Car depreciation is the highest for the first three to four years. Thereafter, it depreciates at a more gradual pace till it reaches the end of its COE. If you buy a used car that is into its second-year, you are bearing part of the brunt of the depreciation. It is therefore important to work out the depreciation rate of the car and determine whether you are buying it at the right time.
Failure to identify and factor in the interest rate
Interest rates for a pre-owned car will be higher than a brand new car due to the higher risk the lending bank will need to shoulder. The higher risk comes from the limited value of the pre-owned car that the bank can recoup in the event you defaulted on your loan. Buyers should always be conscious of the higher interest [...]