Ways To Get Around That 40%

Like me, you probably bought your car when COEs and car loans were a cheap.

If that is the case, you’d be like me; a middle aged man/woman who owns a car that’s past the midway mark of its allotted lifespan. Some of you may even have less than 4 years to go before you make your final drive to the scrapya

If you are like me, you are probably wondering how you can afford to make a 40% cash down payment when the time comes to buy a new car. It may seem like your driving days are numbered and you may begin preparing yourself for the inevitable return to public transport.

But hey, wait a minute. Say you have 3 years left to go before your COE expires – that’s 36 months – or $36,000, if you manage to save a thousand dollars per month.

That’ll put you within shouting distance on the down payment for a new Honda Fit ; based on todays’ market values. For $500 more, that will mean the difference between settling for a new Honda Fit and being able to afford, say, the 40% down payment for a Subaru Impreza.

Feeling inspired yet? Want to know how you can achieve these dreams? It takes a two-pronged approach; so let’s not dilly-dally and get to it.

In a way, credit cards are a tax you pay for yielding to temptation. Even if you pay the monthly bills promptly and never incur late fees or interest, just having credit makes you more likely to overspend.

Studies have shown that people are more reluctant to break up large-denominator notes. In contrast, smaller notes (like tens or fifties) tend to be treated like petty cash and spent in a carefree fashion. The thing is, small numbers add up.

So, as counterintuitive as it may seem, keeping a stack of orange Yusof Ishaks ($100) in your wallet may bode better for your bank balance than a bunch of blue notes ($50) – simply because it forces you to think about your spending.

In fact, resisting the temptation to break a hundred dollar bill may just help you save enough to hit the $500 extra a month. How’s that for motivation?

A lil here, a lil there – that’s what squirrels do with their nuts. It might work for you as well, so go nuts with your savings.

Here’s how: create a savings account (or a few) with a different bank than the one your salary is deposited into. Set up a GIRO order to transfer $100 to it every month. Throw away the ATM card for those new accounts, and pretend you never opened them in the first place.

3 years later: Impreza Resulta.

Singapore’s a player in the oil industry; which means the quality of our locally-available petrol is of a grade than most countries.

What this means is, you can usually get away with pumping a lower grade, like RON92, instead of RON95, without adversely affecting engine performance or increasing the costs of engine maintenance.

Fuel storage tanks at petrol stations are cooler at o-dark thirty, which makes their contents denser.

Since fuel pumps measure volume and not density, pumping 30 litres of petrol at midnight lets you drive further than 30 litres of petrol pumped at high noon.

Use your in vehicle fuel economy meter. Keep in mind that every dollar you save on petrol is for your next car.

To get the most bang for your buck,regularly inflate your tyres to the recommended pressure – lower pressures make your engine less fuel-efficient and wear out your tyres faster too.

You won’t just be saving money; you’re saving the environment as well.

I don’t know about you…but being able to afford a better car in 3 years’ time? That’s infinitely nicer than beating some other drivers in a sprint to the next red light, or always being first in the queue for the filter lane.

Don’t you agree?

Well, there you have it, my opinion on how you can save to make your dream car a reality. Your opinions are always welcomed of course.

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