Buying Sedan vs SUV

[Volvobrick]

9 hours ago, Heartlander said:

So do you mind sharing to be frank, has your approach made you happy? 

Do you look at your car thinking you will always be happy owning it? When I owned my first ride, a Nissan Latio, I wondered if I would be blessed enough to be able to own cars from different makes in this lifetime to see how they vary. Bu if I am to own a car for 10 years, then most likely I would be able to try out 3 cars, so perhaps the seed had already been sowed to want to change rides every few years where financially allow. So far I ave owned cars from Nissan, Kia, VW, Mazda, Toyota, Mercedes, Honda, and lastly Skoda. Mostly new cars. The interests I paid I am taking it very positively as I am not a doctor or businessman so taking abit of loans seem justified. Else the makes would be the atas ones but I am not greedy lah. 

The money saved if I had paid in full is definitely not going to make me as happy as now. Not that I am depending on it to survive. How much do you need to save to make you happy? Again, this is not advocating all to spend recklessly and selfishly. Just sharing the thinking I use when come to car ownership. The total interest incurred if vs happiness and I am willing to spend, why not go ahead?

The more cars you buy and try, you happy, dealers happy, banks happy and the happiest of all - the gahmen!

All jin happy - go right ahead!

PS I have tried more than 10 cars (all sorts of engine configurations and capacities) mostly used but banks not happy at all.

[Carbon82]

No right or wrong with taking loans as long as buyer can afford it COMFORTABLY. Don't need to go to great lengths to justify for one's decision. 

A loan is a loan, every cent counts and one should be looking at the big picture (i.e. total interest payable) rather than just penalties, or even taking into consideration gains from selling the car. 

On the records, I have also make $$$ from selling my cars but so what, as long as I buy another one, the "profits" are gone instantly. And I am not ashamed to share that I have even tried 10 years loan (with 40% down-payment) in the early days of my car ownership and have learnt the hard way (I take it as school fee for finance 101 lessons). 

For me, I will still take some loan with car purchase (although I can go full cash anytime) for some personal reasons, but with min tenure and loan amount. It is my habit (or should I say past time) to dig into numbers relating to car purchase, instead of justifying my purchase.

Last, I am not here to debate with or influence MCFers on car purchase or financial matters. Just sharing my thoughts and some numbers which I can churn out in seconds using some formula I have created. 

[Hamburger]

10 hours ago, Heartlander said:

So do you mind sharing to be frank, has your approach made you happy? 

Do you look at your car thinking you will always be happy owning it? When I owned my first ride, a Nissan Latio, I wondered if I would be blessed enough to be able to own cars from different makes in this lifetime to see how they vary. Bu if I am to own a car for 10 years, then most likely I would be able to try out 3 cars, so perhaps the seed had already been sowed to want to change rides every few years where financially allow. So far I ave owned cars from Nissan, Kia, VW, Mazda, Toyota, Mercedes, Honda, and lastly Skoda. Mostly new cars. The interests I paid I am taking it very positively as I am not a doctor or businessman so taking abit of loans seem justified. Else the makes would be the atas ones but I am not greedy lah. 

The money saved if I had paid in full is definitely not going to make me as happy as now. Not that I am depending on it to survive. How much do you need to save to make you happy? Again, this is not advocating all to spend recklessly and selfishly. Just sharing the thinking I use when come to car ownership. The total interest incurred if vs happiness and I am willing to spend, why not go ahead?

Your  money your call. 

I am just happy that I have no loan and if I do have, no more than 2 yrs and to do early settlement if possible. 

Simple man, simple brain, simple happiness. 

 

 

[Soya]

55 minutes ago, Carbon82 said:

No right or wrong with taking loans as long as buyer can afford it COMFORTABLY. Don't need to go to great lengths to justify for one's decision. 

A loan is a loan, every cent counts and one should be looking at the big picture (i.e. total interest payable) rather than just penalties, or even taking into consideration gains from selling the car. 

On the records, I have also make $$$ from selling my cars but so what, as long as I buy another one, the "profits" are gone instantly. And I am not ashamed to share that I have even tried 10 years loan (with 40% down-payment) in the early days of my car ownership and have learnt the hard way (I take it as school fee for finance 101 lessons). 

For me, I will still take some loan with car purchase (although I can go full cash anytime) for some personal reasons, but with min tenure and loan amount. It is my habit (or should I say past time) to dig into numbers relating to car purchase, instead of justifying my purchase.

Last, I am not here to debate with or influence MCFers on car purchase or financial matters. Just sharing my thoughts and some numbers which I can churn out in seconds using some formula I have created. 

Coz sifu say muz pay full cash mah

If not happy, put time put place come show Iras NOA

I juz sit by the side eat popcorn n enjoy the entertainment....lol

 

[Heartlander]

1 hour ago, Carbon82 said:

No right or wrong with taking loans as long as buyer can afford it COMFORTABLY. Don't need to go to great lengths to justify for one's decision. 

A loan is a loan, every cent counts and one should be looking at the big picture (i.e. total interest payable) rather than just penalties, or even taking into consideration gains from selling the car. 

On the records, I have also make $$$ from selling my cars but so what, as long as I buy another one, the "profits" are gone instantly. And I am not ashamed to share that I have even tried 10 years loan (with 40% down-payment) in the early days of my car ownership and have learnt the hard way (I take it as school fee for finance 101 lessons). 

For me, I will still take some loan with car purchase (although I can go full cash anytime) for some personal reasons, but with min tenure and loan amount. It is my habit (or should I say past time) to dig into numbers relating to car purchase, instead of justifying my purchase.

Last, I am not here to debate with or influence MCFers on car purchase or financial matters. Just sharing my thoughts and some numbers which I can churn out in seconds using some formula I have created. 

Thanks for the un-bias take on the subject. Really appreciate it!

Everyone has different priorities in life. Relax and be more open-minded and be happy.

[Rickster]

Bros, this thread OT like mad liao la.

Maybe we should have a thread on "Car loan vs full cash" and let everyone fight it out with their ego down there. 

 

[Stratovarius]

On 3/27/2022 at 11:20 PM, Heartlander said:

i used an article written by sgcarmart to illustrate. Basically is unpaid interest + early redemption penalty that is 1% to 2% of loan principal. I remember doing preliminary calculation to determine the cash back after redemtion, came out quite accurate. UOB most friendly, gave a table of early redemption figure by month through the loan period, so that customers can check the unpaid interest portion directly. Its website also got listed clearly the formula to do calculation.

Coincidentally being a poor man and cannot afford to pay full cash, I have taken loan from DBS, HLF, MayBank, and UOB, Nowadays loan application is becoming very easy. With proper documents like salary and CPF statements, loan approval can be done within one day.

 

 

I'm gonna OT but if my loan redemption rebate is less than 1~2% penalty of loan principal means i have to pay the bank for early loan settlement? i left less than 2 years and am thinking of settling my loan but seems that the 1% of loan is more than my redemption rebate.😅

[Heartlander]

1 hour ago, Stratovarius said:

I'm gonna OT but if my loan redemption rebate is less than 1~2% penalty of loan principal means i have to pay the bank for early loan settlement? i left less than 2 years and am thinking of settling my loan but seems that the 1% of loan is more than my redemption rebate.😅

The 1 to 2% early redemption penalty is something you have to pay if you want to redeem your loan, regardless of the juncture you want to exercise. The 20% of loan rebate for unused term is something you can work out using below formula. But this is provided your loan is under Rule of 78 of which most car loans in Singapore subscribe to. Best is to call the bank to check the figure. Just pointing out that car loan can only redeem in full and not partial.

 

From DBS article i linked earlier:

Next, you need to calculate the interest rebate on your remaining loan period. Of this, 20% will be charged by the bank as a fee for early redemption.

The formula to calculate interest rebate is:
(n[n+1] ÷ N[N+1]) × Total Terms Changes
Where,
n refers to unexpired loan period in months;
N refers to original loan tenure in months;
Total Term Charges refer to the total interest payable

Based on the scenario where you want to redeem loan at 25th month for a 60month loan, interest rebate based on remaining 35 months*
= (35[35+1]) / (60[60+1]) × $7,500 = $2,581.97
20% bank fee = $2,581.97 × 20% = $516.39

[Lala81]

Lol back to sedan vs suv lah. 

 

Edited March 29, 2022 by Lala81

[DodoandDino]

My bad lah... I think I stirred hornet's nest heh... 

 

Actually... It all boils down to personal pov on how we view things. On the same vein, opinions should be respected. 

Of course those who outright look down on others should be banned and have their naked @$$ flogged and paraded😎

[Mooose]

4 hours ago, Lala81 said:

Lol back to sedan vs suv lah. 

 

hahaha sedan better more "prestige"wedding cars usually sedans .. vips vvips heads of states etc ride in sedans not suvs 😂

[Lala81]

2 minutes ago, Mooose said:

hahaha sedan better more "prestige"wedding cars usually sedans .. vips vvips heads of states etc ride in sedans not suvs 😂

Hmm true. 

[Voodooman]

6 hours ago, Stratovarius said:

I'm gonna OT but if my loan redemption rebate is less than 1~2% penalty of loan principal means i have to pay the bank for early loan settlement? i left less than 2 years and am thinking of settling my loan but seems that the 1% of loan is more than my redemption rebate.😅

If left 1-2 years, the interest paid todate plus the penalty will be almost the same as you keeping the loan till maturity. The bank will be the one laughing to the bank, literally, if you prepay them. 

I found my worksheet but got no time to organize and post it but the rough maths - 4-6% of original loan amount (assuming $50-100k loan for 5 years prepaid at mid point) is your overall penalty. 

 

 

 

[Soya]

1 hour ago, Mooose said:

hahaha sedan better more "prestige"wedding cars usually sedans .. vips vvips heads of states etc ride in sedans not suvs 😂

'nuff said....

[DOBIEMKZ]

1 hour ago, Mooose said:

hahaha sedan better more "prestige"wedding cars usually sedans .. vips vvips heads of states etc ride in sedans not suvs 😂

I read in some motoring magazines that sedans shape is still the most classically elegant.

[luxurycars]

On 2/10/2022 at 3:53 AM, Hamburger said:

i on the other hand, finds the versatility of a SUV too good to be ignored. Sedan simply could not load bigger and taller stuffs unless its a stationwagon. 

 

More so when ponding time..... 

Similar thoughts about GMC SUV Yukon

[Ehtesham]

On 3/29/2022 at 6:10 PM, Soya said:

hahaha sedan better more "prestige"wedding cars usually sedans .. vips vvips heads of states etc ride in sedans not suvs 😂

'nuff said....

 

Yes you are right Sedan is  mostly use in wedding and co operate event.  But why don't to consider a limo for wedding or any other co operate events.

Edited May 25, 2023 by Ehtesham