Want to Buy a Car? Read this First (30-Nov-08)

I bough my KIA Cerato Variant 2 for $48k in Jan08. One year down the road, the price of a brand new chio chio KIA Cerato Forte with free bodykits and gifts cost around $45k. Urgh.... all thanks to the plunging economy and falling demands of car. But oh well oh well.... nothing much I can do now but just envy those new KIA Forte owners.

Drawn by lower car prices & COE rates at a record-low levels, potential buyers have been flooding showrooms to check out their dream set of wheels. But is this really the best time to get a new set of wheels? Do consider the following factors before you sign that piece of paper:

1. Positive cash flow? Don't put yourself in an ugly position just to look good on the outside
2. Cost of owning a car?
3. Needs versu wants. Are you sure u need it?
4. Determing the type and size of car. If you cannot swim, don't say the swimming trunks too big.
5. Buy from an established firm
6. Should you choose the highest car loan available? Depends.
7. Find out the 'effective' loan interest rate. Be aware of it!
8. Check around for suitable loan packages
9. What if you are an existing car owner - should you sell your car to get a new one?
10. Find out your new car's potential COE rebate

My advise is, be aware of your own cash flow statement to see if you can afford the ride. Buying a car is the next big commitment other than your first property.