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New Car or Pre-owned?? Either side, we lose.


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New height of COE for Cat A may soon be announced, new cars are heard fully booked, agents are taking in orders to secure them with preparation to bid higher price of COE.....any fools know about this.

 

Is this not really a bad news for those who intend to get a pre-owned car to bridge this period of craziness, think again. The 2nd car dealers are too prompt to increase prices by quite a bit in anticipation. I noticed several offers (with much cheaper COEs) asking for ridiculous prices with astronomical depreciation rate (US$12-15K per annum) by dealers, some owners alike....

 

For a new car, if scrap at the end of 10th year, the depreciation of a VW golf is 15K per annum (8/yr for COE, 5K for car, 2K for interest).

For a pre-owned car, the depreciation of COE is much lower, but the car is much higher, and the overall depreciation works to be almost the same amount you pay for a new car.

Take for instance, a 2010 Golf 1.4 was $106k then, the dealers are selling them today at the same price or more. But, the cost of COE was as low as $34k, so you are paying much more for the depreciation of the old car.

 

If everyone of us just buy pre-owned car blindly without working out our sum, COE will continue to rise, it is a viscous cycle. If we lose patient, we shall pay the price, a hefty price indeed. If we can wait, we should.

 

Thanks for hearing me out.

 

 

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Yah. Without realizing for a layman, buying a pre-owned don't make economical sense. Also, pre-owned cars do not have warranty, so have to factor in repair and wear/tear parts replacement. I calculated for an example car and the depreciation works out to about $13k p.a. - very high.

 

 

 

 

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To those that wants a new car....its simple.

 

Buy now or forever pay more later. [laugh]

Tok lidat s'more n some will start to suspect u r car dealer..

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Yah. Without realizing for a layman, buying a pre-owned don't make economical sense. Also, pre-owned cars do not have warranty, so have to factor in repair and wear/tear parts replacement. I calculated for an example car and the depreciation works out to about $13k p.a. - very high.

Difference in depre not much, so unless ur current ride increases depre by few k, used car not worth getting anytime now.

 

No one knows for certain what would happen in even near future.

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Those who have a car now, should hang on to it like your family jewel [laugh] . Those who doesnt have, work harder to earn more.

That's kinda demoralizing. Salary cannot catch up w "appreciation"... Rich n poor gap widening. Worse, sandwich class hanging mid air.

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Those who have a car now, should hang on to it like your family jewel [laugh] . Those who doesnt have, work harder to earn more.

Even those who doesnt have a car now, no need to work harder also can buy a car la. Just go and buy those 7 years or more car lo. Recently i have 2 friends bought a 2005 car and now they are also consider car owner. :D

 

Anyway, not everyone know how to workout our sum when we buy pre-owned or new car, esp during the current super high COE. Usually they buy when they feel they can afford to pay for the car or they like the car. [rolleyes]

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Tok lidat s'more n some will start to suspect u r car dealer..

 

What is wrong with Singaporeans? When good advise given, dowan to listen.

 

Months later blame the person who gave the advise.

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Neutral Newbie

What is wrong with Singaporeans? When good advise given, dowan to listen.

 

Months later blame the person who gave the advise.

Actually i regretted listening too much here. I sell away my estima last year. Now cannot buy back a Wish. Stupid. Judge for yourself. Now can only call cab, estima cab. Kiang jiu hoe, mai kei kiang.

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Actually i regretted listening too much here. I sell away my estima last year. Now cannot buy back a Wish. Stupid. Judge for yourself. Now can only call cab, estima cab. Kiang jiu hoe, mai kei kiang.

 

There are many cars out there with selling price lower than the price u sold for your estima.

 

Its whether you want to change for a smaller car or maybe a car left around 2-3 years....

 

So please dont blame the forum members...its your choice mah....

Edited by Ooosh
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two issues: depreciation and underlying asset value (i.e. gap between mkt price and paper value)

 

irony of buying a 2-3yr old car now, is high depreciation (due to relative newness compared to older cars as well as current COE price) + low paper value (due to low COE then).

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It won't , markets come and go , as much as we hate it , when there is too much cars people whine , when they tighten the laws on control of cars people whine. I personally prefer the current condition where people with lesser income are being removed from driving , financially it forces more people to save up and take public transport .

 

When markets eventually crash , we will see pre own cars at discount prices with buyers of 2011 and 2012 crying. As for people which think they sold their car at a high just rent lor , eventually when the demand is lower or when people run out of money , eventually prices will drop. It is just a matter of time , don't be so stupid to pay for such high prices for COE.

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Actually i regretted listening too much here. I sell away my estima last year. Now cannot buy back a Wish. Stupid. Judge for yourself. Now can only call cab, estima cab. Kiang jiu hoe, mai kei kiang.

 

 

well you simply listened to the wrong folks.

 

the wise ones always tell you never to fool with your one and only ride (property for that matter) or you may not get it back.... [rolleyes]

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New height of COE for Cat A may soon be announced, new cars are heard fully booked, agents are taking in orders to secure them with preparation to bid higher price of COE.....any fools know about this.

 

Is this not really a bad news for those who intend to get a pre-owned car to bridge this period of craziness, think again. The 2nd car dealers are too prompt to increase prices by quite a bit in anticipation. I noticed several offers (with much cheaper COEs) asking for ridiculous prices with astronomical depreciation rate (US$12-15K per annum) by dealers, some owners alike....

 

For a new car, if scrap at the end of 10th year, the depreciation of a VW golf is 15K per annum (8/yr for COE, 5K for car, 2K for interest).

For a pre-owned car, the depreciation of COE is much lower, but the car is much higher, and the overall depreciation works to be almost the same amount you pay for a new car.

Take for instance, a 2010 Golf 1.4 was $106k then, the dealers are selling them today at the same price or more. But, the cost of COE was as low as $34k, so you are paying much more for the depreciation of the old car.

 

If everyone of us just buy pre-owned car blindly without working out our sum, COE will continue to rise, it is a viscous cycle. If we lose patient, we shall pay the price, a hefty price indeed. If we can wait, we should.

 

Thanks for hearing me out.

 

 

A 5~6 years old car is considered a better buy today. These cars are less affected by the fluctuating COE as their price is more or less achored by their scrap value (50% of OMV) when they reach 10 years old. But with the odometer tampering so rampant, be very selective on the car you buy. A good bet is a car with good servicing record with the authorised agent.

 

After driving that car for 4 years, scrap it and hopefully can buy a new car with cheap coe by then.

 

Edited by Topspin
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