tyco_kia 4th Gear August 4, 2015 Share August 4, 2015 I'm joining this thread to discuss whether renewing COE vs buying new car. The comparison has to be the same model to provide an apple VS apple comparison. Car Brand: Lexus IS250 Car Price = $224,000 COE = $58,100 PARF = $20,150 OMV = $26,637 New car premium = $145,750 to reduce complexity I'm comparing buying old car vs buying new car based on premium we pay. I calculate the premium of this new car based on this formula: Premium of buying new car: Current new car price - COE -PARF = $145,750 What is premium of buying old car? It is only its scrap value or $20,150 Premium saving: So buy buying old car you will save immediately the premium differences which is $145,650-$20,150 = $125,500 Extra cost of old car: 1. Road tax of new car is $1800. in 10 years of with increasing road tax; the old car owner needs to pay extra $7200. 2. Insurance I'm not too sure how much more insurance. But if I add $300/year; it will translate to extra cost of $3000. 3. Repair cost Let's assume you think your car is good at the end of 10 years and you still budget extra repair cost of $1000/year. So you'll spend about $10,000 in 10 years. The extra cost of having old car = $7200++3000+ $10,000[unpredictable repair cost] = $20,200 The monetary saving of renewing same series of Lexus IS250 versus buying new one: Premium Saving - Old Car Cost = $125,500 - $20,200 =$105,300. However you may not like driving this old car where the newer series rolled out on the road. That might be another consideration for you to scrap your car earlier. However I see potential saving of $105,300/$224,000 x 100% = 47% sorry bro, what do you mean by premium of new car? you mean the margin that the AD makes? is that what you are referring to? ↡ Advertisement Link to post Share on other sites More sharing options...
Alheych 6th Gear August 4, 2015 Share August 4, 2015 sorry bro, what do you mean by premium of new car? you mean the margin that the AD makes? is that what you are referring to? I think what he means is the price difference between buying a new IS250 and the cost of extending COE on, and using a 10-year old one. Link to post Share on other sites More sharing options...
sg4henry Clutched August 4, 2015 Share August 4, 2015 I think what he means is the price difference between buying a new IS250 and the cost of extending COE on, and using a 10-year old one. yes, you are right. Link to post Share on other sites More sharing options...
sg4henry Clutched August 4, 2015 Share August 4, 2015 I think what he means is the price difference between buying a new IS250 and the cost of extending COE on, and using a 10-year old one. The premium of new car refers to the premium over old car. It will be new car price and deducted against: - COE price (we assume new car COE = renewed old car COE) - PARF value (as you get it back at end of the year) The premium of old car (in comparison to new car) is simply the scrap value. The conclusion of renewing 10 years old car: PRO: - it will always be cheaper than purchasing new car (for the lexus example after considering extra maintenance, insurance and road tax, one still can save 47%). - In term of % saving; it is always best to renew higher PARF value car. CONS: - there are additional maintenance cost & insurance cost. - you don't like to drive old car even if it runs well. Link to post Share on other sites More sharing options...
Hyundai8818 3rd Gear August 5, 2015 Share August 5, 2015 aiyah, just get both lexus gs300 and merc e200 buy one with 6mth left to 1 yr left and drive to experience it, then scrap and buy the other one to drive you get to own both model and should die without regret ! life is short ! but pray hard within the 1 yr, no major issue lor got some merc S280 going for 10K dep /yr forget about renewing COE, both car not worth renewing due to high OMV also nowadays the newer cars too much electronics, these are prone to kaput vs those mechanical parts. last time the W124 can bcos not so much electronics the ws that I go to, the boss W124 got 700K mileage and still working well 1 Link to post Share on other sites More sharing options...
Alheych 6th Gear August 22, 2015 Share August 22, 2015 aiyah, just get both lexus gs300 and merc e200 buy one with 6mth left to 1 yr left and drive to experience it, then scrap and buy the other one to drive you get to own both model and should die without regret ! life is short ! but pray hard within the 1 yr, no major issue lor got some merc S280 going for 10K dep /yr forget about renewing COE, both car not worth renewing due to high OMV also nowadays the newer cars too much electronics, these are prone to kaput vs those mechanical parts. last time the W124 can bcos not so much electronics the ws that I go to, the boss W124 got 700K mileage and still working well it's a strange phenomenon... i have never seen a Lexus broken down, but I have hardly seen any Lexus extended beyond 10 years. So there's no vouching for reliability beyond 10 years, maybe because OMV is just too high. 2 Link to post Share on other sites More sharing options...
Aukang 6th Gear October 3, 2015 Share October 3, 2015 it's a strange phenomenon... i have never seen a Lexus broken down, but I have hardly seen any Lexus extended beyond 10 years. So there's no vouching for reliability beyond 10 years, maybe because OMV is just too high. Could it be that besides omv, the car body of scrapped lexus at 10 yrs is much higher than others? So more cost effective to scrap than extend coe? Link to post Share on other sites More sharing options...
Alheych 6th Gear October 3, 2015 Share October 3, 2015 it's a strange phenomenon... i have never seen a Lexus broken down, but I have hardly seen any Lexus extended beyond 10 years. So there's no vouching for reliability beyond 10 years, maybe because OMV is just too high. Could it be that besides omv, the car body of scrapped lexus at 10 yrs is much higher than others? So more cost effective to scrap than extend coe? Yes, that's the only reason I can think of... Link to post Share on other sites More sharing options...
Gesan Neutral Newbie October 7, 2015 Share October 7, 2015 Hi there, I currently own a GS300 which is reaching its 10th year in December. I'm having doubts to renew the current COE for this car or get another car. The condition of this car is still good and the mileage is 190K. Please advise. Link to post Share on other sites More sharing options...
Mach23 2nd Gear October 7, 2015 Share October 7, 2015 The best person to answer it is yourself. Essentially, you should compare: 1) the amortized cost (or annual depreciation) of COE plus the car's parf + body value + estimated maintenance cost + financing cost; VERSUS 2) the amortized cost of new car price* + financing cost * depends on the makes and model of the new car. Hope it helps Link to post Share on other sites More sharing options...
Hamburger Hypersonic October 7, 2015 Share October 7, 2015 Hi there, I currently own a GS300 which is reaching its 10th year in December. I'm having doubts to renew the current COE for this car or get another car. The condition of this car is still good and the mileage is 190K. Please advise. scrap. Link to post Share on other sites More sharing options...
Hyundai8818 3rd Gear October 7, 2015 Share October 7, 2015 Hi there, I currently own a GS300 which is reaching its 10th year in December. I'm having doubts to renew the current COE for this car or get another car. The condition of this car is still good and the mileage is 190K. Please advise. too much to lose if you don't scrap it your scrap value gone, your road tax increase, insurance only 3rd party etc.... no worth at all Link to post Share on other sites More sharing options...
Alheych 6th Gear October 18, 2015 Share October 18, 2015 Finally, a specimen of a COE-extended Lexus GS300... http://www.sgcarmart.com/used_cars/info.php?ID=512205&DL=1120 Link to post Share on other sites More sharing options...
mersaylee Supersonic October 18, 2015 Share October 18, 2015 Bloody...1 mth apart n the pqp is of 20k difference. I'd extended my ex-loved if it's 55k. Link to post Share on other sites More sharing options...
Tubecreamer Neutral Newbie July 3, 2017 Share July 3, 2017 Dont get a almost 10 years old car and extend COE yourself. Firstly, besides parf you are buying from dealer, Secondly, you are also paying for "body" Thirdly, paying for 1 year depreciation. Then if you drive 2 years (car 12 years old), resale into the market, dealer only take in COE PQP plus abit for body. You lose the PARF of immediately. End up, buy, drive for 3 years, cost you $ much more than you expect. Suggest is to buy a car which is 7/8 years old and wait it out. If COE drop and you PQP it, you might even make a profit from the sale. Not sure if this thread still alive. But i am looking to buy a COE GS300 and then renew 5 years. How do you work out the sums Link to post Share on other sites More sharing options...
Little_prince Supersonic July 3, 2017 Share July 3, 2017 Not sure if this thread still alive. But i am looking to buy a COE GS300 and then renew 5 years. How do you work out the sums it's actually quite simple. i would compare depreciation with a 2nd hand car equivalent. if e.g depreciation with a 5yr old car is 15k/yr you renew COE. cost = value of parf forfeited + 5 yr COE PQP + cost of additional roadtax ( up to 50% more) + cost of additional maintenence ( due to wear and tear) everything divide by 5. personally if the delta is less than 10%. i would just take the younger car. Link to post Share on other sites More sharing options...
Hamburger Hypersonic July 3, 2017 Share July 3, 2017 Parf with 30k is no brainer to extend for 10 yrs. 5 yrs is never an option. ↡ Advertisement 3 Link to post Share on other sites More sharing options...
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