advice for a 'new' car buyer?

[subzero17]

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.

[subzero17]

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 August 13, 2019 by subzero17

[Terence2112]

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.

[Brass]

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 August 13, 2019 by Brass

[Aventa]

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.

[DoraChan]

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 August 15, 2019 by DoraChan

[Tommisan]

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 August 15, 2019 by Tommisan

[Vinceng]

@DoraChan,

 

The $120K Mercedes that you are eyeing is a bottom-of-the-range model A180 which interior is no more spacious that a Honda Jazz which costs $73K or a Perodua MYVI that costs $66K.

 

So you may want to ask yourself why you want to spend double the amount on a same sized car – for slightly more power, for the prestige and snob appeal or the feel good factor to be able to tell your peers “I have upgraded to a Mercedes Benz”.

 

[DoraChan]

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.

 

thanks for pointing out. I really didn't know much about over trade. Instead of linear depreciation, any other better way to estimate the resale value of any new car a few years later?

@DoraChan,

 

The $120K Mercedes that you are eyeing is a bottom-of-the-range model A180 which interior is no more spacious that a Honda Jazz which costs $73K or a Perodua MYVI that costs $66K.

 

So you may want to ask yourself why you want to spend double the amount on a same sized car – for slightly more power, for the prestige and snob appeal or the feel good factor to be able to tell your peers “I have upgraded to a Mercedes Benz”.

 

Haha, yes A180! Yes I thought the sport seat, turbo engine, futuristic dashboard etc will still make a bit of difference compare to my crappy suzuki or MYVI??

Edited August 15, 2019 by DoraChan

[Jamesc]

Get the Mercedes. It's a much safer car than Suzie or Mvyi.

 

[Spurman]

@DoraChan,

 

The $120K Mercedes that you are eyeing is a bottom-of-the-range model A180 which interior is no more spacious that a Honda Jazz which costs $73K or a Perodua MYVI that costs $66K.

 

So you may want to ask yourself why you want to spend double the amount on a same sized car â for slightly more power, for the prestige and snob appeal or the feel good factor to be able to tell your peers âI have upgraded to a Mercedes Benzâ.

I tink the new a180 merc interior looks great.

 

Diff opinion. Hehe. Though internet pics.

120k for a brand new model leh.

 

Beats the a3 audi

[inlinesix]

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)

 

Selling price of new car after 4 years may not be as straight as you think.

 

It depends on a lot of other factors.

 

Don't expect service to be better than Champion Motor.

Edited August 15, 2019 by Davidtch

[Vinceng]

Haha, yes A180! Yes I thought the sport seat, turbo engine, futuristic dashboard etc will still make a bit of difference compare to my crappy suzuki or MYVI??

 

Of course, the Mercedes has the feel good factor that the Malaysian and Japanese lack. 

[Ake109]

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 (??)

 

Maybe you can consider this.

 

If you just want a pt A to B car.

 

Look for a 1-2 year COE left OPC. Preferably those model not popular for Grab.*

 

IF you get a low mileage OPC, converting it to normal plate is not expensive and the low mileage means likely less maintenance.

 

If the car doesnt give you problem in that 1-2 years, you can consider renew for 5 years and the yearly will be quite low.

 

*regardless of what you choose, be aware that mileage can be clocked and Z10 can be reversed with no trace. Obvious signs are super smooth steering wheel, worn out brake and accelerator pedals (esp the edges) and crumpled/worn rear passenger seat and scuffed door panels. Of course sneaky car dealers can easily replace those parts but if they exist, sure hint its clocked mileage.

[Ake109]

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)

 

1st 2 years car will depreciate about 30%. Then a bit more declining straight line after that. But 1st 2 years is the most tough. Just a rough rule of thumb.

 

Otherwise your calculation is a bit wrong leh.

 

Depre. Cost of Suzuki for next 4 years : 32k = 8k/yr      (might be less cos a Swift has some body value, maybe 3-5k?)

Depre. cost of Merc for next 4 years : You be lucky if it is under 12k a year. Lets say 12k.

 

I would say straight depreciation difference is already <4k a year more. Add in you interest on a 50k loan for 4 years which is about 5k+

 

Prepare about at least 6k more a year for your 'upgrade' I would say.

[DoraChan]

1st 2 years car will depreciate about 30%. Then a bit more declining straight line after that. But 1st 2 years is the most tough. Just a rough rule of thumb.

 

Otherwise your calculation is a bit wrong leh.

 

Depre. Cost of Suzuki for next 4 years : 32k = 8k/yr      (might be less cos a Swift has some body value, maybe 3-5k?)

Depre. cost of Merc for next 4 years : You be lucky if it is under 12k a year. Lets say 12k.

 

I would say straight depreciation difference is already <4k a year more. Add in you interest on a 50k loan for 4 years which is about 5k+

 

Prepare about at least 6k more a year for your 'upgrade' I would say.

 

yes after recalculating, agree it should be 6k per year for the upgrade. -_-i||

Edited August 15, 2019 by DoraChan

[Ake109]

yes after recalculating, agree it should be 6k per year for the upgrade. -_-i||

 

If you can afford the 6k and feel 'song' then do lor. Otherwise if you are loan free now, I would say dont take on that extra 50k loan. Lun and save a couple years maybe then get a newer Merc if you really want.

[DoraChan]

If you can afford the 6k and feel 'song' then do lor. Otherwise if you are loan free now, I would say dont take on that extra 50k loan. Lun and save a couple years maybe then get a newer Merc if you really want.

 

great advise thanks.