I’m still a bit confuse after reading the above article. Not sure which scheme is more applicable for my situation. I’m a first time buyer and is planning to buy a new car.
Would appreciate if you are able to provide your email address so that I’m able to describe my situation to you. And would need your help to analyze which scheme is best suited. Thank you.
Alvin,
I would not recommend taking a 10-year cash rebate loan with the intention to change your car in 5 years (irregardless of the loan principal). The cash rebate scheme interest rate will be higher and you have to refund part of the cash rebate for prepayment. Losing some money on a traditional loan from the rule of 78 is not as bad.
You should also reconsider the loan period of ten years. If your loan principal is $50,000 and interest rate at 2.8%, the total interest to be paid is $14,000 – quite hefty.
Buying a new car is a liability especially if your financial health is stretched, you may want to consider getting a two to three year old used car which may be a good option till you are more financially sound. Hope this helps.
Hi, need your help to understand the relationship between overtrade, cash rebates etc in determining if its useful to buy a car. My stituation is this
- have a car coming to 5 years
- outstanding loan is still around $50k in June. unlikely to get a trade in to full redemption value at normal circumstance.
hence,
- would it be useful for me to ask for an overtrade value to offset this process of selling off my old car?
- if I combine this with the cash rebate, would it make sense?
- for cash flow, I would also look at loans 7 years or above, and maybe even 100%
so far, current car is the longest I have held onto a car. looking to selling cos am keen on other models and people have said that if I want to sell, the best time is to do so before its 5th year. If I get the right car, I would look to holding onto it for more than 3 years, maybe even 5.
Hey there, I am currently clueless about the 411 of buyin a new car. And I desperately need help and pointers. Is there anyway you can email me at my provided email address regarding the process? I would really appreciate it!
Bedhead,
I can only provide limited advice via email. I would recommend that you talk to your friends who own cars, especially those makes/models that you are interested to learn more. You can also surf local motoring forums to find relevant information.
Take your time … visit the showrooms. Talk about the offers with your friends and you should be able to make a better decision.
Hi,
I’m still a bit confuse after reading the above article. Not sure which scheme is more applicable for my situation. I’m a first time buyer and is planning to buy a new car.
Would appreciate if you are able to provide your email address so that I’m able to describe my situation to you. And would need your help to analyze which scheme is best suited. Thank you.
Cheers
Alvin,
I would not recommend taking a 10-year cash rebate loan with the intention to change your car in 5 years (irregardless of the loan principal). The cash rebate scheme interest rate will be higher and you have to refund part of the cash rebate for prepayment. Losing some money on a traditional loan from the rule of 78 is not as bad.
You should also reconsider the loan period of ten years. If your loan principal is $50,000 and interest rate at 2.8%, the total interest to be paid is $14,000 – quite hefty.
Buying a new car is a liability especially if your financial health is stretched, you may want to consider getting a two to three year old used car which may be a good option till you are more financially sound. Hope this helps.
skxly
Hi, need your help to understand the relationship between overtrade, cash rebates etc in determining if its useful to buy a car. My stituation is this
- have a car coming to 5 years
- outstanding loan is still around $50k in June. unlikely to get a trade in to full redemption value at normal circumstance.
hence,
- would it be useful for me to ask for an overtrade value to offset this process of selling off my old car?
- if I combine this with the cash rebate, would it make sense?
- for cash flow, I would also look at loans 7 years or above, and maybe even 100%
so far, current car is the longest I have held onto a car. looking to selling cos am keen on other models and people have said that if I want to sell, the best time is to do so before its 5th year. If I get the right car, I would look to holding onto it for more than 3 years, maybe even 5.
any advice?
Please see my response at http://singaporemotoring.blogspot.com/2008/06/overtrade-for-new-ride.html
Hey there, I am currently clueless about the 411 of buyin a new car. And I desperately need help and pointers. Is there anyway you can email me at my provided email address regarding the process? I would really appreciate it!
Thank you.
Bedhead,
I can only provide limited advice via email. I would recommend that you talk to your friends who own cars, especially those makes/models that you are interested to learn more. You can also surf local motoring forums to find relevant information.
Take your time … visit the showrooms. Talk about the offers with your friends and you should be able to make a better decision.
Good luck with your purchase!