. I'm not sure if i should get a 5 year old car, renewed COE car or even,just save up some more and get a brand new one since COE prices will be dropping (correct me if I'm wrong please). Cause generally whenever recession hits, COE prices will drop right (??)

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Hi all! I cant post a new topic yet but I am actually looking to get a used car. My idea is that I wanna get from point a to b. I'm not sure if i should get a 5 year old car, renewed COE car or even,just save up some more and get a brand new one since COE prices will be dropping (correct me if I'm wrong please). Cause generally whenever recession hits, COE prices will drop right (??)

 

whats ur driving experience? if u just got ur license getting a COE car would make a practical first time car. no heartaches for all the potential bumps & kisses u inevitably will get

Edited by alfakidz85

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whats ur driving experience? if u just got ur license getting a COE car would make a practical first time car. no heartaches for all the potential bumps & kisses u inevitably will get

I've gotten my license for over a year. Been driving regularly. So far I'll say, (touch wood) I've not kissed or bumped anything. What I'm afraid is that COE car maintenance would just eat into whatever that I could have "potentially" saved from buying a cheap car...

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I've gotten my license for over a year. Been driving regularly. So far I'll say, (touch wood) I've not kissed or bumped anything. What I'm afraid is that COE car maintenance would just eat into whatever that I could have "potentially" saved from buying a cheap car...

If ur main objective is a comfy, reliable A to B car, forget abt COE cars and just buy a basic new Avante w 6k+ depre w a 5-yr warranty. Does the job perfectly and life is good

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5yo cars are out cos 5 years ago coe is very high.

 

Renewed coe car preferably recently renew at around 30 odd K. More troublesome since have to do car inspection annually, not foc also. Existing car issues etc. But it's cheaper than a brand new car.

 

New car is depending on your budget. Worry free with free servicing and stuff. Down side is you are paying a lot more.

 

Other than setting a budget look at your priorities.

On average how much mileage do you achieve? Ask yourself is a car really a necessity or luxury. 

Family priorities if any. 

Barang barang. I see some ppl's car is like a dump truck. All kinds of rubbish in the car. 

 

Try to stick to your budget and priorities and not get distracted with things that dont matter so much. 

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Hi,

Just went through this thought/did some calculations of my own, so maybe I can help out here. 

The main consideration for me at that time was that between a renew COE car (i.e the Avante, or the Honda Fit/Jazz), was that even though the annual depreciation for the COE car was lower, I think that eventually when you factor in F/C differences, servicing costs, the unreliability of an old car, I think that purchasing a new one might make more sense financially.

At the time that I checked, a renewed for 5 years Fit was $30k~, and a new Honda Fit was ~$66k for a new 10 year COE. 

Of course have to factor in things like your interest etc, but for me paying slightly more for the piece of mind was definitely worth it. 

Just my two cents, hope this helps, and I actually do have a more detailed calculation done up if you want it  [laugh]

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Gosh, didn't expect so much help so quickly. Appreciate all of your input.

 

I went to turf club to take a look. I was quite smitten by golf and even sicorro. Are those like a horrible choices?

 

Brand new avante does sound like a good idea!

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Used VW - chances of having gearbox issues are higher than with other cars. I would suggest you not be tempted.

 

Do you have 15k to set aside every year for car and expenses? If yes, go to question 2.

 

Do you have 30-40k cash? If yes, buy a new car. If not, buy a used car that fulfils the budget figure mentioned above.

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Fast driver buy fast car.

 

Slow driver buy slow car.

 

Old driver buy old car.

 

New driver buy new car.

 

Old man buy old man car.

 

Young man buy young man car.

 

:D

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Gosh, didn't expect so much help so quickly. Appreciate all of your input.

 

I went to turf club to take a look. I was quite smitten by golf and even sicorro. Are those like a horrible choices?

 

Brand new avante does sound like a good idea!

Unless those VWs u saw are Golf GTi, Golf R or Scirocco R, I wouldn't bother...

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Gosh, didn't expect so much help so quickly. Appreciate all of your input.

 

I went to turf club to take a look. I was quite smitten by golf and even sicorro. Are those like a horrible choices?

 

Brand new avante does sound like a good idea!

 

first time car buyer, please stick to Japanese models, eg Toyota, Honda, Nissan. insurance for such models should be cheaper too as you build up your NCD over the years.

 

depending on your budget and usage, both 5yo and COE renewed also works, but get the car inspected by AA first before the purchase.

 

its a major decision, don't rush. 

Edited by Blueray

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To buy new or old car and which brand depend on your budget.

 

Once you know your budget, then you can narrow down your choices.

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If ur main objective is a comfy, reliable A to B car, forget abt COE cars and just buy a basic new Avante w 6k+ depre w a 5-yr warranty. Does the job perfectly and life is good

 

Good advice! Have to be quick as Cat A COE will probably go up in the short term although the economy might tank.

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Hi all! I cant post a new topic yet but I am actually looking to get a used car. My idea is that I wanna get from point a to b. I'm not sure if i should get a 5 year old car, renewed COE car or even,just save up some more and get a brand new one since COE prices will be dropping (correct me if I'm wrong please). Cause generally whenever recession hits, COE prices will drop right (??)

 

1)  Need to know your budget ... how much you wanna pay for down payment, how much you intend

     to pay for your monthly instalment

 

2)  Looking to buy a 2 door or 4 door ride

 

 

It would be much easier to work on from there where you slowly narrow down the choices .... [nod]

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Buy a used car to drive for 5 yrs at <$5K annual dep.

 

Even with 0% NCD, the 3rd party fire and theft insurance will not be costly.

 

Build up your driving skills , then get a better car

 

Perodua MYVI

https://www.sgcarmart.com/used_cars/info.php?ID=835127&DL=1354

 

Kia Picanto

https://www.sgcarmart.com/used_cars/info.php?ID=837868&DL=3580

Edited by Vinceng

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Good advice! Have to be quick as Cat A COE will probably go up in the short term although the economy might tank.

Guess Cat A might go up for the few rounds of bidding, then it might come down again.

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Gosh, didn't expect so much help so quickly. Appreciate all of your input.

 

I went to turf club to take a look. I was quite smitten by golf and even sicorro. Are those like a horrible choices?

 

Brand new avante does sound like a good idea!

Avoid buying used VW car imo.

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Tips for a new car buyer:

1: Research, research, research.

Do all your research on the car models before you go to the showroom to see them. Let the SE explain to you but take things they say with a pinch of salt. Understanding the car you're buying can go a long way to preserving the life of your car and buying the right car. For example, dual clutch transmissions like the ones used in VW cars are not the most reliable especially if not taken care of properly with the right driving technique/maintanance schedule.

 

2: Understanding your financing options

Understanding the interest rates that you're paying.

 

For example if the car costs 100k and you're taking a 60% (60k) loan at 2.28%, taking a 7 year loan over a 5 year long means you end up paying 2.7k more interest for your car even though your monthly installment would be lower. The loan amount and the tenure can always be discussed - they would rather close a deal than to lose a potential deal because they didn't want to give you your preferred financing option.

 

All the dealers (AD and PI) will always encourage you to go for higher loan amount and a longer loan tenure because they would earn more from that. Good to know the rule of 78 if you plan to clear your loan early, also known as early redemption of loan.

 

3: Don't rush

Do not get overly excited and be pressured by dealers telling you, the discount can disappear anytime or like we won't be offering new discount after a certain day. Also don't be drawn in by the freebies - you're shopping for a car not the freebies. 

 

4: Additional cost

A lot of new car owners are so excited at owning a car that they forget about all the additional cost such as insurance, maintanance cost etc. This is especially important if you are on a budget.

 

Being a first time owner, you may or may not have NCD which would drive your insurance cost up. If the dealer didn't specify that you must go with their selected insurance partner, you should shop around for the best value insurance option for yourself. That being said, don't just go for the cheapest - look into the insurance that provides the kind of coverage that you need at a reasonable price. You should also do some research into the reputation of the insurance company on claims etc.

 

That's all I can think of. Good luck and enjoy your new ride! :)


I think the coe for Cat A cars will increase in the next few biddings, due to the reduction in quota.

Were you the one with the Opel drama on your COE bidding? Haha

 

Anyway it will hover around the current amount +/- about 2k I think. Panic buying period is already over and those who want to sign for a new car will wait for a dip.

Edited by subzero17

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Tips for a new car buyer:

 

1: Research, research, research.

Do all your research on the car models before you go to the showroom to see them. Let the SE explain to you but take things they say with a pinch of salt. Understanding the car you're buying can go a long way to preserving the life of your car and buying the right car. For example, dual clutch transmissions like the ones used in VW cars are not the most reliable especially if not taken care of properly with the right driving technique/maintanance schedule.

 

2: Understanding your financing options

Understanding the interest rates that you're paying.

 

For example if the car costs 100k and you're taking a 60% (60k) loan at 2.28%, taking a 7 year loan over a 5 year long means you end up paying 2.7k more interest for your car even though your monthly installment would be lower. The loan amount and the tenure can always be discussed - they would rather close a deal than to lose a potential deal because they didn't want to give you your preferred financing option.

 

All the dealers (AD and PI) will always encourage you to go for higher loan amount and a longer loan tenure because they would earn more from that. Good to know the rule of 78 if you plan to clear your loan early, also known as early redemption of loan.

 

3: Don't rush

Do not get overly excited and be pressured by dealers telling you, the discount can disappear anytime or like we won't be offering new discount after a certain day. Also don't be drawn in by the freebies - you're shopping for a car not the freebies.

 

4: Additional cost

A lot of new car owners are so excited at owning a car that they forget about all the additional cost such as insurance, maintanance cost etc. This is especially important if you are on a budget.

 

Being a first time owner, you may or may not have NCD which would drive your insurance cost up. If the dealer didn't specify that you must go with their selected insurance partner, you should shop around for the best value insurance option for yourself. That being said, don't just go for the cheapest - look into the insurance that provides the kind of coverage that you need at a reasonable price. You should also do some research into the reputation of the insurance company on claims etc.

 

That's all I can think of. Good luck and enjoy your new ride! :)

 

Were you the one with the Opel drama on your COE bidding? Haha

 

Anyway it will hover around the current amount +/- about 2k I think. Panic buying period is already over and those who want to sign for a new car will wait for a dip.

Yes! Finally got the car though.

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Buy a used car to drive for 5 yrs at <$5K annual dep.

 

Even with 0% NCD, the 3rd party fire and theft insurance will not be costly.

 

Build up your driving skills , then get a better car

 

Perodua MYVI

https://www.sgcarmart.com/used_cars/info.php?ID=835127&DL=1354

 

Kia Picanto

https://www.sgcarmart.com/used_cars/info.php?ID=837868&DL=3580

At slightly lesser than 5k depreciation, you could find some 1.6L cars that are relatively more spacious, like the Hyundai Avante.

If those cars were to be considered, i think a fair price would be 4k depre thereabouts, given that their parf value is less than 5k (more like 4k).

 

You could opt to buy used cars though (to TS), with a 1 year life span, prefebably with low omv, and renew the car in a few months to one year time.

In my opinion, that might be the cheapest.

 

Speaking of reliable cars, this might be old, but it works well...though you need to research further.

 

https://m.sgcarmart.com/used_cars/info.php?ID=845466

 

However, if possible, slash about 1k off the price (hopefully 31 to 30k) and its high paper value makes it a relatively ok purchase.

Edited by Brass

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I will suggest buying reliable models that are ~9 years old at 4-5k dep/year and spend some money to change the wear & tear parts and proceed to drive till the 10th year.

Even if during the course of 1-2 years there is a breakdown that garners a major repair, you can scrap the car and get back the paper value without much loss.

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Hello everyone, I need some help evaluating a car buying/upgrading decision.

 

Currently owning a 6year old suzuki, recently discovered that I can effectively upgrade to a new 120k mercedes at almost no cost. 

But I need help:

 

SUZUKI bought at 2013 at about100k.
It worth about 40k now
It is 6 years old now, 4 years later it will left with about 8k (PARF)
 
Assuming buying a brand new car at 120k
Trade in suzuki 40k + 10k overtrade + 20k cash = 70k upfront
loan 50K
4 years later estimate new car depreciates 4 x 11k = 44k
4 years later estimate new car left 120k - 44k=76k
Assume selling the new car 4 years later at 76k, 
Payback 50k loan
Left 26k cash.
 
Compare to drive the suzuki till end of 10 years(20K cash + 8k PARF)
4 year estimate lost of 2k upgrading from suzuki to new mercedes.
 
Is there any problem with the calculation above?

(p/s: I am aware that there will be other factor like road tax difference, maintenance difference.. But I am keen to know is there any other major issue with this decision)

 

Edited by DoraChan

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Hello everyone, I need some help evaluating a car buying/upgrading decision.

 

Currently owning a 6year old suzuki, recently discovered that I can effectively upgrade to a new 120k mercedes at almost no cost. 

But I need help:

 

SUZUKI bought at 2013 at about100k.
It worth about 40k now
It is 6 years old now, 4 years later it will left with about 8k (PARF)
 
Assuming buying a brand new car at 120k
Trade in suzuki 40k + 10k overtrade + 20k cash = 70k upfront
loan 50K
4 years later estimate new car depreciates 4 x 11k = 44k
4 years later estimate new car left 120k - 44k=76k
Assume selling the new car 4 years later at 76k, 
Payback 50k loan
Left 26k cash.
 
Compare to drive the suzuki till end of 10 years(20K cash + 8k PARF)
4 year estimate lost of 2k upgrading from suzuki to new mercedes.
 
Is there any problem with the calculation above?

(p/s: I am aware that there will be other factor like road tax difference, maintenance difference.. But I am keen to know is there any other major issue with this decision)

 

Overtrade is a loan, not cash upfront.

50k loan, what about interest? You have to factor paying the interest.

Selling a 4 year old car at 76k when purchased at 120k brand new is almost impossible unless COE spikes. Depreciation is not linear over 10 years.

 

Instead of doing the sums on your own, speak with the sales agent and you will get all the information that you need.

 

Edited by Tommisan

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