To Ladygarnet:
Do your sum carefully. This is a long term commitment.Owning a car
is a commitment. Main consideration is whether your husband will
change jobs anytime in the future. Your usage of the car is really
ideal for an OPC now, but we're not talking about months here, it's
years. Just to take note, after you buy a car, no matter what car
or how cheap, as long as your downpayment is not heavy, it will be
difficult to sell the car off, at least in the first 2 years. Work
out your budget, see how much you can put into the car every
month.
OPC car is a good alternative if u can live with the restriction.
Firstly ,there's 17K saving upfront (further saving on loan
interest). 2ndly, saving of $800 pa on road tax. This works out to
a net saving of $2,500 a year or $48 a week ($48 divided by $20 =
2.4 coupons a week).
Don't forget there are 11 public holidays in a year....If u can
restrict yourself to 2 coupons a week, u will be better off owning
a OPC vs a normal car.
The next question is on monthly cash flow. A typical example for a
brand new OPC: HDB parking $90, petrol $250, road tax $4.15,
Insurance $125, instalment $498 (7 yr loan for $36000), maintenance
$50 =total $1,020 per month .
coe car:
road tax increases by 10% up to 50% for each year onwards after
renewing coe
likely to have more maintenance and repair problem
old car, not so shiok
no usage hours restrictions
If you are able to get used to the restricted usage hours for years
to come, then opc will save you a bundle. The potential saving is
$2500 per year($1700 + $800). A new car also will probably not give
you so much headache.
To consider a coe car, you need to look at what's the depreciation.
Since a coe car has no parf, just take the selling price divide by
the number of years left. It will probably be more than that of a
new opc car.
If you never display the coupon, 1st offence fine of not exceeding
$5000 and subsequent conviction fine of not exceding $10000.
If tampering of coupon, fine of not exceeding $20000 or
imprisonment of not exceeding 12 months or both.
