View Full Version : Car Loan - Sure Lose Liability

29th February 2008, 01:37 PM
Talking about negative cashflow, well, THE "killer" is actually Car Loan.

Taking a Car Loan (interest rate 5% to 6%) on a Car (which depreciates in value by $6,000 to over $10,000 a year).

At last count, we have more than 500,000 Cars on the road, or taking a family size of 4 persons, means 1 out of every 2 families in Singapore OWNS a Car.

I think we have found the REASON why most people do NOT have enough money to retire, becos most people "Invest" their money in a "sure-lose" Liability.

a sure sad thing to know and i'm one of those in this category.


1st March 2008, 09:36 AM
yes evel,

i totally agree with you. many people are suck into this situation. many of us are living on credits and loans and this is truly a sad thing to know. yes we are know that it's important to save but it's almost impossible to save. there are housing loan to pay, car loan etc. inflation went up 6.6% last month but our salary hardly move up. where to find money to grom money. in the end, you see many people queeing up at singapore pools hoping to get windfall from there. we are just living from hands to mouth.

haiya... ju

20th July 2008, 04:54 PM
People tends to be very excited about owning their own car. Every one that can drive dream is to have their own car.

I think many did not consider the repayment part, especially when you can now get a car with 0 downpayment.

Years back, i got myself into a bad situation. I bought a camry back in year 2003 at $109,000. subsequently, i failed in my business and although i was really poor at one point, i could not sell the car, cause i need to top up to sell it. I struggle with the monthly instalment for some time. Thank goodness, i came out of my proverty stage and the first thing i did was to sell my car and still have to top up cash of $13,000. But i am now happy without a car cause there is no more liability.

So car to me is liability, it is definitely not an asset.