Thaiyotakamli Supersonic January 24, 2021 Share January 24, 2021 2 hours ago, thebutcher said: Nothing wrong in getting a car loan if he/she can service the payments. Same like housing. Housing is a need. And housing isnt cheap, something that u cant pay full easily. unlike car u got the option to buy brand new or coe car or opt for public transport. Getting a car is more of want than need. Its also a depreciating asset, so u take loan, pay more interest just to depreciate more. ↡ Advertisement 3 Link to post Share on other sites More sharing options...
Daniu82 Supercharged January 24, 2021 Share January 24, 2021 Just don’t wear a bigger hat than your head in summary. 2 Link to post Share on other sites More sharing options...
Macrosszero Turbocharged January 24, 2021 Share January 24, 2021 5 minutes ago, Daniu82 said: Just don’t wear a bigger hat than your head in summary. Fake it till you make it 1 Link to post Share on other sites More sharing options...
Ct3833 Supersonic January 24, 2021 Share January 24, 2021 (edited) 5 hours ago, Macrosszero said: I took loan even though can full cash because the finance rebate let me put the proceeds from the loan into a FD that earned me a few hundred dollars more at the end of the loan lock out period. But if you need a loan to afford the car you want then you must really consider the stability of your income. There is nothing wrong with your case of taking loan and neither his case of full cash, but i am curious where to find a FD that offers a higher interest than car loan interest ? Many full cash MCFers are waiting for that, other than full cash for cars , they still have a lot of full cash waiting to put in high interest FD.😅 Edited January 24, 2021 by Ct3833 1 3 Link to post Share on other sites More sharing options...
Mazdaowner Moderator January 24, 2021 Share January 24, 2021 7 hours ago, RadX said: And can see quite a no of idealistic ppl too... high coe.. high selling bla bla wonder which well sgp has? That keeps these Pulau Ubin well. Link to post Share on other sites More sharing options...
Ct3833 Supersonic January 24, 2021 Share January 24, 2021 8 hours ago, Philipkee said: ...... So I think his point is dont think $0 driveway is lose money. Either it is lost up front or later. All will lose money anyway unless you hold a car till ten years or you are lucky to buy at low COE and sell at high COE or you get a model of car that is in really great demand at point of selling. ...... it is not about the difference between losing up front and losing later, the real difference is : Pay upfront with a smaller loan amount and shorter loan period - relative to the $0 payment, the interest rate and net interest amount will be smaller for one who pay more $ upfront. - when selling the car a few years down the road, he does not have to fork out additional cash before selling his car. $0 upfront cash with 10 year loan - higher interest % and much higher net interest amount to be paid - when selling the car a few years down the road, this person will have to fork out cash top up before he could sell off his car, but he may(likely will) not have enough money to top up the difference. 1 Link to post Share on other sites More sharing options...
ferrytales 4th Gear January 24, 2021 Author Share January 24, 2021 (edited) Great discussion fellow mcf-ers, hope this gains more awareness so lesser people will fall into the debt trap. Especially with the rising coe now and more people aspiring to own a car, hat is gonna get bigger with more fanciful loan schemes. Most of these loans are offered in house and interest rates are absolutely batshit insane. Edited January 24, 2021 by ferrytales Link to post Share on other sites More sharing options...
ferrytales 4th Gear January 24, 2021 Author Share January 24, 2021 (edited) 13 hours ago, thebutcher said: Bro, depre not exactly linear.. The 6.5k is averaged out over its COE life.. If you sell off the car in the 3rd or 4th year, the depre can be up to 10k. You are right actually with my calculations, already lost 77k which is truckloads within the first 3 years. I don't even wanna calculate what's the depre for that 77k. 🙄 Edited January 24, 2021 by ferrytales Link to post Share on other sites More sharing options...
ferrytales 4th Gear January 24, 2021 Author Share January 24, 2021 1 hour ago, Daniu82 said: Just don’t wear a bigger hat than your head in summary. I was at the mercs showroom a while back and I saw the SE frantically doing calculations for the customer too. Same for audi where the SE did the same for the customer. Link to post Share on other sites More sharing options...
Mkl22 Twincharged January 24, 2021 Share January 24, 2021 7 hours ago, Ct3833 said: There is nothing wrong with your case of taking loan and neither his case of full cash, but i am curious where to find a FD that offers a higher interest than car loan interest ? Many full cash MCFers are waiting for that, other than full cash for cars , they still have a lot of full cash waiting to put in high interest FD.😅 I think he mentioned finance rebate plus FD interest made it more worthwhile to take loan vs full cash. 1 Link to post Share on other sites More sharing options...
Philipkee Twincharged January 24, 2021 Share January 24, 2021 7 hours ago, Ct3833 said: it is not about the difference between losing up front and losing later, the real difference is : Pay upfront with a smaller loan amount and shorter loan period - relative to the $0 payment, the interest rate and net interest amount will be smaller for one who pay more $ upfront. - when selling the car a few years down the road, he does not have to fork out additional cash before selling his car. $0 upfront cash with 10 year loan - higher interest % and much higher net interest amount to be paid - when selling the car a few years down the road, this person will have to fork out cash top up before he could sell off his car, but he may(likely will) not have enough money to top up the difference. I agree. But we have this thing called COE. If it spikes, even $0 driveway, you still make money. Some people are probably banging on this also. It happened before. So people bang on it happening again. 1 Link to post Share on other sites More sharing options...
Mkl22 Twincharged January 24, 2021 Share January 24, 2021 17 minutes ago, Philipkee said: I agree. But we have this thing called COE. If it spikes, even $0 driveway, you still make money. Some people are probably banging on this also. It happened before. So people bang on it happening again. Sure but unless you give up driving or have multiple cars to sell. I think there are better ways to make money work rather than punting on coe. 1 1 Link to post Share on other sites More sharing options...
Sdf4786k Twincharged January 24, 2021 Share January 24, 2021 12 hours ago, thebutcher said: Bro, with this logic, the whole of singapore must really consider the stability of our incomes before getting a house. That’s how the subprime started. Over leverage .. During that era bus driver in US were buying 4 to 5 houses without much care as if anything happened they loose their Low Low deposits. If cannot pay up the bank holds the baby of all the loan Link to post Share on other sites More sharing options...
Ginyu 4th Gear January 24, 2021 Share January 24, 2021 (edited) 7 hours ago, ferrytales said: I was at the mercs showroom a while back and I saw the SE frantically doing calculations for the customer too. Same for audi where the SE did the same for the customer. Had the impression, people can still afford despite the recession. However the real scenario , they no money still want to buy🤣 Edited January 25, 2021 by Ginyu Link to post Share on other sites More sharing options...
Philipkee Twincharged January 25, 2021 Share January 25, 2021 7 hours ago, ferrytales said: I was at the mercs showroom a while back and I saw the SE frantically doing calculations for the customer too. Same for audi where the SE did the same for the customer. It's either there are rich people or the coffee is really good. True story. Serious. But better not say more before I get blacklisted from car showrooms. 2 Link to post Share on other sites More sharing options...
badlammy 6th Gear January 25, 2021 Share January 25, 2021 今朝有酒今朝醉 Link to post Share on other sites More sharing options...
Macrosszero Turbocharged January 25, 2021 Share January 25, 2021 9 hours ago, Ct3833 said: There is nothing wrong with your case of taking loan and neither his case of full cash, but i am curious where to find a FD that offers a higher interest than car loan interest ? Many full cash MCFers are waiting for that, other than full cash for cars , they still have a lot of full cash waiting to put in high interest FD.😅 Come I do the math for you Mandatory loan was 50k for 5 years at 1.99%. Rebate was $1500. The plan was to take that 50k to a CIMB fixed deposit for a year at 1.85% and redeem the loan after a year. This was for late 2019. Interest incurred at the end of year 1 would be $995 + 20% of the remaining 4 years’ interest under rule 78 which would be $796 for a total of $1791. Taking the rebate ($1500) and adding the $925 earned from the 1.85% FD I am up $2425 as opposed to the interest and penalties incurred from taking the loan for a year and then ending it early. Its not a lot, but if it’s there, why not? 3 Link to post Share on other sites More sharing options...
Kopites Supersonic January 25, 2021 Share January 25, 2021 2 hours ago, Mkl22 said: I think he mentioned finance rebate plus FD interest made it more worthwhile to take loan vs full cash. Seriously! Additional 2k to 3k upfront penalty for no loan relative to interest rate over 5/7/10 years and FD rate better?😬 ↡ Advertisement Link to post Share on other sites More sharing options...
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