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How to calculate when ur car break even


Sash1401
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Fellow bros,

 

Kind if silly to ask but may i know how do u guys calculate when is ur car going to break even? if the current coe continues to soar, hw will it affect? Thanks in advance

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Need to work out 2 figures. Outstanding loan each year and your paper value ( unused COE + PARF and body value). When the 2 figures even out, that will be your break-even year. Pls note that your PARF % reduces as you move towards the 10th year.

 

Hope that I didn't confuse you.

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Fellow bros,

 

Kind if silly to ask but may i know how do u guys calculate when is ur car going to break even? if the current coe continues to soar, hw will it affect? Thanks in advance

 

The simplest way is to call up the bank and find out your outstanding loan amt. Call that A). Next, surf SG car mart to find cars of your model and close to the same age. Deduct about $5k off that for dealer markup/buyer-bargaining, etc. to be conservative, and call that amount B). The moment B) is equal to (or just greater than) A) is when you've broken even.

 

Calculating based on your actual COE, PARF, body value etc. will neglect current market forces (important when the market is driving up car prices, like recently).

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The simplest way is to call up the bank and find out your outstanding loan amt. Call that A). Next, surf SG car mart to find cars of your model and close to the same age. Deduct about $5k off that for dealer markup/buyer-bargaining, etc. to be conservative, and call that amount B). The moment B) is equal to (or just greater than) A) is when you've broken even.

 

Calculating based on your actual COE, PARF, body value etc. will neglect current market forces (important when the market is driving up car prices, like recently).

 

Outstanding loan is easy to calculate but how do you work out this paper value (I have no f--king idea what that is)?

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I will suggest don't even bother to include in the body value, because it is so subjective. The next buyer/dealer would not even factor in that anyway.

 

on a side note (sorry, digress a bit), everyone is focusing on monthly installements (affordability), and not on depreciation value anymore. The SE and dealers are all encouraging it now... Its just wrong.. haizz...

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I dare not even calculate my Honda jazz seven years loan break even period.

Just take it as rental...for seven years.

If no break even, when it comes to change new cars...99% still change anyhow.

 

Just take it as a balloon loan...sell time need to top up whatever amount.

 

No body really cares, unless one downpayment a large amount, most who takes low downpayment and maximum loan will be in negative for more than 5 years at least.

 

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For me, I have noted the breakeven year to know when can I bail out if I really can afford to pay the instalment or in the event of total lost (cannot control one). So once, I reach the breakeven year, I can review my options.

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Fellow bros,

 

Kind if silly to ask but may i know how do u guys calculate when is ur car going to break even? if the current coe continues to soar, hw will it affect? Thanks in advance

 

Your question should be what is total lost for using your car in say 1 years , 2yr , 3yrs .... 10 yrs ! [laugh]

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How will the current Coe haf an effect on the value of the car should u decide to sell?

COE up, your car price also up. My vios now can sell for about 30k. When coe at it's lowest 2 years back, I can only sell it for about 20K

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