WEBVTT - This or That: Own or lease a car in Singapore? 0:00:00.009 --> 0:00:02.259 This is AC N A podcast. 0:00:10.310 --> 0:00:13.890 Welcome to a brand new season of Money Talks. I'm 0:00:13.899 --> 0:00:17.010 your host, Andrea. He, we're kicking things off with a 0:00:17.020 --> 0:00:20.760 new series called This or that. And this is where 0:00:20.770 --> 0:00:23.930 I give my guest two options and we weigh the 0:00:23.940 --> 0:00:28.090 pros and cons. And in today's debut episode, we're talking 0:00:28.100 --> 0:00:31.139 about cars. So my dad owned a car for a 0:00:31.149 --> 0:00:34.458 little over three decades. The last car he owned, it 0:00:34.470 --> 0:00:38.130 was falling apart. But the real reason he decided to 0:00:38.139 --> 0:00:39.439 quit car ownership 0:00:39.523 --> 0:00:43.133 altogether, it's not hard to guess it was the killer 0:00:43.144 --> 0:00:46.324 C O E. Now, I know everyone knows this or 0:00:46.333 --> 0:00:49.793 at least they should. But Singapore is quite special when 0:00:49.804 --> 0:00:53.173 it comes to car ownership. Even before you buy one, 0:00:53.183 --> 0:00:56.034 you need to pay for a piece of paper that 0:00:56.043 --> 0:01:00.153 says you can own one otherwise known as the certificate 0:01:00.164 --> 0:01:03.004 of entitlement or C O E. And it's valid for 0:01:03.013 --> 0:01:06.652 10 years. Now, at the last round of bidding, this 0:01:06.664 --> 0:01:08.793 piece of paper costs between nine 0:01:08.877 --> 0:01:14.818 $26,000 and 100 and $19,000 depending on the car size. So, 0:01:14.828 --> 0:01:18.547 like my dad, many people have now been priced out 0:01:18.557 --> 0:01:22.468 of owning cars. But this also means drivers will flock 0:01:22.477 --> 0:01:26.527 to car sharing and rentals. And this therefore pushes these 0:01:26.538 --> 0:01:30.527 firms to acquire more cars and thus keeping those C 0:01:30.538 --> 0:01:33.468 O E prices high, will most of us never own 0:01:33.477 --> 0:01:37.218 cars again? And if we really need one is leasing, 0:01:37.227 --> 0:01:38.148 perhaps a better 0:01:38.232 --> 0:01:41.211 to option, buckle up. As I put this question to 0:01:41.222 --> 0:01:44.902 my guest, Julian General Manager of S G K Mart, 0:01:44.912 --> 0:01:49.162 an online car marketplace for new and used cars. Hey, Julian, 0:01:49.171 --> 0:01:52.842 welcome to Money Talks. As an introduction to our listeners. 0:01:52.851 --> 0:01:56.391 Please tell us what car do you drive? When did 0:01:56.402 --> 0:01:59.041 you get it? How much did you pay for it? 0:01:59.342 --> 0:02:02.991 So I recently switched cars, I think a year ago, 0:02:03.001 --> 0:02:05.001 maybe even a couple of years ago, I'm currently driving 0:02:05.012 --> 0:02:07.501 a Toyota Crown. That's old school. I used to 0:02:07.585 --> 0:02:10.216 drive a civic type R, I love that car also, 0:02:10.225 --> 0:02:10.766 old school. 0:02:10.776 --> 0:02:12.535 It's a driving school. They call 0:02:12.546 --> 0:02:14.076 it, but I had to, I had to let it 0:02:14.085 --> 0:02:16.535 go and get the bigger one. So I'm driving a 0:02:16.546 --> 0:02:20.055 Toyota Crown now. I must have paid 97 98,000 for it, 0:02:20.065 --> 0:02:20.516 I think. 0:02:20.526 --> 0:02:22.484 Ok. And how much was the C O E on that? 0:02:22.496 --> 0:02:22.516 I 0:02:22.526 --> 0:02:24.525 think the C O E on that at the time 0:02:24.535 --> 0:02:25.955 was about 50 ish grand. 0:02:26.695 --> 0:02:29.455 Well, that number is completely now. 0:02:29.485 --> 0:02:31.546 I know, I know God knows when we will ever 0:02:31.555 --> 0:02:32.576 see that number again. I'm going 0:02:32.585 --> 0:02:34.686 to ask you about your future decision in just a bit. 0:02:34.695 --> 0:02:36.856 I'll save that for later. Would you ever consider 0:02:36.940 --> 0:02:38.449 giving up your car though? 0:02:39.020 --> 0:02:41.038 I really, yeah, in a heartbeat, in a heartbeat, 0:02:41.050 --> 0:02:45.320 I will. Ok. Why? After driving for so many years, um, 0:02:45.330 --> 0:02:47.589 and enjoying, of course, those low C O E prices, 0:02:47.600 --> 0:02:50.179 what makes you think you are able to survive with 0:02:50.190 --> 0:02:50.839 that one? Um, 0:02:50.850 --> 0:02:54.299 first and foremost, I will give up because it's expensive, 0:02:54.389 --> 0:02:57.190 it's really expensive to own a car in Singapore. I mean, 0:02:57.199 --> 0:03:03.350 just road tax insurance, the parking, occasional fines, right? I mean, er, 0:03:03.360 --> 0:03:06.130 p petrol prices going off the roof. 0:03:06.294 --> 0:03:08.304 This is really the main reason why I'll stop driving. 0:03:08.694 --> 0:03:11.502 The other reason is because I think Singapore has one 0:03:11.514 --> 0:03:14.313 of the best public transportations in the world. I mean, 0:03:14.324 --> 0:03:16.703 if you travel enough, you will realize that Singapore is 0:03:16.714 --> 0:03:19.222 really efficient. Of course, we are probably not as efficient 0:03:19.233 --> 0:03:22.904 as Japan, for instance, you know, maybe our train services, 0:03:22.913 --> 0:03:25.063 it may not be as good as say, maybe Hong Kong, 0:03:25.074 --> 0:03:28.503 but I think we are definitely up there with the best. 0:03:28.514 --> 0:03:30.663 I agree. I've traveled quite a fair bit in the 0:03:30.673 --> 0:03:33.333 big cities like London, New York where you think there 0:03:33.343 --> 0:03:35.563 would be the best metropolitan 0:03:35.647 --> 0:03:39.658 transportation system. Singapore outshines those two cities, in my opinion, 0:03:39.667 --> 0:03:41.476 at least. But yes, if you're going to compare us 0:03:41.488 --> 0:03:44.578 to Japan and Hong Kong, that's a different story. Although 0:03:44.587 --> 0:03:47.498 I don't think we're far behind. So what's going to 0:03:47.507 --> 0:03:50.707 be your commute without the car train? 0:03:50.718 --> 0:03:53.488 I guess I'm living near a train station, so that's fine. 0:03:53.498 --> 0:03:56.337 That'll work. The only thing why I can't let go 0:03:56.348 --> 0:03:58.257 of a car now is I've got to send the 0:03:58.268 --> 0:04:01.498 kids to school and that's really a pain in all honesty. 0:04:01.507 --> 0:04:04.218 I've actually tried it several times. So during COVID, when 0:04:04.227 --> 0:04:04.917 we were all in lockdown, 0:04:05.261 --> 0:04:07.132 I would actually take the train instead of driving them 0:04:07.141 --> 0:04:09.361 to school. So I'll carry the bags and stuff. I'll 0:04:09.371 --> 0:04:11.882 bring them to the station and it felt good. It 0:04:11.891 --> 0:04:14.222 felt like, yeah, you know, I could live with this. Right? 0:04:14.231 --> 0:04:15.921 And you do that for a couple of months and 0:04:15.932 --> 0:04:17.092 you realize, you know, it's going to get a bit 0:04:17.101 --> 0:04:19.661 tiring because it's only a home to school and school 0:04:19.671 --> 0:04:21.571 to home because we are all working from home. Right. 0:04:21.582 --> 0:04:24.630 But now it will be home to school, school to office. 0:04:24.641 --> 0:04:26.940 So that's a different thing. And obviously I won't be in, 0:04:26.951 --> 0:04:29.282 you know, shirt pants and stuff, but I believe very 0:04:29.291 --> 0:04:32.772 strongly that we can adapt. Right. So my wife was saying, but, 0:04:32.782 --> 0:04:34.011 you know, if you have a car, we can go 0:04:34.022 --> 0:04:34.182 from 0:04:34.355 --> 0:04:36.846 point A to BC and then back home and I 0:04:36.855 --> 0:04:38.446 told her, you know, if we don't have a car, 0:04:38.455 --> 0:04:41.205 we'll just go point A B and then back home, 0:04:41.216 --> 0:04:43.345 we'll live point C tomorrow next week. 0:04:43.355 --> 0:04:45.455 I think it's about managing your route and managing your 0:04:45.466 --> 0:04:49.605 time as well? Ok. So the reason we're here obviously 0:04:49.615 --> 0:04:52.605 is to talk about those eye popping C O E prices. 0:04:52.615 --> 0:04:56.246 Is there some kind of psychological seeding like say category 0:04:56.255 --> 0:04:59.665 A which is for cars up to 1600 cc, right? 0:04:59.675 --> 0:05:02.795 It's at 96 now. So will it hit that 100 0:05:02.805 --> 0:05:03.505 K psychology 0:05:03.820 --> 0:05:06.440 ceiling and then come down, how do you think this 0:05:06.450 --> 0:05:07.679 is going to pan out? I think the 0:05:07.690 --> 0:05:10.799 C O E is really all about supply and demand. 0:05:10.839 --> 0:05:13.839 So I can't say that there will be a psychological ceiling, 0:05:13.850 --> 0:05:17.339 but history has shown that prices have reached its peak 0:05:17.350 --> 0:05:21.079 before decreasing. I mean, it could be because of consumer preferences, 0:05:21.089 --> 0:05:25.480 economic conditions. So for instance, during COVID-19 pandemic C O 0:05:25.488 --> 0:05:27.929 E prices did a fair bit because of the lack 0:05:27.940 --> 0:05:30.600 of demand. So I don't think there's a psychological barrier 0:05:30.609 --> 0:05:32.750 to it, although I do strongly believe it will hit 0:05:32.760 --> 0:05:32.980 the 100 0:05:33.063 --> 0:05:35.723 grand very soon because cars at Expo is coming. I'm 0:05:35.734 --> 0:05:38.394 sure it will drive the prices up. Indeed. 0:05:38.403 --> 0:05:41.664 So my dad owned a car for a little over 0:05:41.674 --> 0:05:43.914 three decades and then he gave it up because of 0:05:43.924 --> 0:05:46.473 C O E. He really couldn't afford it anymore and 0:05:46.484 --> 0:05:48.593 it wasn't as if we were driving a brand new car, 0:05:48.604 --> 0:05:51.212 it was second hand car. He did it for the family. 0:05:51.223 --> 0:05:54.093 Same like you. But now his kids have moved out 0:05:54.104 --> 0:05:56.204 married off. I don't need the car anymore. So I 0:05:56.213 --> 0:06:00.074 introduced him to car sharing. So I used it first. 0:06:00.084 --> 0:06:02.334 I experimented with it and I taught them 0:06:02.416 --> 0:06:04.798 rest of my family members to use it. So what 0:06:04.808 --> 0:06:07.958 do you think needs to happen for more people to 0:06:07.967 --> 0:06:10.558 give up their cars and perhaps take the alternative route? 0:06:10.567 --> 0:06:13.816 Be it public transport or car sharing or car leasing? 0:06:13.827 --> 0:06:15.267 Even which we'll get into later. 0:06:15.278 --> 0:06:17.608 Prices need to go up higher C O E prices 0:06:17.618 --> 0:06:18.437 need to go up higher. So 0:06:18.447 --> 0:06:20.287 that 100 K C needs to be there. 0:06:20.298 --> 0:06:23.317 Yeah. Yeah, I strongly believe so. I'm not for high 0:06:23.327 --> 0:06:25.778 prices obviously, but I'm all for C O E. And 0:06:25.787 --> 0:06:27.717 I say this because the C O E system has 0:06:27.726 --> 0:06:30.537 done a very good job in controlling car population in Singapore. 0:06:30.648 --> 0:06:31.687 That's its main purpose 0:06:31.772 --> 0:06:34.902 and I think it certainly ticked the box very accurately, 0:06:34.911 --> 0:06:39.182 very efficiently. However, the problem in Singapore is that car 0:06:39.190 --> 0:06:42.221 ownership has got a lot to do with status symbol. 0:06:42.231 --> 0:06:43.991 It has got a lot to do with convenience as 0:06:44.002 --> 0:06:46.932 well as comfort, right? People buy cars because it's a 0:06:46.940 --> 0:06:50.111 desirable thing, man. If I drive a Mercedes E class, 0:06:50.122 --> 0:06:52.062 people will think that, oh my goodness, he's made it 0:06:52.071 --> 0:06:52.861 in life. That 0:06:52.872 --> 0:06:57.332 was exactly my dad's car. It was aspirational. Like my 0:06:57.342 --> 0:06:59.921 goal is to own that Mercedes E class. 0:06:59.932 --> 0:07:00.962 Yeah. So that's how it has 0:07:01.126 --> 0:07:03.485 always been. And of course of late, the youngsters will 0:07:03.496 --> 0:07:05.096 always be like, you know what I want comfort I 0:07:05.105 --> 0:07:08.905 want security. I want some privacy which obviously public transportation 0:07:08.915 --> 0:07:11.415 can't provide. And then of course, in time of COVID, 0:07:11.425 --> 0:07:12.626 they'll say, you know what? I don't want to take 0:07:12.635 --> 0:07:15.316 public transportation because I don't want to risk getting COVID. 0:07:15.325 --> 0:07:17.026 So I want to have my own car now that 0:07:17.036 --> 0:07:20.335 we are living with COVID. I reckon apart from price, 0:07:20.346 --> 0:07:23.675 people will need to realize just how expensive it is 0:07:23.686 --> 0:07:25.316 to own a car. So you could probably buy a 0:07:25.325 --> 0:07:28.776 car with AC O E maybe costing you $2 maybe 0:07:28.786 --> 0:07:30.395 you'll buy the car for $30,000. 0:07:30.600 --> 0:07:33.760 That's your upfront payment. Let's just say you pay half 0:07:33.769 --> 0:07:35.880 of that 15,000, which isn't a lot to own a 0:07:35.890 --> 0:07:39.220 car in today's context. Right? But your maintenance could be really, 0:07:39.230 --> 0:07:41.779 really high. I mean, you have your depreciation, you have 0:07:41.790 --> 0:07:43.920 your road tax, you have your insurance, which is an 0:07:43.929 --> 0:07:48.049 annual payment, by the way, you have parking, your occasional summons, right? 0:07:48.059 --> 0:07:51.350 Your petrol prices, your er P S, it's constant payment. 0:07:51.359 --> 0:07:53.529 If you put all of that together, we are talking 0:07:53.540 --> 0:07:57.790 about a good 1002 2005 every month just to own 0:07:57.799 --> 0:07:59.750 a car. If you put that into perspective, 0:08:00.053 --> 0:08:03.484 think about it. Right. If you take grab every day, 0:08:03.493 --> 0:08:05.884 are you really gonna hit 1,002,005? 0:08:05.894 --> 0:08:07.773 Even with search pricing? Right. Exactly. 0:08:07.783 --> 0:08:10.223 Unless you're telling me you're doing sales then. Yes. Ok. 0:08:10.234 --> 0:08:12.433 I can understand. You got to run from point to point, 0:08:12.444 --> 0:08:15.053 I can understand you might even hit 2000. Maybe getting 0:08:15.063 --> 0:08:16.924 a car would be a better option for you. But 0:08:16.933 --> 0:08:18.563 I mean, and I say this with a lot of 0:08:18.574 --> 0:08:20.813 confidence because I did it before. It was like an 0:08:20.824 --> 0:08:23.003 experiment because I wanted to show my wife that, you 0:08:23.014 --> 0:08:24.864 know what? I think getting a car is a wrong move. 0:08:24.873 --> 0:08:27.164 I think we should not get a car. Let's just 0:08:27.174 --> 0:08:29.104 go public wherever we want to go, we need, 0:08:29.187 --> 0:08:32.208 need to go. Let's take a taxi. I call a 0:08:32.218 --> 0:08:33.157 grab or something. 0:08:33.168 --> 0:08:35.256 You know, if you really need that comfort and the 0:08:35.268 --> 0:08:36.187 space to ferry 0:08:36.197 --> 0:08:38.817 everyone. Exactly. And we tried that for a good 30 0:08:38.828 --> 0:08:41.408 days and we realized how much money we can actually 0:08:41.418 --> 0:08:44.447 save and trust me when I sold my previous car, 0:08:44.458 --> 0:08:47.857 when I got back, that lump sum of money. Yeah, 0:08:47.867 --> 0:08:50.697 all I did. I immediately called my wife and said, 0:08:50.708 --> 0:08:52.297 you know what? I think we shouldn't get the car. 0:08:52.307 --> 0:08:54.797 We should just keep this money. I mean, put it aside, 0:08:54.807 --> 0:08:57.197 do whatever we want. We could buy stuff for the 0:08:57.208 --> 0:08:58.458 kids to bring them for 0:08:58.541 --> 0:09:00.961 holiday. You know, and she just went. No, you know what? 0:09:00.971 --> 0:09:03.470 It's impossible. It's genuinely impossible, 0:09:03.481 --> 0:09:07.281 especially if you're very used to it for a specific purpose. 0:09:07.291 --> 0:09:10.591 I know of people who own cars specifically because they 0:09:10.601 --> 0:09:13.711 are the sole caregivers of their elderly parents. For example, 0:09:13.721 --> 0:09:17.651 family members with disabilities and taking a cab. It's not 0:09:17.660 --> 0:09:21.601 the most logistically comfortable situation. If you're used to a 0:09:21.611 --> 0:09:24.521 certain level of comfort for a specific purpose, maybe when 0:09:24.530 --> 0:09:26.731 the kids are older, they're more independent. 0:09:26.742 --> 0:09:27.790 I can't wait. 0:09:28.340 --> 0:09:30.369 I can't wait, man. Every 0:09:30.380 --> 0:09:31.710 parent is telling me this. 0:09:35.320 --> 0:09:38.130 Hi. My name is Julie Yu and I'm the host 0:09:38.140 --> 0:09:41.820 of the Climate Conversations. Each week I speak to guests 0:09:41.830 --> 0:09:44.950 who give us tips on how we can protect the earth. 0:09:44.960 --> 0:09:48.539 Every once in a while. We also have interesting stories 0:09:48.549 --> 0:09:52.210 like how Singapore's first Tesla owner prompted billionaire 0:09:52.280 --> 0:09:55.179 Elon Musk to reach out to Prime Minister Lee Slo 0:09:55.619 --> 0:09:59.299 or a chef who makes the juiciest burgers from only 0:09:59.309 --> 0:10:03.330 plant based ingredients. For more stories like these, look for 0:10:03.340 --> 0:10:06.039 the climate conversations on our C N A and me 0:10:06.080 --> 0:10:09.119 listen apps or wherever you get your podcasts. 0:10:12.580 --> 0:10:16.159 So the other option apart from car sharing is leasing 0:10:16.169 --> 0:10:18.650 a car, which is what some of those people I 0:10:18.659 --> 0:10:21.260 spoke to who drive a car to ferry certain family 0:10:21.270 --> 0:10:24.039 members around. They are doing just that. Can you walk 0:10:24.049 --> 0:10:27.770 us through the pros and cons of leasing a car? 0:10:27.780 --> 0:10:31.169 And how is that different from actually renting a car? 0:10:31.179 --> 0:10:34.030 Ok. So if you get a car from a car 0:10:34.039 --> 0:10:37.830 leasing company, it's usually for a longer period of time, 0:10:37.840 --> 0:10:39.619 an extended period of time. So you're not going to 0:10:39.630 --> 0:10:39.909 lease a 0:10:40.010 --> 0:10:42.949 for three days, for instance, for whatever Chinese New Year, 0:10:43.111 --> 0:10:46.421 you'll probably do it because you want to try car 0:10:46.431 --> 0:10:49.460 ownership for a while. So it's probably six months minimum, 0:10:49.471 --> 0:10:52.320 up to a year. The advantages of going through car 0:10:52.330 --> 0:10:54.770 leasing is that you don't have to fork out that 0:10:54.780 --> 0:10:57.010 one lump sum of down payment. So you just go 0:10:57.020 --> 0:10:58.370 up to a company and say, you know what I 0:10:58.380 --> 0:11:00.530 want to lease this car and they'll say, ok, your 0:11:00.541 --> 0:11:03.260 monthly payment is X amount of dollars, everything is covered, 0:11:03.270 --> 0:11:07.481 road tax insurance, everything. However, you don't own 0:11:07.581 --> 0:11:10.921 that car, which means to say you can't modify that car. 0:11:10.932 --> 0:11:12.361 You can't just say, oh, you know what? I don't 0:11:12.372 --> 0:11:14.511 really like this champagne color. I want it black. I 0:11:14.521 --> 0:11:17.262 would like to have it resprayed. No, you can't do 0:11:17.271 --> 0:11:19.642 that either. You can't even have it wrapped because it 0:11:19.651 --> 0:11:23.191 ain't yours. Exactly that. So you don't have that ownership. 0:11:23.202 --> 0:11:25.851 Is that really important though? I know it's not in 0:11:25.861 --> 0:11:29.401 line with the business that I represent, but I feel 0:11:29.410 --> 0:11:32.752 there's a need to be honest and pragmatic. Yes. And 0:11:32.761 --> 0:11:35.040 I think car ownership in Singapore is just a 0:11:35.153 --> 0:11:37.203 no goal if you don't need a car. And I 0:11:37.213 --> 0:11:39.692 think a lot of people can't draw the line between 0:11:39.703 --> 0:11:41.792 a one and a need, I want a car, I 0:11:41.802 --> 0:11:44.432 want a Ferrari, right? But I can't, I mean, I 0:11:44.442 --> 0:11:47.922 don't really need a Ferrari. Arguably people would say that 0:11:47.932 --> 0:11:51.132 someone with three kids may not even need a car. Right? 0:11:51.172 --> 0:11:53.982 So it's really up to individual. But if you ask 0:11:53.992 --> 0:11:57.431 me car leasing is a much better option compared to 0:11:57.442 --> 0:11:59.482 car buying because will it save 0:11:59.492 --> 0:12:01.142 you more in the long run? 0:12:01.153 --> 0:12:02.463 Do you think? I don't reckon 0:12:02.723 --> 0:12:04.983 save you more in the long run financially, but I 0:12:04.994 --> 0:12:07.213 think it saves you a lot of trouble. It gives 0:12:07.223 --> 0:12:09.864 you an experience. So you get a car and you 0:12:09.874 --> 0:12:11.893 sort of realize like, oh, man, I mean, I've got 0:12:11.903 --> 0:12:15.294 to consider parking, I've got to consider patrol. I'm starting 0:12:15.304 --> 0:12:17.734 to feel like it's eating into my savings or it's 0:12:17.744 --> 0:12:21.093 eating inside my bank account. Is this really for me? 0:12:21.104 --> 0:12:23.283 And we never want this to happen to anybody. But 0:12:23.294 --> 0:12:25.773 once in a while you get into minor accidents and 0:12:25.783 --> 0:12:28.613 then you have to send the car for repair the hassle, 0:12:28.624 --> 0:12:30.193 the mental stress, it be like, 0:12:30.294 --> 0:12:31.734 oh man, I got to do this, I got to 0:12:31.744 --> 0:12:33.223 do that, but I have to be in the office. 0:12:33.234 --> 0:12:36.125 It's a lot of things to really seriously consider. Do 0:12:36.135 --> 0:12:36.244 you 0:12:36.255 --> 0:12:40.255 see then a trend of people moving towards leasing because 0:12:40.265 --> 0:12:41.905 of the high C O E s. Do you see 0:12:41.914 --> 0:12:47.304 that wave of people just being pushed towards these alternative options? 0:12:47.315 --> 0:12:49.255 I think it's a bit of both. I see it 0:12:49.265 --> 0:12:51.424 as a funnel. You know, it's like a funnel sort 0:12:51.434 --> 0:12:56.794 of model at the top. You have people leasing, renting, buying, borrowing, 0:12:56.804 --> 0:12:57.645 what have you and 0:12:57.866 --> 0:13:01.176 you slow down the ultimate goal of Singaporeans. And I 0:13:01.184 --> 0:13:03.856 say Singaporeans because I'm a Singaporean, the ultimate goal is 0:13:03.866 --> 0:13:07.116 owning that car, that E class or the five series 0:13:07.125 --> 0:13:10.515 or the F type, whatever. Right. So that's the ultimate 0:13:10.526 --> 0:13:13.116 funnel right at the bottom is just, I want to 0:13:13.125 --> 0:13:15.375 own a car, they do whatever it takes to get there. 0:13:15.385 --> 0:13:18.825 But those who can't, will start thinking about leasing will 0:13:18.835 --> 0:13:22.955 start to think about renting car sharing even. Will more 0:13:22.966 --> 0:13:25.335 people go towards that? I think. 0:13:25.767 --> 0:13:28.806 Yes and no, because it's an inevitable thing to some. 0:13:28.817 --> 0:13:30.256 I don't want to lease a car. I only want 0:13:30.267 --> 0:13:32.177 to own a car no matter how much it takes 0:13:32.187 --> 0:13:34.456 in general, say I have $10 in my wallet. I'm 0:13:34.466 --> 0:13:36.766 willing to take $10 and I'm willing to do $5 0:13:36.776 --> 0:13:38.846 on credit just to get to the end of the funnel. 0:13:38.856 --> 0:13:41.656 It's not advisable, obviously financially, but I do think more 0:13:41.666 --> 0:13:44.636 people would think about leasing. I also do know quite 0:13:44.646 --> 0:13:46.596 a handful of people who will hold on to their 0:13:46.606 --> 0:13:48.656 cars till the end of the C O E life 0:13:48.666 --> 0:13:51.497 span and they'll just renew the C O E again. 0:13:51.796 --> 0:13:52.905 But at 90 0:13:53.006 --> 0:13:56.697 6 to 100 and 19 K, that's a very expensive 0:13:56.708 --> 0:13:58.687 piece of paper just to keep that car. And you're 0:13:58.697 --> 0:14:00.237 not even sure if that car is going to run 0:14:00.247 --> 0:14:03.737 as smoothly as it used to for the next 10 years. Well, 0:14:03.747 --> 0:14:04.158 I think 0:14:04.168 --> 0:14:07.138 only the owner will know because how often he has 0:14:07.148 --> 0:14:10.398 been servicing how much he babied the car would actually 0:14:10.408 --> 0:14:12.828 be a good gauge for him. And if you think 0:14:12.838 --> 0:14:15.177 about it, let's just say a for instance, right. C 0:14:15.268 --> 0:14:18.147 A is approximately 96. Let's just say it's 100,000. If 0:14:18.158 --> 0:14:20.478 I renew my car, based on that number, 0:14:20.578 --> 0:14:24.629 my annual depreciation would be 10,000 year, which is still 0:14:24.638 --> 0:14:28.098 cheaper compared to current prices of new cars. If I 0:14:28.109 --> 0:14:30.028 know that I've been babying my car, I've been really 0:14:30.039 --> 0:14:32.789 taking good care of my car servicing regularly 0:14:32.799 --> 0:14:34.758 and if it's a car where you can get spare 0:14:34.768 --> 0:14:35.629 parts easily. 0:14:35.638 --> 0:14:39.388 Yes, exactly. That I would actually spend 100,000 renewing. Yes. Yeah, 0:14:39.398 --> 0:14:43.818 because you're effectively paying 100,000 more just for the car 0:14:43.828 --> 0:14:44.609 ownership and to 0:14:44.619 --> 0:14:46.669 run it and for the next 10 years. So if 0:14:46.679 --> 0:14:48.049 anything happens, I will still 0:14:48.150 --> 0:14:49.330 be able to sell the car and as you can. 0:14:49.400 --> 0:14:51.049 But for instance, and if no one wants to buy 0:14:51.059 --> 0:14:53.500 the car, I'll still be able to scrap my car, 0:14:53.510 --> 0:14:55.359 say maybe the third or fourth year and get back 0:14:55.369 --> 0:14:57.059 the remaining value of the C O E that I've 0:14:57.070 --> 0:15:00.549 paid. So it's about usage then. Yes, it is also 0:15:00.559 --> 0:15:03.669 about usage. What's the demographic like of someone who would 0:15:03.679 --> 0:15:06.159 lease a car apart from those who would want to 0:15:06.169 --> 0:15:08.169 try out car ownership for a while? 0:15:08.179 --> 0:15:10.409 I mean, if you exclude those who want to try 0:15:10.419 --> 0:15:13.349 out car ownership and you exclude those who just want 0:15:13.359 --> 0:15:15.599 to impress their friends and their girlfriends, 0:15:16.900 --> 0:15:19.619 it will probably be maybe 50 to 60 year olds. 0:15:19.630 --> 0:15:23.729 And I say that because my dad is now, what, 72. 0:15:23.739 --> 0:15:25.049 And he told me once that, you know what I 0:15:25.059 --> 0:15:29.419 want to stop driving when I'm 65 which he did, 0:15:29.429 --> 0:15:31.969 he did stop driving at 65. But I kind of 0:15:31.979 --> 0:15:34.739 realized that between the age of 60 to 65 your 0:15:34.750 --> 0:15:38.020 reaction time isn't as good anymore. You're slightly slower. You 0:15:38.030 --> 0:15:40.659 are grumpier on the road. So I think it's good. 0:15:40.669 --> 0:15:42.799 50 to 60 years old, right? Yeah. 0:15:42.809 --> 0:15:44.960 Ok. That's an interesting subset there. 0:15:45.052 --> 0:15:48.663 So let's say we're looking at a period of five years. 0:15:48.672 --> 0:15:52.062 Would it be more expensive to buy or lease a car? 0:15:52.072 --> 0:15:55.822 Keeping in mind? Of course, all those wonderful things that 0:15:55.833 --> 0:15:59.052 bleed our wallets, maintenance, insurance, road tax, 0:15:59.062 --> 0:16:01.263 the like as in five years, as a brand new 0:16:01.273 --> 0:16:03.742 car or five years, used car. Uh, let's go with 0:16:03.752 --> 0:16:06.312 used first. I would say you should just go with 0:16:06.322 --> 0:16:09.103 a five year old used car. I mean, if you 0:16:09.112 --> 0:16:10.833 just want to try it out for five years and 0:16:10.843 --> 0:16:12.431 five years is not a short time, five years is 0:16:12.442 --> 0:16:13.203 a relatively long. 0:16:13.296 --> 0:16:16.226 But if you are confident, maybe you have tried certain 0:16:16.236 --> 0:16:18.495 models before and you really like it. I say you 0:16:18.505 --> 0:16:20.556 should just go for the used car because it's the 0:16:20.565 --> 0:16:22.125 final thing, you know, at the end of it, I 0:16:22.135 --> 0:16:24.916 want to be an owner to a car. May not 0:16:24.926 --> 0:16:26.846 be an E class may not be a five series, 0:16:26.856 --> 0:16:28.676 but I would like to own a car. I would 0:16:28.685 --> 0:16:31.426 like the car to be under my name. So at 0:16:31.435 --> 0:16:33.195 the end of it, I think if it's a five 0:16:33.205 --> 0:16:36.335 year thing, you know, you could consider getting an economic car, 0:16:36.346 --> 0:16:37.445 I could say. What 0:16:37.455 --> 0:16:40.395 about a five year new car versus leasing there? Oh, man, 0:16:40.406 --> 0:16:41.385 definitely, 0:16:41.859 --> 0:16:47.099 definitely leasing because new car prices are crazy today. It's 0:16:47.109 --> 0:16:50.669 not worth the money. It's not worth the financial stress 0:16:50.679 --> 0:16:51.020 unless 0:16:51.030 --> 0:16:52.719 of course you can really 0:16:52.729 --> 0:16:54.969 afford it. Yeah. But you see, that's my argument. Right. 0:16:54.979 --> 0:16:56.669 I mean, I told a friend just because you're well 0:16:56.679 --> 0:16:59.440 to do does not mean that you should spend so 0:16:59.450 --> 0:17:01.250 much on a liability. 0:17:01.260 --> 0:17:03.900 Yeah, it depreciates the moment it's out of the showroom. 0:17:03.909 --> 0:17:06.770 Exactly. And what's worse is we came from a time 0:17:06.780 --> 0:17:10.469 when cars weren't this expensive. So, if I say, for instance, 0:17:10.479 --> 0:17:10.959 a Suzuki, 0:17:11.202 --> 0:17:14.692 if we knew what it cost 10 years ago, and 0:17:14.702 --> 0:17:17.331 now you're telling me this is the price. No way. 0:17:17.541 --> 0:17:20.281 I mean, yeah, even if you've got the money to 0:17:20.291 --> 0:17:23.851 spend it's in your banks. There are doing absolutely nothing. 0:17:23.862 --> 0:17:26.581 Does not mean that you should just splurge like this. 0:17:26.661 --> 0:17:27.092 That's 0:17:27.102 --> 0:17:30.812 me. And on that note, what's your financial advice to 0:17:30.821 --> 0:17:33.571 a potential car buyer in terms of what to look 0:17:33.582 --> 0:17:34.370 out for? 0:17:34.381 --> 0:17:38.332 You should always consider all the maintenance cost of owning 0:17:38.342 --> 0:17:40.331 a car. So, like what I mentioned before, 0:17:40.542 --> 0:17:46.423