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Why you should NEVER do $0 driveaway or 10 years loan


ferrytales
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23 hours ago, SuPerBoRed said:

Im just curious .. is there another loan avenue that has sub3% effective interest rate?

No, and the effective interest rate isnt 3% at all... much higher

Remember ur still paying "3%" on the total principal even in year 7 when vast majority of loan cleared already

Car loans dunno why allowed to get away with this deceptive marketing

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1 hour ago, Limalimuthu said:

It's still about chasing status and displaying status. Buy the badge is priority. Doesn't that say much about singaporeans' nature?: materialism, consumerism, self-importance, braggarts. Always complain about cost and price, yet keep boasting about ability to pay higher.

Buying car and taking loan, one can see so many instances of penny-wise-pound-foolish. ie. complain about the price of everything, but knowing very little about the true value of anything.

Relak bro.. So much angst not going to do your health any good ya, its not as if you can change anything also, right?

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Just now, Rickster said:

Relak bro.. So much angst not going to do your health any good ya, its not as if you can change anything also, right?

for a newbie...he sure very angsty...hahaha

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1 hour ago, Limalimuthu said:

I think the nature of men lusting for objects of desire and status-signalling is same. I was working in my first job in late 80s and early 90s. Pay was S$1000 per month.

New Toyota Corolla was $60,000. New bmw 320 was $125k list, if I am not far off.

Were you working then?

No I wasn't working, but I remember my dad buying a new corolla for 90K during the mid 90s.

He took some loan also during that time because he really put his money to very good use.

Edited by Rickster
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8 hours ago, Limalimuthu said:

If one is prone to lusting and desiring cars, and rationalising use of debt to finance ones' Wanting, why not make it worth your pain, complaining and suffering by choosing high value cars? Ones that can hold your attention and interest for longer?

Along the way, teach your self to save more for the downpayment. Teach yourself to search for investments that can surpass the EFFECTIVE car loan interest rates of 5%? Teach yourself to invest the sum equal to what you would have loaned.

Don't be penny wise pound foolish. Don't be someone who know and complain about the price of everything, but don't know the true value of anything.

If cannot, maybe stop rationalising a "need" for a new car? Need to grow up a bit more?

Woah so much angst.. 

To each his own la. Different folks, different strokes. 

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9 hours ago, Limalimuthu said:

I was working in my first job in late 80s and early 90s. 

New Toyota Corolla was $60,000. New bmw 320 was $125k list, if I am not far off.

Were you working then?

I bought a new BMW 318i manual E30 in May1989 at $90K, inclusive $3K COE. PARF $29K. 

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7 hours ago, Rickster said:

No I wasn't working, but I remember my dad buying a new corolla for 90K during the mid 90s.

He took some loan also during that time because he really put his money to very good use.

Loan more is good for the economy, create more jobs in banks. Thank you for ur dad contribution to economy and gdp🙈

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On 1/25/2021 at 4:04 PM, Fyo8822 said:

0% Downpayment is really not adviseable.

I check with my PI when i bought my new car during Phase 1.

The interest rate is utterly high and end up the car cost almost 100k thru the span of 10 years ownership. Which typically cost only 65k at that time.

Monthly installment is $900 plus plus. Still need to factor in season parking and insurance. Petrol road tax as well.

That is alot of depreciation per year noting that cars are depreciating assets. Not assets are it is not generating money. For some it may be an asset as it can generate income i.e grab delivery small bussiness owners.

Even for those who need to purchase a car for doing grab business. The interest is also a killer based on the loan amount.

Some PI also charge “GST” when u take higher loan 

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47 minutes ago, Vinceng said:

I bought a new BMW 318i manual E30 in May1989 at $90K, inclusive $3K COE. PARF $29K. 

Can afford to  buy a bmw in 1989 has to be quite rich then .

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On 1/25/2021 at 4:05 PM, Limalimuthu said:

In Singapore now, easy loans, too much liquidity and wage/asset inflation has led to rise in self-importance and show-offs with a resulting drop in common sense, consideration for others and graciousness. So many want a car to signal their status that they have arrived. Look at number of Mercs sold.

Never forget that a car, no matter the badge, is a LIABILITY. Cars are not "depreciating asset". Assets consistently earn you an income and rise in value n price. Singaporeans who need to show off with a car are "assets" to car salesmen.

you are right, ocbc now is making it even easier to buy a car just like buying a house. get a pre-approval on the maximum loan etc.

https://www.ocbc.com/personal-banking/loans/car-loans

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1 hour ago, Thaiyotakamli said:

Loan more is good for the economy, create more jobs in banks. Thank you for ur dad contribution to economy and gdp🙈

We'll, we all gotta do our part for the economy right, but don't loan beyond your means lor. Balance is the key.

Because he has put his money to good use, he can retire comfortably now totally debt free with passive income that allows him to live comfortably. This happens because of careful management of finances more than taking a loan for a vehicle or not.

Funny thing is, my dad always have something critical to say about people driving luxury marques as he only sticks to basic b&b Japanese car all his life. He don't see the need to spend more for a transport and tries to force his ideal down my throat as well.. Ya, so his current car is really very outstanding among his neighbours.

Edited by Rickster
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1 hour ago, Ct3833 said:

Can afford to  buy a bmw in 1989 has to be quite rich then .

Was & am never rich. Money was big then, before the floodgates opened to welcome the influx of foreign talents with wide open arms.

You could get a freehold landed property in D.9/10 at $1K psf.

Freehold condos were going at just over $300K. The freehold D.10 Angullia View condo (enblocked in 2009 at $2m) where rouge trader Nick Leeson lived, cost just $360K  brand new.

A brand new BTO Exec mansion at Bishan cost just a little over $100K. 

 

Edited by Vinceng
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40 minutes ago, Vinceng said:

Was & am never rich. Money was big then, before the floodgates opened to welcome the influx of foreign talents with wide open arms.

You could get a freehold landed property in D.9/10 at $1K psf.

Freehold condos were going at just over $300K. The freehold D.10 Angullia View condo (enblocked in 2009 at $2m) where rouge trader Nick Leeson lived, cost just $360K  brand new.

A brand new BTO Exec mansion at Bishan cost just a little over $100K. 

 

Definition of rich varies greatly in MCF. 😁

Some people think they r rich because they pay full cash for just an E-class and go around lecturing people who take loans.

Some think they r rich because they can have a fully paid up HDB or condo. 

Some think they are just comfortable and not rich when they drive a humble b&b jap car to view and buy prime district properties, in full cash, in times like these.

Edited by Rickster
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Neutral Newbie

hi i left 3 years COE with my car. Left with Parf rebate $9157 and COE rebate $26,060 - total $35217.

does it mean when i sell my car i use this $35217 to pay my outstanding car loan. and any excess i can use it before getting another car? if there is excess to begin with

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(edited)
6 hours ago, slim1989 said:

hi i left 3 years COE with my car. Left with Parf rebate $9157 and COE rebate $26,060 - total $35217.

does it mean when i sell my car i use this $35217 to pay my outstanding car loan. and any excess i can use it before getting another car? if there is excess to begin with

Guess your car coe was around 86k? 😱

Edited by ferrytales
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