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