Any other form of savings/deposit/investment that is higher in % compared to your HP % will be a better option in my opinion, than buying a 100k car by cash. Just refer to my previously attached tables.

Erm, while we're talking about the pros & cons of this & that, I believe the tread starter has wisely decided to purchase something different, instead of going with his initial F30. To that, I wish him tahniah, and all the best on that decision.

Good luck, and drive safely on the roads!

Its nice to see grown, educated men debating fiercely without calling each other names. Well done guys and keep it up.

The standard of English in the debates here is also pretty good !

to the TS, you don't need 20 + pages of replies here to convince you to buy the bloody F30. Just throw caution to the wind and buy the damn car.

You only live once ! Hahaha...

Well, calling people names will achieve nothing. My intention was only to share an idea and provide my views, not to make enemies.

TS has already decided to buy a less expensive car and his reply is buried deep somewhere.

Yup! I believe he has.

when u really afford it, you dont need to ask

In other news, strictly following the self imposed 10% rule, Mr and Mrs Wobbles just signed for the new BMW G12 740Li. It was below the threshold, where as the Porker 911 would have busted the 10% rule's budget. Photos will arrive shortly and of course, the butt hurt comments will similarly follow.

This post has been edited by wobbles: Dec 8 2015, 03:51 PM

Wait, wait.. went for lunch.

I don't understand your spreadsheet. Both side got 100k FD calculation. I don't know why. Here is my Excel.

Option 1: 100k cash, take 10k as the down payment, remaining 90k as FD for 5 years@4%, monthly installment 1698.75 to settle the loan.
Option 2: 100k cash go to car, no down payment, monthly saving of 1698.75 (instead of paying debt, become saving)

After 5 years, option 1 got 109498.76 + car and option 2 got 111618.14 + car.

In 3rd year, option 1 net worth is 60467.76 without car (title is still with the bank). Option 2 net worth is 69578.36 and a car.

Ya, you may say you have cash in your FD. But, for option 2, debt free means can get personal loan and other credit facilities.

This post has been edited by ongss: Dec 8 2015, 03:09 PM


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I think he made the right choice

Having debts does not mean you can't get a loan. As pointed before, my cash in the FD is liquid, yours will be stuck on the car with a depreciated value already.

If anything, banks will favour my situation as opposed to yours because my RM100,000 FD is already with them. You can't guarantee the bank that you will continue paying your FD and your car has a market value that dropped continuously.

Sure, you may be able to get "personal loans and other credit facilities". But can you find one with lower interest rates than the HP interest rates?? I highly doubt so.

I know the topic is off track here now. I'm not particularly fond of the calculations part here cos figures aren't my forte.

For the sake of being curious, wobbles.. would you prefer to pay off the car in cash than take up loan for few years if following the logic along the way how the thread is turning out on the issue of HP loan vs FD?

bro, german car expensive lar, somemore 2nd hand might cost even more.. better save up and buy a better car.

Think twice before you decide....

What is point you want to buy a BMW car?

BMW will cost you on the maintenance.

Most folks here are discouraging the purchase. I would like to be the contrarian here:

1. Steve Jobs: Live Each Day As If It Was Your Last
2. This is my personal goal, I have every reason to fulfill it.
3. Life is short, if I do not do it now, i will regret for life
4. My peers are driving good cars, I do not want to a loser
5. It is a status symbol. A sign of being successful.
6. It is my life, I am in charge of my life let a lone, which car to buy!
7. Nike: just do it!
8. When one get into un-comfort zone, one will step up, grow and make more money.

Hi S'aimer,

I'm not what you would call a typical case, but I'm more than happy to share my personal take on the matter.

I will only take up a loan if the following criteria are met:

a. I can secure a tenure of FD higher than the EFFECTIVE (not paper) rate of the HP interest rate charged

b. I will not risk losing my capital by putting it into anything that's not capital guaranteed (maybe with the exception of A or AA rated bonds)

c. The loan is necessary to qualify for special rebates or benefits - for example, the new BMW G12 740LiA which I just signed an hour ago required that I take a minimum loan of SGD60,000 of 2 years to qualify for the special discount/rebate/freebies. I agreed, because they also allowed me to sign a higher than normal deposit level onto my credit card (more Kris Flyer points)

d. If for whatever reason I wish to pay the loan back earlier, there shouldn't be any punitive measures - only the rule of 78, which is the standard clause for all early repayments in Singapore.

Car loans in Singapore are averaging 2.28% per annum, and I calculated, for $60,000, I'll end up paying about $2,750 in interest after 2 years. The truth of the matter for me is, if I paid off the car in cash (in full), I would have lost something like $40,000 in discounts and rebates and upgrades to the car, so when I did the math, it was more worthwhile for me to take up a minimum loan amount to qualify for greater savings.

Hope that helps, but that's just my personal experience.

Well said

so 5k nett can buy bmw or not?

Congrats on the new car. How much does it go for in Singapore?

I can never properly stomach the price of cars in Singapore. One of my uncles over there is quite wealthy but he has only gone for reconditioned cars. From Audis, Mercs and Lexus, all reconditioned from a buddy who sells them.

Most kind of you. The car retails at $456,800 (about RM1,400,000) but it's fully loaded. Comfort seats front and back with built in massage function for all 4 seats (only the orphan in the middle at the back loses out, too bad), dual panoramic sunroofs, air suspension, even BMW in-car camera. The list of technological options they put into the 740Li G12 blows my old F02 clean out of the water. This is one trade in I was only too happy to make.

Can't wait to take delivery. Although this is now my 7th BMW, each one still feels special - right from my very first E65 short wheel base 730i, all the way to the G12.

My advice, just go and get new Altis or Civic rather that 2nd hand BMW. With your current 9k household salary is definitely not for BMW. Believe me..