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Metalslug2

Breakeven for Car Loan (buy and sell within 1 year)

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3rd Gear

(Hi guys, like to ask regarding Car Loan, am planning to buy a PARF car value around $55k. The paper value is around $35k, I plan to sell within 1 yr...

If I downpay $20k, and take a car loan, I should be on breakeven (i think) but how to settle the car loan without penalties if sell within 1 yr? 

Suggestions welcome 🙂

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Oh. If you ask here, most will tell you full cash leh. hahahahaha. :grin:

How long is your loan? and why you intend to sell the car event before you buy?

If that's the case, buying may not be ideal for your case. You can also consider leasing. All the expenses is been controlled.

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Twincharged (edited)
24 minutes ago, Metalslug2 said:

(Hi guys, like to ask regarding Car Loan, am planning to buy a PARF car value around $55k. The paper value is around $35k, I plan to sell within 1 yr...

If I downpay $20k, and take a car loan, I should be on breakeven (i think) but how to settle the car loan without penalties if sell within 1 yr? 

Suggestions welcome 🙂

if you  buy a car and planned to sell  it within a year, why buy that car ?

If you have to take a loan and sell within a year, why take a loan?

If your answers to 1 and 2 are ustifiable, then just be prepared to pay early redemption  penalty.

If you are not willing to pay penalty, then pay cash. 

But the depre within a year will be more than the additinal interest  you will have to pay  , so think about the depre as well.

If all the answers are no, then dont buy car for now. 

Not the answers you want but more questions for you  to think harder before making decision

 

 

Edited by Ct3833
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Supersonic (edited)

Why do you want/"need" a car for such a short term? It may not be my business, but you're asking strangers on the Internet so I think the question is fair. 

As others have said (if you absolutely "need" a car), leasing is likely more sensible in your case, but even that is pretty steep expenditure.

Edited by Turboflat4
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Twincharged (edited)
48 minutes ago, Metalslug2 said:

(Hi guys, like to ask regarding Car Loan, am planning to buy a PARF car value around $55k. The paper value is around $35k, I plan to sell within 1 yr...

If I downpay $20k, and take a car loan, I should be on breakeven (i think) but how to settle the car loan without penalties if sell within 1 yr? 

Suggestions welcome 🙂

Presume you genuinely need a car for one year only.

You do need to factor in penalty (early redemption), interest and take in price of your car in one year time. Your depreciation likely to be 20k per year.

Breakeven?

I very much doubt so you can do that.

Edited by Kopites

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Hypersonic

Regardless, rule 7/8 will make you pay a hefty interest plus high Loan. 

 

With 20k to buy car is not a lot for a start. 

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6th Gear

If you think you can breakeven, maybe you have not considered all costs. If I'm wrong, you might as well try to profit from this, why stop at BE 😄

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Hypersonic

Might as well just rent for 1 year... 

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5th Gear

If it is a specific car model you are after and you really want to just drive for one year, get a second hand one of them same model. 

Car depreciation is the heaviest in the first year. Unless you are willing to take a heavy loss, it would be difficult to sell to either dealers or direct buyers as they can just a new car if the price is too close. 
 

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6th Gear

PARF car very risky. Standard wear and tear items to replace may not be cheap, and if u delay cos u think "only need to last one year" ur car may break down on u at the worst time. And what happens if within that year u got gearbox or suspension issue?

Better to just rent. No need any DP, consider the extra cost the same like interest. Repairs/servicing all handle by rental co

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Twincharged
7 hours ago, Metalslug2 said:

(Hi guys, like to ask regarding Car Loan, am planning to buy a PARF car value around $55k. The paper value is around $35k, I plan to sell within 1 yr...

If I downpay $20k, and take a car loan, I should be on breakeven (i think) but how to settle the car loan without penalties if sell within 1 yr? 

Suggestions welcome 🙂

Take a one year car loan.

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Twincharged
6 hours ago, badlammy said:

If you think you can breakeven, maybe you have not considered all costs. If I'm wrong, you might as well try to profit from this, why stop at BE 😄

Actually he can profit from it.  If COE jumps to 100+k within a year.  Got chance of profit. 

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Supersonic

Just loan 1 year swee swee and absorb whatever laosai resale a year later 

Has anyone said it yet? Yolo 😁

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Twincharged

I don't get this breakeven thingy

Not as if the loan is paid off 

 

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Twincharged
27 minutes ago, Wildfaye29 said:

Grab

No stress

Actually hor....I more stress when I take Grab

After confirming pickup, see driver sotong dunno turn left turn right get lost n take a long time to reach

Then driver sometimes look damn sleepy cannot seem to keep in lane dunno whether doze off or what 

Anxious but still gotta endure noisy, bumpy, uncomfortable ride from Vezel 

Some cars smell sibei musky from dunno what smlj mix of 'air freshener' n BO

Dunno if car was used to fetch a covid infectious person to see doctor or not.....

 

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Supersonic

Ryan Reynolds said it best. 

Buy and sell a car in Singapore within a year?

 

but-why.gif

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Supersonic (edited)
4 minutes ago, Turboflat4 said:

Ryan Reynolds said it best. 

Buy and sell a car in Singapore within a year?

 

but-why.gif

Bucket lust must lick...i mean list and tick 😁

Edited by mersaylee
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