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 sa

For a car priced at $456,000, you only take $60,000 loan for 2 years, some more you take it just because you want to enjoy the discount and rebates... ai ya you post this earlier, i don't have to prepare any excel, simply quote you as an example!

For what it's worth, I was looking at the new Porker 911 over the weekend. Asking was S$575,000. Decided that was more than my 10% rule, so am now talking to my banker to buy 2 bonds that will pay me about 4-5% annual yield instead. Buy with you head, not your heart. That's the best way to make money.

Have to point out that your 10% rule is pretty lame to me. Let me explain. I feel that you are just picking a rate(in your case 10%) to justify what you already have in mind as a budget for car. Say, your income is 5mil. You feel uncomfortable buying anything above 500k and so you come out with this rule 10% of annual income to justify your budget. To me, wealth above a certain level, whether you allocate 5% to 50% or even more for luxurious spending, it really doesn't make any difference to your finances. Next time you see a 2mil car or 3 mil car, just buy la, you can afford it. Remember, your net worth is more than that.

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.

didnt look at 316i as when i got interest on BMW the 318i already out. So far i dono why the "look down", its the same car with slightly weaker engine, all the main features are all there also.

Now, if abiding by the rule that if one should be able to purchase within own means without getting into major debt.. then purchasing a car under 50k range in full is considered decent for me since I could have gone for better cars as I can afford within my means comfortably. Again, it is all how I want to justify my rationale in purchasing big ticket items as well.

So yes, it varies and depends on how the individual wants to utilize cash savings/investments/loans etc.

Wobbles: Your freebies includes 3M film and eye recording camera - Best range?

Yes, they said the camera is the original BMW front/back advanced car eye, and the solar film is supposed to be the best 3M has to offer. Crystalline something or the other. The other freebies include service valet pick up and drop off from home, courtesy cars, free service (all inclusive) for 3 years, and as what was written, umbrellas haha. Plus the cash discount, and over trade for one of my old cars (the old BMW F02) it came up to about $40,000 extra in value. Can't complain.

I think those whom are rich are just being cocky and showing off their wealth.
While those whom struggle to be rich, are not helped by the rich, and worse still, being looked down by those whom alreaady made it to the top.

Disgusting.
Does it help by telling those who wanna go for it, to forget it?
YOLO.

Staying in a flat but want to drive a beemer, what a joke.

Don't be like this la bro, many people who live in condos buy and drive Bimmers. Not fair to fault him for wanting to drive a Bimmer, it's just that his financial calculations are not supportive and beneficial for that purpose at this point in time.