Buy New Car or Extend 5 More Years Old Car

Math Online Tom Circle

Assumptions:
1. Class A (< 1600 cc) Old car (10 years expiring soon) is in good condition:
♢ Less than 200,000 KM
♢ Certified safe by qualified workshop

2. COE last-3-month average price ~$ 60,000 (10 years)
=> $30,000 (5 years)

3. New Car market price of $100,000

4. Parf rebate $7,000 (forfeited if extend car beyond 10 years)

5. Monthly Car Loan (@2.88% for max. bank loan 60% & max 5 years = $60k) = $1,144 (= interest + capital)
5-year car loan = $1,144 x12x5 = $ 68,640
Downpayment Cash = $40,000 (or $20,000 for 5-year Cost of Ownership )

image
Compare Buy or Extension (Both 5 years)

Description Buy Extension
1. Car Price (down payment) for 5 years $20,000 $…
2.COE (5-Yrs) $… $ 30,000
3. Car Loan (5 Yrs) = car price + COE $ 68,640 $…
4. Parf rebate $7,000 – $ 7,000
Cost of Ownership…

View original post 46 more words

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About tomcircle

Math amateur
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