Break even for my car?

[twistsg]

I have a Feb 08 Hyundai Matrix 1.6A (FL)

If let say i still owe the bank about $33k for this car, if i were to sell my vehicle... will i be able to break even, lose money or earn a little profit?

I am actually looking to change my car.

 

[aerosmiths]

you need more details to calculate. also, you need to be clear on your definition of break even, lose money or earn profit. e.g. you might think that break even means you do not need to come up with extra money to pay bank after selling your car, but to others, break even might mean, that you sold the car at the same price as when you bought it + bank interest.

assuming you are comparing everything to the price you bought it for.
you need to remember how much you bought it for, then add bank interest. with this total sum, you minus the selling price and you should be able to come up with how much you lost, or profit. rarely is profit.

assuming you are comparing everything to your current situation, then you just take the selling price minus how much you owe, $33k. if positive, you profit, if negative, you need to fork out extra.

 

[twistsg]

you need more details to calculate. also, you need to be clear on your definition of break even, lose money or earn profit. e.g. you might think that break even means you do not need to come up with extra money to pay bank after selling your car, but to others, break even might mean, that you sold the car at the same price as when you bought it + bank interest.

assuming you are comparing everything to the price you bought it for.
you need to remember how much you bought it for, then add bank interest. with this total sum, you minus the selling price and you should be able to come up with how much you lost, or profit. rarely is profit.

assuming you are comparing everything to your current situation, then you just take the selling price minus how much you owe, $33k. if positive, you profit, if negative, you need to fork out extra.

Hi aerosmiths,

thanks for your reply. what other factors i need to consider?

i wan to sell the car and pay off the bank loan without forking out any additional money and hopefully can get back some cash.

 

[jia_yvon]

sure need to top up one
matrix is of no value one
usually they offer u is paper + body onli

 

[Yo2020]

what r the values of omv n coe? need these to compute current paper values.

 

[EJB]

How come after 6 years still 33k?

If you took 10 years, the breakeven should be around 8.5 years.

 

[tk]

i thot matrix was phased out in 2005...

 

[Yo2020]

i thot matrix was phased out in 2005...

it's face-lifted in 2005, not phased-out.

 

[kebinu]

Break Even for a car | Kevin Chia

Owning a car is expensive in Singapore. Hence, it is important to understand the financial aspect to own a car. It’s not just the car’s purchase price, we have to pay for the financial charge/interest, maintenance, road tax, insurance, parking and even set aside some fund for fines.

In today’s article, I will be sharing on the breakeven of a car because of the following.

breakeven qn

This question will pop out very often and this blog entry shall answer them once and for all.

1. What is breakeven?

In business term, breakeven means that there is a net gain/loss of $0 after collecting all revenue and account for all expenses. In car ownership term, it’s not about making money. Car is a liability, there is no chance of making a profit from driving a car unless there is a huge increase of prices of COE, which the increase can cover the depreciation of the car.

In car ownership, it basically means if there is any gain/loss from getting rid of the car, ie by selling or scrapping it.

2. Is there any outstanding loan?

If there isn’t any outstanding loan, people won’t be asking such question! So yes, you have to call your financial company to check what is the cost of redeeming the loan. Depending on when the loan is taken etc, there may be some penalty incurred, you can google for car loan rule 78 for more information.

You will get a figure to redeem the loan. Let’s say it’s $30,141 in this case. $30,141 will be the figure you have to pay to your financial company so the car will be yours.

3. The option to scrap/export.

For this option, you will be receiving your paper value + a few hundred dollars for the “metal” of the car.

To calculate your paper value, click https://vrl.lta.gov.sg/lta/vrl/action/pubfunc?ID=EnquireRebateBeforeDeReg

This calculate will calculate the amount of money you can get from LTA to de-register your car.

Let’s say the value is $18,888, you will have to top up $(30,141 – 18,888) = $11,253 just to scrap your vehicle. (exclude other figures such as crap metal and admin)

4. The option to sell

You may choose to sell your vehicle. You can refer to sgcarmart for the current market price, price is lower if you want to sell easier. In order to just breakeven, you will have to market your car to sell at $30,141.

This will be just a breakeven! No gain/loss.