So your financial planning of dumping big amounts of liquid cash onto a depreciating item is a fine example?

You want to talk about investment but you are trying to justify to me that a difference of RM2,000 is nothing?

You really want to win? OK.

You want apple to apple comparison? Fine.

Tell me which bank offers a FIXED DEPOSIT which allows you to top up a fixed amount every month and yet still gives you 4.0% PA in order to project your wonderful table for 108 months. If you can't find one, fine. How about switching from FD to FD every single month? For 108 months you are going to do that? How about processing time and fluctuations in interest rates in between? Can you guarantee that for 108 months??

If you can do the above. I will admit that you are right. And I will stop.

Actually that is the question that you have to ask YOURSELF because you assume all these condition.
You assume that the FD rates is 4% for the next nine years and that's why you claim to be able to be to beat the hire purchase loan.
Can you even guarantee that.
As for the monthly thing there is paperless eFD, maybank has it.

Put it a simple way, if a person is cash rich, buying a car in cash is not dumping big amounts like what you think. It is just spare money which otherwise would sit in the banks and earn the normal FD rate. Ask wobbles who own the 6, 7 and X5 in Singapore. His purpose of taking loan is to prevent any possible disturbance from IRAS. Ask him why not taking 9 years loan and investing his cash in the way you described.

If you read wobbles's post again: " I still abide by the 10% rule when it comes to buying cars of choice. In fact, I strictly adhere that I must purchase it below the 10% of my annual salary rule. " 
Do you think he needs to spend so much time to grow that 10%? If the same effort/time is used to grow the remaining 90%, a 5% return of investment will give another 1 or 2 new car.

It is 19 pages now, Drian might have the energy to debate with you but I don't have, my point is simple: you don't understand the effective interest rate for the Hire purchase. You fail to see why a borrower for 2.8% 9 years hire purchase actually pays 5.34% for the money he borrows/owes.

Hi fellow bros, can I seek for some advise from you guys? I am a normal office worker, currently income 5k nett. My wife which is also an accountant income around 4k. Combine income 9k. Own a condo monthly installment 1500. Petrol cover by company RM600 every month.

Planning to buy a 2nd hand BMW F30 316i, price RM150k , downpayment 20k , loan 130k, tenure 9 years, installment every month 1400. No more warranty, with 30k left BSRI.

Please advise whether I should go for this 316i? Currently driving a vios. 5 years old car. Really fancy this car but worry about the maintenance cost. What do you guys think of it with me and my wife combine income? ( not plan to have child yet )

Thanks fellow bros. please advise.

Driving a BMW isn't as expensive as most people think. Of course it can be more expensive if you compare with a Japanese car but not by much.

I think the most important think being a BMW owner is that you kinda have to be enthusiastic with car/automotive or with the brand, able to do research, know where to buy parts yourself and having some troubleshooting and diagnosis skill so you can tell what went wrong or at the very least able to determine the relevant components with your BMW.

If you are able to do your own research, then you will understand why most BMW enthusiasts never complaint much about their car being problematic (with a few exceptions like the SSG gearbox etc) because they know how to maintain and solve their problem without getting their throat cuts by the workshops out there. If you are the type that just want the brand but never intend to research, study and learn about your car, I suggest you to stay away from the car especially without warranty.

I am not very experienced with BMW but I just recently sold my Civic FD2 2008 and purchased a used 13 years old E46 330i, for the purpose of educating myself with a old and used continental vehicle. Also because the E46 is one of my dream car since young. And I can tell you the E46 is amazing even though it's decade old 

To TS, if you like the F30 and must have it, then you must be prepared for the problematic encounter with the vehicle, but thus far F30 is a pretty solid car, there isn't much major problem with it. Go read on forums and you will understand more than opening a thread here. The 316i is by no means a bad car, it is good for what it is and for its value, test driven the car and I felt the car is more than adequate for normal driving and the 8AT gearbox is just amazing. I just didn't like the bench seats and the thin steering wheel. Otherwise, the car is good. You still get leather seats, xenon lights etc.

Personal advise though, I wouldn't touch a modern continental car without warranty.

Every % counts. What effort are we talking about here? It is no effort at all.

Wobbles does what he does because he treats that 10% as his disposable money for cars and chooses not to dwell on what happens to it. My calculations are based on the fact that I do not see this as disposable money and instead want to use it to make me money while I pay for the car installments at the same time.

If I want to keep a car for 3 years, I'll take a 3 year loan.

I do NOT encourage 9 year loans. I am encouraging HP loans only IF it is lower than FD and/or any other form of investment. Which is the case now.

Wobbles only commented that my calculation is correct if the cash is available on hand. Which is exactly what my calculation shows. You post as if you worship him.

You also focus so much on EIR without looking at the end figures, the figures that matter.

How the fk did this simple topic evolve into a 19 pager?

It's just a fking car guys, you either buy it or don't - if you have to think and persuade, rationalize and justify your purchase, that means you can't afford it. Plain simple.

I'm someone who is currently paying the roadtax for 3 luxury car that hits the half-a mil-marker; each purchase is simple - if the marketing plan for a particular car ticks my fancy, I get it, if not - i leave it.

All i see is just shit spewing out of the mouth of people who are either jealous that someone could seriously consider to step into the entry level world of luxury cars.

PS:316 is really a bare to the bone, stripped down BMW... Most of the luxury car owners will actually look down on you. But of course most of the MyVi drivers in this forum will look up on you.

EDIT no.2: shit - just realise it's not just 316, but it's a SECONDHAND 316... the fk am i wasting my time here lol. Do whatever you want and just ignore me.

Every % counts. What effort are we talking about here? It is no effort at all.

Wobbles does what he does because he treats that 10% as his disposable money for cars and chooses not to dwell on what happens to it. My calculations are based on the fact that I do not see this as disposable money and instead want to use it to make me money while I pay for the car installments at the same time.

If I want to keep a car for 3 years, I'll take a 3 year loan.

I do NOT encourage 9 year loans. I am encouraging HP loans only IF it is lower than FD and/or any other form of investment. Which is the case now.

Wobbles only commented that my calculation is correct if the cash is available on hand. Which is exactly what my calculation shows. You post as if you worship him.

You also focus so much on EIR without looking at the end figures, the figures that matter.

Strange, few days ago, you mentioned not to discourage 9 years loans. Now, you do NOT encourage 9 years loans. 

Anyway, I am amazed you still have the thought that HP loan interest rate could be lower than FD (and/or any other form of investment) despite Drian already gave the details and even included a link for online calculator. 

For your info, I don't have to worship wobbles. You forgot that I bought my car and properties in cash for the past 15 years. If I buy cars with my heart and not my brain, I won't settle merely with F30 and W204.

The best advise so far

I help u summarize in 4letters (and 4 words)

YOLO - you only live once

The main point:

- gamble: use gamble as leverage, never try never know
- be positive n entrepreneurship: anything happen in near future, u still have the car to earn by using uber or grabcar to earn income

- dun invest if u dunno how to invest: the gold bar. Might as well do something u enjoy rather than investing to lose money

- let tomoro worry itself: why think of tomoro that is uncertain? Heck u dun even know what is gonna happen. If u dun do now,u might never will

- dun worry be happy. The money is to be spent to make u happy. Keeping it as digits in bank account doesnt represent happiness. It is just numbers.

Rm150k cars, i assume is accord or camry or equivalent

At least the wife is happy when go to hospital and new baby can feel the nice car

Strange, few days ago, you mentioned not to discourage 9 years loans. Now, you do NOT encourage 9 years loans. 

Anyway, I am amazed you still have the thought that HP loan interest rate could be lower than FD (and/or any other form of investment) despite Drian already gave the details and even included a link for online calculator. 

For your info, I don't have to worship wobbles. You forgot that I bought my car and properties in cash for the past 15 years. If I buy cars with my heart and not my brain, I won't settle merely with F30 and W204.

Hi ongss,

Well done on buying the cars and properties in cash. And the F30 (I had a 316i, I don't know why people would "look down on it", sold it after a year because I had too many options and not enough garage parking space) as well as the W204 are excellent cars both.

Personally, I think you're on the right strategy - always buy what you can comfortably afford, well within one's means - that's the surest way to financial freedom. Similarly, if I were to buy my cars on the strategy of them costing no more than my annual income, I would be posting pictures of a F12 Berlinetta &/or an Aventador, instead of sharing shots of my 5, 6 & 7 (well, technically, an X5, but still). Then, there'll be more butthurt comments hurled in our direction about how we akshyen, haolian, show off, lansi etc.

It's ok, water off a duck's back.

If MrPoppyplants feels HP is the way to go for him, it's not for me to discourage him. He may not have explained it the best, but I think I know what he's trying to say - by leveraging on a lower interest rate on the cost of borrowing, he's actually using the money "saved" to get higher yield. It's similar to how a lot of people were borrowing in ¥ at one time, because of the low interest rates, and using it to get returns in AUD (which was paying a higher interest).

However, if I feel that paying the car off in cash without having to pay extra interest or pay back following the rule of 78 (here in Singapore anyway) is the better option for me, then, good for me. To each their own, the world is big enough to accommodate everyone.

Peace bros.

Hi ongss,

Well done on buying the cars and properties in cash. And the F30 (I had a 316i, I don't know why people would "look down on it", sold it after a year because I had too many options and not enough garage parking space) as well as the W204 are excellent cars both.

Personally, I think you're on the right strategy - always buy what you can comfortably afford, well within one's means - that's the surest way to financial freedom. Similarly, if I were to buy my cars on the strategy of them costing no more than my annual income, I would be posting pictures of a F12 Berlinetta &/or an Aventador, instead of sharing shots of my 5, 6 & 7 (well, technically, an X5, but still). Then, there'll be more butthurt comments hurled in our direction about how we akshyen, haolian, show off, lansi etc.

Ha ha, I merely tease him ("not discouraging" vs "do NOT encourage") and his response ("selective reading") reminded me the typical answer from local politicians. 

Coincidentally, I also have a magic number which I set as my budget for a new car. This magic number is getting smaller when I age. I am much older than you.

To me, F12 Berlinetta & Aventador are ultimate racing machine. Want to drive them, need to gather a few friends to book the Sepang circuit for track days on weekends. Some people cannot differentiate racing and driving. Every time I see how those Ferrari, Lamborghini, Aston Martin, drivers have to navigate to avoid the speed bumps and pothole at PJ/KL area or how they use highways as their racing track, I only can 

Peace - of course. 

Ha ha, I merely tease him ("not discouraging" vs "do NOT encourage") and his response ("selective reading") reminded me the typical answer from local politicians. 

Coincidentally, I also have a magic number which I set as my budget for a new car. This magic number is getting smaller when I age. I am much older than you.

To me, F12 Berlinetta & Aventador are ultimate racing machine. Want to drive them, need to gather a few friends to book the Sepang circuit for track days on weekends. Some people cannot differentiate racing and driving. Every time I see how those Ferrari, Lamborghini, Aston Martin, drivers have to navigate to avoid the speed bumps and pothole at PJ/KL area or how they use highways as their racing track, I only can 

Peace - of course.