Downpayment for car

[Mecisteus]

Yes, I see where you are coming from. But you are assuming I need to use $948 from my salary for the instalments. My assumption is I do not need to use my 'salary' (or whatever you wish to call it) as I have other sources of cash for that purpose. So while I pay off the loan instalments, I use the 50k unused capital to invest. After 5 years I total my outflow (instalments) and inflow (returns). Net nominal outflows is lesser than the one time 50k payment you make at the start of the first year.

no matter how you twist it, your investment still needs to beat the loan effective interest rate of >5%.

One more thing to note is without car loan the selling price for brand new is slightly higher (because no loan rebate from bank) and do not include three-year servicing. So these are additional costs too. My current car is bought without loan. My next car I will be taking loan even though I can pay in full. Because I feel overall package is still a better option. Of course your mileage may vary.

the rebates will probably reduce your loan effective interest rate by a couple of basis points.

you are still not understanding correctly.

 

[wahkao3]

let me write algorithm

if(investment returns > interest rate)
{take loan}
else
{dont take}

chances are, most people will not be able to invest with returns greater than interest rate
so they are better off paying off cash

 

[dork32]

Your monthly compounding 3% investment product is not too shabby. I will also participate and put $948 in each month. Again the cash comes from other cash sources. Don't assume $50k and only $50k is all there is to it, which is essentially what you are assuming.

to me 50k earns 3% as you suggest. it will become 58k in 5 years. to you what has the 50k become? you do not know what it will become because you cannot count. you just know that it is not 50k.

 

[dork32]

One more thing to note is without car loan the selling price for brand new is slightly higher (because no loan rebate from bank) and do not include three-year servicing. So these are additional costs too. My current car is bought without loan. My next car I will be taking loan even though I can pay in full. Because I feel overall package is still a better option. Of course your mileage may vary.

this statement is not always correct.

at mitsubishi, they offered me a 5k discount if i take a 50k loan for 5 years. i would have taken the loan if i had bought a mitsubishi.

at hyundai, they did not offer me anything if i take their loan. they just say their loan rate is very competitive. if i buy a hyundai, i will not take a loan.

 

[dork32]

let me write algorithm

if(investment returns > interest rate)
{take loan}
else
{dont take}

chances are, most people will not be able to invest with returns greater than interest rate, i must say i agree with what you are saying now.
so they are better off paying off cash

though i dont agree with your low risk high return and dont be hardup for dividend crab, i must agree with your algorithm

 

[wahkao3]

though i dont agree with your low risk high return and dont be hardup for dividend crab, i must agree with your algorithm

thank u for your support


going for low risk and high return investment opportunities is a very basic idea of investing

if you dont even have this basic concept down, i suggest putting your cash in CPF

if you think this is logically incorrect, please present your argument and lets have a good discussion so all of us can improve

 

[dork32]

thank u for your support


going for low risk and high return investment opportunities is a very basic idea of investing

if you dont even have this basic concept down, i suggest putting your cash in CPF

if you think this is logically incorrect, please present your argument and lets have a good discussion so all of us can improve

you are every one wants low risk high return. it is like every one want a car that is cheap, branded and reliable. that fact is there is none. it is always a cheap lousy car or a expensive good car or somewhere in between. likewise it is always low risk low return, or high risk high return, or somewhere in between.

with regards to you not being hardup for dividends. i am hardup for dividends. it worked well for me. over the last many years, my dividend gain is very much higher than my capital appreciation. if not for the dividend gain, i hardly win anything.

 

[dork32]

with regards to you not being hardup for dividends. i am hardup for dividends. it worked well for me. over the last many years, my dividend gain is very much higher than my capital appreciation. if not for the dividend gain, i hardly win anything.

eg i bought sph many years ago at 3.95. yesterday's closing price is 3.86. i would have lost 0.09. but its dividend is more that 0.2 per year. i have collected more than $1 in dividend over the many years. who say dividend play cannot buy?

 

[wahkao3]

you are every one wants low risk high return. it is like every one want a car that is cheap, branded and reliable. that fact is there is none. it is always a cheap lousy car or a expensive good car or somewhere in between. likewise it is always low risk low return, or high risk high return, or somewhere in between.

that is what the bankers want you to believe. dont get tricked by them. low risk high return opportunities do exist, but they are very rare, require patience, or are restricted to certain people

 

[wahkao3]

with regards to you not being hardup for dividends. i am hardup for dividends. it worked well for me. over the last many years, my dividend gain is very much higher than my capital appreciation. if not for the dividend gain, i hardly win anything.

i say ppl are "hard up" because most newbies go in with wrong mentality. They put the horse before the cart.

They see dividends = business good.
They think blue chip = business good


The right way to think is the other way around:
see that its a good business, therefore this company will give dividends
see that its a good business, therefore this company should be priced like a blue chip.

 

[peterchan75]

There are more than 400 counters with >5% dividend.
Just use your TA & FA say buy then buy + low risk & high return.
Sure make ?

GRMN, IPHS, QSII, SJR, STAY, NRE, CTRE, TEO, VIRT, CPPL, IRM,
ARCO, SBR, NHI, SE, AEG, CS, NRCIB, PACW, KEP, CZNC, EVN,
CMTL, LPT, BIP, MERC, BKS, DRH, MNR, STO, CXP, GES, PBA,
BAK, DMF, WDC, AKO-B, TNP, GZT, WSCI, EPR, PKX, BCV, RESI,
NOV, PEB, BSAC, CEO, BCBP, ESV, ERIC, BHP, BTA, CIFC, TAX,
DSM, APTS, ARES, LEO, NYLD, TOT, ECF, BGFV, FUN, HEES, CPSI,
VER, RHP, AVP, AUO, CIG, E, UG, HIFR, CLDT, WLKP, SRC,
VKQ, WBK, NYLD-A, ASC, BLX, HASI, BEP, CAFD, TPUB, RLJ, CVA,
EPD, AHH, OUT, OUTR, CQP, MPW, VET, BSM, BGCP, OKE, SOHO,
VALE, WPC, CNSL, GSK, CHSCP, HGT, NCMI, APLE, FIG, POT, SEMG,
SXC, PDLI, RRD, LVS, BGSF, VTTI, TEP, CHSP, DL, AHC, ALJ,
OB, CNNX, CXW, MIC, APO, JE, STAG, WIN, WNRL, TGH, SFUN,
ASX, HCP, MPLX, TCP, TLLP, SPIL, WES, GLPI, SXL, OMAB, TLP,
AZN, FSP, OLP, BCRH, FPO, MAIN, NVEC, OHI, RIO, BPL, HEP,
AJX, WNR, QIWI, XHR, CSPI, MARPS, JMP, ASEI, PHI, PIM, CG,
CCCL, NTI, CRT, SBRA, MVC, MN, UMH, LHO, RDS-B, CLCT, FT,
RDS-A, ENLC, LXP, QUAD, GBDC, PEGI, CTL, NRT, CGA, DNP, BP,
BBG, VGR, FRO, APAM, TEI, CCUR, HPT, PBFX, ING, CLMS, CHCT,
EVOL, LOAN, SYPR, ICL, GEO, NTL, ETB, FTR, TOO, IFMI, NEWM,
BDMS, PSO, WPT, EOS, GNL, EOI, IRET, FLY, SIR, CIO, BSBR,
TAC, EVA, CCP, DKL, WSR, AHT, SUN, SNH, INVA, RWT, GOOD,
HSON, FAX, GEL, NAUH, SSI, GOV, STNG, OKS, SLRC, ABR, LMRK,
CDI, HNP, AB, DSWL, BXMT, ETE, APU, DPM, GHL, HIHO, WPG,
ACRE, BBVA, CLNY, NSH, STB, NAO, TRGP, ATAX, CODI, SUNS, TST,
IGLD, SNR, CIK, SPXC, OHAI, SSW, EVV, HMLP, TYG, NS, SRLP,
BONT, PCN, IRT, WDR, FUR, MFD, SRV, KRO, JCS, TCPC, VOC,
PFLT, STWD, TSLX, FSIC, OXBR, CVI, PTXP, ARCC, HT, PAGP, MRCC,
FDUS, HQH, ABY, CSAL, SAR, BRG, OFS, CET, PKO, AVH, CAPL,
ENBL, HTGC, MTGE, BKCC, EDD, FSAM, LND, INB, BWG, CYD, NCT,
JCAP, CMO, KYE, MVO, NEWT, IEP, FGP, HCAP, KED, GLOP, NDRO,
TNH, USDP, SMLP, NMFC, EC, HTS, XCO, NLY, SHO, ZFC, TI-A,
GAIN, TWO, EEP, NAT, ELLO, MFA, ENLK, RIGP, STON, TAL, AIRI,
BKEP, ARI, GPP, EFC, APLP, SPH, CHY, DEST, GLAD, KNOP, EVEP,
NNA, OAKS, ETP, NGL, SFL, PAA, RAS, WPZ, GOF, HRZN, NRF,
IVR, TCAP, DX, CYS, CH, ANH, AGNC, RVT, KYN, TCRD, TNK,
DLNG, WMB, CMRE, CIM, STX, HSBC, IGD, UAN, FTAI, MNDO, IID,
PSEC, MDLY, SCM, RSO, CHMI, PMT, TAXI, GARS, NRP, GLP, FBR,
WHF, ARCX, AMID, CPTA, FSC, NAP, AINV, CORR, MITT, AMTG, MMLP,
WHLR, GMLP, EARN, NRZ, TERP, USAC, DHT, WMLP, GPT, RRMS, CBL,
TROX, EURN, LEJU, ARR, MEMP, OSGB, SPP, JPEP, ECT, WTI, ORC,
NYMT, ARLP, SKIS, FULL, KCAP, CELP, MCC, PNNT, TKC, GLF, OCIP,
WMC, SDLP, LADR, SXCP, HHS, AI, CCLP, BPT, MEP, AHGP, GSL,
VNR, TICC, CNXC, ARP, OXLC, GOGL, CEQP, PER, CHKR, SDR, CPLP,
CVRR, FELP, GLBL, SDT, GSVC, EMES, SXE, AZUR,

 

[wahkao3]

There are more than 400 counters with >5% dividend.
Just use your TA & FA say buy then buy + low risk & high return.
Sure make ?

GRMN, IPHS, QSII, SJR, STAY, NRE, CTRE, TEO, VIRT, CPPL, IRM,
ARCO, SBR, NHI, SE, AEG, CS, NRCIB, PACW, KEP, CZNC, EVN,
CMTL, LPT, BIP, MERC, BKS, DRH, MNR, STO, CXP, GES, PBA,
BAK, DMF, WDC, AKO-B, TNP, GZT, WSCI, EPR, PKX, BCV, RESI,
NOV, PEB, BSAC, CEO, BCBP, ESV, ERIC, BHP, BTA, CIFC, TAX,
DSM, APTS, ARES, LEO, NYLD, TOT, ECF, BGFV, FUN, HEES, CPSI,
VER, RHP, AVP, AUO, CIG, E, UG, HIFR, CLDT, WLKP, SRC,
VKQ, WBK, NYLD-A, ASC, BLX, HASI, BEP, CAFD, TPUB, RLJ, CVA,
EPD, AHH, OUT, OUTR, CQP, MPW, VET, BSM, BGCP, OKE, SOHO,
VALE, WPC, CNSL, GSK, CHSCP, HGT, NCMI, APLE, FIG, POT, SEMG,
SXC, PDLI, RRD, LVS, BGSF, VTTI, TEP, CHSP, DL, AHC, ALJ,
OB, CNNX, CXW, MIC, APO, JE, STAG, WIN, WNRL, TGH, SFUN,
ASX, HCP, MPLX, TCP, TLLP, SPIL, WES, GLPI, SXL, OMAB, TLP,
AZN, FSP, OLP, BCRH, FPO, MAIN, NVEC, OHI, RIO, BPL, HEP,
AJX, WNR, QIWI, XHR, CSPI, MARPS, JMP, ASEI, PHI, PIM, CG,
CCCL, NTI, CRT, SBRA, MVC, MN, UMH, LHO, RDS-B, CLCT, FT,
RDS-A, ENLC, LXP, QUAD, GBDC, PEGI, CTL, NRT, CGA, DNP, BP,
BBG, VGR, FRO, APAM, TEI, CCUR, HPT, PBFX, ING, CLMS, CHCT,
EVOL, LOAN, SYPR, ICL, GEO, NTL, ETB, FTR, TOO, IFMI, NEWM,
BDMS, PSO, WPT, EOS, GNL, EOI, IRET, FLY, SIR, CIO, BSBR,
TAC, EVA, CCP, DKL, WSR, AHT, SUN, SNH, INVA, RWT, GOOD,
HSON, FAX, GEL, NAUH, SSI, GOV, STNG, OKS, SLRC, ABR, LMRK,
CDI, HNP, AB, DSWL, BXMT, ETE, APU, DPM, GHL, HIHO, WPG,
ACRE, BBVA, CLNY, NSH, STB, NAO, TRGP, ATAX, CODI, SUNS, TST,
IGLD, SNR, CIK, SPXC, OHAI, SSW, EVV, HMLP, TYG, NS, SRLP,
BONT, PCN, IRT, WDR, FUR, MFD, SRV, KRO, JCS, TCPC, VOC,
PFLT, STWD, TSLX, FSIC, OXBR, CVI, PTXP, ARCC, HT, PAGP, MRCC,
FDUS, HQH, ABY, CSAL, SAR, BRG, OFS, CET, PKO, AVH, CAPL,
ENBL, HTGC, MTGE, BKCC, EDD, FSAM, LND, INB, BWG, CYD, NCT,
JCAP, CMO, KYE, MVO, NEWT, IEP, FGP, HCAP, KED, GLOP, NDRO,
TNH, USDP, SMLP, NMFC, EC, HTS, XCO, NLY, SHO, ZFC, TI-A,
GAIN, TWO, EEP, NAT, ELLO, MFA, ENLK, RIGP, STON, TAL, AIRI,
BKEP, ARI, GPP, EFC, APLP, SPH, CHY, DEST, GLAD, KNOP, EVEP,
NNA, OAKS, ETP, NGL, SFL, PAA, RAS, WPZ, GOF, HRZN, NRF,
IVR, TCAP, DX, CYS, CH, ANH, AGNC, RVT, KYN, TCRD, TNK,
DLNG, WMB, CMRE, CIM, STX, HSBC, IGD, UAN, FTAI, MNDO, IID,
PSEC, MDLY, SCM, RSO, CHMI, PMT, TAXI, GARS, NRP, GLP, FBR,
WHF, ARCX, AMID, CPTA, FSC, NAP, AINV, CORR, MITT, AMTG, MMLP,
WHLR, GMLP, EARN, NRZ, TERP, USAC, DHT, WMLP, GPT, RRMS, CBL,
TROX, EURN, LEJU, ARR, MEMP, OSGB, SPP, JPEP, ECT, WTI, ORC,
NYMT, ARLP, SKIS, FULL, KCAP, CELP, MCC, PNNT, TKC, GLF, OCIP,
WMC, SDLP, LADR, SXCP, HHS, AI, CCLP, BPT, MEP, AHGP, GSL,
VNR, TICC, CNXC, ARP, OXLC, GOGL, CEQP, PER, CHKR, SDR, CPLP,
CVRR, FELP, GLBL, SDT, GSVC, EMES, SXE, AZUR,

dividends should be the least of our considerations

 

[endlssorrow]

oh yah... now i remembered.

if i used the $10k to buy bonds like oxley,perennial bonds, which gives more than 3% confirm more worth right?

 

[dork32]

oh yah... now i remembered.

if i used the $10k to buy bonds like oxley,perennial bonds, which gives more than 3% confirm more worth right?

5% is not bad. but you still lose the 5.7% effective interest you are paying for the car.

 

[Leave No Men Behind]

Last July. Me hoot 40%. Loan 2.28 sing investment. Another one is 2.68, which can approve immediately. As per dealer say. I say never mind. Wait and see 2.28. Heng can lor. Although few dollars cents. Of cos go cheaper one. Sing investment 2.28. 1st veh is maybank

 

[dork32]

Last July. Me hoot 40%. Loan 2.28 sing investment. Another one is 2.68, which can approve immediately. As per dealer say. I say never mind. Wait and see 2.28. Heng can lor. Although few dollars cents. Of cos go cheaper one. Sing investment 2.28. 1st veh is maybank

not all can let you choose the loan company you want.

 

[Leave No Men Behind]

Yup understand. Like wat those admin fee 500 etc. I won't pay. No need wat free service etc. Nego price. Gum we deal if not I move on. Standard. Ins also. Knn most must take from in house. 1.5k for me.

not all can let you choose the loan company you want.

 

[coldmilk2]

Bottom line is that car loan is one of the more expensive secured loan out there. Avoid it if you can.

However some car dealers, especially PI, will slap a "surcharge" if you do not take their loan. In this case, you have to calculate if this "surcharge" is more expensive than the higher interest rate for car loan.

 

[dork32]

Bottom line is that car loan is one of the more expensive secured loan out there. Avoid it if you can.

However some car dealers, especially PI, will slap a "surcharge" if you do not take their loan. In this case, you have to calculate if this "surcharge" is more expensive than the higher interest rate for car loan.

authorised dealer may slap a surcharge on you as well. but when i buy hyundai, they did not

 

[elnewbie]

Honda AD also does not insist on their own in house partner banks. You are free to choose your own.

authorised dealer may slap a surcharge on you as well. but when i buy hyundai, they did not