Now. Singapore is the worst place to buy and drive a car. It is NUMBER 1 in being ridiculous in how they price cars. But this post ain’t about that.
I want to share why I decided to get this car. And you may find it..strange.
The story goes like this: I never intended to buy a new car. I was driving a very family oriented Golf. It was reliable, cost effective, and very practical.
I popped by my old haunt Garage R as they advertised an exciting car I have been following for a while. I never intended to buy it. I just wanted to pop by, say hi, and check out the car up close. (On a side, I was very surprised they still remembered me after 8 years!)
Then I started chatted with an old friend who is a staff there. I asked about price. We talked.
I asked “Can I just pay cash for it?”
He said no. He needed me to take a loan, or else he would not be able to make decent profits. From there, I learnt alot about how car dealers like Garage R, a parallel importer, have it tough in Singapore. It’s not easy making money selling cars because most of the cost goes to taxes and the government.
I said ok. I’ll go back and think about it. (Still didn’t want to buy the car because, at that time, I really don’t like to pay interest if I can afford a full cash purchase which I thought would be good for them. Now I know better.)
I did my sums.
And the thought came to my mind: How do I beat the bank?
And I found that I had to make the highest down-payment possible (50% in this case), and take the longest tenure (84 months for this loan).
I then calculated how much I needed to beat the bank’s interest rate per month.
I took it as a challenge. To beat the bank, and “technically” make this car “free”, if I can out do the bank’s interest rate, and make profits from the remaining capital I have to cover the cost of the car itself, over 84 months.
And there you have it. This car, is not a reward.
It’s a personal challenge to myself.
And it’s a challenge I can’t wait to beat. It’s pushed me, inspired me, to give my best.
With no challenge, no standing on the edge, I think trading just by itself for income is kind of boring. Now, I have a goal every month, and hopefully it will push me higher and stretch my trading even further.