A noob qns about car loan

[M3e92]

Hi all, planning to make a first purchase of a car with ~1 year coe left before I go overseas. Was wondering about car loan, say the car I plan to purchase has low depreciation due to high omv. But i'm unable to afford the installment since the selling price is high and loan term is short. Is it possible to get a loan for the selling car price minus 55% omv value? Or would that be considered balloon scheme?

Edited September 7, 2014 by M3e92

[Fastfive1]

Hi all, planning to make a first purchase of a car with ~1 year coe left before I go overseas. Was wondering about car loan, say the car I plan to purchase has low depreciation due to high omv. But i'm unable to afford the installment since the selling price is high and loan term is short. Is it possible to get a loan for the selling car price minus 55% omv value? Or would that be considered balloon scheme?

 

No offence but if you can't even afford the monthly installment, you're better off getting another car or not buying one at all. How much is the car you're interested in?

[Thaiyotakamli]

I suggest u rent long term cos if u cant afford installment, what happennif car breakdown? No more money left for repair

[M3e92]

 

No offence but if you can't even afford the monthly installment, you're better off getting another car or not buying one at all. How much is the car you're interested in?

 

$5k+/year depreciation. OMV is $23k and owner selling at $19k, left 1 year plus. This is the cheapest car i can find in terms of depreciation, but not selling price. Those bnb cars with low selling price usually have about $8-9k/yr depreciation. The reason why i ask is because I do not have a lot of savings, but got a relatively stable income.

Edited September 7, 2014 by M3e92

[Fastfive1]

 

$5k+/year depreciation. OMV is $23k and owner selling at $19k, left 1 year plus. This is the cheapest car i can find in terms of depreciation, but not selling price. Those bnb cars with low selling price usually have about $8-9k/yr depreciation. The reason why i ask is because I do not have a lot of savings, but got a relatively stable income.

 

You should be able to get a loan of 10k from a credit company. I think that's the minimum amount they allow.

 

However, you need to cough out the other 10k yourself. It also depends on how much you earn. If you earn 2-3k, you barely have enough to cover the installments plus the cost of driving a car.

[Thaiyotakamli]

 

$5k+/year depreciation. OMV is $23k and owner selling at $19k, left 1 year plus. This is the cheapest car i can find in terms of depreciation, but not selling price. Those bnb cars with low selling price usually have about $8-9k/yr depreciation. The reason why i ask is because I do not have a lot of savings, but got a relatively stable income.

then u can rent car for about 1.5k or less, worry free and no need downpayment moreover get newer car

Edited September 7, 2014 by Thaiyotakamli

[M3e92]

 

You should be able to get a loan of 10k from a credit company. I think that's the minimum amount they allow.

 

However, you need to cough out the other 10k yourself. It also depends on how much you earn. If you earn 2-3k, you barely have enough to cover the installments plus the cost of driving a car.

oh, i do not have 10k savings. In fact, i've blew all my savings on other investments. Right now its just what i earn = what i can spend.

[Fastfive1]

then u can rent car for about 1.5k or less, worry free and no need downpayment moreover get newer car

 

judging from the OMV, looks like he's getting an integra.

[M3e92]

then u can rent car for about 1.5k or less, worry free and no need downpayment moreover get newer car

oh, im not familiar with rentals. I drive in to malaysia very frequently, will that be a problem for rental cars?

[Fastfive1]

oh, i do not have 10k savings. In fact, i've blew all my savings on other investments. Right now its just what i earn = what i can spend.

 

If you really want the car, you should sell away some of the investments. I figure they're stocks? Or some weird insurance savings plan?

[M3e92]

 

judging from the OMV, looks like he's getting an integra.

there are a few, integra, ralliart turbo and mazda 6. Integra is a little more

[Fastfive1]

oh, im not familiar with rentals. I drive in to malaysia very frequently, will that be a problem for rental cars?

 

Most rental places don't allow their cars to be driven to malaysia for safety reasons.

[M3e92]

 

Most rental places don't allow their cars to be driven to malaysia for safety reasons.

ahhh then really no choice i guess, cant have personal transport :( its quite troublesome to take a bus into kota raya then rent protons there :(

[Fastfive1]

you can try this

http://www.ctl.co.jp/english/network/sg/calculator.html

[M3e92]

you can try this

http://www.ctl.co.jp/english/network/sg/calculator.html

oh wow this is exactly what i needed.

 

Mazda 6, one year remaining

[Thaiyotakamli]

oh, im not familiar with rentals. I drive in to malaysia very frequently, will that be a problem for rental cars?

should be allowed, for sure less hassle and no much cash downpayment

 

judging from the OMV, looks like he's getting an integra.

wonder how he will pay his insurance premium

[M3e92]

should be allowed, for sure less hassle and no much cash downpayment

wonder how he will pay his insurance premium

hmmm, probably go uninsured :X Even under named driver the cost is astronomical. Anyone familiar with the rates insurance companies charge for excess for unnamed driver? Say if main driver and named driver's excess is $1000, how much increase in excess would an unnamed driver have to pay in an event of an accident? Is there a fixed formula to this?

Edited September 7, 2014 by M3e92

[macrosszero]

hmmm, probably go uninsured :X Even under named driver the cost is astronomical. Anyone familiar with the rates insurance companies charge for excess for unnamed driver? Say if main driver and named driver's excess is $1000, how much increase in excess would an unnamed driver have to pay in an event of an accident? Is there a fixed formula to this?

 

Please stop. Do your research before signing anything else. I shudder to think what you regard as "investments".

 

You CANNOT go uninsured in Singapore. When you go to renew road tax, you need to show an insurance cover note or policy to cover the upcoming road tax period. Don't try the get-your-parent trick either. Insurance companies are wise to this, and for sporty cars, you either pay astronomical excess, or the policy covers named drivers ONLY.

 

Costs of owning a car in Singapore - depreciation, road tax, insurance, parking, gas, fines/summons, breakdowns.

 

Sounds like you do not have any spare cash to deal with the incidentals. You can ill-afford to own a car. Lease, one if you REALLY need it, or go public.