How to tell ppl hardly can own a car?

[Check13]

bro ah bro, u calculate until so kang kor for what? I see u type out all these i really heartache for u.

 

Just compare % inc in price against % improvement in FC can liao lah to know worth it or not.

 

From your example below

% price inc = 0.07/2 = 3.5%

% improvement in FC = 1/15 = improve 6.67%

 

so implied worthwhile loh, and if full tank is 40ltrs, you save (6.67-3.5)%*40*$2 = $2.53

 

u can easily tell from above that as long as FC improve by >3.5% you are better off.

 

For the benefit of some others here who may be questioning exactly how much of a difference in FC would it take to justify the extra cost of a higher grade petrol, here's a hypothetical scenario ;

 

RON 95 = $2.00 per liter

RON 98 = $2.07 per liter

 

Assuming pump 10 liters of RON95 = $2.00 X 10 liters = $20

Assuming 10 liters RON95 = 150KM mileage or 15KM/Liter

 

Now,

 

Assuming pump 10 liters of RON98 = $2.07 X 10 liters = $20.70

Assuming 10 liters RON98 = 160KM mileage or 16KM/Liter

 

Additional mileage over RON95 = 160KM - 150KM = 10KM

FC based on RON95 = 15KM/Liter

Cost of 10KM based on 15KM/Liter FC @ $2.00 per liter RON95 = $1.33

Offset additional cost of RON98 @ 10 liters = $1.33 - $0.70 = $0.63

Total savings of using RON98 over RON95 = $0.63 PER 10 liters or $0.063 per liter

 

If your fuel tank is 40 liters from reserve to full, means per tankful you're saving $0.063 X 40 liters = $2.52.

 

And all it takes is just a difference of 1KM/Liter. So, it's not entirely impossible.

[Drive_carcar]

Really? New Civic means the 8th Gen FD, or what's coming next?

 

Am I over-feeding my ride? Vpower, RON98....

[Silver_z]

As per topic,recently,probably due to the fuel hike,I saw alot of ppl pump Ron92.Personally i feel,these group of ppl are those with 0 downpayment and are feeling the pinch.I do feel the pinch of petrol price nowadays,but I'll never allow my car to drink anything below Ron95,i'm driving a jap tin can.Can this group of ppl,if in MCF,why pump 92 for your brand new alphard,civic 1.8,sunny etc?

 

And today,this kuku driver driving a brand new civic,reach the station,don't even know how to pump,or rather wait for the service crew to help him.As the service crew approach,he asked,"sir,95 or 98?"he replied,92 will do,then keep pointing fingers here and there complaining.I mean,if can't afford to pump,don't drive.

 

I drive a $0 downpayment car. And I dun even look at 95, and never will. I only feed my car V Power. Me also driving jap tin can. Can I come to the same conclusion at you?

[Galantspeedz]

Taking loans are not necessarily a bad thing.

 

A businessman can take $1.2m loan for an LP640 and invest his existing $1.2m into his business that generates say 20% returns. The returns are higher than the interest rate for the car loan so why pay all into something that depreciates once you drive out of the showroom?

 

So there's 2 sides to it. Nothing wrong with paying full or taking full loan. Its the factors that determine the choice.

 

Fact is lots of silly or maybe even stupid people think taking full loan is suicidal and that paying in full is something to shout about on the internet or even in real life.

 

I do agree but up to a certain extent. pls note the interest rate quoted by dealers is the nominal interest rate but the effective i/r is usually about double the nominal i/r.

And couple that with Rule 78, a nominal i/r of about 2.5% can actually be 10%. Based on the assumption that people sell their car by 5th yr. It may even be more if it is within 3yrs.

 

Not many investments can give this yield. especially for something that is non-risky.

 

I believe a balance should be struck instead between loan and investments.

Edited July 18, 2008 by Galantspeedz

[Tkseah]

Huh? Which Esso station dun have 95? All the Esso Mobil stations i been to have full range of 92, 95 & 98...

[Drive_carcar]

I went to the one at Yio Chu Kang road, beside that Ch of St Vincent De Paul... Jln Kelulut... exactly that's what that guy told me.. no 95, only 98, sorry sir.

 

Anyway I'm still too newbie to be able to tell the difference between 92, 95 & 98....