COE and Car Prices

[egghead]

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.

[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.

[Ben]

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.

For those who have the extra $235K tuck away with no plan to use it, I think this is a good scheme, and I believe many of the rich has this additional money to spare. Honestly I find this scheme attractive too, but I don't have $235K to spare

[egghead]

Yes, for people who want to buy a car, and change cars frequently, this offer is attractive.

Of course the opportunity costs as pointed by MW is there but it is not what car buyers in Singapore wants to think about - for if they do they will not want to buy cars - like Vin Diesel commented.

[Ben]

Yes, not many car owners will think of the opportunity costs when they buy a car. On the other hand, we can not guarantee a x% return if we invest the money now, and especially so at today's prices and for a short three years. But the Porsche scheme will guarantee the return of the principal amount at the end of 3 years. Having said that, I do not support people buying a Porsche just because of the attractive scheme. They need to assess their ability and the needs to buy one.

[NTL]

I am wndering about this statement:

"Buyers will still have to cough up a 50 per cent downpayment of $235,000. But at the end of the third year, the company buys back the car at $235,000."

Will the buyer (or leasor) getting back $235,000 or half of that? Afterall, he only pay 50% upfront.

[specuvestor]

I am wndering about this statement:

"Buyers will still have to cough up a 50 per cent downpayment of $235,000. But at the end of the third year, the company buys back the car at $235,000."

Will the buyer (or leasor) getting back $235,000 or half of that? Afterall, he only pay 50% upfront.

I'm wondering as well... is the car priced at $235k or $470k?

And is Stuttgart the counterparty risk in this transaction?

[NTL]

I am wndering about this statement:

"Buyers will still have to cough up a 50 per cent downpayment of $235,000. But at the end of the third year, the company buys back the car at $235,000."

Will the buyer (or leasor) getting back $235,000 or half of that? Afterall, he only pay 50% upfront.

I'm wondering as well... is the car priced at $235k or $470k?

And is Stuttgart the counterparty risk in this transaction?

If they close shop, will the financing bank come and take back the car, leaving the buyer (leasor) with nothing? Ouch... that is painful...

[paullow]

i found the deal rather attractive and wanted to head down to stuttguart.

but i thought deals too good to be true are usually too good to be true.

I called sg. I asked that if the car cost 235K down, after 3yrs, will I get back 235K when I handed back the car.

The reply was no.

To get the car, you need to hand in 235K cash. Then pay 788PM for maintenance/repair etc (with conditions).

At end of 3 years, u hand back the car(if they deemed that it is worth 235K, if mileage >15kPA, they cut buy back price), u don't get any cash back.

so effectively, 3yrs, they are eating the 235k cash from your downpayment!

With that, I stayed away from sg.-advertisement gimmick.

[AlphaQuant]

i found the deal rather attractive and wanted to head down to stuttguart.

but i thought deals too good to be true are usually too good to be true.

I called sg. I asked that if the car cost 235K down, after 3yrs, will I get back 235K when I handed back the car.

The reply was no.

To get the car, you need to hand in 235K cash. Then pay 788PM for maintenance/repair etc (with conditions).

At end of 3 years, u hand back the car(if they deemed that it is worth 235K, if mileage >15kPA, they cut buy back price), u don't get any cash back.

so effectively, 3yrs, they are eating the 235k cash from your downpayment!

With that, I stayed away from sg.-advertisement gimmick.

wow, that is really bad reporting on the part of ST to leave out the caveats then - completely misleading