Tea with AK71: Buying a car now?

My current car is almost 5 years old.  It is a Mazda 6 2.0 and was purchased at a price of $80k.  I intend to drive it for a few more years since it is still virtually trouble free.

However, out of curiosity, I went to check if I could still buy a new Mazda 6 2.0 for $80k today.  Wow!  I was shocked to find out that $80k could only get me a Mazda 2 1.5 today, not even a Mazda 3 1.6.  I have heard from people, in recent weeks, how much new cars have gone up in price in Singapore but this is kind of scary.

I went to check on the Mercedes Benz A160 which was a car I was recommended to buy many years ago at $99k but I thought it pricey.  The A160 is no longer available but the A180 is almost $130k if I want to buy one! I like this video:

In August last year, I convinced my mom to change her car as her then 3 years old KIA Magentis 2.0 had many problems and the workshop quoted a repair cost of almost $3k after her car's three years warranty lapsed!  The car loan was fully paid up by then and I advised her that the $3k saved from repairing the KIA could go towards paying for a new car. 

We decided on a Mitsubish Lancer Mivec 1.5 for $60k and deregistered the KIA for $20k.  We only had to pay a balance of $40k.  Guess what, it would cost her about $80k now to get the same Mitsubishi 9 months later!

Very rarely do we make money from buying cars but my mom did (well, by saving money). $20k.  No small change.  Makes me wonder if I should have changed my car at the same time she did.  ;-)

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Grow your wealth and beat inflation.

Japan's domestic consumption strengthens.

Japanese Shoppers to Spend More, Credit Suisse Says 
By Masaki Kondo and Akiko Ikeda

April 16 (Bloomberg) -- Japanese service providers and other companies reliant on domestic demand will benefit from increasing consumption, Credit Suisse Group AG said.

An improving job market and a demographic shift in the workplace are likely to boost spending, Credit Suisse’s chief Japan economist Hiromichi Shirakawa, said in an interview yesterday. As the nation ages, there are more opportunities for young people, he said.

Complete article here.



Japan Spending, Wages Rise as Prices Slump 13th Month
By Aki Ito and Keiko Ujikane

April 30 (Bloomberg) -- Japan’s household spending, wages and job openings increased, while consumer prices tumbled for a 13th straight month, signaling a sustained recovery that’s still not strong enough to end deflation.

Today’s statistics were released hours before Bank of Japan policy makers are scheduled to announce their decision on monetary policy. Board members must decide whether to step up their efforts to contain price declines by expanding a 20 trillion yen ($212 billion) lending program. The bank is forecast to keep its benchmark interest rate near zero.

“The economy’s recovery is steadily continuing,” said Hiroshi Miyazaki, chief economist at Shinkin Asset Management Co. in Tokyo. Even so, “deflationary pressures are still deep- seated in the economy,” he said.

Household outlays rose 4.4 percent in March from a year earlier, the biggest gain since May 2004, the statistics bureau said today in Tokyo. Consumer prices excluding fresh food slid 1.2 percent from a year earlier. Wages advanced 0.8 percent, the first increase in 22 months, the Labor Ministry said.

Read complete article here.

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