Calculating actual P/L of multiple car ownership

[Nivlac]

Been wondering the actual cost of car ownership in Singapore

 

Example

 

Car1 buy $70k sell $36k

Car2 buy $70k sell $53k ($36k from Car1 used as down payment)

Car3 buy $66k sell $72k ($33k from Car2 used as down payment)

 

Is it right to assume at end of day my actual cost of ownership is $45k for all 3 cars. Not taking interest, opex into the picture.

 

Correct?

[FocusWagon]

can say that.

the downpayment part is irrelevant

[SimonTan]

Which come back to the Behaviour of singaporeaans that I noticed.

 

Put it another way, if one is able to set aside say $1000 monthly for car installment for a 7year loan.

If changing to a new car will incur the same $1000 monthly installment, many would change. Notwithstanding that the bank loan will be lengthen once more back to a fresh 7 year loan.

Mnay owners followed this theory to keep changing new cars every few years.

This group do not see the P/L of car ownership, or the losses from changing car ever so often, so long as each month the installment stays the same.

Many even consider the extra downpayment for changing a new car, as a money they would similarily have had to spend to have a major service on the old car had they hold on to it.

 

The argument goes that one Might as well use it to downpayment for a new car, and get to enjoy new car, new technology, fresh smell, and best bragging rights to neighbours and relatives.

 

Edited June 28, 2012 by SimonTan

[Darryn]

Which come back to the Behaviour of singaporeaans that I noticed.

Put it another way, if one is able to set aside say $1000 monthly for car installment for a 7year loan.

If changing to a new car will incur the same $1000 monthly installment, many would change. Notwithstanding that the bank loan will be lengthen once more back to a fresh 7 year loan.

Mnay owners followed this theory to keep changing new cars every few years.

This group do not see the P/L of car ownership, or the losses from changing car ever so often, so long as each month the installment stays the same.

Many even consider the extra downpayment for changing a new car, as a money they would similarily have had to spend to have a mojor service on the old car had they hold on to it. Might as well use it to downpayment for a new car, and get to enjoy new car, new technology, fresh smell, and best bragging rights to neighbours and relatives.

 

except the theory is flawed - the biggest / fastest depreciation is in the first year of ownership.

 

Also, in my case I have owned a number of used cars - they never cost me much money in repairs.

 

Further, my current 6 year old toymotor is coming to 230k and the only repair I have done is engine mounts at a few hundreds of dollars - so what is major about that?

 

 

[SimonTan]

Flawed thinking it may be.

But many car buyers do subscribe to the non changing monthly installment thinking, when comes to changing cars

[FocusWagon]

Which come back to the Behaviour of singaporeaans that I noticed.

 

Put it another way, if one is able to set aside say $1000 monthly for car installment for a 7year loan.

If changing to a new car will incur the same $1000 monthly installment, many would change. Notwithstanding that the bank loan will be lengthen once more back to a fresh 7 year loan.

Mnay owners followed this theory to keep changing new cars every few years.

This group do not see the P/L of car ownership, or the losses from changing car ever so often, so long as each month the installment stays the same.

Many even consider the extra downpayment for changing a new car, as a money they would similarily have had to spend to have a major service on the old car had they hold on to it.

 

The argument goes that one Might as well use it to downpayment for a new car, and get to enjoy new car, new technology, fresh smell, and best bragging rights to neighbours and relatives.

 

 

that is why most pple just see it as rental.

 

or the other "breakeven" logic. once break even, must change new car. for me, every car i buy, day 1 breakeven. because i only buy 2nd hand car and down enuff to cover the negative equity.

 

my real estate agent just ask me if she should change - coz need to spend about 2-3k to repair her 6-yr old car. i was like.. what? for 2-3k, you change the car to new one and start all over again. dunno what thinking.

 

 

Edited June 28, 2012 by FocusWagon

[FocusWagon]

Further, my current 6 year old toymotor is coming to 230k and the only repair I have done is engine mounts at a few hundreds of dollars - so what is major about that?

 

most pple dunno how to handle repairs because they dun bother to read up more abt cars.. same here, my 5 yr old car so far only repair aircon clutch. $260 nia.

so dun really know wat's so difficult abt repairs

 

[Oblong]

some car owners treat car as a toaster. No need maintenance, no wear and tear.

 

Some use it as bragging rights.

 

Heard of a lady owner who drove a new car from 2 years who was not aware car tyres need to pump regularly.

[Gibbss12]

much appreciated

 

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