the problem is not many people see it that way...

i dont know about you guys but the very best rate you could probably get is to take the money from your flexi housing loan. if you have squeezed your bank, you are paying a good amount below 4% p.a. right now and that beats any offer above 2% from hire purchase for durations of 5 yrs and above. furthermore you can pay back as you can which is a lot nicer than the hire purchase.

personally i never buy cars on loan. but that is a different story.

Grimm, gotta agree with you on this. I still remember there were a lot of comments saying that car value depreciate over the time...etc, but none of them think
But, 100% agree with you on this. I know of a lot of people, not getting a car and giving me advice try to stay as close as they can to the work place. None of them think out of the box that with car, you have the flexibility to choose a place to stay, you have the flexibility to work over night (discussion for freelance job, etc).

Grimm,

<<Just because it doesn't bring in cashflow directly doesn't mean it doesn't bring you benefits indirectly.>>

Benefit <> $$$

Hence, it is a LIABILITY. Simple as that. If you want to LIE to yourself, go ahead. But, don't spread the LIES.

<<So don't be stupid. A car will transport you back and forth to and from work.>>

Ditto on public transportation and so on. If you NEED a car to take a job but the job do not PAY enough for car, do not take the job. It is a net loss of $$$$.

<< Having a car will open up your career options, employment options. Having a car will increase your customer outreach if you are doing your own business. >>

How much $$ does that translate into?? What is the ROI?? If you CANNOT quantify it, it does not exist. If you could, you could figure that how much a car that you can afford.


T630,

Who say so?? Most people LIE to themselves and buy car that they CANNOT afford.

How do you KNOW that they cannot afford it?? It is VERY SIMPLE. If a person CANNOT SAVE 10% to 15% of their gross income consistently. they spend TOO MUCH.

Dreamer

---

Added on January 22, 2010, 9:16 pmjasontoh,

<< None of them think out of the box that with car, you have the flexibility to choose a place to stay, you have the flexibility to work over night (discussion for freelance job, etc).>>

Or, do not buy a car so that you do not have to work that hard to maintain the car.

ROI. Return on investment.

If you do not spend that much, you do not have to earn that much.

So, how many people EARN ENOUGH to justify the car?? On the average, not many. So, those people will be working for me and making me rich through my PBBank share.

Dreamer

This post has been edited by dreamer101: Jan 22 2010, 09:16 PM

Why limit our earning capability? If you have a car cost you about 1K for maintenance, insurance, installment, while you can earn few times extra, I do not see why we should limit it? Are you going to tell me that factories that buying more machines and expand to produce more output aka more revenue and profit is wrong?

I guess now the problem is about which type of car you afford..

rule of thumb: don't over-squeezed yourself..

but don't worry, many have learnt through hard ways..

you want to luxurious, you work like a cow and get empty bank account.

i always say moderate, don't look too high or too low on yourself.

for even a wira with 7 years, expect to pay about RM1k permonth..

---

Added on January 22, 2010, 9:30 pm I guess it is about whether you have the free money to do so..

if let's say 1K is you have to squeeze here and there (e.g. tight financial), then no point buy big car.

if you really still without debt and have little savings (10-15%) after that, you can do so..

---

Added on January 22, 2010, 9:32 pmwell.. buying a car is not a problem.
in fact, all people who afford can buy.

Just don't buy a car that make yourself difficult.
If you are not financially good, buy a viva please, don't boost yourself and owe credit card..

This post has been edited by epalbee3: Jan 22 2010, 09:32 PM

hmm, thats why till now i still driving co.'s car...

jasontoh,

Let's stick with CAR. Unless, you are in a car rental business, CAR is not an asset.

<< If you have a car cost you about 1K for maintenance, insurance, installment, while you can earn few times extra, I do not see why we should limit it?>>

So, have you ACHIEVE this??

Using a car to multiply your earning?? Or, this is purely theoretical??

Give a REAL example and lets examine the number to see whether it is TRUE.

Or, it is TRUE in less than 0.0001% of cases. Then, it is NOT a good advice for GENERAL PUBLIC.

<<Why limit our earning capability?>>

The CORRECT statement is DO NOT SPEND the money that you DO NOT HAVE.

Unless and until you EARN ENOUGH, do not justify a car.

Dreamer

This post has been edited by dreamer101: Jan 23 2010, 06:24 AM

Let's take in the perspective from accounting. The reason why you said so is because it can be classified as an asset because it can be sold for cash and thus it is perceived as an asset? However, please keep in mind that it is a depreciating asset, in that the car loses value the moment you drive it off from the showroom.

Regards, Joey

p.s: On a normal circumstance, it does generate a number of expenses and liabilities ( You may want to factor in the maintenence, loan payments, petrol, insurance, and road tax) thus it is classified as a liability for me.

I thinks its all depend on what job are you doing....

If you are a clerk i don think you need a car for you to travel around and most probably the salary is low....

If you are a General Manager or a sales manager yes of course you need a car to travel around and i believe by holding these type of position you can afford to have a car.

darkknight81,

1) I used to be a sales manager. The company provided a car. I do not have to buy my own car. Ditto for many people in GM level.

2) In those cases, you DO NOT have to buy your own car. Ditto for many businessmen. They have company car.

Dreamer

Yup. Achieved it. Use the car for discussion and also tuition service.

My point of view: if you are a sales people , to own a car which contributing you a sales commision of above 10k is not a liability which i had fully utilise the car of purchase to earn me the commisions. If to a car that rarely utilise and stagnant rest under the shed, perhaps a big time of liability to the users.

There are companys that offer different benefits for their sales employees. Either providing a company car or car allowance.

jasontoh,

Okay. Show us the number.

1) How much you pay for the car every month??

2) How much do you earn from tuition every month??


Dreamer

1.) I allocate 1K for everything, fuel, maintenance and installment.
2.) Per lesson of 2 hours, RMxx-RMxxx. At least 4 lessons per week (x00). My other freelance currently requires less traveling. Total income from other jobs, cannot be revealed, as I do not need to prove anything. Just tuition enough to cover the car, not including others.

I do not need to reveal everything to you actually, whether you believe or not, still up to you. Because even if I tell everything, you can still choose not to believe.


Most people choose to be constraint by the box, only some will choose to think out of it.

This post has been edited by jasontoh: Jan 23 2010, 09:24 PM

jasontoh,

<< 2.) Per lesson of 2 hours, RMxx-RMxxx. At least 4 lessons per week (x00). My other freelance currently requires less traveling. Total income from other jobs, cannot be revealed, as I do not need to prove anything. Just tuition enough to cover the car, not including others.>>

1) So, do you earn a few K per month for your free lance plus tuition?? Yes or no. That was YOUR CLAIM. It is as simple as that.

2) How many hours per week do you spent on your freelance plus tuition??

3) Do you have a full-time job at this moment??

<< I do not need to reveal everything to you actually, whether you believe or not, still up to you. Because even if I tell everything, you can still choose not to believe.
Most people choose to be constraint by the box, only some will choose to think out of it.>>

4) I have WAYS to figure out whether you are telling the TRUTH.

5) I just want to establish your circumstances.

A) A few times of your car expense?? True or false. More than 2X or less than 2X.

B) How many extra hours per week to support those expenses??

C) Do you have a full-time job now??

I do not need exact number.

This will let people KNOW whether they are willing to put in the SAME AMOUNT effort for your so called think outside the box.

Dreamer

This post has been edited by dreamer101: Jan 23 2010, 11:38 PM

1) Can't reveal much.
2) Tuition + freelance, maybe just about 8-12 hours
3) Full time job yes. Why waste time when you just work 8 hours in the office. How are you going to spend your other 8 hours, assuming 8 hours rest.
4) Actually whether you believe or not, really up to you. I don't mind. Just like when my colleagues asked me how come I'm still ok although I need to pay car loan and education loan, at the same time tithes, tax. In fact I can only use about 30% of my full time job salary due to expenses + force savings. Without my extra income, I cannot enjoy Starbucks over the weekends and other lifestyle.
5) Car expenses include everything although should be lower than my budgeted amount, as I'm still sitting on top of pile of cash for car expenses. So, whether 2x or more don't really matters actually.


PS: Think out of the box is not just about the freelance and working extra hours. There are many ways to earn extra money as sky is the limit of your earnings. If you're good at something, never do it for free.

This post has been edited by jasontoh: Jan 24 2010, 12:15 AM

jasontoh,

<< PS: Think out of the box is not just about the freelance and working extra hours. There are many ways to earn extra money as sky is the limit of your earnings. If you're good at something, never do it for free.>>

That is YOUR WAY. However, people in my group CONCENTRATE our efforts in OUR JOB/ PROFESSION. And, we earn a few times more than normal people. For people in our group, as long as we are FRUGAL, we ONLY have to SAVE and INVEST to reach our goal.

So, in our case, we SPENT our free time on learning how to invest and how to do our job.

Think in the box or out of the box is IRRELEVANT. There is NO BOX. The QUESTION is how to maximize your ROI on your time and effort.

Dreamer

P.S.: I had seen many people that earn less than 5K per month has the same kind of thinking like you. This is very common. Now, whether it works or not, I have no idea. This is not the kind of path that I choose.

This post has been edited by dreamer101: Jan 24 2010, 03:07 AM

Yup. Not everyone can do that. To maximize your ROI, think out of the box is in fact relevant. There are many ways to earn without spending much effort and time (MLM not included), just how you choose to to think. Investment in stocks (some say properties) is one of them. I do invest in stocks, if you realized in all my posts. Just that I also have other source of income.

I have colleagues who are saving about 90% of his/her net salary monthly (no cars, ptptn payment at the most minimum, and worst of all don't even think of getting a better life for parents). But to me, what is the point of skimping your meals and lifestyle while you do not enjoy it and share it with your love ones?I rather run the extra miles, so that I can share the happiness with others.

my car loan is from AmBank for 7 years for 3.65%

why some say can get less than 3%??

why ar?