Expatriate youths are selling their future to car companies
Qatar is home to more than 1.8 million expatriates, most of which are bachelors who work day and night for small sums of money, but then they are falling in the hands of car companies who are selling vehicles on four/five years of payments on installment basis.
Youths need to remember that they are at their best time of earning and should not waste away their hard earned money in paying car installments and interests in this peak time of their lives.
The original Poster is working for traffic department. He is concerned about the ever increasing traffic jams. This is his advice to control ever increasing traffic wows. not a bad attempt.
Here in Qatar, I'd rather buy a good car and take care of it than use the buses, taxis, or car lifts. Buses take a long time; most drivers in taxis and/or lifts are scam, very unsafe (especially for women), and way more expensive than buying gas for your own car. It's still faster and more hassle-free to go to your destination by driving your own car than trying to explain your destination to taxi drivers. There are so many reasons why you have to have a car here in Qatar even as a youth. It isn't practical to buy a car in countries where public transportation is well-established, but NOT here in Qatar for now.
I live in Al Saad and work in West bay. Previously, I pay my carlift QR1500 for a medium aged Nissan Sunny every month (no way we can avoid this unless somebody give it free). If want wish to go countryside I have to spend 150 back/forth. Do it weekly means QR600 more.
Now...
If I will get a loan today and pay QR 1500(incl. petrol) per month for a nice and brand new full option Honda City for 4 years, I will be able travel anywhere anytime in Qatar wherever I wish and sell this car for QR30k after 4 years; or
get a loan for Chevrolet Camaro and pay QR3500 for 4 years, I can sell it for QR80k after 4 years travel anytime anywhere.
Hence, regardless of what car I loan for, it only means I drove a nice car for 4 years for free anytime anywhere or I spent only half (if luxury car) of what could been a payment to my carlift.
Who is saving money now?
Buying car is second highest investment. Please make sure that u choose right car.
Monthly EMI is not consider as investment, First car value will be 10% higher(intrest rate), if calculated market value of car will be 50% less at the end of EMI's.(i.e.what actually paid to bank Intrest, depreciation and condition).
I would like to suggest young drivers to go for used cars (less than 5 year old) buy with cash or hand loan from friends and family.
Some of the advantages
1. while purchasing car u will get actual market price...............
2. if car value can be considered as direct saving...............
3. Satisfaction that u own the car.................
4. Away from bank interest..................
Oh realy, please tell me more
When you buy a car on installment, you are basically making a commitment on giving away your future monies, and in the process it would be hard for you to come out of "Debt Trap" down the road when you would not be earning enough, and your financial commitments like children education starts to surface.
Lots of Filipino, Indians here who owned Land cruisers and Hammers
Lots of Filipino, Indians here who owned Land cruisers and Hammer
Car is the Bait. Guess who is the predator
I fully agree with Equi, bankers just loot the innocent young men by selling them metal & some rubber & plastics ........... Thu, 28.08.2014, 10.45 hrs