Changing car to solve breakeven issue

[Alvinnoob]

Hi Guys,

back in 2007, i've purchase a Jazz 1.4 CVT, with a 10yrs loan. Base on scrap value, i'm only able to breakeven in August 2015. But currently i'm able to sell off with little profit.

 

Am considering to change to a 2nd hand Getz. With a 20k 4yr loan, breakeven with little over 2yr. And for the fact that this is a manual ride, chances there would be little problem on the gear box. any opinion on this? or any current or ex driver of getz? how is the ride and FC?

 

http://www.sgcarmart.com/used_cars/info.ph...259&DL=1420

http://www.sgcarmart.com/used_cars/info.ph...254&DL=1420

 

thank you !

[Keithchue]

if the car that you are driving is ok, why change? becos of the gearbox?

[SimonTan]

If your concern is only on the monthly installment. Then I guess it's better to get a car that is lighter on your pocket.

Since now sell can get money back = you already break even now!!! Why say till 2015 then break even?

If COE keeps at this high value.....u have already broke even on your Honda. Correct or not?

 

 

There are other factor to consider. You r driving older car....surely the satisfaction is not there.

 

[Wolfy3769]

hope u learn ur lesson, not to go for full 10 year loan...

due to current mkt situation, u are able to sell ur car with little profit... but such suitation is still unique...

 

from the way u mention, either u very conservative.. or u are overstretching to own a car...

how old is the Getz already?? 5~6 Yo? if so, better dont change ur car.. reliability wise, MIJ shld be better than MIK...unless ur existing ride is already giving u problem.

[Expertz]

jazz to getz is a severe downgrade, i'd rather go for the lancer glx instead

[Caravan]

The problem with getting an older car is that you may have to change a lot of wear and tear parts. You wouldn't know the history as well. Furthermore the getz is likely to give you poorer fc, resulting in higher fuel cost.

[Alvinnoob]

thanks guys. i'm neither over stretching at the moment nor cutting on the monthly installment. following are my concerns.

 

#1. currently we're experiencing a very unique situation, where i'm able to breakeven base on market value to correct a mistake made years ago. i took on a 10yr loan with S$5.5k downpayment.

#2. currently Jazz (CVT) is not having any issues, well taken care of. But there is a potential gearbox issue which would be costly to repair.

#3. If i were to sell 3 years down the road for an upgrade, chances are COE prices situation will be low and car prices would be low. I would be able to sell at paper/scrape value which will result in a lost of S$8k.

#4. If i were to till 3 years later, chances are i would need to repair gearbox and aircon.

 

[Kar_lover]

thanks guys. i'm neither over stretching at the moment nor cutting on the monthly installment. following are my concerns.

 

#1. currently we're experiencing a very unique situation, where i'm able to breakeven base on market value to correct a mistake made years ago. i took on a 10yr loan with S$5.5k downpayment.

#2. currently Jazz (CVT) is not having any issues, well taken care of. But there is a potential gearbox issue which would be costly to repair.

#3. If i were to sell 3 years down the road for an upgrade, chances are COE prices situation will be low and car prices would be low. I would be able to sell at paper/scrape value which will result in a lost of S$8k.

#4. If i were to till 3 years later, chances are i would need to repair gearbox and aircon.

 

Ur assumption #3 is unlikely to be correct. COE has stopped skyrocketing as govt has decided to slow down the reduction of COE - but make no mistake, de absolute number of COEs will STILL be REDUCED (just not so drastically) and govt is even looking at 0% growth not too far away. The past few COE tender exercises dropped due to the December tender being ridiculously high (no thanks to certain parties) and the past few tenders were merely "market corrections" and I don't believe Cat A will drop below $30k and Cat B & Open below $45k. As was recently reported, consumers have started going back to showrooms so u can bet wats gonna happen next - all the pent up demand form the past few months of high COE is going to unravel in the next few exercises. Hence i strongly believe it is highly unlikley - if not impossible - dat COE will drop to those 2008/09 days. So if u can already breakeven now, then going forward, i believe u are most likely able to continue to do so and also get some money back (i don't want to use the term "make money" as its misleading).

 

So if u're changing just for the sake of breaking even in the belief dat in a few years car prices will drop - i don't tink its a good idea. In fact it could be another mistake on top of your first mistake.

 

[Kangadrool]

If got enuff $$$, just redeem the loan.

 

A lot of time, people like to think can use the cash to generate more income. Only applicable if your return is at least 10%. Car loan is the most horrible loan of all loans.

Edited February 22, 2011 by Kangadrool

[Voxy28]

thanks guys. i'm neither over stretching at the moment nor cutting on the monthly installment. following are my concerns.

 

#1. currently we're experiencing a very unique situation, where i'm able to breakeven base on market value to correct a mistake made years ago. i took on a 10yr loan with S$5.5k downpayment.

#2. currently Jazz (CVT) is not having any issues, well taken care of. But there is a potential gearbox issue which would be costly to repair.

#3. If i were to sell 3 years down the road for an upgrade, chances are COE prices situation will be low and car prices would be low. I would be able to sell at paper/scrape value which will result in a lost of S$8k.

#4. If i were to till 3 years later, chances are i would need to repair gearbox and aircon.

 

 

wah piang eh, why worry about things you cannot control and things that may happen 3 yrs down the road.

 

If not happy with Jazz then shop around to upgrade.... calculate until cow come home also no use bec policies keep changing.

[Alvinnoob]

Ur assumption #3 is unlikely to be correct. COE has stopped skyrocketing as govt has decided to slow down the reduction of COE - but make no mistake, de absolute number of COEs will STILL be REDUCED (just not so drastically) and govt is even looking at 0% growth not too far away. The past few COE tender exercises dropped due to the December tender being ridiculously high (no thanks to certain parties) and the past few tenders were merely "market corrections" and I don't believe Cat A will drop below $30k and Cat B & Open below $45k. As was recently reported, consumers have started going back to showrooms so u can bet wats gonna happen next - all the pent up demand form the past few months of high COE is going to unravel in the next few exercises. Hence i strongly believe it is highly unlikley - if not impossible - dat COE will drop to those 2008/09 days. So if u can already breakeven now, then going forward, i believe u are most likely able to continue to do so and also get some money back (i don't want to use the term "make money" as its misleading).

 

So if u're changing just for the sake of breaking even in the belief dat in a few years car prices will drop - i don't tink its a good idea. In fact it could be another mistake on top of your first mistake.

 

oh.. my assumption is base on, plenty of car need to be scarp in approx 3 years time. thus, we little or no increase in quota. But with the many scrap will result in more COE being available. haha.. it is not for making money, purely to correct my first mistake and not bumbing into another 1.

[Alvinnoob]

wah piang eh, why worry about things you cannot control and things that may happen 3 yrs down the road.

 

If not happy with Jazz then shop around to upgrade.... calculate until cow come home also no use bec policies keep changing.

 

 

very happy, just that i worry alot.. :x

only thing unhappy, was i didn't get a manual back then.

[Unfair]

Bro, i driving a 6-7 yrs old Jazz. No problems with gearbox or Aircon.

 

Aircon i know costs <1k to change out the compressor.

 

I believe its better to stay with the jazz and consider your options in 3 yrs time.

 

[Maz0608]

If got enuff $$$, just redeem the loan.

 

A lot of time, people like to think can use the cash to generate more income. Only applicable if your return is at least 10%. Car loan is the most horrible loan of all loans.

 

Agreed! I took a 6 year loan to purchase my current car and the interest worked out to be more than 10K!

I am saving now to redeem the loan early next year hopefully with about half the loan left.

Edited February 22, 2011 by Maz0608

[Spurman]

Ex Getz 1.1manual driver.

3yrs, 110k milleage.

Changed timin bElt b4.

Average fc around 14-15km/ltr.

No probs wif car b4, except the local fitted power windows, otherwise decent ride. Lower horsepower compared, coz 1.1manual

[Chickensoup]

Don't think you can change car to solve a breakeven issue, if this is really a primary concern. The car you sell now is well taken care (means no problems), Honda brand. If you sell, you sell at dealer's take in price.

 

Then you buy a Korean Car, no sure about its condition (becos the dealer will polish it up), pay for transfer fees and also dealer's mark up. Then you are also taking out cash to put up as deposit.

 

All in all, don't sound like a good move. Basically you are downgrading and hence save some small money along the way. Those small money may not cover the repairs of a older Korean car which is more problematic than Honda.

[Spurman]

My avante now 2.2yrs. Can sell easily 43k plus.

Was contemplating changing to sonata 5yrs old 30k.

In fact I can get back cash 23k. Loan left ard 20k. I top up another 7k and get to pay nothing for the sonata in next fee yrs. Hehe.

 

But my wife and friends say I siao. Avante so pretty, so handsome and so problem free, why chAnge to older and more ah pek car

[Chickensoup]

My avante now 2.2yrs. Can sell easily 43k plus.

Was contemplating changing to sonata 5yrs old 30k.

In fact I can get back cash 23k. Loan left ard 20k. I top up another 7k and get to pay nothing for the sonata in next fee yrs. Hehe.

 

But my wife and friends say I siao. Avante so pretty, so handsome and so problem free, why chAnge to older and more ah pek car

Changing to a older car is not really savings. Look at the yearly depreciation, then you can see if any saving. Do factor in the cost of ownership change, like initial repairs and transfer fees, dealer's profit/fees.

 

Probably cash flow could improve a little by changing to a older car and hope that repair bills don't eat it up.