Calculation help needed on buying car from friend !!

[Ekardo]

Thinking of buying over a friends' 1 year old Jazz. (He wanna upgrade to bigger car due to family expansion)..

Need help to know what is the actual cost I have to bear, and also the Loan portion...any expert on this?

 

 

details

2006 Jazz, bought on Jan8, 2007

10 years loan, monthly repayment is $620

 

OMV value: $14,487

PARF rebate amount: $11,952

 

QP Paid: 9605

COE rebate Amount : $7,684

 

Total Rebate Amount : $19,636

 

Transfer fee: $1,310 (for 1 year road tax)

 

How to calculate the price which I am actually buying the car? the new repayment amount if I take over the loan ?

[Porker]

The total rebate amount is the paper value of the car. Whatever extra is considered "body value" or what the market will pay for and the factors to consider are:

 

1) Age

2) Mileage

3) Condition

4) etc

 

You cannot take over his loan. You will have to get a bank loan for used car purchase (interest rate is higher than new car loan) and also pay the transfer fee to LTA.

[Strawberrypink]

the outstanding loan for the jazz is abt $69440

the interest rate for a pre-owned car is 3.5% (taken frm GE money)

 

a brand new jazz is now going for $58k

 

think its better for u to buy a new one in this case

 

juz my 0.0000002 cents worth

[Nus24]

You can offer a little higher than the price he gets if he were to sell to any dealers.

My personnal guess is that likely your friend is trying to get a better price for his car as compared to selling to a dealer direct.

Just fax the car details to a few delers, you will be able to get a good guage of the car value.

 

Please bear in mind that buying from friends and relatives is STILL a business transaction.

Don't think that you are doing a good deed or helping out, as this will cloud your mind and cause confusion on the right price to pay for the car and subsequently your relationship with that person might change should the car develops premature problems.

Edited September 5, 2007 by Nus24

[Ekardo]

so meaning I have to pay 69k + interest ?

 

and buying new is 58k + interest ?

 

how come?

[Ekardo]

oh..forgot to add, I do not have to pay for the car and transfer fee, my friend will BAO..

 

is it a good deal ?

 

but I guess if my loan is for 69k (which will add up to 100k based on 3.5% compound interest) then super bohua liao..right ?

[Strawberrypink]

i dun think is calculated this way.... the 69k is wat ur frd needs to pay off the bank if he wans to sell the car... as nus24 states in the eariler post... if the dealer offers 50k for his car maybe u can offer 52k to him then he will hav to top up the bal himself... then ur loan will be calculated based on 52k.... sorry for nt being clear in my eariler post...

Edited September 5, 2007 by Strawberrypink

[Hcblue99]

Buying a used 1yr old car is always a strong NO NO to me due to the interest, price, warranty and other personal preference as compared to buying a new car.

You might have your reason for doing that, but no matter what, the agreed price must not be close to the current new car price.

Another 0.00000002 cents

[Gantan88]

I agree. Test water by calling a few dealers. Offer friend a price 1 or 2k higher than the dealer's price.

 

But best is still buy new cars... cos interest rate is lower...

[Byond]

better get new car...

unless the 1 year old car u are getting have a price difference of 8 - 10 k...

if not..bo hua cos since both prices are almost the same, might as well you top up abit more to get a totally brand new car?

how much he lut the car or how he treats the car..u also dont know

maybe he sell off is due to abit accident before?

alot of factors to consider esp the $$$ part.

 

i do agree a business transaction is business transaction..

frens are frens..

have to draw line clearly

if not ..anything cxxk up..u squeeze balls suck thumbs...

[Ekardo]

so if say, he sell me at the same price as what the dealer would take in..(eg 50k), he have to pay how much to clear his 69k loan ?

 

anyone can help me to calculate 50k loan for 10years with 3.5% ? how much monthly ?

[Shox87]

i did a minor calculation and its around $562.50 monthly.

 

pls correct me if im wrong.

[Winwin]

yup, is right.

formula as follows:

=((50000x3.5%x10yr)+50000)/120mth

[Freak]

hi there

 

suppose you buy at 50K, so the balance he needs to pay the bank is 69k - 50 = 19K

 

so your interest would be 50K * 3.5% = $1750/yr

so lets say balance 9 years, then your loan = (1750*9 yrs) + 50K = $65750

 

mthly = 65750/108mths = $608.80 around there.

 

Suppose you get the same car brand new at 58K, and interest is 2.8%, :

58000 * 2.8% = $1624/yr

so total loan = $1624* 10yr + 58000 = $74240

 

mthly = 74240/120mth = $618.70

 

the difference is only $10 mthly if you take in brand new.

[Route66]

The different is New car with 10yrs loan minus 2nd hand car with 9yrs loan $74240-$65750=$8490 saving. That's 11.4% savings but than different OMV and COE value are also consideration factors.

[Byond]

50k loan with 3.5% interest with 10 years tenure...

 

Interest amount for 10 years = 50,000 x 0.035 (int rate per year)x 10 years = $17,500

 

Loan to pay per month with 3.5% interest = $17500 (int amt) + $50000 (loan amt)= $67500

 

$67500 / 10 years / 12 months = $562.50

 

you need to pay $562.50 monthly

 

*********************************************

 

So Am i right in calculation??

my maths fail one leh. .

hahah

[Byond]

Conclusion after all those calculations???

 

BUY NEW CAR!!!!!

[Hiphiphoray]

Unless the 1 year old car is a good 10-15k off the current new car price. Oresle its not worth it.

 

U know my OPC lancer....bot @ 40k, 1 year old only, dealer only offer me 27k at best. Im talking about OPC hor....low milage, but still fetch such a ridcularous price.

 

And now u wana get a 1 year car @ 11k more than the current new car price.

 

Actually, there is nothing to calculate about.

Edited September 5, 2007 by Hiphiphoray