Used car price went up? How? How? How?

[Jordanplus]

my friend got a 27k quote for his aug 08 Wish, screwed the daylight out of the salesman Lol...

i tell him if 27k let me have it.

 

look at the ads on sgcm, 08 wish is list atleast $60k up.

tell ur friend i give him $35k.

[Leijasper]

I am thinking about the holding costs for 2nd hand car dealers.

 

- depreciation of vehicle and paper value (COE) (day by day depreciation is there)

 

- road tax? Do they need to pay road tax? (Yes, rd tax too)

 

- other costs like parking, maintaining etc (u rent the place n the car took up space, so it contributes to overhead too.. Interest to banks as they might be taking loans to take in the vehicle.. Maintenance other den a car wash by their own guy.. They simply wipe the glasses clean every morning.. Basically a clean mirror makes the car looks gd!! )

 

Those vehicles u seen on sgcarmart wit prices $xxx, suddenly u realize the prices shoots up.. 1 of the reason is the car already has a keen buyer trying loan but needed a 100% loan or even $0 drive away.. Prices marked up as at times banks might refer to sgcarmart for verification as the loan amount are marked up showing false signs of buyer putting down a down payment of 10-20%..

[Roh96]

It is only in Singapore that buy car got to wait, buy house also got to wait. Timing timing timing.

[13177]

my friend got a 27k quote for his aug 08 Wish, screwed the daylight out of the salesman Lol...

i tell him if 27k let me have it.

Buy 08 wish at 27K? Dealer confirmed would not sell the 08 wish at 27K lo, not even at 35K.

Edited May 7, 2013 by 13177

[Duckduck]

my friend got a 27k quote for his aug 08 Wish, screwed the daylight out of the salesman Lol...

i tell him if 27k let me have it.

 

well they have to sell max 5yr loan n 40% down... think theyll only accept trade in that way coz they know the trend is going down.

 

Bad time to trade in car, better to sell on private mkt even then wont b easy finding buyer willing to oay 40% down at current coe w acceptable depreciation

Edited May 7, 2013 by Duckduck

[Spurman]

my friend got a 27k quote for his aug 08 Wish, screwed the daylight out of the salesman Lol...

i tell him if 27k let me have it.

 

I quote 37k. Hehe

[Coolad]

Just not sensible to DP a lot. DP is like throwing $$ in the drain the moment u take the car keys since it's a depreciating asset. Advantage is that bank don't earn much interest from you due to lower loan.

 

Ur tot is flawed... as with many others that think low DP maintains liquidity...

 

Due to rule of 78... it is always good to hav as high DP as possible to keep the interest low (interest payable is calculated only once at moment of borrowing)

 

As you hav mentioned it is a depreciating asset and so with low DP.. you go straight into negative equity....very negative...

 

The so called money in your pocket is just an illusion... coz the car now is like an iron ball chained to your feet.. u need to dump in alot of cash just to redeem the loan after selling the car...

 

Put it simply... with this 78 thing... the more loan the more penalized you are... its btw losing more and losing much more....

 

 

[Dark_flan]

Ur tot is flawed... as with many others that think low DP maintains liquidity...

 

Due to rule of 78... it is always good to hav as high DP as possible to keep the interest low (interest payable is calculated only once at moment of borrowing)

 

As you hav mentioned it is a depreciating asset and so with low DP.. you go straight into negative equity....very negative...

 

The so called money in your pocket is just an illusion... coz the car now is like an iron ball chained to your feet.. u need to dump in alot of cash just to redeem the loan after selling the car...

 

Put it simply... with this 78 thing... the more loan the more penalized you are... its btw losing more and losing much more....

 

Maybe in calculation terms. Yes it makes sense. But regular ordinary buyers does not perform intense maths when purchasing of expensive gadgets like cars.. :) Just more towards the intuition.

 

[Enye]

Maybe in calculation terms. Yes it makes sense. But regular ordinary buyers does not perform intense maths when purchasing of expensive gadgets like cars.. :) Just more towards the intuition.

 

intuition?

 

good luck!

 

[Altivo]

Just not sensible to DP a lot. DP is like throwing $$ in the drain the moment u take the car keys since it's a depreciating asset. Advantage is that bank don't earn much interest from you due to lower loan.

 

Car loan unlike housing loan is not on reducing balance.

 

If you take 50k loan at 1.88% for 5 yrs. It would be $940 (interest for 1 year) x 5 = 4.7k. So the total amount payable is 54.7k.

[Theredstar]

Ur tot is flawed... as with many others that think low DP maintains liquidity...

 

Due to rule of 78... it is always good to hav as high DP as possible to keep the interest low (interest payable is calculated only once at moment of borrowing)

 

As you hav mentioned it is a depreciating asset and so with low DP.. you go straight into negative equity....very negative...

 

The so called money in your pocket is just an illusion... coz the car now is like an iron ball chained to your feet.. u need to dump in alot of cash just to redeem the loan after selling the car...

 

Put it simply... with this 78 thing... the more loan the more penalized you are... its btw losing more and losing much more....

 

It's like buying house

Why some choose to deplete their CPF before buying?

 

So they can have some monies in the a/c to tide over rainy days when they happen

Or potentially higher returns elsewhere

 

The fact is cash is king

Money in pocket can be put to many other different uses

DP while reduces ur total interest payment deprives you of the comfort liquidity offers

 

Of course I am talking about people who has to make this choice

Which some may argue they should not be looking at cars in the first place

End of day, if they can service the loan without crime

And it offers better mobilty and quality of life

Why not?

 

Not everyone is looking at a second or third property

Not everyone needs to be a millionaire (tho it will be nice)

So one must ask why am I hoarding all these monies eh?

 

[Coolad]

It's like buying house

Why some choose to deplete their CPF before buying?

 

So they can have some monies in the a/c to tide over rainy days when they happen

Or potentially higher returns elsewhere

 

The fact is cash is king

Money in pocket can be put to many other different uses

DP while reduces ur total interest payment deprives you of the comfort liquidity offers

 

Of course I am talking about people who has to make this choice

Which some may argue they should not be looking at cars in the first place

End of day, if they can service the loan without crime

And it offers better mobilty and quality of life

Why not?

 

Not everyone is looking at a second or third property

Not everyone needs to be a millionaire (tho it will be nice)

So one must ask why am I hoarding all these monies eh?

 

Car and house are totally different thing ... How to compare? One is a depreciating asset...

 

Cash is king.... agreed, which is my main point... the cash OH is an illusion coz u need to pay more just to redeem the loan.

 

Ability to service loan... in today's economy there is no more iron-rice bowl... so many defaulters when economy goes down...

 

As some has put it... way too easy to get into debt... earn 2k/mth want BnB car, earn 5k/mth want branded conti...

 

The thought of just downing 10-20k and driving away with a 200k car is getting so perverse that govt has to come in... a significant portion of the population actually think that it is okay to do that...

 

Once the cooling period and backlogs are over and cleared...we will see real money coming into play... rather than a bunch of pple using borrowed/future money to create the unrealistic COE prices....

[Wt_know]

well said !!!

 

many yaya papaya claim that money in the pocket is better as they can use the money to generate higher return and interest is sibei low

but ... i dare say 90% or at least 80% of car buyer do not has the expertise to use money to make higher return than the car effective interest rate (at least > 3.5%)

actually lose-lose ... money in the pocket generate negative return ... larger loan and longer repay period equal overpriced

 

some even naive to think that if no money later then sell the car lor ... take mrt

but they didn't not realise that they need to top-up which is already a big lost in the first place

 

Ur tot is flawed... as with many others that think low DP maintains liquidity...

 

Due to rule of 78... it is always good to hav as high DP as possible to keep the interest low (interest payable is calculated only once at moment of borrowing)

 

As you hav mentioned it is a depreciating asset and so with low DP.. you go straight into negative equity....very negative...

 

The so called money in your pocket is just an illusion... coz the car now is like an iron ball chained to your feet.. u need to dump in alot of cash just to redeem the loan after selling the car...

 

Put it simply... with this 78 thing... the more loan the more penalized you are... its btw losing more and losing much more....

Edited May 8, 2013 by Wt_know

[Manmaster]

I believe in the law of gravity. What goes up must come down! Wait for the fallen fruit and u'll be well rewarded.

[ChickenMob]

I quote 37k. Hehe

 

 

Wow if i had known you earlier should have got my friend to call you...

Anyway his brother is driving the Wish now so no need sell also.

 

i am still waiting for it to drop after the grace period lol.....need a 2nd car urgently soon .....

[TJX]

The price of used car did not drop but some dealers even up the price now... How to buy......

[macrosszero]

You don't buy car won't die; they don't sell cars they die.

[Kangadrool]

The price of used car did not drop but some dealers even up the price now... How to buy......

 

Buy new car.

 

If you are "adventurous" enough, and willing to look beyond the usual T and H, there are quite some choices which is quite attractive compared to used T and H.