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Forced selling due to financial hardship.

Tuesday, July 1, 2014


Vin Diesel, Michelle Rodrigeuz and Gina Carano amazed by the crazy car prices in Singapore!
"Is the moral of the story don't buy cars in Singapore?"


UPDATE (December 2016):
Someone was telling me how it is really tough to make ends meet in Singapore. He was rattling off what sounded like a well rehearsed list but when he said "petrol prices went up", I went:


"You are having trouble making ends meet and you have a car?"

I guess I might have sounded a bit rude. It wasn't by intention. Really. He gave me a dirty look... Anyway...

-----------------------
In recent months, I felt an air of caution and some might even say pessimism in the economy. 

Maybe, it is just me but my observations tell me that maybe the economy is not humming along so nicely.

Are hard times around the corner?


What can we learn from this recent ad to sell a BMW car?

Being financially prudent will help us to become more secure financially. Then, we wouldn't have to fear hard times (as much). 

Although we would not wish for it to happen, hard times could descend upon us quite suddenly. When it does happen, we want it to be good for us.

Be prudent with our expenses and, very importantly, don't fund our consumption with debt.

“When you combine ignorance and leverage, you get some pretty interesting results.” Warren Buffett.

Related posts:
1. Come out on top of a recession (Part 1)
2. Come out on top of a recession (Part 2)
3. A car loan is different from a home loan.
4. From rich to broke?
5. Wage slaves should be fearful.
6. The evil instalment schemes and their minions.

17 comments:

Capricon said...

AK,
So you are scouting a new ride ? Any " value" buys ?

๐Ÿ˜๐Ÿ˜๐Ÿ˜๐Ÿ˜๐Ÿ˜

AK71 said...

Hi Capricon,

Haha.. No lah. I am helping a friend who is looking for a pre-owned car and I am trying to show him why it makes more sense to buy a mass market car compared to a luxury car because of the depreciation. :)

Patty said...

99% of ads listed on SGCarmart are by 2nd hand sales companies so those descriptions might come from a template. lol~

In fact, I am quite sure after considering the year this car was registered in (2009), it is listed above what would be the fair value after factoring annual depreciation.

But I won't argue that tough times are coming. I see a lot of signs myself. Like job market drying up and lots of major software firms faring badly in corporate sales as companies start tightening their belts.

coconut said...

AK thats a 320i series, not worth the price! also it has common oil lick problem. financial hardship is a lie!

i bot a 523i much cheaper (depreciation wise) than that one recently.

coconut said...

however i must say BMW is a good car to own cos it has a very good resale value.

the down side is its a bit expensive to maintain thought.

AK71 said...

Hi Patty,

Yikes! I have been had? -.-"

I was doing grocery shopping in IMM last night and the usual crowd was missing! I didn't have to wait long to pay at the cashier either.

I believe that much of the multiplier effect in the economy is from big consumption items like housing and motor vehicles. With a more pronounced slowing down in these industries, many companies and salespeople have seen their incomes shrinking.

Soon, I believe, the landlords will be affected. So, it is important that we demand a bigger margin of safety when we invest in assets that generate rental income in Singapore, I feel.

AK71 said...

Hi coconut,

It looks expensive to me too. -.-"

Resale value is one thing I always say is a consolation or an excuse people who buy BMWs or MBs give themselves to indulge in their expensive toys. ;p

Any car that depreciates more than $600 a month in Singapore is expensive to me. Unfortunately, it seems like a depreciation of $750 to $900 is considered realistic these days for mass market cars. :(

coconut said...

for transportion i agree, its too expensive for just that, go from one place to another.

but to sucker like me i seldom travel and i take it as a hobby.

p.s. now a days buying and selling cars is relatively easy unlike the old days, and its cheap, save a lot of cost including car dealers.

AK71 said...

Hi coconut,

If you look at it as a hobby, then, no issues really. It is just a matter of how much we want to spend on our hobbies then. ;p

I told my friend that at $88,000 for a 5 year old BMW320, he might as well top up $15,000 and get a brand new Mazda3 with the new Skyactiv technology. LOL. Makes more sense.

coconut said...

when i bot my BMW, i saw an ad that a black 320i, reg july 2010 go for only 92k, it was sold immedaitely! i know becos i call the owner too haha...may be i will buy and solve the problem of 2 later...

no AK, i will not buy a mazda, its really personal, get the car that your friend like to drive is more important than the price itself unless he's not sure what to buy, within the budget ofcos.

AK71 said...

Hi coconut,

Yes, taste is quite personal. :)

I have driven a few Mazda cars before. My current one is a Mazda 2. Generally, doesn't give me problems. Price is OK. Service is OK.

My friend really wants a BMW but he will be stretching his finances to buy one. Might have to break the piggy bank too. I am trying to be the voice of reason. -.-"

coconut said...

and if he really like BMW and have a bit of budget problem, go for the older one like the 8 or 9 years old type. why? becos no dealer will want to buy these cars unless for scrape/paper value!

he can get a very good deal if he is patient enough.

AK71 said...

Hi coconut,

Yes, there could be good deals if we are patient enough to wait. Good things come to those who wait. ;)

I helped another friend get an almost 8 year old Mazda3 last year for only $22K. Monthly depreciation of about $500 only but he had to spend about $2k to fix it up. Still, not too bad. :)

coconut said...

i can understand your friend position, personally half of my car that i own before were BMWs.

you probably can't change his mind.

ask your friend to find out more about the cost of keeping and maintanence, not the cost of the car itself, thats the killer part!

AK71 said...

Hi coconut,

Yes, I told him about the maintenance cost already. My dad has a BMW and I was driving one many years ago too. Very expensive. -.-"

Well, sometimes people have to experience pain themselves. ;)

OT83 said...

Hi all,

can't help buy to say something.

All cars are expensive. I can only afford kar or bus 11 or mrt...peasant me... :( sad and happy :)

If you know what i mean...

Thanks
OT

AK71 said...

"If you buy things you do not need, soon you will have to sell things you need." Warren Buffett

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