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Car Resale Values, Fact or Myth?
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LenovoT
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 Mar 11 2013, 02:47 AM
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New Member
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QUOTE(cybermaster98 @ Mar 10 2013, 09:02 PM) This calculation has 3 parts. U are only refering to 1 part which is the resale value. Yes the resale value of the Camry is higher thus lower loss. BUt in terms of start up costs (downpayment) and savings from the monthly loan repayments, the 407 is better. So when u take all 3 together and calculate the difference, the 407 gives you more savings although the resale value is lower. This is just refering to the myth about resale values not the total ownership costs. You may save more on monthly installments & start-up cost with 407. But, isn't that Camry get 30k more after 5 years? Hence, the total of RM85k (407) & RM76k (Camry) actually represent your total cash outflows for the 5 years of ownership.  |
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LenovoT
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Mar 13 2013, 12:54 AM
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New Member
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QUOTE(cybermaster98 @ Mar 12 2013, 08:19 AM) Friend, uve already sold your car. What 30K more are u talking about? This calculation is to show 2 separate cars being sold at the stipulated trade in prices. Friend, RM30k is the difference between what you can get from 407 and Camry (RM70k vs RM100K) when you sold your car at 5th year lo. Simple as that. If we are to take TVM into consideration, the difference would be smaller. But this is not the point, the main point is, why can't you accept the fact that based on the example you have provided, 407 will loss more than Camry from the cash flow perspective although you can buy the 407 at cheaper price for a start? |
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LenovoT
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Mar 16 2013, 11:40 AM
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New Member
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QUOTE(cherroy @ Mar 15 2013, 04:16 PM) Based on TS info Summarise (just on car price issue) Pg - total money need to spent = 85,367 - Downpayment 13,688 - monthly hire purchase 2,361 Camry - total money need to spent to drive it for 5 years = 75,913 - Downpayment 15,499 - monthly hire purchase 2,673 So it is cheaper to drive a Camry for 5 years, (85,367 - 75,913) = 9,454 With a little bit higher downpayment and monthly payment, save 9K+ over the 5 years. This is what we have been talking about, but TS cant agree. He will tell you although Camry's loss is lesser, you pay more as down payment & installments.  Now see this TS. Assuming discount rate at 3% for simplicity of computation. 
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