Will u buy Diesel or Petrol Cars in SG

[EddieTan_144369]

Diesel is here to stay no matter how "environmental" concern everyone have. Our goods and services, transportation require diesel. Not because its environmentally friendly, but because its cheap. When it comes to doing business, controlling cost is as good as having better margin.

 

Already, people are complaining the cost of living is high; taxi are feeling the heat from the competition etc. Government don't need to remove diesel from the equation to make it worst. Politically, they just need to make their move to show that SG is concern with pollution and be inline with the world.

 

I owned both diesel and petrol cars. No matter how I try, my diesel constantly give me better mileage. Torque is good too. The $0.1 increase in pump price is offset by $100 off special tax so I don't really see a problem. Bearing in mind petrol is almost $1 more then diesel, so why not diesel?

 

Frankly, I know this day will come when the number of passenger diesel car size increase before I brought my diesel car. But I also know its difficult for government to surge on diesel price without impacting the economy, without repercussion. So yes. I still glad i brought diesel. :)  

 

Frankly, this change is disappointing. All the talk about diesel being bad for the environment and this is all that is being done?

 

I expected some measures to whack car buyers to prevent them from buying diesel cars but that only gets implemented in 2018!

 

[Adrianli]

Just to add, my source also told me abt the renewed COE road tax to be unrestricted with 10% increase every year. But it did not happen. So my source also not that accurate.

 

The final decision, only the minister himself will know. He will pick and choose what he wants to implement. Absolutely no one will know until he announces it during Budget 2017.

 

 

 

 

And for the postpone of the COE bidding, from what I know, it was the banks and dealers asked for it. Not LTA or gov asked for it. So wana blame, blame those banks and dealers. Gov listen to the stakeholders and if able to accommodate, they will.

[therock]

Dealers want to makan more money... :(

[TangoElite]

Just to add, my source also told me abt the renewed COE road tax to be unrestricted with 10% increase every year. But it did not happen. So my source also not that accurate.

 

The final decision, only the minister himself will know. He will pick and choose what he wants to implement. Absolutely no one will know until he announces it during Budget 2017.

 

 

 

 

And for the postpone of the COE bidding, from what I know, it was the banks and dealers asked for it. Not LTA or gov asked for it. So wana blame, blame those banks and dealers. Gov listen to the stakeholders and if able to accommodate, they will.

 

 

i think your source is extremely credible, please protect his identity well

 

of course cannot be 100% accurate all the time, maybe things change between the last time you spoke to him and he knew them but never update you 

[Theoldjaffa]

I have very good source of info.

 

Only thing I dont know is how much or rather the exact amt of increase. That would need me to be a worm in the minister's brain.

 

 

 

 

But I can see that the minister or gov did not one shot increase a lot. Little bit by little bit...................slowly tightening the screw. This year 10cents, next year maybe another 10cents or 20cents.

Thanks for the info. I remember there was talk about increasing road tax for cars older than 10 years? Lucky that did not happen.

[fungyee77]

Perhaps your letter played a part n got them thinking hard and finally coming out with a balanced approach towards this issue so kudos to u for your effort in this aspect n proud to say you are one of our MCFers who let action speak louder than words, thanks for your contribution in thisððð

Thanks.

 

Haha, to be frank, wouldn't hold my breath on the authorities being so responsive to feedback, but kudos to them either way. Good holistic solution.

[Vratenza]

Can someone enlighten me, how will the VEVs increase the value of existing diesel cars when it kicks in next year?

 

 

[cmmerc]

I got $15K CEVs rebate last month for my diesel car. So buying price is cheaper. Next year probably, there will be a surcharge instead, so the selling price of a diesel car, assuming people will still buy, will be higher. Second hand value also goes up in tandem, and hence we. who got a savings with rebates, will earn big big if value goes up.

[Spring]

Can someone enlighten me, how will the VEVs increase the value of existing diesel cars when it kicks in next year?

The theory is diesel cars will likely have less VEVs than current CEVs due to more stringent benchmarks ie include NO2 etc so that would mean higher sale prices for new diesel cars which in turn will mean existing diesel cars will have better resale values but would it? 

 

Cos another theory is the inverse could also happen ie diesel cars become less popular due to higher sale price, higher diesel costs etc. In short, the closing of gap between diesel cars and petrol ones.

 

Which path would it take? Your guess is as good as mine

[Vratenza]

But if a VEVs vehicle has less rebate compared to same car under CEVs scheme, wouldn't the CEVs scheme vehicle have lower paper value compared to VEVs scheme vehicle?

 

So 2nd hand dealers will definitely use that to value how much to take in your CEVs vehicle assuming 2nd hand market is still in the doldrums then.

 

 

I got $15K CEVs rebate last month for my diesel car. So buying price is cheaper. Next year probably, there will be a surcharge instead, so the selling price of a diesel car, assuming people will still buy, will be higher. Second hand value also goes up in tandem, and hence we. who got a savings with rebates, will earn big big if value goes up.

 

[cmmerc]

But if a VEVs vehicle has less rebate compared to same car under CEVs scheme, wouldn't the CEVs scheme vehicle have lower paper value compared to VEVs scheme vehicle?

 

So 2nd hand dealers will definitely use that to value how much to take in your CEVs vehicle assuming 2nd hand market is still in the doldrums then.

 

Yup, By half of the CEVS, so $7.5K in my case. Surcharge has no paper value, just upfront tax for harming the environment. Most buyers only see the value they buy a car at, scrap value low in their priority. For those who intent to buy a well maintained car to renew COE, the lower the scrap value, the better. Lose less PARF value.

Edited February 21, 2017 by cmmerc

[Vratenza]

With regards to your last statement, I will think the overall buying price rather than the PARF value being the deciding factor?

 

PARF value is just an indirect measure of how much they expect to pay for the intending-to-renew-COE car.

 

So with a lower PARF value car, the resale value will not be high as well since people will not pay more for a lower PARF value car given all other factors are equal.

 

Yup, By half of the CEVS, so $7.5K in my case. Surcharge has no paper value, just upfront tax for harming the environment. Most buyers only see the value they buy a car at, scrap value low in their priority. For those who intent to buy a well maintained car to renew COE, the lower the scrap value, the better. Lose less PARF value.

 

[cmmerc]

With regards to your last statement, I will think the overall buying price rather than the PARF value being the deciding factor?

 

PARF value is just an indirect measure of how much they expect to pay for the intending-to-renew-COE car.

 

So with a lower PARF value car, the resale value will not be high as well since people will not pay more for a lower PARF value car given all other factors are equal.

 

If the car is close to scrap, then yes. If it is only say 3 year old, then the scrap value is not significant versus current new car price less depreciation. So the latter pricing prevails guess.

[Vratenza]

I have a hybrid that had the previous green rebate (predecessor to CEVs) which takes off 20K or so from the PARF.....at 6-7 yr mark, when I checked the market valuation, the 2nd hand dealers are just quoting paper value which is crap. 

 

So I am not as optimistic about VEVs pushing up or enhancing the value of the CEVs vehicles.

 

If the car is close to scrap, then yes. If it is only say 3 year old, then the scrap value is not significant versus current new car price less depreciation. So the latter pricing prevails guess.

 

[Wildfaye29]

Any form of rebate should deduct against upfront cost of car and not the parf.

 

This will lower selling price and incentivise buyers with lower cost and lower depreciation along with lower fuel costs.

 

Current system is flawed.

[cmmerc]

Any form of rebate should deduct against upfront cost of car and not the parf.

 

This will lower selling price and incentivise buyers with lower cost and lower depreciation along with lower fuel costs.

 

Current system is flawed.

 

What you said above is true for me since I self import. I got a full rebate on my upfront cost. I get back less parf, half of what I save upfront. So I am OK. If dealers pass the full rebate with you, you also get the benefit of the rebate. But if you buy in Singapore, where you buy with a package price inclusive of rebates, COE, "freebies", frankly you never know. Maybe the dealer share your rebate. Thank you says the dealer! 

[inlinesix]

Any form of rebate should deduct against upfront cost of car and not the parf.

 

This will lower selling price and incentivise buyers with lower cost and lower depreciation along with lower fuel costs.

 

Current system is flawed.

 

It is deducted against ARF paid to LTA.

[merc280v6]

I have a hybrid that had the previous green rebate (predecessor to CEVs) which takes off 20K or so from the PARF.....at 6-7 yr mark, when I checked the market valuation, the 2nd hand dealers are just quoting paper value which is crap.

 

So I am not as optimistic about VEVs pushing up or enhancing the value of the CEVs vehicles.

You got it right there