1) "Oh. COE price has fallen. Your car's COE is $25,000 while the current COE price is only $15,000. Why pay the extra $1,000 each year to the government"? What they hide from you is. 'yes another con job you change car and i'll be $1-2k richer. What $1k savings than paying the government? You will end up paying import tax (abt 170%) shipping charges company's profits etc'. You think they really care if you pay more? If it makes more sense to change new car is your SE changing car every 1 year?
2) Your car is 3 years old you need to export your car before the export value drops. There is no resale value for used cars. (Who says you need to export or sell your used car? You can drive it on).
3) You will save on your monthly installment. You are currently paying $700. If you buy this new car you end up paying $500 a month. What they failed to share with you is you have paid 3 years of installment with 4 years to go (total $33,600) while a new car will mean you are into a new 7yrs debt ($42,000).
1) My car is old. What they failed to say is my friends are changing cars. I want to be seen with a new car too. Why not spend a little to do up the car to give it a new feel eg New coat of paint $1.5k) sun-roof ($1.5k) leather seat ($800)? Do some modifications to the engine to give you better performance and fuel consumption eg changing to lighten belt pulley lighten flywheel etc.
2) My car is giving problems. New car comes with 3 years warranty. Is replacing old/worn out parts more costly than the 'warranty'? Set aside $2-3k to replace worn out parts and the car will serve you well for the next few years again.
If you drive on your existing 3yrs old car (current paper value $30k. 10yrs paper value $8k) you will only need to suffer a depreciation of $3143/yr for the next 7yrs. If you change to a new car (new car price. $52k while 10yrs paper value $8k) now you will suffer a depreciation of $4,400/yr for the next 10yrs. That's more than $100/mth for 10yrs.
If the new car is scrapped/exported after 3yrs assuming the paper value at $30k you will have lost $22,000 over this period of 3yrs (or $7,333/yr). This is almost $350/mth for the next 3 years.
With the lower COE value (pre 2000 COE price was as high as $60k while COE in 2003 was >$30k) a lot of car owners are tempted to change car and forgotten to calculate true mathematics but choose to calculate the new car's depreciation.
Think twice think three times. If you are stuck whether to change car or not you are definitely better off with your current ride. I suggest you consider keeping the car and invest your money wisely.
My client’s priority is utmost important to me as I believe that everything will take care of itself later on. Honest business ethics is important. Trust is build over many years but only takes 5 minutes to ruin it. My Jobs(1) Mortgage Consultant. I source for the most suitable packages for my clients. There are more than 100 loan packages available. Which is the most suitable for the property buyer?(2) Investment Consultant. In this career. I present Capital Protected and Guaranteed Returns (avg 15-20% pa) investment vehicle to my clients. This helps us the average to grow our funds and prepare for retirement or growing funds to spend on what we desire later on. Both my careers above are looking at helping individuals save with proper mortgage package and grow funds for the future. This balance career focus primarily on money management.
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Related article:
http://globalcookie.blogspot.com/2007/11/how-to-save-2-your-vehicle.html
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