COE and Car Prices

[Musicwhiz]

I find the scheme for Porsche to be attractive.

You pay $235,000 down, monthly $788 (covers maintenance and repair) and 3 years later you get back $235,000. Effectively, the depreciation is only $9,456 a year for a brand new Porsche.

The downside is you lock up the $235,000 without any interest or returns for 3 years.

At a 5% return, that's $11,750 a year; over 3 years it is $35,250 foregone.

So the total cost is about $21,206 a year, consisting of $11,750 opportunity cost and $9,456 actual cost.