Cooling measures for cars: Buying pre-owned.

There was a big commotion with regards to how cooling measures for cars would affect the pre-owned market not too long ago. In response, from 6 April 2013, the government lifted the more stringent rules for car loans for 60 days for the purchase of pre-owned cars. The concession will end on 5 June 2013.

The Monetary Authority of Singapore stated that:

"It said it would not be possible to relieve the industry from the impact of the financing restrictions on an on-going basis.

"It said the two-month relaxation of the rules for the pre-existing used car inventory will help the industry adjust to the new conditions."

Dealers said that a period of six months would have been better.

I suspect that the pre-owned market for cars will see harder times from 6 June 2013 once the concession ends.

Why am I blogging about this?

I have a friend who is thinking of buying a pre-owned car and since he does not need to take a loan to do so, I suggested that he should wait till sometime in mid June to start shopping. Prices could possibly soften as the pool of able buyers for pre-owned cars would probably shrink by then.

Related posts:
1. Cooling measures for cars.
2. Cooling measures for cars spurned.

Ambassadors of financial freedom.

There is this section in The Business Times called "Young Investors' Forum". This is sponsored by Citibank and is targetted at young adults and tertiary students. However, I wonder how many young people read The Business Times?

Now that I have asked this question, I also wonder what is the proportion of young adults and tertiary students in ASSI's readership profile?






We all know that the earlier we start our journey to financial freedom the better it is. Also, there is really nothing smooth about the journey. It is, in fact, rather bumpy as we fall and pick ourselves up again (and again). It also entails sacrifices, many sacrifices.

Everytime I hear a story of some young person who is ruined financially, I would wonder if it was something avoidable. Very often, it was avoidable. If we could help people be more prudent financially, we would be doing good and these people would be better off.






"Today, i counted my life saving."

Today, The Business Times has an article which has some interesting numbers but what proportion of its target audience did it reach? Although ASSI's readership numbers are a small pool compared to The Business Times', I will do my bit.

This is taken from the article:

Saving does not simply help one to accumulate money; it signifies the beginning of one's financial journey.

Realities today further drive home the need for young Singaporeans to save and spend wisely.

A diploma holder earns a starting pay of about $2,000 while a university graduate earns about $2,800 on average.

Using current interest rates for paying a 30 year housing loan and a 5 year car loan, owning a $300,000 4 room HDB flat and a $130,000 Corolla would require a monthly instalment payment of about $2,400!








In such a climate of high housing and car costs, raising a child becomes an even tougher financial decision to make. TheAsianParent last year estimated the cost of raising a child from infancy to 21 years of age to be at least $340,000, not considering inflation.


Although I have blogged about savings and its importance many times before, these numbers are a reality check for anyone who is starting life as a working adult and planning to start a family together with all the attendant expenses. However, how many people who should read the article would have read it?

If we are thinking of buying a property, a car and having children, we should look more carefully at our income and expenses. If we are not saving yet, start saving. If we are already saving, check to see if we are saving enough. What is enough? This would depend on what we want now and in the future. There is, therefore, no one size fits all answer.

The difficult thing for ASSI to do is to reach out to people who have not even started to think about the journey to financial freedom. How do we reach out to these people?







Financial freedom is not a competition. Everyone who achieves financial freedom is a winner. No one is a loser on this journey. There is no fear that having more people on the journey would lower the chances of success for everyone. In fact, the opposite is true.

So, my message to readers is to be ambassadors of financial freedom. Even if the horse would not drink, at least try our best to bring the horse to water. 

We could be saving more than one life if the horse eventually drinks.

Related posts:
1. The very first step to becoming richer.
2. Retiring a millionaire is not a dream.
3. Rich Dad, Poor Dad: 2 are better than 1.

Cooling measures for cars spurned.

Today, a report by Channel NewsAsia revealed that people are falling into debt because of the high cost of car ownership in Singapore. So, the measures by the MAS limiting car loans to 60% of the purchase price and imposing a maximum duration of 5 years in repayment period are good to have.

In fact, MAS should do more to educate the general public and to encourage financial prudence.

However, in the same report, it was revealed that "some credit companies that do not fall under MAS regulations are continuing to offer car loans of up to 90 per cent of the purchase price, although at interest rates of up to 3.88 per cent, up from an average of about 1.88 per cent before the new rules kicked in last week."

How is it that some companies do not fall under MAS regulations? Shouldn't the authorities plug the loophole? Good measures are only good if they can be 100% enforced.

With interest rate more than doubled from 1.88% to 3.88%, the cost of borrowing has become much weightier. I hope car buyers thinking of exploiting this loophole think and think again.

Take for example a 1.6 litre Japanese make with a price tag of $120,000. A 90% loan would mean a principal sum of $108,000. This is definitely not loose change.

A 1.88% interest rate over a 10 year period would mean paying $20,304 in interest. With interest rate at 3.88%, the same car loan would carry an interest payment of $41,904!

The interest payment over a 10 year period is equal to the annual earned income of some junior executives! Of course, we have yet to consider the running costs of a car.

Also, consider this. At the end of the 10 year period, the 1.6 litre Japanese car probably has a residual value of less than $10,000 (assuming an OMV of less than $20,000). This means that the car would have depreciated by more than 90%.

Total loss over 10 years: $151,904.

This is almost enough to pay for a brand new BTO 3 room flat in some parts of Singapore.

Related post:
Cooling measures for cars.

Cooling measures for cars!

Some readers might remember my blog post on getting a new car some two years ago. I might not have revealed then but I did not take a loan for that purchase. It was the first time that I bought a car without the help of a loan and this is the way I like it. So, my car is an asset, a depreciating asset but still an asset.

Some asked me why I did not take a loan since interest rates are so low and I could invest my money for higher returns? This is a dangerous way to think, in my opinion. The returns from my investments lack certainty but the required monthly repayments to the lender are dead certain.

Borrowing in order to finance personal consumption is not a good idea, is it? A car is for personal consumption, is it not? Well, sometimes, we really need a car for various reasons and what if we could not avoid borrowing to finance the purchase?

Prior to buying my current car, I would make sure to take a loan of no more than $20,000 to be repaid over 3 years. That worked out to a monthly repayment of some $600 per month which was comfortable for me. So, for example, if the price tag of a car was $80,000, I would make sure I had at least $60,000 which would be made up of the trade in value of my old car and cash.

I do know of people who would borrow 100% against the value of a car and some would take 10 years to repay the loan. I cannot imagine why anyone would want to do that.

So, to protect potential buyers lacking in financial prudence, I believe the government's new measures are in the right direction:

Singapore’s central bank said the tenures of motor vehicle loans will be capped at five years, with the maximum motor vehicle loan amount pegged to 50 or 60 per cent of the vehicle’s purchase price, depending on the Open Market Value.

Some banks here had offered financing of up to 100 per cent of the purchase price for new cars, with tenures lasting up to 10 years. (Source: TODAY online)

Think carefully. If we need to borrow heavily in order to buy a car, can we really afford it?

Earlier this morning, I read an article which reported that the lower and middle income groups may be priced out by the new measures. It is understandable that car dealers are upset as their business could be negatively affected.

Eddie Loo, managing director of CarTimes Automobile, said: "We have a mixture of customers —— those who come and buy (with) cash, but there are definitely people who want a hundred percent loan.

"So it’s almost like 50—50 kind of market that people come into. So to penalise those who need a car and have to fork out 50 per cent of the loan amount, I think, the timing is not very correct.

Do I sense some sympathy from Mr. Loo towards people who need a 100% car loan to buy a car? What do you think? Mr. Loo thinks that "the timing is not very correct". When is a correct time for encouraging financial prudence?

Why not hear what buyers have to say?

John Molina, a prospective car buyer, said: "I want to buy a car, but because of this, I mean it’s impossible for me, or it’s almost near—impossible."

Another prospective car buyer, Mark Lim, said: "For those people who are really very rich, to them there’s no effect —— today I want to buy a Ferrari, for example, I don’t even care about how much is the downpayment."

Mr. Molina wants to buy a car. Well, if he had the money to do so, he could satisfy the want. However, since he finds it "impossible" to do so with the new measures in place, he probably is and was a poor candidate for car ownership.

As for Mr. Lim, since it dawned upon him that he could buy a car without a care for how much is the downpayment if he was "really very rich", why not concentrate on getting rich first?

Read article:
Middle & lower—income groups may be priced out of car market: dealers

Related posts:
1. Bought a new car.
2. If we are not rich, don't act rich.
3. Good debt is always good?
4. Slaving to stay in a condominium.
5. The very first step to becoming richer.

Volkswagen New Golf 7 2013.

A friend told me about this one. Really amusing:



Already a very successful auto company, I believe Volkswagen is set to make even more money this year. Having cute ads like this one doesn't hurt.

Volkswagen is likely to overtake GM and Toyota in 2014 with sales exceeding 9.4 million vehicles to become the world’s No. 1 automaker!
Source: Bloomberg, 28 December 2012.

Related post:
A new car for S$75,000?

Which is the most reliable car?

The 1.6 litre Lancer GLX (2005 - 2008) is the most reliable (i.e. least problematic) car in the last 15 years! That is pretty amazing.

The Mitsubishi Lancer is a low-powered, three-box Japanese saloon. Yes, it does have an evil twin, in the form of the Evo, but it's the standard granddad-friendly one that delivers the dependability which makes it the most reliable car Warranty Direct has ever seen. (Warranty Direct, 21 November 2012)

We almost bought this car 4 years ago but in the end, we went for the 1.5 litre Lancer EX which has more leg room and a Mivec DOHC engine for S$10,000 more.

What brought us to Cycle & Carriage's showroom back then was really the 1.6 litre Lancer GLX because they were having a sale and the car was being offered for $40+K, inclusive of COE.

$40+K? Yes! Pre-owned? Nope. Brand new from Cycle & Carriage! Now? I don't dare to check how much it now costs!

Buying pre-owned would make more money sense and for anyone who is looking for a compact pre-owned car that is high on reliability, a 1.6 litre Lancer EX built from 2005 to 2008 would seem like a good choice if we believe the report.

You might also want to arm yourself with useful knowledge before buying a used car. Be a savvy buyer and not be smoked by car salesmen! See:
Used Car Buying Guide: Guide to Inspecting and Buying a Used Car

Related posts:
1. Category A COE hits record!
2. Quick, buy a new car cheaper!
3. A new car for $75,000?
4. Buying a car now?

Tea with AK71: 12-12-12.

Today is supposed to be an auspicious day according to the Chinese Feng Shui masters. Well, my day was filled with little hiccups and bumps. So, it was only so-so for me.

I was going through photos in my IXUS and watching the news on my old 14" CRT when this flashed on the screen. 

Perhaps, the day is only auspicious for weddings and car rental companies.

Many couples have picked the date 12-12-12 to tie the knot... such a special date will not come by for another century.

Based on statistics on the Registry of Marriages website, the number of couples that chose to get hitched (on 12-12-12)  is about four times more than the usual number seen in a weekend in December.

The auspicious date is also driving up demand for car rentals. (Channel NewsAsia, 9 Dec 12).

OK, finding out that my Mazda 2 is finally managing 15km/litre after a bit more than 2 years made me smile. Yeah!

Related post:
My new car's fuel consumption.

Category A COE hits record $77,201!

The premium in Category A, for cars below 1,600cc, surged $6,200 in the lastest bidding exercise, surpassing the previous high of $73,501 set in early August.

Easy financing is contributing to continuing demand. "Demand is still there, even as the economy slows down, and it is being propped up by cheap loans. So, as long as the monthly repayment is within the buyer's budget, he will get that new car."

(Source: The Business Times, 8 Nov 12.)

My reaction to this bit of news? This is totally mind-boggling!

Boggled at #1:
$77,201 for a certificate to own a car and a small one too.

Boggled at #2:
If monthly repayment is within budget, buy the car!

There are many rich people in Singapore. Bloomberg reported that there are 17 millionaire households out of every 100 households in Singapore in June 2012! Exact figure: 188,000 households.

I guess if buyers are able to afford a car at such astronomical prices using their own savings and if they really need the car, it is ok. If they don't need a car, why buy one?

However, if buyers are only able to afford a car because of the cheap loans available (which suggests that they have insufficient savings), it is not ok. This is especially so if they don't need a car.

Just off the top of my head, buying a $120k 1.5 litre Japanese car today and, to lose as little money per year to depreciation as possible, driving it for 10 years could see the buyer taking back only $7k at the end of the period. That is a loss of $11.3k per year or $942 per month!

In the above scenario, if the buyer draws a monthly salary of $4k, almost 25% of his monthly earned income is gone with the wind! If he really needs a car, it would be more prudent to look for a pre-owned car with a monthly depreciation of $400 or so. This would be a less destructive 10% of his monthly earned income.

People usually look at the running cost of car ownership: petrol, parking, road tax, insurance, ERP, maintenance and repairs. They sometimes forget depreciation which is a bigger than ever consideration in today's environment given the high price of the COE.

Any person thinking of buying a car in Singapore now, please think and think again.

Related posts:
1. Quick, buy a new car cheaper now!
2. A new car for $75,000?
3. Bought a new car!
4. The price of my car now.

Tea with AK71: Tonkatsu, Saizen REIT, Mazda cars.

Many things happened in my life lately. Some good and some bad. Well, mostly bad, I feel. Anyway, all I can do is to soldier on and roll with the punches. Take the good with the bad.

Today, after going out in the morning for an extended family gathering, I detoured to Orchard Road to take in the sights and have lunch at a tonkatsu place in the basement of Ion Orchard which my sister brought me to once before. It is called Ginza Bairin. Very good and cheaper than Tonkichi. The generous portion really filled me up too.

Fillet Katsu Set. $16.90. 3 pieces of fillet katsu which I prefer to loin katsu as it has less fats.
Served with rice, miso soup, pickle, salad, a really generous slice of fresh lemon (not the dried up type) and two sauces for the salad and tonkatsu.

Then, I bought the latest issue of The EDGE and went to Scotts Square's UOB to rest my feet. Only my second time there after I discovered that they serve a very fragrant Osmanthus green tea a couple of months ago. I asked for the same tea again today.

The least expensive apartment at Scotts Square is 600+ sq ft in size and has a price tag of $2.2m. As much as I like the place, it is unlikely that I would ever be able to buy a unit there. So, I can only enjoy the view from UOB on the third floor. Hahaha...

The EDGE has a few interesting articles in this issue. For anyone interested in Saizen REIT, luxury condominiums or shoebox apartments in Singapore, go pick up a copy.

Saizen REIT's unit price has shown strength lately and it is revealed that the REIT is attracting buying interest from wealthy investors in Singapore. Mr. Raymond Wong, executive director and major shareholder of the REIT's manager, declines to identify them but says that they are "entrepreneurs the locals would have heard of".

Intriguing. I wonder who they are...

According to NRA Research, units in the REIT are trading at a much steeper discount to its book value than its peers listed in Japan, which are trading at 0.75x book value.

Saizen REIT's NAV/unit is about 30c. So, 0.75x book value would translate to 22.5c. Saizen REIT is currently trading at about 16c per unit. I wonder...

I also flipped through the many magazines at UOB and one of them was an auto magazine. The back of the magazine has the latest prices of all the major makes sold in Singapore. I took a photo of the price list for Mazda cars in Singapore.

Wow! Would you pay S$128,988 for a Mazda 2?

I have to go out in a while. Family dinner. Hope the weekend is a good one for everyone. :)

Related posts:
1. Saizen REIT: 2H FY2012.
2. Quick, buy a new car cheaper now!
3. Hainanese pork chop rice.

Tea with AK71: Quick, buy a new car cheaper now!

It is reported that last weekend saw 5 to 20% more new cars sold in the showrooms here as COE premiums declined for the first time in months.

We probably have friends and family members who are looking to buy a car for a host of reasons. Although some might think that cars are not necessary in Singapore, many would beg to differ.

Finance manager Lionel Ng, 58, and his wife, 53, a homemaker, own a MPV vehicle which will be 10 years old in October. Yesterday, they took advantage of the lower COEs to purchase a Toyota Altis which will replace their current car.

Mr. Ng said: "The COE is still very expensive but we cannot wait anymore - I feel a car is a necessity in Singapore but right now, it's priced like a luxury item."

Ms. Evelyn Tan, 36, self-employed, upgraded her vehicle from a 3 year old Toyota Vios to a Mercedes Benz C-Class. She said: "With the trade-in and lower COE, I'm getting a very good deal on my new car." (The Straits Times, August 27, 2012).

I bought my current car about two years ago and I have not really been looking at cars or tracking their prices. A quick check online revealed the following:

1. New Toyota Altis 1.6 Classic (A) @ S$ 123,988
2. New Mercedes Benz C180 (A) @ S$ 214,888

Wow! WOW! WOW!!!!!!

I am used to driving around and would find it hard to adapt to a carless lifestyle. However, to pay so much even for a new Toyota Altis is simply mind-boggling.

If I were to buy a car now, I would look at pre-owned cars.

A 2006 registered Mercedes Benz C180 would, for example, set us back by S$60,000. This means saving S$154,888 for losing 6 years of use. This is rather simplistic, of course, as we would be buying an older car with older technology which would probably cost more to maintain with the wear and tear accumulated over 6 years. However, we would be saving ourselves some hefty depreciation.

Although I would always argue it is not a matter of affordability but a matter of value for money, consumption is always more of an emotive activity for most. So, happy, buy lor! ;)

Related posts:
1. Tea with AK71: A new car for $75,000?
2. Tea with AK71: The price of my car now.

Traffic accident with a Malaysian vehicle.

On Saturday night, while driving home on the PIE, there was an accident on the lane I was in. As I always make it a point not to follow too closely the vehicle in front of me when I drive, I was able to stop my car in time although the wet road surface from an earlier downpour made braking more hazardous.

I was really pleased that my safe driving style paid off. However, that happiness lasted for only 3 or 4 seconds. There was a loud bang and I felt the impact as a motorcycle crashed into the back of my car. Sigh. I got out of my car and took a look. Argh! It was a motorcycle from Johor! Nooooo!

From being pleased, I became upset in a flash.

The motorcyclist was dazed and he probably cut his lips in the fall as he had blood on his teeth. His bike had a "P" sticker. A newly licensed rider. He looked frightened too and I later found out that the bike was borrowed from a friend.

I think I must have felt sorry for him and he must have have felt relieved that I did not scold him. He said he had tried to change lanes instead of braking but because traffic was heavy, he couldn't do it and ended up crashing into the rear of my car. He should have stopped his bike instead of trying to change lanes.

Anyway, I made a police report later that night at the advice of a friend. In any traffic accident involving a foreign vehicle in Singapore, a police report must be made within 24 hours of the accident.

Today, I brought my car to the approved workshop and my worst fear was realised. I would have to claim against my own insurance policy first because the other party is a foreign vehicle. It has to be so if I want to get my car repaired soon. There is no guarantee that the cost of repair could be recovered from the other party!

I would also have to pay an excess of $600 claiming against my own insurance policy. I bought an NCD protector. Otherwise, I would also lose my NCD.

Whenever I hear of accidents like this, I would always wonder why it is so difficult to claim against insurance policies of Malaysian vehicles involved in accidents here. In fact, I was told that it is almost impossible.

Singapore vehicles are not allowed on the roads unless they have valid insurance policies. The same should apply to foreign vehicles but if it is almost impossible to claim against their insurance policies, then, it is as good as being uninsured when they are in Singapore, isn't it? Then, they should not be allowed on our roads.

This reminds me of an accident here which I read in the papers some time ago involving a local female reporter. Her vehicle was the second last vehicle in a chain collision and the last vehicle was a van from Malaysia. She really suffered in the entire claim process which lasted months. I cannot remember clearly now but I think she had to bear all the cost in the chain collision as they could not track down the van from Malaysia.

These days, I always try to look on the brighter side of things. If I had not been able to brake in time, I would have been the second last vehicle in the chain collision and things would be more complicated now. I would have been in same situation as the female reporter mentioned earlier. So, I should count my blessings.

However, I am only human and cannot help but feel rather sad now...

Tea with AK71: A new car for S$75,000?

I bought my Mazda 2 nearly two years ago for slightly more than S$70,000. I thought it was a little expensive but I pillarised my then Mazda 6 and was somewhat depressed. So, I got a new car.

Read the stories here:
1. Tea with AK71: Pillarised.
2. Tea with AK71: Bought a new car!

Anyway, buying a new car then proved to be a somewhat fortunate move since car prices have shot through the roof!

Read: Tea with AK71: The price of my car now.

Indeed, I found out that it would cost more than $100k now to buy a new Mazda 2!

As if that is not depressing enough, I am constantly reminded by foreigners what I could have bought in their home countries with the money I paid for my car.

Today, I am reminded once more of how expensive cars are in Singapore as I read the weekend's edition of The Business Times. Couldn't have missed it. It was on the front page.

In Singapore, a Chery QQ would set us back by S$74,988 now, after discount!

In the USA, we could buy a Porsche Boxster Black Edition for S$71,060!

In the U.K., we could buy a Mercedes Benz SLK for S$53,692!

OK, those countries are far away. What about nearer home? Well, in Malaysia, we could buy a Volkswagen Golf 1.4 TSI for S$60,704.

In Indonesia, we could buy an Audi A3 Sportback for S$70,672.

It is enough to make a grown (Singaporean) man cry.

Volkswagen Centre Singapore

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!

Tea with AK71: Mechanical car parks.

I am back in Singapore. Got home at 2am and slept at 3am. Woke up at 8am. Unpacked, read the news a bit and replied to comments here in my blog.

Thanks to everyone who sent me well wishes for my trip and apologies to those whom I did not manage to reply to till this morning.

I did not look at the stock market or my blog while I was on holiday in Japan the last 10 days or so. When I looked at my watchlist this morning, nothing has really moved. My portfolio's value has remained almost unchanged.

It is interesting that the HDB is thinking of introducing mechanical car parks for older estates where there is little or no space to build more car parks. I took some photos in Japan of such car parks.

In fact, land shortage is so chronic in Japan that they even have mechnical parking for bicycles!

Some families who own two cars but have only enough space at home to park one car also mechanised the space so that they can park two cars instead of one!

It will take me a while to get back to speed with life in Singapore but it is good to be home. :)

Carpark Not Enough!

Although there are cries of discontent in some quarters and this is amply evident in the last General Election as well as the Presidential Election, it seems that more HDB dwellers are doing better in recent years.

How do we know this? Wait for Jack Neo to make a movie "HDB Parking Lots Not Enough!", maybe.

I read an article in The Straits Times on my iPad today that the "pace of growth of car ownership has overtaken that of HDB's carpark-building programme.

"The number of HDB carpark spaces has risen from 539,800 in 2005 to 557,000 as at June this year - a 3.2 per cent rise.

"But the number of HDB households - the bulk of Singapore households - with a car has grown by 26.3 per cent to 310,400 over the same period. And the number with more than one car has shot up by 76.5 per cent to 45,900."

It seems that we could use the scarcity of HDB carpark spaces as an indicator of economic prosperity in Singapore. Given the cost of car ownership in Singapore, the growth of car ownership amongst HDB households probably shows that many are better off in recent times.

For me, I am glad that I do not have a problem finding a parking lot in the HDB estate where I stay now. Well, not yet, perhaps.

Tea with AK71: Taking taxis in Singapore.

I took a day's leave from work to run some errands. I sent my car for regular maintenance, went to the bank to sell some silver, did some laundry and, of course, blogging. See: Silver: Divestment for an 86% gain.

I would take the MRT usually if I were to be without a car. However, in some instances like from the car workshop, it is really far to walk to the nearest MRT station. I estimate it would be a 20 or 25 minutes walk and under a hot sun if I were to do it just now. Really didn't feel like perspiring too much. So, I flagged down a taxi.

It was my first time in a red color taxi. I think the company was TransCab. It was also my first time in a Toyota Wish. Not bad. Very spacious and it was a comfortable ride. The taxi driver was polite and asked me which route I would like to take to town too.

These days, if I do take a taxi, I make it a point to avoid those older Toyota Crowns. For some reason, they make me feel like throwing up. They handle corners like a ship in stormy seas and, for some reason, I could smell exhaust in the cabin.

Hyundai Azera

The Hyundai Sonatas are really comfortable and I got an Azera when I came back from my recent vacation. My first time in one and it was very comfortable, more so than the Sonata. Of course, the best are still the Mercedes Benzes and London Cabs.

I enjoy my occasional taxi rides because I could look out the side windows and enjoy looking at Singapore, the people and places. When driving, I have to keep my eyes on the road. So, sitting in the back of a taxi is a real treat for me. A simple pleasure.

Tea with AK71: The price of my car now.

The prices of cars in Singapore are still appreciating.

On 2 May, I mentioned that "in August last year, I convinced my mom to change her car" and "we decided on a Mitsubish Lancer Mivec 1.5 for $60k .....Guess what, it would cost her about $80k now to get the same Mitsubishi 9 months later!" Well, guess how much the same car would cost today? $87,988!

I blogged about buying a new car for myself on 1 August a few months ago. The "final price is $71k for a new Mazda 2 Sedan with leather seats and solar film." Guess how much it would cost today? Get ready for this really eye popping price tag: $96,988!

I am very happy to learn this but it is scary at the same time.  Talk about inflation!

Related posts:
Tea with AK71: Buying a car now?
Tea with AK71: Bought a new car!

Tea with AK71: A better car.

Reading the latest issue of Newsweek and this really makes sense:

"Instead of jumping through hoops to make an electric car that most people can't even afford, why not just develop an internal-combustion engine that gets really amazing gas mileage? That's the premise of Troy, Michigan based EcoMotors...."

"Our carbon footprint will be smaller than a full blown electric car running on electricity generated in the U.S., where about 50 percent of electricity is made by coal.  In places like China, where 90 percent of the electricity comes from coal, we'll be far below the carbon footprint of an electric car," says EcoMotors CEO Don Runkle.."

Source:  "Finding more in the tank" by Daniel Lyons in Newsweek, 1 Nov 10.

I have never heard people questioning whether electric cars are really environmentally friendlier, questioning how the electricity that would run the cars is produced.  This is a pertinent question.

There is also the question of wastage as other forms of fuel are combusted to produce electricity which would in turn run the electric cars.  How much is wasted in the conversion process? Would it not be better to build a more efficient internal combustion engine?

I am not an engineer but this idea makes a lot of sense to me. Any thoughts?

Tea with AK71: My new car's fuel consumption.

My Mazda 2 is more than a month old now and I am still trying to get 15.5km per litre out of it.  This is the official number from Mazda.  Initially, I got only 12km and now, I am able to get almost 14km but it seems that I have hit resistance, so to speak.

With my old Mazda 6 which had a 2.0 litre engine, I was able to do 11km+ per litre which from the reactions I got from friends must have been pretty amazing.  In fact, the salesperson at Mazda was amazed as well.  Then, why am I not able to get 15.5km per litre out of the Mazda 2 which has a 1.5 litre engine?

This was one of the things I thought about over the weekend and I compared what I did to the Mazda 6 that I might have to do to the Mazda 2.  Precious little since I am not the type to spend money on bodykits, sound systems and HID lights. I did spend money to run my Mazda 6 on synthetic engine oil and I did spend money on some good tires which were supposed to reduce CO2 emission.  There, I have my answers.

Running my car on synthetic oil reduced internal friction and I didn't have to wait for the engine to warm up before I drove.  Since, my Mazda 2 is new and has a free service by the agent at 5,000 km, I would just have to live with mineral oil till the car hits 10,000km.  That's when I would make the switch to synthetic oil.  This should improve the performance of the car.

New cars are usually bundled with OEM tires.  Apart from keeping tires properly inflated, swtiching to better tires could reduce resistance when driving. There could be less friction and we could cover more distance without stepping on the accelerator as much. Hence, the claim that good tires could reduce CO2 emission. Since tires usually last for 2 years or so, I would not be changing them in a hurry.  Will make a mental note.

I am rather light footed and do not rev the engine.  So, in terms of driving behaviour, I think I'm safe.  I am not sure if there could be other ways of improving my car's fuel consumption. If you have an idea, please feel free to share it. :)

Related post:
Tea with AK71: Bought a new car!

Tea with AK71: Bought a new car!

On 2 May, I blogged about how expensive it is to buy a new car now. I mentioned that I paid only $80k for my current car, a Mazda 6, almost five years ago and that for the same price I could only get a Mazda 2 hatchback, not even a Mazda 3, now! I said I would continue driving my fully paid Mazda 6 for another few years.

Yesterday, I blogged about my Mazda 6 being pillarised in a carpark and how I toyed with the idea of getting a new car. I decided to just keep driving my pillarised Mazda 6 after some thought. However, I still went online and looked at what's new at Mazda Motors just for fun. I was kind of attracted to the new Mazda 2 sedan which was just launched recently. Why not the hatchback? Cars, for me, must have a boot. 

The boot allows me to hide my car washing stuff and it also acts as an extra large bumper if my car were hit in the back by some reckless driver. Also, people cannot see what I have in the boot and would not be tempted to break into my car. Might be a false sense of security but it gives me a peace of mind.

As I had nothing much to do today, I went down to Mazda's showroom to take a look at the Mazda 2 Sedan. Mazda is having a 90th Anniversary promotion and I was given a $12,000 discount. So, final price is $71k for a new Mazda 2 Sedan with leather seats and solar film. They also offered me $29k for my old Mazda 6, accepting all the dents and scratches.

I made phonecalls to my parents to get their opinions before test driving the car. As my previous cars ranged from 1.6 litres to 2.2 litres in capacity, my major worry about the Mazda 2 was the possible lack of power, being a 1.5 litres. Driving the car, I was impressed by how such a small engine could deliver so much punch. I am not an engineer and I won't go into details like DOHC and stuff. The information is available online, I'm sure. Anyway, as you have probably guessed from the title of this post, I bought it.  Decision made within two hours or so.

A smaller car with a more fuel efficient engine is environmentally friendlier and is easier on the pocket as well.  I will save on petrol, road tax and maintenance.  The car will get a 3 years/100,000km warranty which is good. I have replaced quite a few parts under warranty for my previous cars before. I think it will not be any different with this car. Did I mention I was given $300 servicing vouchers as well?

The only downside is, of course, the much smaller size and this will take some getting used to.  Then again, most of the time, I am just driving myself around.  The backseat is usually for my briefcase, my gym bag and my Crumpler. So, this will be my first practical car for city driving.

I had hoped to drive my Mazda 6 for more than 5 years.  It seems that is not to be. I hope to drive this new car for more than 5 years. Wish me luck.

Related posts:
Tea with AK71: Buying car now?
Tea with AK71: Pillarised.