Cheaper prices, so young snapping up cars

[Throttle]

I'm doing 30km per day and my mileage is already the lowest that I know compared to all my friends.

 

20km per day is if you dont use everyday which already defeats purpose of car as normal transport. Parking of $65 means you dont go anywhere but park in your hdb car park. Also cannot go pass ERP.

Insurance is more than just $750 a year. And the car can be used 10 years without servicing nor breakdowns???

 

very wrongly skewed report...

[spy622]

Originally posted by Throttle@January 29, 2007 10:09 pm

I'm doing 30km per day and my mileage is already the lowest that I know compared to all my friends.

 

20km per day is if you dont use everyday which already defeats purpose of car as normal transport. Parking of $65 means you dont go anywhere but park in your hdb car park. Also cannot go pass ERP.

Insurance is more than just $750 a year. And the car can be used 10 years without servicing nor breakdowns???

 

very wrongly skewed report...

I guess the reporter either fails the maths or goes public

 

If not the person who was interview gave the wrong info

[Demon]

http://img.photobucket.com/albums/v469/udaloy/Album%202/qq.jpg

 

I fell off the chair when I read that. :giddy:

 

could that be the reason why the cabbies are losing their business ?

 

 

 

[krazyfist]

upz for the malay women!! u go gal..peehee..

[bluroblur]

haha...YOUNG snap up the car...OLD pays the bill

[Lion]

Cars are liabilities.... And they depreciate alot.

 

So no point getting one even if its affordable. Unless ya earning enough to maintain it.

[E.V.ilyn]

Originally posted by Lion@January 30, 2007 06:35 pm

Cars are liabilities.... And they depreciate alot.

 

So no point getting one even if its affordable. Unless ya earning enough to maintain it.

Cars can depreciate less than bikes.

 

I do not have the full details but according to my friend, his OPC Cerato when scrapped, will have a value of $8k+. He bought for ~$22k. Loss? $14k.

 

Bikes have no scrap value. Once the 10yrs is up, not a single cent. Ok, this is talking about scrapping and not selling the car/bike away. This is only an example for similar scenarios. Anyway, if bikes have resale value, so do cars. Since no hard figures to work with, just use this as a illustrative case.

 

A Chery QQ OPC can be gotten for $15k OTR.

Scrap value I'm not sure. I believe will have at least $5k?

So $10k for 10yrs of usage. $1k/yr.

Roadtax is $50.

Insurance maybe $1k?.

Total fixed cost = $1.15k.

 

Tyres $200 for 4 lasting 2yrs, so $100/yr.

All other periodic maintenace let's just put it at $500/yr.

HDB parking $90/mth, $1080/yr.

Total fixed cost = $2730.

 

Let's just round up to $3k say got additional I left out at this point of time, or the maintenace is higher than that.

 

Based on 60km/day, 21900km/yr, 13kml economy (actual will be higher but for the sake of pessimistic calculation, or for covering occasasional day coupons), $1.40/L, $2350/yr for petrol.

 

Then let's round up again so $6k/yr for total cost of ownership. This I think is rather generous calculation based on my rule of pessimism for mental preparation for purchases. I think you can probably get by with $4-5k/yr if you travel lesser, pump MY petrol, etc.

 

Now public transport. Based on comparable usage with the 60km/day, let's just assume 2 bus rides + 2 MRT rides. Errr... $5/day? So that makes it $1825/yr already. Then let's just round up to $2k/yr for occasional taxi rides.

 

So what is the difference? Anything from $2k more to $4k more. Assuming upper bound, so $4k/yr == $10.90 more per day.

 

So what are you paying for this $10.90/day? I would say >1hr of your time, flexibility, freedom, etc. Is it worth it? Well, it depends on the current state of your career. It could be a lot for some people, but neglible for others. Afterall, the masses are making more than that amount in an hour. For parents who can afford, they might be hoping that their children have more time to study rather than travelling around.

 

But scenarios can be different. How many travel that distance on a daily basis? How many need to travel to unfriendly places each day?

 

Where I live and work, the shortest path home is 28.5km 1 way, ~40mins by bike, ~50min by car. Public transportation to work is 1 LRT + 1 MRT + 1 bus. If to add in the time taken to walk to the bus stop, waiting time, etc. 1.5-2hr. Worth it? I would say it's not too bad.

 

Naturally, this does not account for the interest incurred for taking loans which could tilt the scale more. Ultimately, it's how you live that determine if it might be cheaper or otherwise.

[E.V.ilyn]

Anyway, I'm toying with the idea of an OPC Picanto modded for CNG. CNG costs ~70c/kg or put into comparable units, 70c/1.1L, which is 50% the cost of petrol thereabouts. 4 CNG tanks + the car's own tank will give maybe 1000km mileage. Without going into any calculation, I am guessing the average cost of "petrol" to be $1/l or even better (if you top up CNG and petrol in MY). I am wondering if it might be cheaper than public transport...

[Demon]

Originally posted by E.V.ilyn@January 30, 2007 08:10 pm

Cars can depreciate less than bikes.

 

I do not have the full details but according to my friend, his OPC Cerato when scrapped, will have a value of $8k+. He bought for ~$22k. Loss? $14k.

 

Bikes have no scrap value. Once the 10yrs is up, not a single cent. Ok, this is talking about scrapping and not selling the car/bike away. This is only an example for similar scenarios. Anyway, if bikes have resale value, so do cars. Since no hard figures to work with, just use this as a illustrative case.

 

A Chery QQ OPC can be gotten for $15k OTR.

Scrap value I'm not sure. I believe will have at least $5k?

So $10k for 10yrs of usage. $1k/yr.

Roadtax is $50.

Insurance maybe $1k?.

Total fixed cost = $1.15k.

 

Tyres $200 for 4 lasting 2yrs, so $100/yr.

All other periodic maintenace let's just put it at $500/yr.

HDB parking $90/mth, $1080/yr.

Total fixed cost = $2730.

 

Let's just round up to $3k say got additional I left out at this point of time, or the maintenace is higher than that.

 

Based on 60km/day, 21900km/yr, 13kml economy (actual will be higher but for the sake of pessimistic calculation, or for covering occasasional day coupons), $1.40/L, $2350/yr for petrol.

 

Then let's round up again so $6k/yr for total cost of ownership. This I think is rather generous calculation based on my rule of pessimism for mental preparation for purchases. I think you can probably get by with $4-5k/yr if you travel lesser, pump MY petrol, etc.

 

Now public transport. Based on comparable usage with the 60km/day, let's just assume 2 bus rides + 2 MRT rides. Errr... $5/day? So that makes it $1825/yr already. Then let's just round up to $2k/yr for occasional taxi rides.

 

So what is the difference? Anything from $2k more to $4k more. Assuming upper bound, so $4k/yr == $10.90 more per day.

 

So what are you paying for this $10.90/day? I would say >1hr of your time, flexibility, freedom, etc. Is it worth it? Well, it depends on the current state of your career. It could be a lot for some people, but neglible for others. Afterall, the masses are making more than that amount in an hour. For parents who can afford, they might be hoping that their children have more time to study rather than travelling around.

 

But scenarios can be different. How many travel that distance on a daily basis? How many need to travel to unfriendly places each day?

 

Where I live and work, the shortest path home is 28.5km 1 way, ~40mins by bike, ~50min by car. Public transportation to work is 1 LRT + 1 MRT + 1 bus. If to add in the time taken to walk to the bus stop, waiting time, etc. 1.5-2hr. Worth it? I would say it's not too bad.

 

Naturally, this does not account for the interest incurred for taking loans which could tilt the scale more. Ultimately, it's how you live that determine if it might be cheaper or otherwise.

The OMV of a Kia Ceranto (using the most expensive model) is $12537, so the PARF value at the end of the 10th year is $6895. Similarly for the Chery QQ (using the most expensive model), the PARF value at the end of the 10th year is only $3869.

 

Your comparison is fundamentally flawed. If you want to use OPC as a basis for comparison with cost of using public transport, then you have to factor in the $20 daily coupon for using the OPC without any restriction. Cost of Maintenance is not linear, at some point in time, depending on the make, there is a major servicing such as timing belt, change of all fluids..etc, which can cost more than $1k, and we are only accounting for preventive maintenance. What about corrective maintenance which could cost even more.

 

 

 

 

 

[E.V.ilyn]

Originally posted by Demon@January 30, 2007 09:05 pm

The OMV of a Kia Ceranto (using the most expensive model) is $12537, so the PARF value at the end of the 10th year is $6895. Similarly for the Chery QQ (using the most expensive model), the PARF value at the end of the 10th year is only $3869.

 

Your comparison is fundamentally flawed. If you want to use OPC as a basis for comparison with cost of using public transport, then you have to factor in the $20 daily coupon for using the OPC without any restriction. Cost of Maintenance is not linear, at some point in time, depending on the make, there is a major servicing such as timing belt, change of all fluids..etc, which can cost more than $1k, and we are only accounting for preventive maintenance. What about corrective maintenance which could cost even more.

 

 

 

 

 

It depends on your requirements for use. I'm illustrating a scenario when you can get into office 1.5hr earlier, and this is when it might be cheaper. SAF regulars, shift personnel, etc. Day coupons can be used sparingly. In many people's cases, it is only a matter of getting into office earlier since either they do not knock off on time or wait around in office till the home going crowded is lessen.

 

Naturally mainteance is not linear, just like the cost of operating like petrol pricing. But do you have hard figures to work with? Without, use an estimation with figures as exact or as pessimistic as you can. Then work with that. Also, public transportation cost is also not linear with the years though tend to be more linear than car maintenance. Notice that I use higher figures and round up to the next thousand? Some corrective maintenace items do not occur yearly and hence years that you don't do them, there's a budget surplus and years you do, use the surplus to cover. It is known that cars with the coming of 5-7yrs on usually involve more frequent and much more expenses.

 

One key thing is this: even though it is possible that owning a car can potentially be cheaper or only slightly more expensive than the public transportation system, you'll end up spending more due to the new lease of life that you have. Freedom to go anywhere at anytime, etc. In order to maximise the car's worth, you'll tend to go to places that you previously have never been to or felt lazy to go due to the inconvenience.

 

Depending on how you use, OPC can be cheaper than a full COE car. You get $17k upfront rebate. Annual $800 road tax rebate. That is $2.5k/yr. You can use this amount to buy 125 day coupons. There're 52wks/yr. Meaning, you can use 2.5 coupons/wk. Of the week, supposed you can don't use the car on Sat before 3pm, there're only 5 days you can use the coupon. Minus the public holidays, you have nearly 3 coupons to use per week. How about if you take annual holidays? Or if outstationed often? All the better.

 

I've not been so resistant to owning a car since understanding from my ex-colleague few years back the costs of car maintenace. Contrary to popular (or my previous) belief, the maintenace cost of my bike is much higher than what my friends spend on their car... e.g. they can buy 3 sets tyres with 2 set of mine, and their each of the 3 sets can last 3x longer than mine!!!

[xb84]

i lazy to read but EVILyn :thumb: essay writer.

[spy622]

we forgot abt interest rates...unless we r rich do full payments on cars like bikes..

 

but anyway nowadays most liter bikes cost the same or more than an OPC cheap car

[archenemy]

i done my maths before i got my van...and yes..the maintenance is about the same...believe it or not...

 

not to mention that the cost per kilometer is about the same for both.

 

$18 per 350km for my X9...vs $45 per 700+km for my van...

 

just that the liability is stretched longer...from 2 years to 7 years...haahaa...

 

paid for my van in full..so saved quite a bit on interest...

[Enotsol]

That is exactly the reason why I hesitated to get a class 2 bike. After some calculations I found that the maintenance of a class 2 bike is on par or even higher than a small car. The car might cost more but at least it's sheltered and you can carry more than 1 passenger and the fuel consumption is comparable.

[Me_No_Money]

Originally posted by Enotsol@January 31, 2007 01:33 pm

That is exactly the reason why I hesitated to get a class 2 bike. After some calculations I found that the maintenance of a class 2 bike is on par or even higher than a small car. The car might cost more but at least it's sheltered and you can carry more than 1 passenger and the fuel consumption is comparable.

did u add in factors like season parking, erp, fine etc?

 

if u did then ur calculation will b more accurate.

 

 

anyway i wish tat i got many frens who drive ---> so tat they can tong bang me when going out rather than me riding.heehee

[Enotsol]

Originally posted by Me_No_Money@January 31, 2007 01:59 pm

did u add in factors like season parking, erp, fine etc?

 

if u did then ur calculation will b more accurate.

 

 

anyway i wish tat i got many frens who drive ---> so tat they can tong bang me when going out rather than me riding.heehee

Ignoring the cost of the car and bike, insurance, road tax, maintenance, parking, ERP, fines or whathaveyou were calculated based on my own usage pattern. It does work out to be roughly equivalent. Even if you pay slightly more for the car, take it that you are paying for the shelter and comfort.

[paiseh]

yup agree. if u r not really passionate abt riding, a transport bike would be more den enough.

 

buy a cheap OPC with shelter, ferry more ppl.

 

but if u r into biking, love the thrills and fun of a higher cc bike, den perhaps u would tink its worth it paying for a class 2 bike

[Enotsol]

Originally posted by paiseh@January 31, 2007 03:54 pm

yup agree. if u r not really passionate abt riding, a transport bike would be more den enough.

 

buy a cheap OPC with shelter, ferry more ppl.

 

but if u r into biking, love the thrills and fun of a higher cc bike, den perhaps u would tink its worth it paying for a class 2 bike

I love riding. Even riding a small cc transport bike gives me even more thrill than driving a 2L car around but looking at the practical side of things, we can have unlimited wants but we have limited resources to play around with...

[xb84]

points on passion and being practical.. but damn hard to choose le..

[bluroblur]

FOR OPC, when u are converting to normal car (lots of ppl cant but very wished to do so) i think u gotta fork out the 17,000 ....unless if u r selling it to a direct owner who don mind buying a used OPC which is already so cheap, so would any1 still wanna buy used OPC?

 

although nw LTA gt pro-rate the 17,000...u still need to fork out certain amount...for the pro-rate amount, can check at LTA webby...

[Throttle]

for those who dont know, too bad lose money loh, that's how the world goes round.

[bluroblur]

hm...think they change the rules....but still nt worth getting OPC...lol

[E.V.ilyn]

It is never worth getting a vehicle in Singapore less those 2B rides like cubs. It's more of a matter of affordability. If that "premium" amount is like 5% of your take home pay, would you give half a hoot? It's a different story if it is 50%. Get the drift?

 

Some would pay through their nose to own a bike or a car. Some would only own one if it is a "negligible" amount.

 

Statistics have shown many people owning their dream Class 2 bikes taking up huge loan over extended period only to be forced to sell or give their bikes away for free when financing it is choking them...

 

Anyway, "worth" is a relative descriptive. Is it worth it to buy a BMW 7 series when you can get buy 4 Latios with change to spare? BMW7 is not 4 times more comfortable, not 4 times faster, etc. So where is it's worth?

[hachi]

Buy wat u need not wat u dont have....And I always buy my bike in full cash, my bike old maybe old but I hv the log card and dont own people anything....

And those who have loan but have primary school kid bank account, I would say if one day u meet someone u want to be with for the rest of ur life, and show her ur bank account...How are u going to take care of her?

I still saving up for my big day....Even I can full cash out any class 2 bike....

[Throttle]

Originally posted by E.V.ilyn@February 01, 2007 08:10 pm

It is never worth getting a vehicle in Singapore less those 2B rides like cubs. It's more of a matter of affordability. If that "premium" amount is like 5% of your take home pay, would you give half a hoot? It's a different story if it is 50%. Get the drift?

 

Some would pay through their nose to own a bike or a car. Some would only own one if it is a "negligible" amount.

 

Statistics have shown many people owning their dream Class 2 bikes taking up huge loan over extended period only to be forced to sell or give their bikes away for free when financing it is choking them...

 

Anyway, "worth" is a relative descriptive. Is it worth it to buy a BMW 7 series when you can get buy 4 Latios with change to spare? BMW7 is not 4 times more comfortable, not 4 times faster, etc. So where is it's worth?

Can afford buy, cannot afford dont buy. No problem at all.

 

Just dont bite off more than you can chew .....my most given advice.