trading my 330 for a 335

[Suipalucsea]

Re: trading my 330 for a 335

[think if u change to a used 335 will be more prudent... IMO

Careful who you buy from though. Don't get the one bought by the idiot who test-drove after me --- he put his foot down while stil in the PM carpark and nearly visited IKEA the hard way.

 

[ACS6]

Re: trading my 330 for a 335

Don't understand why there are so many dickheads who abuse test drive vehicles.

 

[Mockngbrd]

Re: trading my 330 for a 335

hmm..... that'll give a new meaning to 'flat-packed'

 

[Mag]

Re: trading my 330 for a 335

Err....maybe I'm a bit slow....or perhaps I have not taken enough loans....but I don't get it. Care to explain?

If you don't take a loan, you will have less money for the next one..

 

[DRV]

Re: trading my 330 for a 335

If you don't take a loan, you will have less money for the next one..

IMHO, unless you've got too much spare cash lying around, better to take some loan even if you have enough savings to pay in full.

1) At the current interest rates of 2.85%, you can get better returns outside to cover the interest rates and more.

2) No point tying up good 'ol cash in the car. It is highly illiquid! If you need the cash thereafter, you will have to sell car at huge loss.

3) Pay the instalments with spare income... but the savings can come in handy to pay some instalments if that month have no spare income because of some contingencies.

4) The car is actually, if you think of it, a form a forced savings 'cos at the end of the 10 years (if you drive that long), you actually receive some OMV value back. Better then spending on booze, drugs, or women, don't get anything back... maybe even get penalty.

For those who are millionaires and really have a lot of spare cash, please ignore this can go and buy the car with cash 'cos there's probably a lot more from where it came from

 

[Mag]

Re: trading my 330 for a 335

IMHO, unless you've got too much spare cash lying around, better to take some loan even if you have enough savings to pay in full.

1) At the current interest rates of 2.85%, you can get better returns outside to cover the interest rates and more.

2) No point tying up good 'ol cash in the car. It is highly illiquid! If you need the cash thereafter, you will have to sell car at huge loss.

3) Pay the instalments with spare income... but the savings can come in handy to pay some instalments if that month have no spare income because of some contingencies.

4) The car is actually, if you think of it, a form a forced savings 'cos at the end of the 10 years (if you drive that long), you actually receive some OMV value back. Better then spending on booze, drugs, or women, don't get anything back... maybe even get penalty.

For those who are millionaires and really have a lot of spare cash, please ignore this can go and buy the car with cash 'cos there's probably a lot more from where it came from

I agree, just replying to him saying that when you take a loan, one usually has to breakeven before thinking about another car. Again, this topic is subjective. Really depends on the individual.

 

[Hubba]

Re: trading my 330 for a 335

1) At the current interest rates of 2.85%, you can get better returns outside to cover the interest rates and more.

Do note its not really 2.85% effective interest, as the loan payments do not reduce the principal. Compounding over 7 years, your effective reducing interest will be 8%.

No free lunch with the banks.

 

[kleong007]

Re: trading my 330 for a 335

Hubba is right, the 2.85% is a flat rate. I.e. not quite 8% but effective interest rate over full 7 years say is probably around 5+% by my rough guess. If you redeem early, it will be much higher as most lenders use a sum-of-digit method in the computation....

Above calculations are rough estimates - therefore I disclaim all responsibilities over their accuracy!!

 

[ho2786]

Re: trading my 330 for a 335

taking a loan is a necessary evil.imagine you have saved 200k for 10 years just to buy the e90 330 because you dont want to take a single cent of loan.

on that day that you finally go down to PML to book the car, you kena bang by a e90 330 and got one free ticket to heaven.

imagine banging your balls on your way to heaven.

life is an equation full of unknown parameters and complex functions.

 

[Mag]

Re: trading my 330 for a 335

taking a loan is a necessary evil.imagine you have saved 200k for 10 years just to buy the e90 330 because you dont want to take a single cent of loan.

on that day that you finally go down to PML to book the car, you kena bang by a e90 330 and got one free ticket to heaven.

imagine banging your balls on your way to heaven.

life is an equation full of unknown parameters and complex functions.

Thats a good one! Life is indeed full of the unknown.

 

[Hubba]

Re: trading my 330 for a 335

At least kenna bang by a UDM ... shiok rite?

If kenna bang by Proton.... :nehnehhh: what a way to go... .

 

[Mag]

Re: trading my 330 for a 335

At least kenna bang by a UDM ... shiok rite?

If kenna bang by Proton.... :nehnehhh: what a way to go... .

I think the end result is the same..:juggle:

 

[Suipalucsea]

Re: trading my 330 for a 335

Some interesting points here that I have given some thought to.....

DRV said:

"
1) At the current interest rates of 2.85%, you can get better returns outside to cover the interest rates and more.


Only if you are a financial genius. If you know someone who knows how to get significantly better than 2.85% FLAT RATE, then please tell me his name! Yes, sure, I can do better than that on the horses. Or in a casino. Otherwise?


2) No point tying up good 'ol cash in the car. It is highly illiquid! If you need the cash thereafter, you will have to sell car at huge loss.

Good point, so one should only buy a car if one has plenty of savings. Guess we all know that in Singapore...


3) Pay the instalments with spare income... but the savings can come in handy to pay some instalments if that month have no spare income because of some contingencies.

Not too sure I understand this one....


4) The car is actually, if you think of it, a form a forced savings 'cos at the end of the 10 years (if you drive that long), you actually receive some OMV value back. Better then spending on booze, drugs, or women, don't get anything back... maybe even get penalty.

Can you spend $200K on those items? I take my hat off to you



For those who are millionaires and really have a lot of spare cash, please ignore this can go and buy the car with cash 'cos there's probably a lot more from where it came from


No, buying a car in Singapore is painful even for millionaires.

Summary: for most of us, a loan is indeed a necessary evil. But if you are in a position to pay cash, I think you should do that. Unless you are a loan shark or someone like that who can reliably get 8 or 9 % on his investments. My philosophy is to take out the smallest loan possible on the best car I can possibly afford, and keep it for a long time. Sure I'm tempted by the latest and shiniest, but changing cars every 3 years is just too painful for me......my present car just passed its 9th birthday by the way....