Change car every 3 year? Think again !

[Vtim]

I bought a 1yr 9mth old 2L Trajet for almost $50k about 3 yrs ago. I check at that time when it was new, it was almost $80k+, the 1st owner "liao kah seow", dealer most likely bought it at high of $40k+

[Xtrocious]

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Just an excuse to change car...not as though AD honour every warranty claim..

I agree. For most people, the out of warranty issue is probably just an excuse to get a new ride.In any case, for whatever the reason may be, as long as they are happy...that's a 'good' reason to buy and enjoy the ride.

 

I believe the 3-year time frame is related to the auto loan...

 

Most people who took 7-year loans (70% or so) would not have to top up their auto loan when they sell off...

[Genie47]

You have just pointed out one of the "justifications" people use. It appeals to the car seller and the car buyer.

 

Ooops! Just pointed out more ammo for the car seller to use.

[Throttle2]

already said you got qtr point there liao....

 

if really point A to B, one doesnt even need a Vios lah so let's not go on.

[Fondue]

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Changing cars frequently, who is the benefiter? I think most probably is our gament(COE) and car dealers (Profit), so sometimes such kind of concept could be created by someone and spread out until it become a truth, pity part is lots of spreans don't think deeply enough but just follow others. Like choosing a food in coffee shop, not becos the food is good but the quene is long

 

 

Lets not forget about the Additional Registration Fee a.k.a. ARF, which is 100% OMV and exercise duties (20% OMV).

 

The moment you register a car, 25% of the ARF goes into GOV's pocket irregardless of what you do with the car the next day. Add-no the 20% exercise duties and 7% GST, that will be 52% of the OMV amount going to the Goverment the moment you register a car. And you don't get back 1cent of these, wheather you export the car immediately after that or drive for 10 yrs.

Edited July 21, 2008 by Fondue

[Caravan]

most prob the owner bought when the coe was relatively high

[Fongs]

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your example shows $30K lost for 3 years usage. is there a problem ?

 

assuming you buy a $90K car ... use for 10 years.

 

the lost is also 9,000 per year.

 

U forgot to minus off the PARF rebate at end of 10yrs. So your deprecn /yr is lower than $9k if u drive till COE ends.

[Modas88]

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The thing abt the system we have in singapore is that once the car leaves the showroom, even if it is only 1 day old, the value of the car drop automatically by thousands of dollars..

 

its a worlwide phenomenon, in allmost all countries the value of a new car drops about 20% the moment u drive it out of the showroom.

[Vtim]

I remember it was $21k+

[Ahyoo2002]

Good point

[Sabian]

  Quote

Changing cars frequently, who is the benefiter? I think most probably is our gament(COE) and car dealers (Profit), so sometimes such kind of concept could be created by someone and spread out until it become a truth, pity part is lots of spreans don't think deeply enough but just follow others. Like choosing a food in coffee shop, not becos the food is good but the quene is long

 

 

Lets not forget about the Additional Registration Fee a.k.a. ARF, which is 100% OMV and exercise duties (20% OMV).

 

The moment you register a car, 25% of the ARF goes into GOV's pocket irregardless of what you do with the car the next day. Add-no the 20% exercise duties and 7% GST, that will be 52% of the OMV amount going to the Goverment the moment you register a car. And you don't get back 1cent of these, wheather you export the car immediately after that or drive for 10 yrs.

 

so it makes more sense to "depreciate the amount fully & smoothly" by using car longer.

[DarkLord]

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yep....i generally find a lot of singaporeans very ignorant.

 

all say cars after 3 years or 5 years worthless blah blah.....if all of them hadn't the mentality must sell before 3/5 years and avoid buying cars > 5 years, there wouldn't be such a scenario.

Its simply an excuse to change the car..

Scratch that itchy butt.

[Magfocus]

Something you know pretty well?

[Felipe]

i think Sporeans know full well they lose even after 3 yrs, bank loan or no bank loan, 7yr loan or not. we are an educated lot so i doubt they're unaware. its just one of the desires they have. if we were more exposed to how foreigners live in their cities, we prb learn that cars are quite redundant in our small country. furthermore, its not like its cheap. but i think there are some factors that suggest we should have a car. but to lose money by selling a car every 3 years is quite absurd. u be better off buying some watches, property with all that money and seeing it increase after several years.

 

best approach is buy one, keep one, and drive more than 10 years, whatever car that is. even maintaining it will not cost more than buying new.

[Ahyoo2002]

My Angmo colleagus was laughing when he hear that we paying so much for a car and only use it for such a short period.

 

He is multi-millionair and yet he is driving a 20 years old Toyota

Edited July 22, 2008 by Ahyoo2002

[Roh96]

Agree i think this phenomenon only happen in Spore where cars are so exp and yet ppl are changing it every 3-5 yrs. My boss in US still driving his 15 yrs old toyota MPV given that cars are much cheaper over there. I agree with the view that most Sporean don't see cars as point A to B transport, they treat it as a symbol of success, cars here are like namecards where ppl judge how well u are doing based on the car u drive. Also we like to pamper ourselves with latest model car that is selling in the showroom.

[Silver_blade]

It has got to do with the COE. It put an artificial age-limit to the car. So a 3yrs old (out of 10yrs. 30% into it's life)car is probably an equivalent of a 60yrs man (assume life expectancy to be 85yrs old).

Edited July 25, 2008 by Silver_blade

[Stanley789]

Peer Pressure!!!