Renew COE or Buy pre-owned?

[Wintersonata]

If u want to renew, do it with 10 yrs COE. Your loss in parf value can spread out across 10 yrs. My advise is to renew COE than buying 2nd hand, if COE really drop in the next few yrs, u can scrap and get back higher paper value.

 

10 year COE based on current price is too much cash up-front.

Can't really take a car loan just for COE. Have to take more expensive personal loan.

Really not much difference whether it's 5 or 10 years.

Depreciation per year is the same, but the risk is that COE only drop from after the 5th year onwards.

[Wintersonata]

Old cars quite expensive to keep in s'pore. High road tax etc! Also you would not know when the old car will fall apart! What if you already renewed the COE for your old car, and it give major problem after 1-2 years then how?

 

2L car road tax is about $1.2k per annual.

Give it another 50% more, about $1.8k per annual, increase of $600 per annual.

Extending COE will need to factor in another $1k per annual for replacement.

But getting another used car with unknown history will also require certain amount set aside for maintenance.

[Wintersonata]

There is no gurantee that COE would drop in 2014-15 and all. Better do not take a chance. Just scrap, get PARF refund, add your 5 year COE cost and PARF refund from the new pre-owned car and body values of both car. If you have more money in hand to put, add that too. This final amount would let you decide the budget of the new pre-owned car!

 

Good idea.

Considering about $13k + $25k = $40k down-payment for another ~5yrs old car.

Depreciation should be about $9k per year to be equal to renewing the COE, so $9k * 5yrs = $40k.

So the budget of a ~5yrs old pre-owned car should be about $80k?

[Wintersonata]

My suggestion is sell and do long term rental. Could be better for the pocket in long run since COE is rocket high now.

 

Long term rental doesn't seems economical, the monthly rates of the rental should be equal to a >5 yrs old second-hand car.

It can be a short-term measure if COE is expected to drop really soon.

[Ithunk]

Current car COE expiring in Early 2013.

If scrap, should take back about $13k.

Aiming for 2014 - 2016 if COE goes down due to De-registration to buy new car.

Hence, buying a new car now doesn't seem to be a good decision.

 

For COE cars, the previous OMV rebates is lost right? Is my calculation correct?

Seems like buying a pre-owned car with depreciation less than $9k will be a better option? Thanks in advance.

 

If Renew COE (5yrs)

No scrap value

5 yrs COE at ~$25k at 50% off (No loan, full cash)

Increasing road tax every year

Potentially high maintenance cost

Estimate depreciation of about $5k (COE) + $3k (OMV) + $1k (potential maintenance) = $9k

 

If buy Used

<3 yrs old car : Pay depreciation for previous owner

<5 yrs old car : Also pay depreciation for previous owner but maybe lesser

<7 yrs old car : Could be high maintenance due to major wear & tear, but lesser depreciation

>7 yrs old car : Could be even high maintenance due to major wear & tear, but least depreciation

 

jus change car when coe expires....u r going to stick to the same vehicle?

Edited February 1, 2012 by Ithunk

[Mllcg]

think of it simply.

 

will the total cost of renewing COE, (forfeit PARF and pay COE), be higher than the cost of a new car?

 

even now if u were to forfeit the 13k from scrap,

 

and ASSUMING u are driving a CAT B car,

 

u pay only,

 

coe, 60k+13k=73k +- 10k.

 

83k/10=8.3k year.

 

compared to a new car that will most definately be 6 digits

[Wintersonata]

jus change car when coe expires....u r going to stick to the same vehicle?

 

The problem is that my car is serving me well.

Reluctant to risk other pre-owned cars with unknown histories.

If my car is in crap condition, i wouldn't even need to think.

 

Right now is whether it's worth to keep it or what type of budget pre-owned car i can buy with similar depreciation value.

Edited February 2, 2012 by Wintersonata

[Good-Carbuyer]

Current car COE expiring in Early 2013.

If scrap, should take back about $13k.

Aiming for 2014 - 2016 if COE goes down due to De-registration to buy new car.

Hence, buying a new car now doesn't seem to be a good decision.

 

For COE cars, the previous OMV rebates is lost right? Is my calculation correct?

Seems like buying a pre-owned car with depreciation less than $9k will be a better option? Thanks in advance.

 

If Renew COE (5yrs)

No scrap value

5 yrs COE at ~$25k at 50% off (No loan, full cash)

Increasing road tax every year

Potentially high maintenance cost

Estimate depreciation of about $5k (COE) + $3k (OMV) + $1k (potential maintenance) = $9k

 

If buy Used

<3 yrs old car : Pay depreciation for previous owner

<5 yrs old car : Also pay depreciation for previous owner but maybe lesser

<7 yrs old car : Could be high maintenance due to major wear & tear, but lesser depreciation

>7 yrs old car : Could be even high maintenance due to major wear & tear, but least depreciation

I believe your current car to be about 9 years old. If it is in real good condition, low cost maintenance... you may want to keep it by renewing the COE upon expiry.

Otherwise, trade-in for used car in good condition. I just done that.

[Wintersonata]

I believe your current car to be about 9 years old. If it is in real good condition, low cost maintenance... you may want to keep it by renewing the COE upon expiry.

Otherwise, trade-in for used car in good condition. I just done that.

 

Spot on, on it's 9th year, good condition and low maintenance so far.

But also exploring buying a pre-owned car option with similar depreciation with extending COE.

 

[Maroon5]

Good idea.

Considering about $13k + $25k = $40k down-payment for another ~5yrs old car.

Depreciation should be about $9k per year to be equal to renewing the COE, so $9k * 5yrs = $40k.

So the budget of a ~5yrs old pre-owned car should be about $80k?

 

bro if its sonata, have u checked the renewal PQP? isnt it pegged to Cat B, meaning 13K + 33K = 46K for 5 years usage?

I think you are better off scraping and buying any of these:

 

http://www.sgcarmart.com/used_cars/listing...VEH=0&AVL=2

 

 

 

[Mkl22]

Spot on, on it's 9th year, good condition and low maintenance so far.

But also exploring buying a pre-owned car option with similar depreciation with extending COE.

 

What is your scrap at year 10? Cause you can just pay the new 10 year Coe and scrap to go pro rated. Or should the Coe fall in the future. The only loss is your parf, but it will be minimised the longer you hold the car. Like the rest have mentioned calculate the depreciation. For the renewed depreciation what other used car can you get?

 

For me my current car mileage is low. 40k km for a 6.5 year old. So likely I will renew come 2015. Cause another used car is an unknown with similar depreciation. A new will be too ex. To renew you only pay the Coe. For a new car you still. We'd to add in arf, gst, customs duty plus inflated profits for the dealer. As the number of new cars are so few now for sure the profit per car has to be high.

Edited February 2, 2012 by Mkl22

[Wintersonata]

bro if its sonata, have u checked the renewal PQP? isnt it pegged to Cat B, meaning 13K + 33K = 46K for 5 years usage?

I think you are better off scraping and buying any of these:

 

http://www.sgcarmart.com/used_cars/listing...VEH=0&AVL=2

Oops, you are right! It should be based on CAT B.

So depreciating at $9.2k each COE year + higher road tax.

Damn, seems like COE renewal depreciation just gotten higher.

Edited February 2, 2012 by Wintersonata

[Wintersonata]

What is your scrap at year 10? Cause you can just pay the new 10 year Coe and scrap to go pro rated. Or should the Coe fall in the future. The only loss is your parf, but it will be minimised the longer you hold the car. Like the rest have mentioned calculate the depreciation. For the renewed depreciation what other used car can you get?

 

For me my current car mileage is low. 40k km for a 6.5 year old. So likely I will renew come 2015. Cause another used car is an unknown with similar depreciation. A new will be too ex. To renew you only pay the Coe. For a new car you still. We'd to add in arf, gst, customs duty plus inflated profits for the dealer. As the number of new cars are so few now for sure the profit per car has to be high.

 

PARF rebate at ~$13k. Based on latest calculation, about $9.2k per annual for COE renewal.

So basically any pre-owned car that depreciate less than that will be worth while to buy.

 

40k KM is very low mileage. No plans to get new ones.

Only 3 options, renewal COE, pre-owned or BMW.

[Maroon5]

Oops, you are right! It should be based on CAT B.

So depreciating at $9.2k each COE year + higher road tax.

Damn, seems like COE renewal depreciation just gotten higher.

 

and every year inspection...and seriously wear n tear will only increase with age.

dun seem a good idea....9.2k depn

[Wintersonata]

and every year inspection...and seriously wear n tear will only increase with age.

dun seem a good idea....9.2k depn

 

I guess because my PARF is high due to old PARF rule.

For newer cars, only 50% of the OMV for PARF rebate.

[Windwaver]

Well give up driving car 1st if u ask me. Wait another 2 or 3 years for COE to drop then buy agian.

 

How long can hold NCD without car? 2 years max right?

[Toothiewabbit]

The problem is that my car is serving me well.

Reluctant to risk other pre-owned cars with unknown histories.

If my car is in crap condition, i wouldn't even need to think.

 

Right now is whether it's worth to keep it or what type of budget pre-owned car i can buy with similar depreciation value.

If its ain't broke, keep it.

[Kangadrool]

Scrap, get $$$ back. Buy a old (more than 10 years old) 3-pointed star. It's a "safe" buy even if you get a lemon = can always sell off easily.