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Volkswagen Centre Singapore

Thursday, April 26, 2012


Volkswagen Singapore is opening a 2nd dealership with full showroom and aftersales facilities at Macpherson to serve customers better.

Join in the opening celebrations at Volkswagen Centre Singapore (MacPherson) with food, fun activities, facility tours and special offers on our range of cars!

Discount: $6,300!
Win a trip to London from now till 8 May 2012!

Visit the official website for details on fantastic disounts and how to win a trip to London here at:
Volkswagen Centre Singapore!

16 comments:

INVS 2.0 said...

Hi Ak71,

Still far beyond my reach... :(

AK71 said...

Hi INVS 2.0,

You are waiting for 2014/2015 when there would be more COE available anyway. So, no hurry. ;)

INVS 2.0 said...

Hi Ak71,

Well, after analysing this LTA's masterplan, I doubt so. Their main goal is to wipe out the car population here and I believe extreme COE prices are here to stay for the next decade.

While 2014/15 is a time for the cheap COEs in 2004/5 to expire, LTA could slash the quota from 0.5% to negative digits and dash the hope for cheap COEs.

Guess the only way is to generate more passive income to cover car expenses. For eg. I need $20k/annual of passive income to afford expenses of a 2012 Suzuki Swift Sport. :/

AK71 said...

Hi INVS 2.0,

If you are right, I would not be able to get another car in 2014/2015 at the same price as my current one. Too bad for me (and many others). :(

The annual expenses for my 1.5 litre Mazda 2 is about $5,000 to $6,000. So, $20,000 sounds like too much for a small car!

INVS 2.0 said...

Hi Ak71,

The new Suzuki Swift Sport costs $114999. That explains why I need $20k to sustain it. :(

AK71 said...

Hi INVS 2.0,

That is really expensive! A new Mazda 2 is a little more than $100K now and I already think it's way too much. I paid $72K for mine less than 2 years ago!

It just occurred to me that you would probably be taking a loan to buy the car which explains the $20K a year worth of expenditure. This is assuming that interest rates stay at the current day low?

INVS 2.0 said...

Hi Ak71,

Yes, taking out a 10-year loan at 1.88% rates currently. A $20k is needed to feed the SSS every year. I also included the petrol money based on my driving habit and the predicted number of hours on the road.

But 10-year loan seems too long and not practical. Most people prefer 5 - 7 years.

AK71 said...

Hi INVS 2.0,

Sounds like you have made some detailed calculations. Good on you. :)

Prior to the current car which I did not take a loan for, the preceding cars I owned were all purchased with the help of $20K loans with 3 year tenures. The monthly repayment would be very manageable then.

I told myself in those instances that if I had to take a big loan to buy a car, I would rather not. ;)

INVS 2.0 said...

Hi Ak71,

Wouldn't it be financially sound to take out a full loan and use the money to invest rather than to feed the dealer with an immediate downpayment?

AK71 said...

Hi INVS 2.0,

Actually, the car salesman and dealer would rather we take a big loan instead of paying in full for the car. They make more from us as the lender will give them a cut. This is why they always dangle a "discount" if we should take a loan. If we should pay in full, no "discount".

As for whether it makes more sense to have a loan instead of paying for a car in full, I know where you are coming from. Personally, I like to have as little debt as possible in my life. It is a personal choice.

Your point is, however, totally valid and if someone is able to gear up his personal balance sheet and make borrowed money work harder for him, in the current low interest rate environment, why not? :)

INVS 2.0 said...

Hi Ak71,

Yep. A car ownership in Singapore is just torturing. But if I can cover its expenses with passive income, I can escape a time bomb. Many people buy cars with their active income and once they are out of job, it's the end.

AK71 said...

Hi INVS 2.0,

Oh, yes. I am always reminded of what I could buy in the USA, Australia or Japan for the price of S$72K which was what I paid for a brand new Mazda2 almost 2 years ago. It is pretty sad when I found out I could have gotten a BMW335 in the USA for that kind of money. :(

You have got it right by using passive income to cover as much of your expenses as possible. When your passive income is able to finally cover all your expenses, you have arrived. :)

INVS 2.0 said...

Hi Ak71,

No wonder someone told me that if I can afford a SSS here, I can also afford a BMW M3 in US and a Porsche Cayman R in Europe. So sad. :(

AK71 said...

Hi INVS 2.0,

Now, I am depressed... :_(

Ah John said...

Besides buying cost, maintenance cost also high for euro cars.

AK71 said...

Hi Ah John,

The price differential between Japanese cars and European cars has been narrowing. This partially explains why Toyota is no longer the top selling brand in Singapore, I believe.

Of course, many people are doing well with Singapore's economy humming along nicely. Borrowing costs are also at historic lows.

All are catalysts for conspicuous consumption...

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