Car Ownership

Saw this advertisement in a Singapore daily newspaper on 25 Feb 2012.

A quick check on the current car price for a similar one picture is about $176,888 (COE included in the selling price of the car). The COE for this 1,6 litre car is $57,000.

Instalments from $888 per month could it be possible even if the repayment is for 10 years?

$888 x 12 months x 10 years = $106,560.00

Quick Reality Check:

A quick calculation assuming a 10 years loan with the low interest rate of 1.88% per year and paying monthly installment of $888. The calculated loan amount is $89,700.

So effectively, the buyer still have to come up with about $88,000 of cold hard cash to pay for the down-payment.

Interpreting this Advertisement:

It assumed that you are to trade-in your car that was fully paid off that is worth about $88,000. And that would be a similar car that was bought 5 years ago which costed about $132,000. The cost difference is due largely to the COE prices 5 years ago, which was hovering around $14,000 as compared to $57,000 today.

Updated On: 15.02.14