1 00:00:00,009 --> 00:00:02,259 Speaker 1: This is AC N A podcast. 2 00:00:10,310 --> 00:00:13,890 Speaker 1: Welcome to a brand new season of Money Talks. I'm 3 00:00:13,899 --> 00:00:17,010 Speaker 1: your host, Andrea. He, we're kicking things off with a 4 00:00:17,020 --> 00:00:20,760 Speaker 1: new series called This or that. And this is where 5 00:00:20,770 --> 00:00:23,930 Speaker 1: I give my guest two options and we weigh the 6 00:00:23,940 --> 00:00:28,090 Speaker 1: pros and cons. And in today's debut episode, we're talking 7 00:00:28,100 --> 00:00:31,139 Speaker 1: about cars. So my dad owned a car for a 8 00:00:31,149 --> 00:00:34,458 Speaker 1: little over three decades. The last car he owned, it 9 00:00:34,470 --> 00:00:38,130 Speaker 1: was falling apart. But the real reason he decided to 10 00:00:38,139 --> 00:00:39,439 Speaker 1: quit car ownership 11 00:00:39,523 --> 00:00:43,133 Speaker 1: altogether, it's not hard to guess it was the killer 12 00:00:43,144 --> 00:00:46,324 Speaker 1: C O E. Now, I know everyone knows this or 13 00:00:46,333 --> 00:00:49,793 Speaker 1: at least they should. But Singapore is quite special when 14 00:00:49,804 --> 00:00:53,173 Speaker 1: it comes to car ownership. Even before you buy one, 15 00:00:53,183 --> 00:00:56,034 Speaker 1: you need to pay for a piece of paper that 16 00:00:56,043 --> 00:01:00,153 Speaker 1: says you can own one otherwise known as the certificate 17 00:01:00,164 --> 00:01:03,004 Speaker 1: of entitlement or C O E. And it's valid for 18 00:01:03,013 --> 00:01:06,652 Speaker 1: 10 years. Now, at the last round of bidding, this 19 00:01:06,664 --> 00:01:08,793 Speaker 1: piece of paper costs between nine 20 00:01:08,877 --> 00:01:14,818 Speaker 1: $26,000 and 100 and $19,000 depending on the car size. So, 21 00:01:14,828 --> 00:01:18,547 Speaker 1: like my dad, many people have now been priced out 22 00:01:18,557 --> 00:01:22,468 Speaker 1: of owning cars. But this also means drivers will flock 23 00:01:22,477 --> 00:01:26,527 Speaker 1: to car sharing and rentals. And this therefore pushes these 24 00:01:26,538 --> 00:01:30,527 Speaker 1: firms to acquire more cars and thus keeping those C 25 00:01:30,538 --> 00:01:33,468 Speaker 1: O E prices high, will most of us never own 26 00:01:33,477 --> 00:01:37,218 Speaker 1: cars again? And if we really need one is leasing, 27 00:01:37,227 --> 00:01:38,148 Speaker 1: perhaps a better 28 00:01:38,232 --> 00:01:41,211 Speaker 1: to option, buckle up. As I put this question to 29 00:01:41,222 --> 00:01:44,902 Speaker 1: my guest, Julian General Manager of S G K Mart, 30 00:01:44,912 --> 00:01:49,162 Speaker 1: an online car marketplace for new and used cars. Hey, Julian, 31 00:01:49,171 --> 00:01:52,842 Speaker 1: welcome to Money Talks. As an introduction to our listeners. 32 00:01:52,851 --> 00:01:56,391 Speaker 1: Please tell us what car do you drive? When did 33 00:01:56,402 --> 00:01:59,041 Speaker 1: you get it? How much did you pay for it? 34 00:01:59,342 --> 00:02:02,991 Speaker 2: So I recently switched cars, I think a year ago, 35 00:02:03,001 --> 00:02:05,001 Speaker 2: maybe even a couple of years ago, I'm currently driving 36 00:02:05,012 --> 00:02:07,501 Speaker 2: a Toyota Crown. That's old school. I used to 37 00:02:07,585 --> 00:02:10,216 Speaker 2: drive a civic type R, I love that car also, 38 00:02:10,225 --> 00:02:10,766 Speaker 2: old school. 39 00:02:10,776 --> 00:02:12,535 Speaker 1: It's a driving school. They call 40 00:02:12,546 --> 00:02:14,076 Speaker 2: it, but I had to, I had to let it 41 00:02:14,085 --> 00:02:16,535 Speaker 2: go and get the bigger one. So I'm driving a 42 00:02:16,546 --> 00:02:20,055 Speaker 2: Toyota Crown now. I must have paid 97 98,000 for it, 43 00:02:20,065 --> 00:02:20,516 Speaker 2: I think. 44 00:02:20,526 --> 00:02:22,484 Speaker 1: Ok. And how much was the C O E on that? 45 00:02:22,496 --> 00:02:22,516 Speaker 1: I 46 00:02:22,526 --> 00:02:24,525 Speaker 2: think the C O E on that at the time 47 00:02:24,535 --> 00:02:25,955 Speaker 2: was about 50 ish grand. 48 00:02:26,695 --> 00:02:29,455 Speaker 1: Well, that number is completely now. 49 00:02:29,485 --> 00:02:31,546 Speaker 2: I know, I know God knows when we will ever 50 00:02:31,555 --> 00:02:32,576 Speaker 2: see that number again. I'm going 51 00:02:32,585 --> 00:02:34,686 Speaker 1: to ask you about your future decision in just a bit. 52 00:02:34,695 --> 00:02:36,856 Speaker 1: I'll save that for later. Would you ever consider 53 00:02:36,940 --> 00:02:38,449 Speaker 1: giving up your car though? 54 00:02:39,020 --> 00:02:41,038 Speaker 2: I really, yeah, in a heartbeat, in a heartbeat, 55 00:02:41,050 --> 00:02:45,320 Speaker 1: I will. Ok. Why? After driving for so many years, um, 56 00:02:45,330 --> 00:02:47,589 Speaker 1: and enjoying, of course, those low C O E prices, 57 00:02:47,600 --> 00:02:50,179 Speaker 1: what makes you think you are able to survive with 58 00:02:50,190 --> 00:02:50,839 Speaker 1: that one? Um, 59 00:02:50,850 --> 00:02:54,299 Speaker 2: first and foremost, I will give up because it's expensive, 60 00:02:54,389 --> 00:02:57,190 Speaker 2: it's really expensive to own a car in Singapore. I mean, 61 00:02:57,199 --> 00:03:03,350 Speaker 2: just road tax insurance, the parking, occasional fines, right? I mean, er, 62 00:03:03,360 --> 00:03:06,130 Speaker 2: p petrol prices going off the roof. 63 00:03:06,294 --> 00:03:08,304 Speaker 2: This is really the main reason why I'll stop driving. 64 00:03:08,694 --> 00:03:11,502 Speaker 2: The other reason is because I think Singapore has one 65 00:03:11,514 --> 00:03:14,313 Speaker 2: of the best public transportations in the world. I mean, 66 00:03:14,324 --> 00:03:16,703 Speaker 2: if you travel enough, you will realize that Singapore is 67 00:03:16,714 --> 00:03:19,222 Speaker 2: really efficient. Of course, we are probably not as efficient 68 00:03:19,233 --> 00:03:22,904 Speaker 2: as Japan, for instance, you know, maybe our train services, 69 00:03:22,913 --> 00:03:25,063 Speaker 2: it may not be as good as say, maybe Hong Kong, 70 00:03:25,074 --> 00:03:28,503 Speaker 2: but I think we are definitely up there with the best. 71 00:03:28,514 --> 00:03:30,663 Speaker 1: I agree. I've traveled quite a fair bit in the 72 00:03:30,673 --> 00:03:33,333 Speaker 1: big cities like London, New York where you think there 73 00:03:33,343 --> 00:03:35,563 Speaker 1: would be the best metropolitan 74 00:03:35,647 --> 00:03:39,658 Speaker 1: transportation system. Singapore outshines those two cities, in my opinion, 75 00:03:39,667 --> 00:03:41,476 Speaker 1: at least. But yes, if you're going to compare us 76 00:03:41,488 --> 00:03:44,578 Speaker 1: to Japan and Hong Kong, that's a different story. Although 77 00:03:44,587 --> 00:03:47,498 Speaker 1: I don't think we're far behind. So what's going to 78 00:03:47,507 --> 00:03:50,707 Speaker 1: be your commute without the car train? 79 00:03:50,718 --> 00:03:53,488 Speaker 2: I guess I'm living near a train station, so that's fine. 80 00:03:53,498 --> 00:03:56,337 Speaker 2: That'll work. The only thing why I can't let go 81 00:03:56,348 --> 00:03:58,257 Speaker 2: of a car now is I've got to send the 82 00:03:58,268 --> 00:04:01,498 Speaker 2: kids to school and that's really a pain in all honesty. 83 00:04:01,507 --> 00:04:04,218 Speaker 2: I've actually tried it several times. So during COVID, when 84 00:04:04,227 --> 00:04:04,917 Speaker 2: we were all in lockdown, 85 00:04:05,261 --> 00:04:07,132 Speaker 2: I would actually take the train instead of driving them 86 00:04:07,141 --> 00:04:09,361 Speaker 2: to school. So I'll carry the bags and stuff. I'll 87 00:04:09,371 --> 00:04:11,882 Speaker 2: bring them to the station and it felt good. It 88 00:04:11,891 --> 00:04:14,222 Speaker 2: felt like, yeah, you know, I could live with this. Right? 89 00:04:14,231 --> 00:04:15,921 Speaker 2: And you do that for a couple of months and 90 00:04:15,932 --> 00:04:17,092 Speaker 2: you realize, you know, it's going to get a bit 91 00:04:17,101 --> 00:04:19,661 Speaker 2: tiring because it's only a home to school and school 92 00:04:19,671 --> 00:04:21,571 Speaker 2: to home because we are all working from home. Right. 93 00:04:21,582 --> 00:04:24,630 Speaker 2: But now it will be home to school, school to office. 94 00:04:24,641 --> 00:04:26,940 Speaker 2: So that's a different thing. And obviously I won't be in, 95 00:04:26,951 --> 00:04:29,282 Speaker 2: you know, shirt pants and stuff, but I believe very 96 00:04:29,291 --> 00:04:32,772 Speaker 2: strongly that we can adapt. Right. So my wife was saying, but, 97 00:04:32,782 --> 00:04:34,011 Speaker 2: you know, if you have a car, we can go 98 00:04:34,022 --> 00:04:34,182 Speaker 2: from 99 00:04:34,355 --> 00:04:36,846 Speaker 2: point A to BC and then back home and I 100 00:04:36,855 --> 00:04:38,446 Speaker 2: told her, you know, if we don't have a car, 101 00:04:38,455 --> 00:04:41,205 Speaker 2: we'll just go point A B and then back home, 102 00:04:41,216 --> 00:04:43,345 Speaker 2: we'll live point C tomorrow next week. 103 00:04:43,355 --> 00:04:45,455 Speaker 1: I think it's about managing your route and managing your 104 00:04:45,466 --> 00:04:49,605 Speaker 1: time as well? Ok. So the reason we're here obviously 105 00:04:49,615 --> 00:04:52,605 Speaker 1: is to talk about those eye popping C O E prices. 106 00:04:52,615 --> 00:04:56,246 Speaker 1: Is there some kind of psychological seeding like say category 107 00:04:56,255 --> 00:04:59,665 Speaker 1: A which is for cars up to 1600 cc, right? 108 00:04:59,675 --> 00:05:02,795 Speaker 1: It's at 96 now. So will it hit that 100 109 00:05:02,805 --> 00:05:03,505 Speaker 1: K psychology 110 00:05:03,820 --> 00:05:06,440 Speaker 1: ceiling and then come down, how do you think this 111 00:05:06,450 --> 00:05:07,679 Speaker 1: is going to pan out? I think the 112 00:05:07,690 --> 00:05:10,799 Speaker 2: C O E is really all about supply and demand. 113 00:05:10,839 --> 00:05:13,839 Speaker 2: So I can't say that there will be a psychological ceiling, 114 00:05:13,850 --> 00:05:17,339 Speaker 2: but history has shown that prices have reached its peak 115 00:05:17,350 --> 00:05:21,079 Speaker 2: before decreasing. I mean, it could be because of consumer preferences, 116 00:05:21,089 --> 00:05:25,480 Speaker 2: economic conditions. So for instance, during COVID-19 pandemic C O 117 00:05:25,488 --> 00:05:27,929 Speaker 2: E prices did a fair bit because of the lack 118 00:05:27,940 --> 00:05:30,600 Speaker 2: of demand. So I don't think there's a psychological barrier 119 00:05:30,609 --> 00:05:32,750 Speaker 2: to it, although I do strongly believe it will hit 120 00:05:32,760 --> 00:05:32,980 Speaker 2: the 100 121 00:05:33,063 --> 00:05:35,723 Speaker 2: grand very soon because cars at Expo is coming. I'm 122 00:05:35,734 --> 00:05:38,394 Speaker 2: sure it will drive the prices up. Indeed. 123 00:05:38,403 --> 00:05:41,664 Speaker 1: So my dad owned a car for a little over 124 00:05:41,674 --> 00:05:43,914 Speaker 1: three decades and then he gave it up because of 125 00:05:43,924 --> 00:05:46,473 Speaker 1: C O E. He really couldn't afford it anymore and 126 00:05:46,484 --> 00:05:48,593 Speaker 1: it wasn't as if we were driving a brand new car, 127 00:05:48,604 --> 00:05:51,212 Speaker 1: it was second hand car. He did it for the family. 128 00:05:51,223 --> 00:05:54,093 Speaker 1: Same like you. But now his kids have moved out 129 00:05:54,104 --> 00:05:56,204 Speaker 1: married off. I don't need the car anymore. So I 130 00:05:56,213 --> 00:06:00,074 Speaker 1: introduced him to car sharing. So I used it first. 131 00:06:00,084 --> 00:06:02,334 Speaker 1: I experimented with it and I taught them 132 00:06:02,416 --> 00:06:04,798 Speaker 1: rest of my family members to use it. So what 133 00:06:04,808 --> 00:06:07,958 Speaker 1: do you think needs to happen for more people to 134 00:06:07,967 --> 00:06:10,558 Speaker 1: give up their cars and perhaps take the alternative route? 135 00:06:10,567 --> 00:06:13,816 Speaker 1: Be it public transport or car sharing or car leasing? 136 00:06:13,827 --> 00:06:15,267 Speaker 1: Even which we'll get into later. 137 00:06:15,278 --> 00:06:17,608 Speaker 2: Prices need to go up higher C O E prices 138 00:06:17,618 --> 00:06:18,437 Speaker 2: need to go up higher. So 139 00:06:18,447 --> 00:06:20,287 Speaker 1: that 100 K C needs to be there. 140 00:06:20,298 --> 00:06:23,317 Speaker 2: Yeah. Yeah, I strongly believe so. I'm not for high 141 00:06:23,327 --> 00:06:25,778 Speaker 2: prices obviously, but I'm all for C O E. And 142 00:06:25,787 --> 00:06:27,717 Speaker 2: I say this because the C O E system has 143 00:06:27,726 --> 00:06:30,537 Speaker 2: done a very good job in controlling car population in Singapore. 144 00:06:30,648 --> 00:06:31,687 Speaker 2: That's its main purpose 145 00:06:31,772 --> 00:06:34,902 Speaker 2: and I think it certainly ticked the box very accurately, 146 00:06:34,911 --> 00:06:39,182 Speaker 2: very efficiently. However, the problem in Singapore is that car 147 00:06:39,190 --> 00:06:42,221 Speaker 2: ownership has got a lot to do with status symbol. 148 00:06:42,231 --> 00:06:43,991 Speaker 2: It has got a lot to do with convenience as 149 00:06:44,002 --> 00:06:46,932 Speaker 2: well as comfort, right? People buy cars because it's a 150 00:06:46,940 --> 00:06:50,111 Speaker 2: desirable thing, man. If I drive a Mercedes E class, 151 00:06:50,122 --> 00:06:52,062 Speaker 2: people will think that, oh my goodness, he's made it 152 00:06:52,071 --> 00:06:52,861 Speaker 2: in life. That 153 00:06:52,872 --> 00:06:57,332 Speaker 1: was exactly my dad's car. It was aspirational. Like my 154 00:06:57,342 --> 00:06:59,921 Speaker 1: goal is to own that Mercedes E class. 155 00:06:59,932 --> 00:07:00,962 Speaker 2: Yeah. So that's how it has 156 00:07:01,126 --> 00:07:03,485 Speaker 2: always been. And of course of late, the youngsters will 157 00:07:03,496 --> 00:07:05,096 Speaker 2: always be like, you know what I want comfort I 158 00:07:05,105 --> 00:07:08,905 Speaker 2: want security. I want some privacy which obviously public transportation 159 00:07:08,915 --> 00:07:11,415 Speaker 2: can't provide. And then of course, in time of COVID, 160 00:07:11,425 --> 00:07:12,626 Speaker 2: they'll say, you know what? I don't want to take 161 00:07:12,635 --> 00:07:15,316 Speaker 2: public transportation because I don't want to risk getting COVID. 162 00:07:15,325 --> 00:07:17,026 Speaker 2: So I want to have my own car now that 163 00:07:17,036 --> 00:07:20,335 Speaker 2: we are living with COVID. I reckon apart from price, 164 00:07:20,346 --> 00:07:23,675 Speaker 2: people will need to realize just how expensive it is 165 00:07:23,686 --> 00:07:25,316 Speaker 2: to own a car. So you could probably buy a 166 00:07:25,325 --> 00:07:28,776 Speaker 2: car with AC O E maybe costing you $2 maybe 167 00:07:28,786 --> 00:07:30,395 Speaker 2: you'll buy the car for $30,000. 168 00:07:30,600 --> 00:07:33,760 Speaker 2: That's your upfront payment. Let's just say you pay half 169 00:07:33,769 --> 00:07:35,880 Speaker 2: of that 15,000, which isn't a lot to own a 170 00:07:35,890 --> 00:07:39,220 Speaker 2: car in today's context. Right? But your maintenance could be really, 171 00:07:39,230 --> 00:07:41,779 Speaker 2: really high. I mean, you have your depreciation, you have 172 00:07:41,790 --> 00:07:43,920 Speaker 2: your road tax, you have your insurance, which is an 173 00:07:43,929 --> 00:07:48,049 Speaker 2: annual payment, by the way, you have parking, your occasional summons, right? 174 00:07:48,059 --> 00:07:51,350 Speaker 2: Your petrol prices, your er P S, it's constant payment. 175 00:07:51,359 --> 00:07:53,529 Speaker 2: If you put all of that together, we are talking 176 00:07:53,540 --> 00:07:57,790 Speaker 2: about a good 1002 2005 every month just to own 177 00:07:57,799 --> 00:07:59,750 Speaker 2: a car. If you put that into perspective, 178 00:08:00,053 --> 00:08:03,484 Speaker 2: think about it. Right. If you take grab every day, 179 00:08:03,493 --> 00:08:05,884 Speaker 2: are you really gonna hit 1,002,005? 180 00:08:05,894 --> 00:08:07,773 Speaker 1: Even with search pricing? Right. Exactly. 181 00:08:07,783 --> 00:08:10,223 Speaker 2: Unless you're telling me you're doing sales then. Yes. Ok. 182 00:08:10,234 --> 00:08:12,433 Speaker 2: I can understand. You got to run from point to point, 183 00:08:12,444 --> 00:08:15,053 Speaker 2: I can understand you might even hit 2000. Maybe getting 184 00:08:15,063 --> 00:08:16,924 Speaker 2: a car would be a better option for you. But 185 00:08:16,933 --> 00:08:18,563 Speaker 2: I mean, and I say this with a lot of 186 00:08:18,574 --> 00:08:20,813 Speaker 2: confidence because I did it before. It was like an 187 00:08:20,824 --> 00:08:23,003 Speaker 2: experiment because I wanted to show my wife that, you 188 00:08:23,014 --> 00:08:24,864 Speaker 2: know what? I think getting a car is a wrong move. 189 00:08:24,873 --> 00:08:27,164 Speaker 2: I think we should not get a car. Let's just 190 00:08:27,174 --> 00:08:29,104 Speaker 2: go public wherever we want to go, we need, 191 00:08:29,187 --> 00:08:32,208 Speaker 2: need to go. Let's take a taxi. I call a 192 00:08:32,218 --> 00:08:33,157 Speaker 2: grab or something. 193 00:08:33,168 --> 00:08:35,256 Speaker 1: You know, if you really need that comfort and the 194 00:08:35,268 --> 00:08:36,187 Speaker 1: space to ferry 195 00:08:36,197 --> 00:08:38,817 Speaker 2: everyone. Exactly. And we tried that for a good 30 196 00:08:38,828 --> 00:08:41,408 Speaker 2: days and we realized how much money we can actually 197 00:08:41,418 --> 00:08:44,447 Speaker 2: save and trust me when I sold my previous car, 198 00:08:44,458 --> 00:08:47,857 Speaker 2: when I got back, that lump sum of money. Yeah, 199 00:08:47,867 --> 00:08:50,697 Speaker 2: all I did. I immediately called my wife and said, 200 00:08:50,708 --> 00:08:52,297 Speaker 2: you know what? I think we shouldn't get the car. 201 00:08:52,307 --> 00:08:54,797 Speaker 2: We should just keep this money. I mean, put it aside, 202 00:08:54,807 --> 00:08:57,197 Speaker 2: do whatever we want. We could buy stuff for the 203 00:08:57,208 --> 00:08:58,458 Speaker 2: kids to bring them for 204 00:08:58,541 --> 00:09:00,961 Speaker 2: holiday. You know, and she just went. No, you know what? 205 00:09:00,971 --> 00:09:03,470 Speaker 2: It's impossible. It's genuinely impossible, 206 00:09:03,481 --> 00:09:07,281 Speaker 1: especially if you're very used to it for a specific purpose. 207 00:09:07,291 --> 00:09:10,591 Speaker 1: I know of people who own cars specifically because they 208 00:09:10,601 --> 00:09:13,711 Speaker 1: are the sole caregivers of their elderly parents. For example, 209 00:09:13,721 --> 00:09:17,651 Speaker 1: family members with disabilities and taking a cab. It's not 210 00:09:17,660 --> 00:09:21,601 Speaker 1: the most logistically comfortable situation. If you're used to a 211 00:09:21,611 --> 00:09:24,521 Speaker 1: certain level of comfort for a specific purpose, maybe when 212 00:09:24,530 --> 00:09:26,731 Speaker 1: the kids are older, they're more independent. 213 00:09:26,742 --> 00:09:27,790 Speaker 2: I can't wait. 214 00:09:28,340 --> 00:09:30,369 Speaker 2: I can't wait, man. Every 215 00:09:30,380 --> 00:09:31,710 Speaker 1: parent is telling me this. 216 00:09:35,320 --> 00:09:38,130 Speaker 1: Hi. My name is Julie Yu and I'm the host 217 00:09:38,140 --> 00:09:41,820 Speaker 1: of the Climate Conversations. Each week I speak to guests 218 00:09:41,830 --> 00:09:44,950 Speaker 1: who give us tips on how we can protect the earth. 219 00:09:44,960 --> 00:09:48,539 Speaker 1: Every once in a while. We also have interesting stories 220 00:09:48,549 --> 00:09:52,210 Speaker 1: like how Singapore's first Tesla owner prompted billionaire 221 00:09:52,280 --> 00:09:55,179 Speaker 1: Elon Musk to reach out to Prime Minister Lee Slo 222 00:09:55,619 --> 00:09:59,299 Speaker 1: or a chef who makes the juiciest burgers from only 223 00:09:59,309 --> 00:10:03,330 Speaker 1: plant based ingredients. For more stories like these, look for 224 00:10:03,340 --> 00:10:06,039 Speaker 1: the climate conversations on our C N A and me 225 00:10:06,080 --> 00:10:09,119 Speaker 1: listen apps or wherever you get your podcasts. 226 00:10:12,580 --> 00:10:16,159 Speaker 1: So the other option apart from car sharing is leasing 227 00:10:16,169 --> 00:10:18,650 Speaker 1: a car, which is what some of those people I 228 00:10:18,659 --> 00:10:21,260 Speaker 1: spoke to who drive a car to ferry certain family 229 00:10:21,270 --> 00:10:24,039 Speaker 1: members around. They are doing just that. Can you walk 230 00:10:24,049 --> 00:10:27,770 Speaker 1: us through the pros and cons of leasing a car? 231 00:10:27,780 --> 00:10:31,169 Speaker 1: And how is that different from actually renting a car? 232 00:10:31,179 --> 00:10:34,030 Speaker 2: Ok. So if you get a car from a car 233 00:10:34,039 --> 00:10:37,830 Speaker 2: leasing company, it's usually for a longer period of time, 234 00:10:37,840 --> 00:10:39,619 Speaker 2: an extended period of time. So you're not going to 235 00:10:39,630 --> 00:10:39,909 Speaker 2: lease a 236 00:10:40,010 --> 00:10:42,949 Speaker 2: for three days, for instance, for whatever Chinese New Year, 237 00:10:43,111 --> 00:10:46,421 Speaker 2: you'll probably do it because you want to try car 238 00:10:46,431 --> 00:10:49,460 Speaker 2: ownership for a while. So it's probably six months minimum, 239 00:10:49,471 --> 00:10:52,320 Speaker 2: up to a year. The advantages of going through car 240 00:10:52,330 --> 00:10:54,770 Speaker 2: leasing is that you don't have to fork out that 241 00:10:54,780 --> 00:10:57,010 Speaker 2: one lump sum of down payment. So you just go 242 00:10:57,020 --> 00:10:58,370 Speaker 2: up to a company and say, you know what I 243 00:10:58,380 --> 00:11:00,530 Speaker 2: want to lease this car and they'll say, ok, your 244 00:11:00,541 --> 00:11:03,260 Speaker 2: monthly payment is X amount of dollars, everything is covered, 245 00:11:03,270 --> 00:11:07,481 Speaker 2: road tax insurance, everything. However, you don't own 246 00:11:07,581 --> 00:11:10,921 Speaker 2: that car, which means to say you can't modify that car. 247 00:11:10,932 --> 00:11:12,361 Speaker 2: You can't just say, oh, you know what? I don't 248 00:11:12,372 --> 00:11:14,511 Speaker 2: really like this champagne color. I want it black. I 249 00:11:14,521 --> 00:11:17,262 Speaker 2: would like to have it resprayed. No, you can't do 250 00:11:17,271 --> 00:11:19,642 Speaker 2: that either. You can't even have it wrapped because it 251 00:11:19,651 --> 00:11:23,191 Speaker 2: ain't yours. Exactly that. So you don't have that ownership. 252 00:11:23,202 --> 00:11:25,851 Speaker 2: Is that really important though? I know it's not in 253 00:11:25,861 --> 00:11:29,401 Speaker 2: line with the business that I represent, but I feel 254 00:11:29,410 --> 00:11:32,752 Speaker 2: there's a need to be honest and pragmatic. Yes. And 255 00:11:32,761 --> 00:11:35,040 Speaker 2: I think car ownership in Singapore is just a 256 00:11:35,153 --> 00:11:37,203 Speaker 2: no goal if you don't need a car. And I 257 00:11:37,213 --> 00:11:39,692 Speaker 2: think a lot of people can't draw the line between 258 00:11:39,703 --> 00:11:41,792 Speaker 2: a one and a need, I want a car, I 259 00:11:41,802 --> 00:11:44,432 Speaker 2: want a Ferrari, right? But I can't, I mean, I 260 00:11:44,442 --> 00:11:47,922 Speaker 2: don't really need a Ferrari. Arguably people would say that 261 00:11:47,932 --> 00:11:51,132 Speaker 2: someone with three kids may not even need a car. Right? 262 00:11:51,172 --> 00:11:53,982 Speaker 2: So it's really up to individual. But if you ask 263 00:11:53,992 --> 00:11:57,431 Speaker 2: me car leasing is a much better option compared to 264 00:11:57,442 --> 00:11:59,482 Speaker 2: car buying because will it save 265 00:11:59,492 --> 00:12:01,142 Speaker 1: you more in the long run? 266 00:12:01,153 --> 00:12:02,463 Speaker 2: Do you think? I don't reckon 267 00:12:02,723 --> 00:12:04,983 Speaker 2: save you more in the long run financially, but I 268 00:12:04,994 --> 00:12:07,213 Speaker 2: think it saves you a lot of trouble. It gives 269 00:12:07,223 --> 00:12:09,864 Speaker 2: you an experience. So you get a car and you 270 00:12:09,874 --> 00:12:11,893 Speaker 2: sort of realize like, oh, man, I mean, I've got 271 00:12:11,903 --> 00:12:15,294 Speaker 2: to consider parking, I've got to consider patrol. I'm starting 272 00:12:15,304 --> 00:12:17,734 Speaker 2: to feel like it's eating into my savings or it's 273 00:12:17,744 --> 00:12:21,093 Speaker 2: eating inside my bank account. Is this really for me? 274 00:12:21,104 --> 00:12:23,283 Speaker 2: And we never want this to happen to anybody. But 275 00:12:23,294 --> 00:12:25,773 Speaker 2: once in a while you get into minor accidents and 276 00:12:25,783 --> 00:12:28,613 Speaker 2: then you have to send the car for repair the hassle, 277 00:12:28,624 --> 00:12:30,193 Speaker 2: the mental stress, it be like, 278 00:12:30,294 --> 00:12:31,734 Speaker 2: oh man, I got to do this, I got to 279 00:12:31,744 --> 00:12:33,223 Speaker 2: do that, but I have to be in the office. 280 00:12:33,234 --> 00:12:36,125 Speaker 2: It's a lot of things to really seriously consider. Do 281 00:12:36,135 --> 00:12:36,244 Speaker 2: you 282 00:12:36,255 --> 00:12:40,255 Speaker 1: see then a trend of people moving towards leasing because 283 00:12:40,265 --> 00:12:41,905 Speaker 1: of the high C O E s. Do you see 284 00:12:41,914 --> 00:12:47,304 Speaker 1: that wave of people just being pushed towards these alternative options? 285 00:12:47,315 --> 00:12:49,255 Speaker 2: I think it's a bit of both. I see it 286 00:12:49,265 --> 00:12:51,424 Speaker 2: as a funnel. You know, it's like a funnel sort 287 00:12:51,434 --> 00:12:56,794 Speaker 2: of model at the top. You have people leasing, renting, buying, borrowing, 288 00:12:56,804 --> 00:12:57,645 Speaker 2: what have you and 289 00:12:57,866 --> 00:13:01,176 Speaker 2: you slow down the ultimate goal of Singaporeans. And I 290 00:13:01,184 --> 00:13:03,856 Speaker 2: say Singaporeans because I'm a Singaporean, the ultimate goal is 291 00:13:03,866 --> 00:13:07,116 Speaker 2: owning that car, that E class or the five series 292 00:13:07,125 --> 00:13:10,515 Speaker 2: or the F type, whatever. Right. So that's the ultimate 293 00:13:10,526 --> 00:13:13,116 Speaker 2: funnel right at the bottom is just, I want to 294 00:13:13,125 --> 00:13:15,375 Speaker 2: own a car, they do whatever it takes to get there. 295 00:13:15,385 --> 00:13:18,825 Speaker 2: But those who can't, will start thinking about leasing will 296 00:13:18,835 --> 00:13:22,955 Speaker 2: start to think about renting car sharing even. Will more 297 00:13:22,966 --> 00:13:25,335 Speaker 2: people go towards that? I think. 298 00:13:25,767 --> 00:13:28,806 Speaker 2: Yes and no, because it's an inevitable thing to some. 299 00:13:28,817 --> 00:13:30,256 Speaker 2: I don't want to lease a car. I only want 300 00:13:30,267 --> 00:13:32,177 Speaker 2: to own a car no matter how much it takes 301 00:13:32,187 --> 00:13:34,456 Speaker 2: in general, say I have $10 in my wallet. I'm 302 00:13:34,466 --> 00:13:36,766 Speaker 2: willing to take $10 and I'm willing to do $5 303 00:13:36,776 --> 00:13:38,846 Speaker 2: on credit just to get to the end of the funnel. 304 00:13:38,856 --> 00:13:41,656 Speaker 2: It's not advisable, obviously financially, but I do think more 305 00:13:41,666 --> 00:13:44,636 Speaker 2: people would think about leasing. I also do know quite 306 00:13:44,646 --> 00:13:46,596 Speaker 2: a handful of people who will hold on to their 307 00:13:46,606 --> 00:13:48,656 Speaker 2: cars till the end of the C O E life 308 00:13:48,666 --> 00:13:51,497 Speaker 2: span and they'll just renew the C O E again. 309 00:13:51,796 --> 00:13:52,905 Speaker 1: But at 90 310 00:13:53,006 --> 00:13:56,697 Speaker 1: 6 to 100 and 19 K, that's a very expensive 311 00:13:56,708 --> 00:13:58,687 Speaker 1: piece of paper just to keep that car. And you're 312 00:13:58,697 --> 00:14:00,237 Speaker 1: not even sure if that car is going to run 313 00:14:00,247 --> 00:14:03,737 Speaker 1: as smoothly as it used to for the next 10 years. Well, 314 00:14:03,747 --> 00:14:04,158 Speaker 1: I think 315 00:14:04,168 --> 00:14:07,138 Speaker 2: only the owner will know because how often he has 316 00:14:07,148 --> 00:14:10,398 Speaker 2: been servicing how much he babied the car would actually 317 00:14:10,408 --> 00:14:12,828 Speaker 2: be a good gauge for him. And if you think 318 00:14:12,838 --> 00:14:15,177 Speaker 2: about it, let's just say a for instance, right. C 319 00:14:15,268 --> 00:14:18,147 Speaker 2: A is approximately 96. Let's just say it's 100,000. If 320 00:14:18,158 --> 00:14:20,478 Speaker 2: I renew my car, based on that number, 321 00:14:20,578 --> 00:14:24,629 Speaker 2: my annual depreciation would be 10,000 year, which is still 322 00:14:24,638 --> 00:14:28,098 Speaker 2: cheaper compared to current prices of new cars. If I 323 00:14:28,109 --> 00:14:30,028 Speaker 2: know that I've been babying my car, I've been really 324 00:14:30,039 --> 00:14:32,789 Speaker 2: taking good care of my car servicing regularly 325 00:14:32,799 --> 00:14:34,758 Speaker 1: and if it's a car where you can get spare 326 00:14:34,768 --> 00:14:35,629 Speaker 1: parts easily. 327 00:14:35,638 --> 00:14:39,388 Speaker 2: Yes, exactly. That I would actually spend 100,000 renewing. Yes. Yeah, 328 00:14:39,398 --> 00:14:43,818 Speaker 1: because you're effectively paying 100,000 more just for the car 329 00:14:43,828 --> 00:14:44,609 Speaker 1: ownership and to 330 00:14:44,619 --> 00:14:46,669 Speaker 2: run it and for the next 10 years. So if 331 00:14:46,679 --> 00:14:48,049 Speaker 2: anything happens, I will still 332 00:14:48,150 --> 00:14:49,330 Speaker 2: be able to sell the car and as you can. 333 00:14:49,400 --> 00:14:51,049 Speaker 2: But for instance, and if no one wants to buy 334 00:14:51,059 --> 00:14:53,500 Speaker 2: the car, I'll still be able to scrap my car, 335 00:14:53,510 --> 00:14:55,359 Speaker 2: say maybe the third or fourth year and get back 336 00:14:55,369 --> 00:14:57,059 Speaker 2: the remaining value of the C O E that I've 337 00:14:57,070 --> 00:15:00,549 Speaker 1: paid. So it's about usage then. Yes, it is also 338 00:15:00,559 --> 00:15:03,669 Speaker 1: about usage. What's the demographic like of someone who would 339 00:15:03,679 --> 00:15:06,159 Speaker 1: lease a car apart from those who would want to 340 00:15:06,169 --> 00:15:08,169 Speaker 1: try out car ownership for a while? 341 00:15:08,179 --> 00:15:10,409 Speaker 2: I mean, if you exclude those who want to try 342 00:15:10,419 --> 00:15:13,349 Speaker 2: out car ownership and you exclude those who just want 343 00:15:13,359 --> 00:15:15,599 Speaker 2: to impress their friends and their girlfriends, 344 00:15:16,900 --> 00:15:19,619 Speaker 2: it will probably be maybe 50 to 60 year olds. 345 00:15:19,630 --> 00:15:23,729 Speaker 2: And I say that because my dad is now, what, 72. 346 00:15:23,739 --> 00:15:25,049 Speaker 2: And he told me once that, you know what I 347 00:15:25,059 --> 00:15:29,419 Speaker 2: want to stop driving when I'm 65 which he did, 348 00:15:29,429 --> 00:15:31,969 Speaker 2: he did stop driving at 65. But I kind of 349 00:15:31,979 --> 00:15:34,739 Speaker 2: realized that between the age of 60 to 65 your 350 00:15:34,750 --> 00:15:38,020 Speaker 2: reaction time isn't as good anymore. You're slightly slower. You 351 00:15:38,030 --> 00:15:40,659 Speaker 2: are grumpier on the road. So I think it's good. 352 00:15:40,669 --> 00:15:42,799 Speaker 2: 50 to 60 years old, right? Yeah. 353 00:15:42,809 --> 00:15:44,960 Speaker 1: Ok. That's an interesting subset there. 354 00:15:45,052 --> 00:15:48,663 Speaker 1: So let's say we're looking at a period of five years. 355 00:15:48,672 --> 00:15:52,062 Speaker 1: Would it be more expensive to buy or lease a car? 356 00:15:52,072 --> 00:15:55,822 Speaker 1: Keeping in mind? Of course, all those wonderful things that 357 00:15:55,833 --> 00:15:59,052 Speaker 1: bleed our wallets, maintenance, insurance, road tax, 358 00:15:59,062 --> 00:16:01,263 Speaker 2: the like as in five years, as a brand new 359 00:16:01,273 --> 00:16:03,742 Speaker 2: car or five years, used car. Uh, let's go with 360 00:16:03,752 --> 00:16:06,312 Speaker 2: used first. I would say you should just go with 361 00:16:06,322 --> 00:16:09,103 Speaker 2: a five year old used car. I mean, if you 362 00:16:09,112 --> 00:16:10,833 Speaker 2: just want to try it out for five years and 363 00:16:10,843 --> 00:16:12,431 Speaker 2: five years is not a short time, five years is 364 00:16:12,442 --> 00:16:13,203 Speaker 2: a relatively long. 365 00:16:13,296 --> 00:16:16,226 Speaker 2: But if you are confident, maybe you have tried certain 366 00:16:16,236 --> 00:16:18,495 Speaker 2: models before and you really like it. I say you 367 00:16:18,505 --> 00:16:20,556 Speaker 2: should just go for the used car because it's the 368 00:16:20,565 --> 00:16:22,125 Speaker 2: final thing, you know, at the end of it, I 369 00:16:22,135 --> 00:16:24,916 Speaker 2: want to be an owner to a car. May not 370 00:16:24,926 --> 00:16:26,846 Speaker 2: be an E class may not be a five series, 371 00:16:26,856 --> 00:16:28,676 Speaker 2: but I would like to own a car. I would 372 00:16:28,685 --> 00:16:31,426 Speaker 2: like the car to be under my name. So at 373 00:16:31,435 --> 00:16:33,195 Speaker 2: the end of it, I think if it's a five 374 00:16:33,205 --> 00:16:36,335 Speaker 2: year thing, you know, you could consider getting an economic car, 375 00:16:36,346 --> 00:16:37,445 Speaker 2: I could say. What 376 00:16:37,455 --> 00:16:40,395 Speaker 1: about a five year new car versus leasing there? Oh, man, 377 00:16:40,406 --> 00:16:41,385 Speaker 2: definitely, 378 00:16:41,859 --> 00:16:47,099 Speaker 2: definitely leasing because new car prices are crazy today. It's 379 00:16:47,109 --> 00:16:50,669 Speaker 2: not worth the money. It's not worth the financial stress 380 00:16:50,679 --> 00:16:51,020 Speaker 2: unless 381 00:16:51,030 --> 00:16:52,719 Speaker 1: of course you can really 382 00:16:52,729 --> 00:16:54,969 Speaker 2: afford it. Yeah. But you see, that's my argument. Right. 383 00:16:54,979 --> 00:16:56,669 Speaker 2: I mean, I told a friend just because you're well 384 00:16:56,679 --> 00:16:59,440 Speaker 2: to do does not mean that you should spend so 385 00:16:59,450 --> 00:17:01,250 Speaker 2: much on a liability. 386 00:17:01,260 --> 00:17:03,900 Speaker 1: Yeah, it depreciates the moment it's out of the showroom. 387 00:17:03,909 --> 00:17:06,770 Speaker 2: Exactly. And what's worse is we came from a time 388 00:17:06,780 --> 00:17:10,469 Speaker 2: when cars weren't this expensive. So, if I say, for instance, 389 00:17:10,479 --> 00:17:10,959 Speaker 2: a Suzuki, 390 00:17:11,202 --> 00:17:14,692 Speaker 2: if we knew what it cost 10 years ago, and 391 00:17:14,702 --> 00:17:17,331 Speaker 2: now you're telling me this is the price. No way. 392 00:17:17,541 --> 00:17:20,281 Speaker 2: I mean, yeah, even if you've got the money to 393 00:17:20,291 --> 00:17:23,851 Speaker 2: spend it's in your banks. There are doing absolutely nothing. 394 00:17:23,862 --> 00:17:26,581 Speaker 2: Does not mean that you should just splurge like this. 395 00:17:26,661 --> 00:17:27,092 Speaker 2: That's 396 00:17:27,102 --> 00:17:30,812 Speaker 1: me. And on that note, what's your financial advice to 397 00:17:30,821 --> 00:17:33,571 Speaker 1: a potential car buyer in terms of what to look 398 00:17:33,582 --> 00:17:34,370 Speaker 1: out for? 399 00:17:34,381 --> 00:17:38,332 Speaker 2: You should always consider all the maintenance cost of owning 400 00:17:38,342 --> 00:17:40,331 Speaker 2: a car. So, like what I mentioned before, 401 00:17:40,542 --> 00:17:46,423 Speaker 2: regular maintenance, servicing petrol insurance, road tax. But more importantly, 402 00:17:46,433 --> 00:17:49,894 Speaker 2: you should also think about your financing options, which financing 403 00:17:49,904 --> 00:17:53,593 Speaker 2: options suit you in your current financial status. That would 404 00:17:53,604 --> 00:17:55,812 Speaker 2: actually not rock the boat too much 405 00:17:55,823 --> 00:17:59,404 Speaker 1: a car is convenient, especially when you have Children. But 406 00:17:59,413 --> 00:18:03,833 Speaker 1: increasingly the cost is far outpacing the benefits of owning 407 00:18:03,843 --> 00:18:06,953 Speaker 1: one with some of the best public transport networks and 408 00:18:06,963 --> 00:18:09,813 Speaker 1: different leasing opportunities. It's become a lot 409 00:18:09,885 --> 00:18:12,744 Speaker 1: easier for us to mix and match things up. That's 410 00:18:12,755 --> 00:18:16,115 Speaker 1: it for this episode of this or that. Thanks Julian 411 00:18:16,125 --> 00:18:18,546 Speaker 1: for helping us weigh the pros and cons of buying 412 00:18:18,556 --> 00:18:20,095 Speaker 1: versus leasing a car 413 00:18:20,105 --> 00:18:20,885 Speaker 2: any time. Thank you 414 00:18:20,906 --> 00:18:23,885 Speaker 1: for having me. If you've enjoyed this episode of Money Talks, 415 00:18:23,895 --> 00:18:27,095 Speaker 1: there's more content for you to enjoy. Simply follow us 416 00:18:27,105 --> 00:18:31,176 Speaker 1: on Google Spotify or Apple Podcast. Give us five stars 417 00:18:31,186 --> 00:18:34,005 Speaker 1: or leave a review. The team behind Money Talks is 418 00:18:34,015 --> 00:18:38,916 Speaker 1: Joanne Chan, Jacqueline Chan, Wind Christina Robert and I'm Andrea Hing.