When do you break even?

[R3sistor]

Hello. Am considering to buy a car recently. Am considering 2nd hand car (Jazz, fit or vios) or a first hand model of the above mentioned.

 

As i am new to this car market, i'm really wondering how people actually calculate when your car breaks even. I know you have to factor things like your OMV, PARF, COE to calculate.

 

I'm looking more for fuel economy cars, as i will be travelling a lot on this job. My company is paying me $0.70 a Km capped at 1350km a month, i can also claim ERP and parking while on the job.

 

Now, i am intending to stay on this job for at least another 2 years. I have two choices:

 

1) Buy a new car, two years later my brother who is selling off his current car is willingly to take over. However, this means i dont totally own the car. And should i want to stay on at the job, i've to get another car to travel around (which means i cant change jobs unless the next one have transport allowance)

 

2) Get a 2nd car. Drive it for another 2 years, even if i sell, i dont mind topping up a bit to get rid. But i seriously dont know how to calculate how much is my losses. Can't trust those PI too much even if i can ask them.

 

Im actually more keen to getting a 2nd car, as it wont be so risky. Any gurus can advise?

 

Also since we'r into this, what else should i look out for when buying a 2nd car from PI?

[Throttle]

breakeven?

never, you just continue losing.

only lose more or lose less.

 

if you loan more, you lose more.

becos as you already know, your equity in the car is not sufficient to offset the debt.

 

If your job requires a lot of moving around.

Try to get the most practical car for the time being.

fuel efficiency and reliability is crucial.

Hopefully you can offset the cost of your car through the claims you make.

 

dont listen to dealer, do your own assessment of the car.

try to research what you are buying.

look for tell tale signs of poor condition. eg leaks, cracks etc...

 

good luck

[Demon]

Hello. Am considering to buy a car recently. Am considering 2nd hand car (Jazz, fit or vios) or a first hand model of the above mentioned.

 

As i am new to this car market, i'm really wondering how people actually calculate when your car breaks even. I know you have to factor things like your OMV, PARF, COE to calculate.

 

You have to define what you mean by "breakeven". To most, it would be when the outstanding loan is equal to the scrap value. To calculate this, you would need the car price, downpayment, loan tenure, and interest rate.

 

I'm looking more for fuel economy cars, as i will be travelling a lot on this job. My company is paying me $0.70 a Km capped at 1350km a month, i can also claim ERP and parking while on the job.

 

Presumbly your car has a FC of 12km/litre, using 95 Ron petrol at current price of $1.95/litre. Of your $0.70/km claim, $0.163 would have gone into petrol, therefore your net gain is $0.537/km.

 

Based on your max claim of 1350km, you would have a maximum of $725/month to take care of the installment, insurance, service & repairs etc.

[R3sistor]

yeap.. BTW.. its $0.12 thereafter the 1350km..

 

I'm keeping in mind the fact that i've to fork out money for insurance, service, repairs and road tax.

 

I'm just trying to factor which is better now, a new car for me or a 2nd car. I'm definitely looking for fuel efficiency car. At the moment only Jazz, fit or VIOS comes into my mind though. any other suggestions ?

[miss]

A 2nd hand car may set you further back in terms of wear and tear, maintenance and repair costs...

[whyzee]

heres my 2 cts worth.. buy car, of cos sure lugi. but if u think u need it, what to do?

 

a few things to consier:

determine the distance u have to travel per month. as u cant claim total petrol usage, it matters alot....

also, as u travel more that means more maintenance. EO change, tire change etc.. of cos, things like petrol, insurance, road tax, maintenance, ERP, parking can be pre-calculated.. but one thing cannot... *touchwood*, accident..

 

very often, will ganna minor accidents here n there, and that involve extra expenditure. n they are usually much more as compared to bike. like, jus to repair ur bumper, prolly cost u $200 liao..

 

well, as for 2nd hand or 1st hand. to me, i will buy 2nd hand.. got a 2nd hand previously.. no regrets. but of cos, not those 6-7 years car.. if u can, get say, 2 years old one. then at least still got agent warranty for one more year. for me, i dont go agent one for servicing. but for complain of fork too soft, rubber lining harden, air-con not cold, or whatsoever...

 

1st hand however, if ur brother confirm taking over, then can consider. cos if sell 1st hand car, sure depreciate alot more than the estimated depreciation one. n thats y, buying 2nd hand help as 1st owner absorbed the initial impact liao. n for 2nd hand, well.. drive til 5th year, then u scrap.. that will be better than selling...

 

n btw, i vote for jazz/fit versus vios. estimating ur budget to be 60k for brand new... do take a look at mazda2 and latio too. within your budget.. oh yah, also, volkswagen polo...... its not as ex as many ppl think... n interior is really posh..

[Rio Kakashi]

How bout installing a CNG or purchasing a new CNG car instead?

[R3sistor]

heres my 2 cts worth.. buy car, of cos sure lugi. but if u think u need it, what to do?

 

a few things to consier:

determine the distance u have to travel per month. as u cant claim total petrol usage, it matters alot....

also, as u travel more that means more maintenance. EO change, tire change etc.. of cos, things like petrol, insurance, road tax, maintenance, ERP, parking can be pre-calculated.. but one thing cannot... *touchwood*, accident..

 

very often, will ganna minor accidents here n there, and that involve extra expenditure. n they are usually much more as compared to bike. like, jus to repair ur bumper, prolly cost u $200 liao..

 

well, as for 2nd hand or 1st hand. to me, i will buy 2nd hand.. got a 2nd hand previously.. no regrets. but of cos, not those 6-7 years car.. if u can, get say, 2 years old one. then at least still got agent warranty for one more year. for me, i dont go agent one for servicing. but for complain of fork too soft, rubber lining harden, air-con not cold, or whatsoever...

 

1st hand however, if ur brother confirm taking over, then can consider. cos if sell 1st hand car, sure depreciate alot more than the estimated depreciation one. n thats y, buying 2nd hand help as 1st owner absorbed the initial impact liao. n for 2nd hand, well.. drive til 5th year, then u scrap.. that will be better than selling...

 

n btw, i vote for jazz/fit versus vios. estimating ur budget to be 60k for brand new... do take a look at mazda2 and latio too. within your budget.. oh yah, also, volkswagen polo...... its not as ex as many ppl think... n interior is really posh..

 

For your 2nd hand car, did you full loan it? Then on the 5th year, i assume if its full loan, you still have to top up some cash to scrap?

[Demon]

Hey R3sistor,

 

Must it be a private car ? Can "G" plate vehicle be considered ?

 

Another option is to check with car rental companies for long term leasing. In such arrangement, you have no miscellaneous overheads like tax, insurance, repairs, servicing...etc. Just pump and go.

 

If you have intention of getting a car eventually, this could be an opportunity. For as long as you are in this job, you can use your mileage reimbursement to pay at least part of the installment.

 

[NoLicense2]

yeap.. BTW.. its $0.12 thereafter the 1350km..

 

I'm keeping in mind the fact that i've to fork out money for insurance, service, repairs and road tax.

 

I'm just trying to factor which is better now, a new car for me or a 2nd car. I'm definitely looking for fuel efficiency car. At the moment only Jazz, fit or VIOS comes into my mind though. any other suggestions ?

 

the same Question comes into my mind as im still making decision what car to buy, CITY not bad. mayb consider,you get second hand car, break even in 24 months to 30 months if you full loan.

[NoLicense2]

heres my 2 cts worth.. buy car, of cos sure lugi. but if u think u need it, what to do?

 

a few things to consier:

determine the distance u have to travel per month. as u cant claim total petrol usage, it matters alot....

also, as u travel more that means more maintenance. EO change, tire change etc.. of cos, things like petrol, insurance, road tax, maintenance, ERP, parking can be pre-calculated.. but one thing cannot... *touchwood*, accident..

 

very often, will ganna minor accidents here n there, and that involve extra expenditure. n they are usually much more as compared to bike. like, jus to repair ur bumper, prolly cost u $200 liao..

 

well, as for 2nd hand or 1st hand. to me, i will buy 2nd hand.. got a 2nd hand previously.. no regrets. but of cos, not those 6-7 years car.. if u can, get say, 2 years old one. then at least still got agent warranty for one more year. for me, i dont go agent one for servicing. but for complain of fork too soft, rubber lining harden, air-con not cold, or whatsoever...

 

1st hand however, if ur brother confirm taking over, then can consider. cos if sell 1st hand car, sure depreciate alot more than the estimated depreciation one. n thats y, buying 2nd hand help as 1st owner absorbed the initial impact liao. n for 2nd hand, well.. drive til 5th year, then u scrap.. that will be better than selling...

 

n btw, i vote for jazz/fit versus vios. estimating ur budget to be 60k for brand new... do take a look at mazda2 and latio too. within your budget.. oh yah, also, volkswagen polo...... its not as ex as many ppl think... n interior is really posh..

 

 

 

volkswagen polo is not as ex as ppl think? care to share how much? may consider if the price is really not that ex...

[NoLicense2]

How bout installing a CNG or purchasing a new CNG car instead?

 

Its really a good idea, but i have check with the PI and some shop, if you get a new car for with CNG install, you will need to wait minimum 3 months to get your new car, so you still have to bear to 3 months without car, as CNG installation at LTA is damn long Q.

[NoLicense2]

volkswagen polo is not as ex as ppl think? care to share how much? may consider if the price is really not that ex...

 

i chek alreayd, only 1 in sgcarmart haha...57k, can get civic....

http://www.sgcarmart.com/main/listing.php?MOD=volkswagen+polo&GR=Any&PR1=0&PR2=&CAT=0&TYPE=0&LOC=&FR=Any&sb.x=46&sb.y=10&EXM=

[whyzee]

hmmm. 57k can get civic meh? back then i check at VW showroom, i think, its either around 60+K. cant remember le... anyway, i know its a small car.. but the interior is fantastic... honestly, japanese cars, generally interior lose out... unless u talking about mazda or lexus.. my recent favorite asian car is the Hyundai i-30 though.. but most ppl are skeptical about korean cars anyway..

 

 

anyway, back to topic... i used to consider going CNG.. but im glad i didnt..

cos CNG price went up liao... n plus, the inconvenience of pump, and the small tank.. if u gonna travel often.. imagine, u got to go tuas or mandai pump everyday, and queue with all the CNG cabbies...

 

as for 2nd hand car for scrapping on 5th year.. im not an expert in loan.. but, if u get full loan, sure hard one... ask car dealer for advise on this ba...

[jia_yvon]

you get second hand car, break even in 24 months to 30 months if you full loan.

 

LOL, full loan 2nd hand car can brean even in 30 months time?

who taught you that ? lol

 

try get ur city, full loan n brean even in 2 n 1/2 yr time let mi see

[jia_yvon]

57k can get a younger 1.6 civic or a older 1.8 civic liao lo

[NoLicense2]

LOL, full loan 2nd hand car can brean even in 30 months time?

who taught you that ? lol

 

try get ur city, full loan n brean even in 2 n 1/2 yr time let mi see

 

Please go and take a look at 2004 , high COE , 24k , OMV 14k , Reg Date 21 Dec 2004 .from here u can see the picture isit true not,full loan and see how long u can break even....

There is also vios can break in 5 month...

[NoLicense2]

57k can get a younger 1.6 civic or a older 1.8 civic liao lo

 

dont see it u all dont believe...

http://www.sgcarmart.com/main/info-2ELybRhD-1163.html

[R3sistor]

Thanks for the advise.

 

I probably will be going for a 2nd car. I'm targeting at Fit or Jazz... Don't mind the VIOS also though. Probably a 2-3 year old car.

 

Anyone got lobang ?

[R3sistor]

Hey R3sistor,

 

Must it be a private car ? Can "G" plate vehicle be considered ?

 

Another option is to check with car rental companies for long term leasing. In such arrangement, you have no miscellaneous overheads like tax, insurance, repairs, servicing...etc. Just pump and go.

 

If you have intention of getting a car eventually, this could be an opportunity. For as long as you are in this job, you can use your mileage reimbursement to pay at least part of the installment.

 

 

G plate can't be considered. As its not allowed.

 

I'm actually thinking of getting a long term rental though. I dont have any lobangs on it. And also for long term rentals, i dont know what's the deal like also.

[jia_yvon]

Please go and take a look at 2004 , high COE , 24k , OMV 14k , Reg Date 21 Dec 2004 .from here u can see the picture isit true not,full loan and see how long u can break even....

There is also vios can break in 5 month...

 

haha, u sure? high coe n omv meaning can break even fast ? try it out then let us know.

 

after 5 yr. omv drop 5.5% per yr

high coe, lose more on coe, tts why most of the high coe car they go for scrap, coz no1 wan, high depreciation. wan drive also for short term.

then wat about interest ? car price drop every yr ? not so easy to break even la..

especially FULL LOAN.

u bought a car at 40k n full loan it, 2 yrs down the road, ur resale value can meet ur fullsettlement amount (without topping up) , u can laugh liao lo.

n if tts the case, msot of the singaporean will have no pro in changing car eveyr 2-3 yrs liao lo. (without top up money HOR)

[jia_yvon]

dont see it u all dont believe...

http://www.sgcarmart.com/main/info-2ELybRhD-1163.html

 

ya. but that one high mil n more than 1 owner. u wan cheap no pro, accident one cheap by 4-5k also can get. u said urslef wat, cheap things dun come good n good things dun come cheap, so if u expect a good car, accident free, 1 owner well maintain n full accessories n low mil, how u expect the price to be cheap? haizzzzzzzzzzzzz

[jia_yvon]

Please go and take a look at 2004 , high COE , 24k , OMV 14k , Reg Date 21 Dec 2004 .from here u can see the picture isit true not,full loan and see how long u can break even....

There is also vios can break in 5 month...

 

ya, i buy a car, after drive 1 yr n sell, i can still earn money from car price. believe it ?

[Sky99]

ya, i buy a car, after drive 1 yr n sell, i can still earn money from car price. believe it ?

 

so good ah?

 

wad car?

[R3sistor]

chill guys.. Just opened this tread just that i can ask for advise.

 

Appreciate if we could just go back to the topic.