Oneguy 1st Gear October 6, 2015 Share October 6, 2015 PRESUME ... New Car A - CEVS Neutral Selling = $150,000 OMV = $20,000 CEVS = $0ARF = $20,000 PARF = 50% of ARF = 50% x $20,000 = $10,000 Straight Line Depri = $150,000 - $10,000 = $140,000 over 10 years = $14,000 per year New Car B - CEVS Rebate Selling = $150,000 OMV = $20,000 CEVS = $10,000 REBATE ARF = $20,000 - $10,000 = $10,000 PARF = 50% of ARF = 50% x $10,000 = $5,000 Straight Line Depri = $150,000 - $5,000 = $145,000 over 10 years = $14,500 per yearNew Car C - CEVS Surcharge Selling = $150,000 OMV = $20,000 CEVS = $10,000 SURCHARGE ARF = $20,000 + $10,000 = $30,000 PARF = 50% of ARF = 50% x $30,000 = $15,000 Straight Line Depri = $150,000 - $15,000 = $135,000 over 10 years = $13,500 per year Tio Bio? ↡ Advertisement Link to post Share on other sites More sharing options...
Mkl22 Twincharged October 6, 2015 Share October 6, 2015 All right except C. The rebate is only on the 20k. So you get 10k back. The surcharge is a penalty. Doesn't make sense to make you pay 10k and the. Give you back 5k right? 3 Link to post Share on other sites More sharing options...
Wt_know Supersonic October 6, 2015 Share October 6, 2015 (edited) unless Car B is way better than Car A ... else not worth to buy but judging from 10k CEVS rebate ... it's not a powerful car then why buy a less powerful car with CEVS and yet the depreciation is higher than Car A presumably more powerful car does not make sense at all in real life comparison Car B selling price should be $140k or less unless dealer makan the $10k CEVS as additional profit ... lol Edited October 6, 2015 by Wt_know 2 Link to post Share on other sites More sharing options...
Eyke Supercharged October 6, 2015 Share October 6, 2015 Excise Duty? GST? Link to post Share on other sites More sharing options...
flashbang Turbocharged October 6, 2015 Share October 6, 2015 unless Car B is way better than Car A ... else not worth to buy but judging from 10k CEVS rebate ... it's not a powerful car then why buy a less powerful car with CEVS and yet the depreciation is higher than Car A presumably more powerful car does not make sense at all in real life comparison Car B selling price should be $140k or less unless dealer makan the $10k CEVS as additional profit ... lol In real life it would be New Car A - CEVS Neutral Selling = $150,000 OMV = $20,000 CEVS = $0 ARF = $20,000 PARF = 50% of ARF = 50% x $20,000 = $10,000 Straight Line Depri = $150,000 - $10,000 = $140,000 over 10 years = $14,000 per year New Car B - CEVS Rebate Selling = $140,000- OMV = $20,000 CEVS = $10,000 REBATE ARF = $20,000 - $10,000 = $10,000 PARF = 50% of ARF = 50% x $10,000 = $5,000 Straight Line Depri = $140,000 - $5,000 = $135,000 over 10 years = $13,500 per year New Car C - CEVS Surcharge Selling = $160,000+ OMV = $20,000 CEVS = $10,000 SURCHARGE ARF = $20,000 + $10,000 = $30,000 PARF = 50% of ARF = 50% x $20,000 = $10,000 Straight Line Depri = $160,000 - $10,000 = $150,000 over 10 years = $15,000 per year Link to post Share on other sites More sharing options...
F355 Turbocharged October 6, 2015 Share October 6, 2015 SInce things are so complicated sgcarmart should list down OMV , PARF benefits ,and depreciation especially in the used cars section . But the dealers are only interested to tell you low mileage , accident free , owner's 2nd car , lady owner called Miss Lim etc etc .... 1 Link to post Share on other sites More sharing options...
Piyopico Supercharged October 6, 2015 Share October 6, 2015 SInce things are so complicated sgcarmart should list down OMV , PARF benefits ,and depreciation especially in the used cars section . But the dealers are only interested to tell you low mileage , accident free , owner's 2nd car , lady owner called Miss Lim etc etc .... ADs for new cars do list all these. Second hand cars........... Buyers beware. Link to post Share on other sites More sharing options...
Little_prince Supersonic October 6, 2015 Share October 6, 2015 Buy new drive 10yr it is straight line depreciation. You sell after 5 yrs then good luck to you. Lol 2 Link to post Share on other sites More sharing options...
Kangadrool Supersonic October 6, 2015 Share October 6, 2015 5-year is like crooked line S-shaped bridge depreciation. Buy new drive 10yr it is straight line depreciation.You sell after 5 yrs then good luck to you. Lol Link to post Share on other sites More sharing options...
nazerath Turbocharged October 6, 2015 Share October 6, 2015 So many cost components. Complicating. 6 Link to post Share on other sites More sharing options...
Oneguy 1st Gear October 6, 2015 Author Share October 6, 2015 hi all - good morning. thank you for all your replies. i do agree that it is a complicated process, especially when calculating a straight line depri for 10 years. in reality, there will be differences in the selling prices but i wanted a situation where everything is keep constant and to see the impact of the CEVS on the depri. technically, if selling prices are the same, if omv are the same, if wear and tear are the same, (a) cars with CEVS rebates attract a lower PARF, therefore higher depri (b) cars with CEVS surcharge attract a higher PARF, therefore lower depri that seems rather strange. buying a car in singapore is not easy - only wish we can all buy based on the look and feel ... but many a times, the decision rides on the how much money we will be losing in the end. Link to post Share on other sites More sharing options...
F355 Turbocharged October 6, 2015 Share October 6, 2015 (a) cars with CEVS rebates attract a lower PARF, therefore higher depri (b) cars with CEVS surcharge attract a higher PARF, therefore lower depri that seems rather strange. Not just that ; the rebate is enjoyed by the first buyer and not passed down to subsequent owners . That's why it makes more sense for the rebate to be given over the lifespan of the car , say a yearly road tax rebate . This has been discussed before , but obviously LTA thinks otherwise . 1 Link to post Share on other sites More sharing options...
Spring Moderator October 7, 2015 Share October 7, 2015 Not just that ; the rebate is enjoyed by the first buyer and not passed down to subsequent owners . That's why it makes more sense for the rebate to be given over the lifespan of the car , say a yearly road tax rebate . This has been discussed before , but obviously LTA thinks otherwise . Good suggestion n also the dealers don't get a chance to makan the CEVS rebates which is partially happening now, sometimes even fully. If they insist on doing it upfront, they could also rebate the owner directly as well but LTA will say, administratively it's difficult, on top of the need to put aside cash etc. They always have the final say! 5 Link to post Share on other sites More sharing options...
Oneguy 1st Gear October 7, 2015 Author Share October 7, 2015 (a) agree. perhaps LTA should reconsider. the savings on the purchase of an environment friendly car should be on its users i.e. you are using a more environment friendly car while on the road - perhaps, a rebate against the yearly road tax? (b) does anyone know where one can get a reference to the CEVS rebate or surcharge per make/model? Link to post Share on other sites More sharing options...
Eyke Supercharged October 7, 2015 Share October 7, 2015 (b) does anyone know where one can get a reference to the CEVS rebate or surcharge per make/model? http://www.onemotoring.com.sg/publish/onemotoring/en/lta_information_guidelines/buy_a_new_vehicle/car_cost.html i do agree that it is a complicated process, especially when calculating a straight line depri for 10 years. where got complicated? i oredi done the complicated bits for u, just find out the car's CO2 emission & other info into my spreadsheet (in sig) and TADAAAH: u get ur straight line depreciation. 3 Link to post Share on other sites More sharing options...
Jaskin 2nd Gear October 7, 2015 Share October 7, 2015 Good suggestion n also the dealers don't get a chance to makan the CEVS rebates which is partially happening now, sometimes even fully. If they insist on doing it upfront, they could also rebate the owner directly as well but LTA will say, administratively it's difficult, on top of the need to put aside cash etc. They always have the final say! even if we got the CEVS rebate back. They could always raise prices... then LPPL we still have to go LTA get the refund... very hard to circumvent them Link to post Share on other sites More sharing options...
Spring Moderator October 7, 2015 Share October 7, 2015 even if we got the CEVS rebate back. They could always raise prices... then LPPL we still have to go LTA get the refund... very hard to circumvent them My take is that it is easier to camouflage the CEVS rebate in the overall selling price as some buyers are not saavy enough to calculate the margin which was what I tried to show in the BMW Grand tourer thread. Take away the CEVS rebate and it becomes easier to calculate and hence harder for dealers to raise prices indiscriminately. Most buyers are not getting the full CEVS rebate but we are at the mercy of the dealers. That's why I wanted to de-peg this or as one bro suggested, to phase it over the full 10 years. 6 Link to post Share on other sites More sharing options...
King_Kong 2nd Gear October 7, 2015 Share October 7, 2015 Oneguy, your calculations are correct, but they won't be offered in real life. At the same OMV of $20K, car C, with the higher ARF, would mean much lesser profit to the seller than car B or A. Let's ignore other costs and just concentrate on the OMV and government fees (ie ARF). The margins would be:Car A: $150k-$20k = $130kCar B: $150k-$20k+$10K = $140KCar C: $150k-$20k-$20k = $110K In real life, the car dealer should be making similar profits from all types of cars. If he can make do with a selling price of $150K for Car A, then Car B should be selling at $140K and Car C should be $170K. You should then be calculating the depreciation from these selling prices. ↡ Advertisement Link to post Share on other sites More sharing options...
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