How much do you earn a month...

[hachi]

If ur take home pay is 2k then is 50% of ur pay but if 2k - off cpf contribution 20% u got 1.6k.

- off monthly car expenses 1-1.2k then u have nothing much left. Cos monthly expenses for urself is about $400-800 if u dont spend much....For 7 years u have almost zero in ur bank. That is for 7 years, anytime u lost ur job, and cannot find a job, bank will come knocking on ur door....

 

And for 7 years loan, breakeven point simply is the point where your scrap value of your car is more or equals to your outstanding loan amt is about 4 years. But for 10 loan is about 9 years.

[hachi]

This is the analysis of a 8 years loan copied for website. Those who had taken 10 years loan thinking they can break even in few year time I suggest u do ur math again.

 

Example

 

Car Price : S$70K

COE : S$22K

OMV : S$17K

Loan Tenure : 8 yrs

Monthly Repayment : S$869.00

Interest : 2.4%

Total Loan Amount + Interest = S$83,440.00

 

3rd year :-

Paid Value = S$869 x 36 months = S$31,284

Financing Balance = S$52,156.00

Car Value : S$15,400 (COE Rebate) + S$16K (Parf) = S$31,400.00

Amount Outstanding = S$52,156.00 - S$31,400.00 = S$20,756.00

 

5th year :-

Paid Value = S$869 x 60 months = S$51,540

Financing Balance = S$10,444.00

Car Value : S$11,000 (COE Rebate) + S$12,750 (Parf) = S$23,750.00

Amount Outstanding = S$31,900.00 - S$23,750.00 = S$8,150.00

 

6th year :-

Paid Value = S$869 x 72 months = S$62,568

Financing Balance = S$20,872.00

Car Value : S$8,800 (COE Rebate) + S$11,900 (Parf) = S$20,700.00

Amount Outstanding = S$20,872.00 - S$20,700.00 = BREAK EVEN with S$872 returned

 

7th year :-

Paid Value = S$869 x 84 months = S$72,996

Financing Balance = S$10,444.00

Car Value : S$6,600 (COE Rebate) + S$11,050 (Parf) = S$17,650.00

Amount Outstanding = S$10,444.00 - S$17,650.00 = S$7,260 (Surplus Returned)

[hachi]

I think 7-10 years loan are very risky, I always have a amount in bank that I can live it off without working for 1-2 years. That what I called safey net.

If out of job I can just laugh it off and take a short break.

 

Those who had loan and espeacailly those 10 loan

A 10yr loan sounds rosy when you look at the monthly repayment factor. However, it wont look so rosy when you realise the amount of money you are paying annually for the car, and the interest payments you are forking out. It will look worse when you decide to sell off your car and realise that you still owe finance close to over 10-20K (which you have to pay them of course) before they allow you to sell off your car.

 

And I dont think u have that kind of amount in the bank if u go for 10 years loan. If u r not earning 3-3.5k per month, then is really hard to own a car.

[Throttle]

Very true.

[LordDraco]

3K is kinda of not too safety too especially for pple starting a family like getting new house, getting customary, funiture, household and blah blah blah.

 

People will be in debt when renovating house plus monthly installment of the house either through CPF totally or CPF with top-up.

 

People who loan renovation loan, home loan plus Car loan with their 3K pay or even 4 to 5K pay is kinda of risky too. Especially if out of job ... cause during long period, saving is definitely gone.

 

For individual folks without attachment (GF or Wife/House/etc) 3K is good enough to buy a car and staying with parents.

 

For married personnel like me, I had to stretch all my payment and refusal to borrow from bank, die die must get HBD loan (20year) and etc. Till bank is a bit better than buy car.

 

FYI .. I get the 7 year loan but paid ard nearly 18% downpayment to lower the loan.

 

7 onwards interest is higher

3 year below, 30K loan below also pretty high I think.

[hachi]

I guess live within your own means and plan ahead.

Those without high pay in their twenties wanted to buy car better think properly. Cos one day u might meet a gal u wanna spend ur life with and without a saving, I dont think u can promise her anything....

 

There are also much better things than cars.....

[nivleK1985]

Originally posted by LordDraco@May 12 2005, 03:46 PM

think of your future.

 

U could either enjoy now or suffer later in life

 

or

 

Suffer now in order to enjoy better later.

 

When I mean Suffer is working hard to lay the strong foundation for your future.

Ya I know. But sometimes it's really depressing

[BurgBurg]

Originally posted by LordDraco@Jun 24 2005, 12:26 PM

3K is kinda of not too safety too especially for pple starting a family like getting new house, getting customary, funiture, household and blah blah blah.

 

People will be in debt when renovating house plus monthly installment of the house either through CPF totally or CPF with top-up.

 

People who loan renovation loan, home loan plus Car loan with their 3K pay or even 4 to 5K pay is kinda of risky too. Especially if out of job ... cause during long period, saving is definitely gone.

 

For individual folks without attachment (GF or Wife/House/etc) 3K is good enough to buy a car and staying with parents.

 

For married personnel like me, I had to stretch all my payment and refusal to borrow from bank, die die must get HBD loan (20year) and etc. Till bank is a bit better than buy car.

 

FYI .. I get the 7 year loan but paid ard nearly 18% downpayment to lower the loan.

 

7 onwards interest is higher

3 year below, 30K loan below also pretty high I think.

Agree agree.

Me too same philosophy.

Completing reno loan and starting car loan back to back.

So only one loan to finance at a time.

 

Saved and paying up 70% so take 30% bal over 7 yrs.(interest $425 pa or $35 a mth) Mthly pay $237. So no need to worry. Plus no change in spending habits coz amyt for reno loan now go to car expenses. BTW it took me 10 working years to do do this hor. Meanwhile was on my two wheel convertible.

 

 

Hv fren who buy car , in the end stay home coz no cash to go out. WTF for???

End up wif about 500 to 600 a month left. Better off riding, will get better quality of life.

[Throttle]

absolutely true Burg

[bluesea01]

How abt getting a COE Car like suzuki swfit? COE till 08/2011

 

I think now selling around $15,000.

 

Assume downpayment is $3000

Loan $12,000 at 3.25% for 4 years.

 

 

$13560 / 48mths = $282.5/mth for 4 years

 

Spare parts and maintance should be cheap.

 

Any comments bros?

 

Thanks

[bluesea01]

This thread is have more educational value than those teachers or financial planners give to you.

 

I really hope this thread don die off and those who happened to read this can learn to think adn plan in their life.

 

Cheers to all.

[LordDraco]

There are always car around .. newer, better ...

 

Not need to rush into buying. Got money .. be comfortable then buy. Anytime man ...

[E.V.ilyn]

Stupid question, are car loans strictly 7/10 years or customisable? When buying cars are there dealers that are like BP that restrict the amount you can downpay?

[Throttle]

many car dealers try to make money out of the financing.

All Jap car agents require a loan to be taken.

If you try paying full cash, they increase the price.

 

Only conti cars allow you to pay the way you like. full cash or loan up to you, no difference in price. that's the way i like.

[E.V.ilyn]

ok... so pretty much the same like buying bikes. but can i customise the loan term or it's either 7 or 10 years? i prefer to either full payment or make the loan term as short as affordably possible.

[LordDraco]

Originally posted by EmptyVessel@Jun 26 2005, 12:40 AM

ok... so pretty much the same like buying bikes. but can i customise the loan term or it's either 7 or 10 years? i prefer to either full payment or make the loan term as short as affordably possible.

very very customisable. Range from 1 year to 10 years Max.

 

Except in order to get some discount from financial institution or in-house financing, there is always a minimum sum like 30K and also a minimum loan period.

 

If wanna to miss the discount, could get less than 30K and pay faster in term of loan.

 

I got a friend that got old car, scape it, pay heavily (Bank ba ba) and loan 1 year. Monthly around 1k plus loan but his bank can substain the loan even if he didnt work.

 

He is single and been working for the past 13 or 14 years.

 

Check out this webby for loan reference.

 

Hong Leong Finance

[LordDraco]

Originally posted by bluesea01@Jun 25 2005, 11:18 PM

How abt getting a COE Car like suzuki swfit? COE till 08/2011

 

I think now selling around $15,000.

 

Assume downpayment is $3000

Loan $12,000 at 3.25% for 4 years.

 

 

$13560 / 48mths = $282.5/mth for 4 years

 

Spare parts and maintance should be cheap.

 

Any comments bros?

 

Thanks

FYI ... spare part I heard is getting hard to get these days

 

There will be a period of time when the car on the road getting lesser, autoshop will also tend not to bring in too much parts for it.

 

Anyway, depends on lucky, some COE may be very very problematic that almost every few month may require to send for repair.

 

Got two friend, one brought COE car, not much problem and drive in out of JB to work everyday (his family bussiness runs there so doesnt want fancy car, scare got stolen)

 

Another, friends' uncle a mechanic himself, overhaul a COE car for himself, drive and still got lots of problem till he scape it. That is a civic.

 

Some people doesnt want to get a COE car because they may not have time to always send car for repair and causing numerous inconveniences that it defeat the purpose of having a car - convenient.

[xiaogary]

U dont need to earn a lot to own a car. But you must resist the temptation to mod your car after you got it.

 

I spent 5k+ on accessories in half a year since I got my car. Among, 3k is spent on ICE.

[Throttle]

heh heh, yes mods can be quite expensive.

especially ICE, rims tyres and kits.

 

I resisted most mods except 18" rims with Pzero tyres also about $3k total

Also added factory moonroof option for $5k

 

total $8k extra.

 

Xiaogary , you driving Chevy right?

[xiaogary]

Originally posted by Throttle@Jun 26 2005, 10:15 PM

heh heh, yes mods can be quite expensive.

especially ICE, rims tyres and kits.

 

I resisted most mods except 18" rims with Pzero tyres also about $3k total

Also added factory moonroof option for $5k

 

total $8k extra.

 

Xiaogary , you driving Chevy right?

yes. driving a hatch aveo.

[comics00]

Originally posted by EmptyVessel@Jun 25 2005, 11:44 PM

Stupid question, are car loans strictly 7/10 years or customisable? When buying cars are there dealers that are like BP that restrict the amount you can downpay?

like wat throttle said abt jap car. story from 1 of my female friend when she bought her camary. that time camary ~$127k so she wanted to go full payment but dont wat the sales guys tell her this & that end up she down $107k & took $20k loan over 2yrs. she said more value n for that they give her goodies like 3 (i think) free svc, leather svc ect

[intersky]

Originally posted by xiaogary@Jun 30 2005, 09:45 PM

yes. driving a hatch aveo.

hmm how much u paid for yr installments, road tax, insurance n monthly maintainces? roughly how much? cos i see aevo the price is quite cheap.. any resale value aft few yrs as i dun see 2nd hand shops selling it?

[R.C]

Originally posted by xiaogary@Jun 26 2005, 06:14 PM

U dont need to earn a lot to own a car. But you must resist the temptation to mod your car after you got it.

 

I spent 5k+ on accessories in half a year since I got my car. Among, 3k is spent on ICE.

What is ICE?

[stylomilo]

those cube things u find in your milo-peng lor...

haha...

 

its In Car Entertainment...

[R.C]

why not drugs? haha

 

oh... in car entertainment.... cool.. haha... i dunno mah...