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Why the Majority of Trinbagonians Shouldn't Buy A New Car

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Mr. Red Sleeper » December 6th, 2013, 3:37 pm

Subscribed and I fully endorse.
Good second hand cars are quite available.
Cars are supposed to work for you-;not the other way around.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby wagonrunner » December 6th, 2013, 3:57 pm

Mr. Red Sleeper wrote:Cars are supposed to work for you-;not the other way around.

Daiz ole people thing.

Which is why what we know was used to tote grass / bamboo / livestock and appliances, now has chrome and LEDs

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby triniwhiteboi » December 6th, 2013, 4:17 pm

Hadda keep up with de series dan. Cya be jivin a PCA and PDB on de road jed.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Freak » December 6th, 2013, 4:41 pm

Never bought a new car, cant see myself spending over 200 k for a car with very basic features.
much prefer to buy a car 3 to 4 years old from the people who love to have a new number plate.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby stig » December 6th, 2013, 5:02 pm

Trinbagoviews wrote:[size=150]Unless you're very wealthy with money to burn you should not be purchasing a new car especially when taking out a loan. The costs are just way too high for the average Trinbagonian to absorb. The new car smell and the big "sawatie" feeling just isn’t worth it.


thread title + use of the word sawatie = I see you Inshan Ishmael

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Gas brains and Tire feet » December 6th, 2013, 5:35 pm

Trinbagoviews wrote:Unless you're very wealthy with money to burn you should not be purchasing a new car especially when taking out a loan. The costs are just way too high for the average Trinbagonian to absorb. The new car smell and the big "sawatie" feeling just isn’t worth it.
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Here's why:

The High Loan Interest Expense.
Riding a wave of emotion and persuasive arguments buyers often neglect to see what they're signing up for in terms of the tremendous financial expense they will now by saddled with. Here's an example:

New Car Cost : $200,000
Down payment: $20,000
Loan Amount: $180,000
Annual Interest Rate: 12% (Could be much more)
Length of the loan: 5 Years
Number of Monthly Payments: 60
Loan Interest paid after 5 Years: $60,240
Total Payments to Bank: $240,240
Total Acquisition Cost: $260,240

In other words a car that cost $200,000 winds up costing you: $260,240 after 5 years when you finance it.

Here's where you lose even more:

Higher Insurance Cost
Insurance cost is much higher on new cars and especially so when cars are financed. Once the car purchase is financed the bank makes it mandatory for the purchaser to take out a full comprehensive insurance policy to safeguard the financier's collateral. This means that your yearly insurance cost is much higher than if a cheaper second hand car was bought. Had you bought a cheaper second hand car not only would your insurance cost be lower but you could opt for third part, fire and theft insurance which is substantially cheaper than full comprehensive coverage.

Higher Maintenance by Local Car Dealers
New cars purchased in Trinidad and Tobago are required to have their vehicles serviced by the new car dealer in the early life of the car. These services are required to maintain the warranty on the car purchased. Even after the mandatory services to maintain the car's warranty have passed many owners often feel inclined to continue to service their cars at the local car dealers at very exorbitant costs since they worry that having the car serviced elsewhere could have negative consequences. Its even worse if the car gets into an accident and needs to be repaired.

Significant Loss in Value Once New Cars Are Driven Out the Showroom

Reports indicate that as cars drive out the showroom they immediately decline 25 - 30% in value since the car can no longer be considered a "new car" or unused. This is a terrible personal business decision and should be avoided by the average car buyer who cannot afford such a hit against their personal finances. Moreover new cars lose 70% of their value in the first four years. When you buy used, the original owner has already taken that major depreciation hit. You, on the other hand, can get a great four-year-old car for a good price significantly lower than the cost of a brand new car. Accidental nicks and scratches in the early life of the car also have the effect of eroding the car's value much faster.

Image

Read the rest of the article here: http://www.trinbagoviews.com/2013/02/wh ... d-not.html
What you have to sat made alot of sense.....There are good used cars out here........

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby kjaglal76 » December 6th, 2013, 5:59 pm

dogg wrote:Source of
Trinbagoviews wrote:
Annual Interest Rate: 12% (Could be much more)
???


i wanna kno myself, i feel is credit union figures he quoting, interest on a new car in d bank is 7% and less, even saw 4% recently

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Wipkream » December 6th, 2013, 6:15 pm

Thats the life boys ! Spending money you dont have to buy sheit you dont need.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby redmanjp » December 6th, 2013, 6:34 pm

Moreover new cars lose 70% of their value in the first four years.


i call BS

plenty trinis does want to bust price :|

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Aaron 2NR » December 6th, 2013, 6:50 pm

The local used car industry id stifled because the volume of roro being imported therefore owners believe they have to sell below roro prices. ...

Personally people have to be mad to pay 100k for a roro tida....
Remember wheb a local used vehicle is sold some of these are still under firm warranty which is transferred to the new owner...

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby kjaglal76 » December 6th, 2013, 7:42 pm

Aaron 2NR wrote:The local used car industry id stifled because the volume of roro being imported therefore owners believe they have to sell below roro prices. ...

Personally people have to be mad to pay 100k for a roro tida....
Remember wheb a local used vehicle is sold some of these are still under firm warranty which is transferred to the new owner...


new series thrumps old series bruh

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby silent_riot » December 6th, 2013, 7:50 pm

OP, just because we "shouldn't buy" doesn't mean we won't buy.
You'd assume people would stop buying bread and doubles when the flour price dropped, but their prices didn't, or when car prices increase for no apparent reason...but we don't stop buying.

Cars here are not bought for needs, but for wants. Otherwise, prudent buying would be happening.

It's seen as a status item, and helps establish your "class".

I don't even buy RORO or new...yes, partially because I can't afford it.
I buy local used because those cars do what I need, and I think I have access to enough resources to maintain them properly. I sometimes want a new Benz or BMW, but I don't need it.
I have better use for my money (in my opinion).

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Sky » December 6th, 2013, 10:16 pm

Our public transport system isn't reliable enough to deem private cars a luxury/nice to have/want, despite affording one is only accessible to some.
It would be nice to step out of your house or walk for a while and know you can get something for a certain time, or anytime for that matter, but it's not a realy for a lot of us.
So if someone has that luxury, they really can't speak for the rest.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Allergic2BunnyEars » December 7th, 2013, 12:54 am

For an enthusiast site I'm surprised no one bought a car for simply liking cars or for speed.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Richard Marshall » December 7th, 2013, 1:18 am

In Trinidad, cars never lose value. Everything else is correct. Third World this country is, as usual.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby j.o.e » December 7th, 2013, 2:44 am

Bought used car, firm price 290k....bought it for half that price with about 32xxxkms on it. Will sell at 100xxxkms and may do it all again. A good local used has the benefits of dealer support, and you have an idea of the history via the dealer. Best of both worlds and I bought it almost cash

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby De Dragon » December 7th, 2013, 4:17 am

cinco wrote:what else will trinis spend their savings on btw?
a new house in any "decent" area is upwards of 500k

Decent in Claxton Bay maybe! Try double that, real estate here is ridiculous.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby kg494EJ-1 » December 7th, 2013, 5:12 am

De Dragon wrote:
cinco wrote:what else will trinis spend their savings on btw?
a new house in any "decent" area is upwards of 500k

Decent in Claxton Bay maybe! Try double that, real estate here is ridiculous.


I have to agree, I'm 25 looking for my first home and the reality sunk in, is either I rent or continue saving my cents by my parents. I went to look at a property in Curepe and nearly dead when I saw it, guy was asking just under 1mil for a property with a certificate of comfort and the house was just a fancy shed. Housing prices locally are ridiculous and a huge joke.
Locals don't seem to understand the concept of pricing, people can preach supply and demand all they want but these prices are ridiculous.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Aaron 2NR » December 7th, 2013, 5:51 am

^ trinidad is the only place in the world where property prices keep going up even during a recession....what's funny is even with an evaluation, these people still call ridiculous prices

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Details » December 7th, 2013, 6:38 am

kg494EJ-1 wrote:
De Dragon wrote:
cinco wrote:what else will trinis spend their savings on btw?
a new house in any "decent" area is upwards of 500k

Decent in Claxton Bay maybe! Try double that, real estate here is ridiculous.


I have to agree, I'm 25 looking for my first home and the reality sunk in, is either I rent or continue saving my cents by my parents. I went to look at a property in Curepe and nearly dead when I saw it, guy was asking just under 1mil for a property with a certificate of comfort and the house was just a fancy shed. Housing prices locally are ridiculous and a huge joke.
Locals don't seem to understand the concept of pricing, people can preach supply and demand all they want but these prices are ridiculous.


I agree in the same boat... and having to wait on HDC sighz 5,7,10 yrs+ no justice...


But op thanks for opening my eyes read most of the comments the pros and cons of the topic... I don't think I would ever buy a new car would like to do like the guy and have many properties so if I have children they can end up living a comfortable life...

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby metalgear2095 » December 7th, 2013, 9:15 am

I'm paying 4.1% for my new car. Much better than taking a loan for a used car IMO. I prefer to have piece of mind and don't mind paying a little more for something new. My wife's car was two years old when she bought it. Four years later it's finally done paid for. I'll be paying $500 more a month for a new car which will be five years old when I'm ready to sell. To me that makes more sense. I do agree that buying a house is close to impossible for the average joe though.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Sky » December 7th, 2013, 9:20 am

metalgear2095 wrote:I'm paying 4.1% for my new car. Much better than taking a loan for a used car IMO. I prefer to have piece of mind and don't mind paying a little more for something new. My wife's car was two years old when she bought it. Four years later it's finally done paid for. I'll be paying $500 more a month for a new car which will be five years old when I'm ready to sell. To me that makes more sense. I do agree that buying a house is close to impossible for the average joe though.


I'm fortunate enough to be paying for both house and car.
With the length of time you can take paying off a new car, sometimes people need that low installment.
If I wasn't fortunate enough, I would have been getting a new car instead, because they're mostly cheaper than a RORO monthly and gives you access to other things. Some people prefer this.
I took the RORO because I could handle the higher installments and it made no sense going new and pay that much more.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby metalgear2095 » December 7th, 2013, 9:21 am

Sky wrote:
AllTrac wrote:buying a used car is always a gamble and more than likely you always come out losing. Its either you buying someone else pride and joy or you buying someone else headache, 90% of the time its the latter. For someone who like to tinker and has a fair technical knowledge on cars also if your livelihood does not depend on having your own transport then I say go for it, save the extra dollars and buy it used. For a woman, first time owner, someone who doesnt have the time to run by mechanic and older people, save yourself the headache in the long run and buy new.


I think what OP isn't getting is the relative value of money.

If you ask most people if they would pay 2800/mo for a totally reliable vehicle with very little attention needed and very little chance of drama, they would ask what's the catch.
Some people can't afford to NOT have a vehicle available.
Also, the cost of time needed to tend to an older vehicle adds up.
I'll exclude the stress behind a broken down vehicle or not having one, because stress is also relative.
So in this country we fall into 3 categories when it comes to investing in a vehicle.
Absolutely need one, so it has to be new
Need one badly, but could handle a lil stress, so it could be RORO or local used under 15 years.
Just want a ride/too poor/ having a car isnt that big of a deal/praying to the B14 gods will have people buying old used cars.

Another thing.
While the RORO vehicle is cheaper, it's also older and the loan has to be paid off quicker.
This lands you into some higher installments.
If you have a lower paying, but very stable job, buying new will actually be more comfortable financially if you need to have a good vehicle.
When I was shopping I worked out the difference.
I had a choice between going RORO and pay $900 more every month, or go new and pay about 49k extra in interest. That 39k was a bit too hard to swallow, as it was more than the selling price of my previous car. I couldn't handle knowing that I was paying all that extra imaginary money so I went RORO.

Real sense here. This is exactly why I went new over used.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby metalgear2095 » December 7th, 2013, 9:26 am

Sky wrote:
metalgear2095 wrote:I'm paying 4.1% for my new car. Much better than taking a loan for a used car IMO. I prefer to have piece of mind and don't mind paying a little more for something new. My wife's car was two years old when she bought it. Four years later it's finally done paid for. I'll be paying $500 more a month for a new car which will be five years old when I'm ready to sell. To me that makes more sense. I do agree that buying a house is close to impossible for the average joe though.


I'm fortunate enough to be paying for both house and car.
With the length of time you can take paying off a new car, sometimes people need that low installment.
If I wasn't fortunate enough, I would have been getting a new car instead, because they're mostly cheaper than a RORO monthly and gives you access to other things. Some people prefer this.
I took the RORO because I could handle the higher installments and it made no sense going new and pay that much more.

Having experienced a lot of car stress recently also made me want buy new. I may be more fortunate than you though. Lol. Paying for house as well but got the house for $450k. Also needed a car ASAP as I changed jobs and didn't want to deal with the stress of city gate everyday.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby red_dragon » December 7th, 2013, 9:31 am

was looking around for a new car

and as per the graph the OP posted

It does not even make sense buying a FU car either.


In reference to the same 200k the average FU is 5-7 yrs and is still more than 50% of the new price

Therefore if you use the same depreciation the FU car would be worth nothing after 7yrs


What the OP really posted is a reason NOT to BUY a FU .....


Have a good day buy what you can maintain

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Trinbagoviews » December 8th, 2013, 8:30 pm

Great discussion.

Remember if you want to be mediocre, do what the average person does. If you want to set yourself apart be exceptional, smart and disciplined, you'll get further faster. :wink:

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby rspann » December 8th, 2013, 9:12 pm

You sound like you are a foreign used dealer,( RORO).What you are saying doesn't make much sense to me. You apply the depreciation to a new car and come up with the fact that after x amount of years the vehicle is worth y, apply the same logic to a RORO and use the price it sold for new in Japan and then work out the same depreciation, you would realize the car is worth almost nothing(remember they were very cheap in Japan when new). Yet they are being sold for exorbitant prices,(they are still used cars, many are not rustproofed, under them you'll see a lot of rust). A lot of dealers paint them over,sometimes hiding damages they came with.
I know of dealers repairing damaged vehicles before selling them to buyers. Some dealers falsify documents, change mileage, and a host of other deceptions. People are free to buy what they want,It's their money and how they spend it is up to them. Every one has a right to buy a new car if they so desire( which in my opinion makes more sense). A new car has never been driven, has no wear and tear and has never been abused. Why start off with a car that is already years old and things start failing in it? (There must be wear and tear in a used car)
Sure there are exceptions to what I'm saying ,there are honest dealers and there are some cars that might have value for money, but in the end it's up to the buyer ,if they want to make the sacrifice and go the extra mile to get something new.
The downpayment is also less for a new car, making it easier for new car buyers.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Trinbagoviews » December 8th, 2013, 10:09 pm

Here's an idea. Buy a local used car - less uncertainty. I concur foreign used cars can be very much overpriced.

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Aaron 2NR » December 8th, 2013, 10:12 pm

didn't u bash local used cars on a previous page??

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Re: Why the Majority of Trinbagonians Shouldn't Buy A New Ca

Postby Sky » December 8th, 2013, 10:22 pm

Why are people expecting so much for a car when they're done with it?
You buy a car and use it for 7 years. If you're ready to move on you should be concerned with picking up a downpayment for another. anymore is a bonus, because you had use of this vehicle for 7 years!
Someone can't talk money and treat the car like just an asset, but overlook the fact that if they rented one, they would have paid much more and have much less freedoms. They paid for the use of a vehicle and got much more.

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