Newbie question: Should I get a new or used car?

[TayWeeBeng]

Hi,

I need a simple car for 6mths to 1 yr. Should I get a new or old one?

Was searching sgcarmart and the available used cars between 8 to 9+ years cars have depreciation values of around $7000+ to $8000.

But newer used cars 5-6yrs are only $6000+.

And new cars like Perodua or Attrage also not much difference.

Seems like not worth to get a 8 to 9+ years cars, may have other problems too. Good thing is use and scrap.

So should I just get new car? And sell after half to one year? Wonder if the loan penalty will be high, or price will depreciate alot ...

Thanks!

[Mockngbrd]

6 months to 1 Yr just lease lo, no need worry repair, insurance, etc. 

[Aristotle]

Depreciation is not linear. So selling after 1 year will incur the most depreciation. I will go for used car.

[Ct3833]

The depreciation of a 5 year old used car may appear like 5k or 6k, but when you sell it off in six months time,  you will realise that you have to cut more than 10k off from your buying price, it is not a linear 6k depre , you will have to be careful with your assumption. 

If you need a car for only six months , the safest approach is to rent one. If you can find a six months leasing would be good too. 

Edited August 9, 2020 by Ct3833

[Dafansu]

what's your usage for? long hours driving or ad hoc to run errands. 6mths is rather short consider leasing instead. 

[1fast1]

9 minutes ago, Ct3833 said:

The depreciation of a 5 year old used car may appear like 5k or 6k, but when you sell it off in six months time,  you will realise that you have to cut more than 10k off from your buying price, it is not a linear 6k depre , you will have to be careful with your assumption. 

If you need a car for only six months , the safest approach is to rent one. If you can find a six months leasing would be good too. 

Yes, I was about to make this point. Depre is locked in for a PARF car that you're intending to drive to COE expiry, but is not assured otherwise. Depre is generally an underestimate except for rare models that suddenly become collectible.

[Jamesc]

There is no right or wrong.

Buy new good, buy used also good, lease also good.

If you want to lease go to JAMESC Car Hire Exceptional Automotive Transport Services or short form. JAMESC CHEATS.

You want to buy used make sure its a good used car go to JAMESC Suregood Used Car Key Services also known as JAMESC SUCKS

You buy used you want to clean the interior go to JAMESC Fragrance And Refresh Transformation Services or short form JAMESC FARTS.

 

[CremornePt]

Yeah, "paper" depreciation is just a write-down against a stored regulatory deposit & shouldn't be confused with actual incurred depreciation.

I bet you'll easily suffer a 30-40k hit if selling a new B&B car 6 mths later.

[Angcheek]

Quote

I need a simple car for 6mths to 1 yr. Should I get a new or old one?

 

 MCF atasness level had went up another level 😁

 

[Ct3833]

23 minutes ago, Jamesc said:

There is no right or wrong.

Buy new good, buy used also good, lease also good.

If you want to lease go to JAMESC Car Hire Exceptional Automotive Transport Services or short form. JAMESC CHEATS.

You want to buy used make sure its a good used car go to JAMESC Suregood Used Car Key Services also known as JAMESC SUCKS

You buy used you want to clean the interior go to JAMESC Fragrance And Refresh Transformation Services or short form JAMESC FARTS.

 

Gib chance lah, newbie asking for advice here , don't confuse him. 

[Jamesc]

7 minutes ago, Ct3833 said:

Gib chance lah, newbie asking for advice here , don't confuse him. 

I thought its so clear?

Jamesc has the solution

for whatever he chooses.

[1fast1]

39 minutes ago, Jamesc said:

There is no right or wrong.

Buy new good, buy used also good, lease also good.

If you want to lease go to JAMESC Car Hire Exceptional Automotive Transport Services or short form. JAMESC CHEATS.

You want to buy used make sure its a good used car go to JAMESC Suregood Used Car Key Services also known as JAMESC SUCKS

You buy used you want to clean the interior go to JAMESC Fragrance And Refresh Transformation Services or short form JAMESC FARTS.

 

Suprised you omitted your favourite company. 

JAMESC Motoring In Luxury.

😁

[Carbon82]

4 hours ago, TayWeeBeng said:

Hi,

I need a simple car for 6mths to 1 yr. Should I get a new or old one?

Was searching sgcarmart and the available used cars between 8 to 9+ years cars have depreciation values of around $7000+ to $8000.

But newer used cars 5-6yrs are only $6000+.

And new cars like Perodua or Attrage also not much difference.

Seems like not worth to get a 8 to 9+ years cars, may have other problems too. Good thing is use and scrap.

So should I just get new car? And sell after half to one year? Wonder if the loan penalty will be high, or price will depreciate alot ...

Thanks!

Car ownership in Singapore is far more complex than anywhere else in the world. Based on your post, I assumed you are considering to get a car which will cost ~$6K± a year, but unfortunately, the actual cost will be much higher (close to double) for even a bread and butter model, and >$20K if you sold it within a year. 

As many had mentioned, annual depreciation is never linear for a very simple reason that dealers need to make profit out of a sales. Think about this, when you buy a car (new or used), at least $5 - $10k goes to the dealer, and when you sell it 6 months or a year later, another dealer make another $5 - $10k. All this on top of the so called annual depreciation. 

Next, loan interest (and penalties if you redeem within 6 months to a year), road tax, insurance, regular maintenance, replacement for wear and tear parts, etc. I don't want to list down itemised cost but in a nut shell, we are talking about another >$5K on top of depreciation cost at the very least.

Go for those short term rental (probably ~$1K+ per month) for smaller and older car. If you find the cost excessive, than sorry to say, you are still not ready for car ownership. I am not looking down on you but to provide you with a clearer picture of how much it cost to drive in Singapore.

[Voodooman]

2 hours ago, Turboflat4 said:

Yes, I was about to make this point. Depre is locked in for a PARF car that you're intending to drive to COE expiry, but is not assured otherwise. Depre is generally an underestimate except for rare models that suddenly become collectible.

COE car is more linear but repair is not. 

[Volvobrick]

6 months only just join one of those car sharing service. 

[Mockngbrd]

https://accessbybmw.com.sg/

 

 

[Jamesc]

4 hours ago, Turboflat4 said:

Suprised you omitted your favourite company. 

JAMESC Motoring In Luxury.

😁

That's my latest automotive venture.

I saw a big gap in the high end once in a lifetime luxury sector.

I was hoping to get a family member as my first free trial customer.

A very close family member.

My tagline with all the emphasis on saving the planet these days.

"If you have to go, Go Green" - I call it the GG tagline.

 

[1fast1]

18 minutes ago, Jamesc said:

That's my latest automotive venture.

I saw a big gap in the high end once in a lifetime luxury sector.

I was hoping to get a family member as my first free trial customer.

A very close family member.

My tagline with all the emphasis on saving the planet these days.

"If you have to go, Go Green" - I call it the GG tagline.

 

You can also use the tagline "Burn your loved ones, not fossil fuels" or "Body warming, not global warming". 😂