20% depreciation in first year? true?

[Zyklon]

Not true. Depends on brand and make plus discount you can get.

 

I bought a new car at 228k. After 6 months, a dealer wanted to take it in for 226k. No significant change in coe price in that period.

[Ixus75]

Not true. Depends on brand and make plus discount you can get.

 

I bought a new car at 228k. After 6 months, a dealer wanted to take it in for 226k. No significant change in coe price in that period.

 

What is brand of the car?

[Celicar]

for me i made when i sold the porsche....$15k....cos of the creeping COE. Good dah, drive for free n make profit summore

 

oni in sg [laugh]

Onli if you can avoid sell-high-buy-high. So best chance is if second car onwards, like property.

[Aventador]

you just need to ask yourself back this question

 

if a brand new car is S$100,000

 

how much would you pay for a 1 yr old car of the exact same specifications?

 

dont forget the COE is annual depreciation of $6000-8000 already.

 

would you pay $95k if you could buy a brand new one for $100k? no way, as the COE rundown more than that

 

what about $90k? COE lost 6-8k, savings of 2k - 4k for a 1 yr old car - is it worth it? better buy new car

 

so realistically after taking out the COE loss of 6-8k, you need to give the next buyer at least $8k to $10k for him to consider NOT buying new

 

that gives you about a 20% loss

 

note that for high end cars, a $10k savings will be spit on by Atas buyers looking at a $300k new car. thats why a 20% guide is used

[Angcheek]

you just need to ask yourself back this question

 

if a brand new car is S$100,000

 

how much would you pay for a 1 yr old car of the exact same specifications?

 

dont forget the COE is annual depreciation of $6000-8000 already.

 

would you pay $95k if you could buy a brand new one for $100k? no way, as the COE rundown more than that

 

what about $90k? COE lost 6-8k, savings of 2k - 4k for a 1 yr old car - is it worth it? better buy new car

 

so realistically after taking out the COE loss of 6-8k, you need to give the next buyer at least $8k to $10k for him to consider NOT buying new

 

that gives you about a 20% loss

 

note that for high end cars, a $10k savings will be spit on by Atas buyers looking at a $300k new car. thats why a 20% guide is used

 

plus depreciation of the car and warranty used ......

Edited June 13, 2013 by Angcheek

[Kangadrool]

for me i made when i sold the porsche....$15k....cos of the creeping COE. Good dah, drive for free n make profit summore

 

oni in sg [laugh]

 

You better than used car dealers haaaa.

[Chucky2007]

for me i made when i sold the porsche....$15k....cos of the creeping COE. Good dah, drive for free n make profit summore

 

oni in sg [laugh]

My friend got a brand new 520 in end 2009 for less 150k.. drive for 2 year sell at 180k, change to a new small porker at 215k in 2010.. now at sell at same price after driving few years..

[Cluboxed]

I think 20% is just a guide...it will depends on many other factors...

[Yrvsport]

it juz an introduction the rest is up to you to decide....Sendri Mau Ingat if you want to own a car...

[Markzz]

If buying car at low COE, when COE becomes high, can sell car to next owner or 2nd hand dealer to minimize the loss or even make money.

 

If buying car at high COE, when COE drop a lot(for example, 90K to 40K), for a car more than 5 year, rather scrap car instead of selling, right?

Cos selling cars will be based on market price. but when you scrap your car, you can get the prorated COE back(calculated based on the high COE when you bought the car) + PARF which might be higher than the market price.

 

Bros, pls correct me if I'm wrong.

[Ahseng]

Haizz...means cannot use this way to bargain lor.

 

e.g. a june 2008 honda stream $77,000 (with coe $14,689)

 

year 1 less 20% depreciation = 61,600

year 2 less 10% depreciation = 55,440

year 3 less 10% depreciation = 49,896

[divide 49896 by 7 to get dep for rest of lifetime per year] = $7128/year

.

.

year 5 value would be = 49896 - 7128 - 7128 = $35,640

 

but selling price on sgcarmart a 2008 stream easily 60k+.

 

Does this mean the dealer is earning 30k for a stream? and by pricing it at 60k....wa lau where's the depreciation for the past 5 years?

 

 

 

[Hydrocarbon]

for me i made when i sold the porsche....$15k....cos of the creeping COE. Good dah, drive for free n make profit summore

 

oni in sg [laugh]

 

Woah, that's lucky. Can drive a nice car and make money from it..

[Ixus75]

Haizz...means cannot use this way to bargain lor.

 

e.g. a june 2008 honda stream $77,000 (with coe $14,689)

 

year 1 less 20% depreciation = 61,600

year 2 less 10% depreciation = 55,440

year 3 less 10% depreciation = 49,896

[divide 49896 by 7 to get dep for rest of lifetime per year] = $7128/year

.

.

year 5 value would be = 49896 - 7128 - 7128 = $35,640

 

but selling price on sgcarmart a 2008 stream easily 60k+.

 

Does this mean the dealer is earning 30k for a stream? and by pricing it at 60k....wa lau where's the depreciation for the past 5 years?

 

I think the dealer earn around 20k, probably not 30k

[Atrecord]

I think the dealer earn around 20k, probably not 30k

 

Depends on whether the dealer bought the car at high or low price from the previous owner. If he had bought at low price, and hope to make so much now, then:

 

- if the car is good sure got a lot of people (who do not know the scrap value calculation) interested and he'll sell it off quickly

- if the car is so so only and not v fantastic, and he can't sell it off, and is worried that he might not be able to sell it off for a long time to come given the loan curb, etc., then you might be able to bargain price down significantly.

[Wt_know]

the more times the car being sold ... the more profit is taken from the car

 

dealer sell new ... earn $20K-ish (min $30k-ish for conti)

 

used dealer resell ... earn $10K-ish (min)

 

subsequent resell ... another $10k-ish

 

so here already $40K-ish goes to dealer ... 1st, 2nd and 3rd buyer also need to bear the cost lor

Edited June 13, 2013 by Wt_know

[Tigershark1976]

Hi guys, heard from an old friend that says new car once on the road already -20% liao. So i take it that he meant 20% depreciation in the first year.

 

Maybe is this why people always say the first 2 to 3 years the first owner bears the brunt of the steep depreciation?

 

Is this assumption near reality?

1st yr : 20% depreciation

 

2nd year: 10% dep

 

3rd year : 10% dep

 

rest of the 7 years divide equally the remaining value.

 

 

Its common sense lah bro... unless your car is having extremely high OMV value, with current COE rate, most car is having close to 7 to 8%% depreciation annually even on the 9th yr.. So, what is there to suprise to have 20% dep on the 1st year?? In fact, if you sell of your car on the 1st year. prepare to lost min 25%. Otherwise, who would want to buy a 2nd hand car if the annual depreciation is only slightly lower than new car?

 

Of course, there are extreme cases where some car owners "earn" money when selling off their car, good example would be those who bought their car in 2009 and sell off after 2012... Their annual depreciation is extremely low... some even made a small sum of money from it. But thats 1 off example.... If car/ COE price remain stable. Expect very high annual depreciation if you sell your car off before 3 yrs usage...

Edited June 13, 2013 by Tigershark1976

[Maz0608]

Ya! Always wondered why the initial depre so high, but forgot to count dealer profit. Which can be quite a lot..

That is why instead of letting the dealer chop carrot on me every 3 to 4 years, I am going to extend it to 10years!

 

[Mllcg]

not like that count la.

 

i buy a car 200k.

 

COE average 70k

 

first year, my COE lose 7k alr.

 

parf value also lose.

 

mileage(if drive alot) also lugi.

 

so many factors