Budget 2013

[cherrygal]

I saw a suggestion above to buy 5-6yo cars. But are we allowed to pay off a loan for a 5yo used car in 5 years?


Anyone asked the banks / used car dealers? UOB couldn’t commit to an answer when I called.

[Coolkidsrock2]

MAS press release on car loans.


http://www.mas.gov.sg/en/News-and-Publications/Press-Releases/2013/MAS-Imposes-Financing-Restrictions-on-Motor-Vehicle-Loans.aspx

[cherrygal]

The press statement does not say anything about loan tenure cap for new loans on used cars… or did I miss something?

[Coolkidsrock2]

pirate:

peapot:

Think I will still keep my Honda which is only 5 years old. Although sometimes it jerks for no reason but can just bring it to workshop than to spend more on new car.

Sometimes it's a good idea to bring your car to the agent for servicing. Yeah, it's more expensive, but cars they service tend to last longer. 5 year old cars should not be giving big problems. :xedfingers:

We like to buy 5 years old cars as it is fully depreciated and had just changed recently. Ask the sales agent to send the car to AA for inspection and there is a rating/grading. Where the car fails the rating/grading, the deposit will be refunded.

Our current car was maintained by the agent so it is good thus far. We did send it for maintainence and changed some parts but the costs is pretty negligible.

[Coolkidsrock2]

cherrygal:

The press statement does not say anything about loan tenure cap for new loans on used cars... or did I miss something?

It is silent and I guess the banks may need seek clarification. Perhaps you give them more time before checking with them again.

[cherrygal]

Thanks coolkidsrock. No rush lah, still have a few more years to go before I need to crack my head over this problem.

[MMM]

Our 1st car was a 7 year hyundai elantra. It cost $35k as the COE back then (probably year 1999-2000) was sky high like now… But we had surprises every month in terms of major repairs. Not just that, left on expressway or in car park because timing belt broke. So frankly that was nightmare… but it also gave us a good learning experience on cars… While it was arguable that the cost of repairs is still cheaper than owning a new car but it’s really frustrating to be caught in the situation when car breaks down. But I suppose with pre-purchase inspection these days, things should be better.


With the relative cheaper COE, we managed to buy new cars in our subsequent purchases and I promised myself never to buy a korean car due to the unpleasant 1st experience… Somehow glad that we just changed our car 1 year back when COE was ranging at 50K+. We trade in our 7 year old car. Could have waited for 3 more years but maybe fortunately we didn’t… Looking at the huge cash outfront and shorter loan tenure… it makes one think many times if they want to get a car.

I suppose as car owner, the most important thing is to ensure we maintain our car well and regularly so that it can last longer given that it’s going to be more expensive going forward. Our ex-7 year old honda was agent maintained and despite its high mileage it was fairly reliable.

[peapot]

MMM I can identify with that. My previous car was Hyundai Matrix. It gave me hell. I swore no more Korean cars!

[MMM]

peapot:

MMM I can identify with that. My previous car was Hyundai Matrix. It gave me hell. I swore no more Korean cars!

Not to mention high petrol consumption too.... Some car salesman call it a \"rich\" man's car due to that.

[sleepy]

Is it worth going for PQP?