Should I buy a new car now?

[Atrecord]

why didnt you renew in 2009 with the cheap COE.

 

parents have the exact same wish which is expiring in mid feb2016. aircon also not cold during idling. its the compressor. you can always rev it while holding the brakes in D or putting it in neutral, the compressor will then kick in and cool the cabin. theirs lasted for more than 1year and still going strong.

they have since bought another new wish. the old car is hanging around reaching its last days with my sister.

 

That one was ok to drive, for me. But not that great, as a whole.

Why, becos of my own complex situation.

My parents used to stay v near me (same block). Now they stay with me. That's why we have a wish, when my folks go out with us. 

 

When the kids needed to go to childcare, we needed a second car for the convenience of sending the kids, plus my dad is still driving. But cars being so expensive, my consideration was to look for the cheapest available one. And i found that manual 1.0 car. The problem was that while it served the original purpose (for me to send kids to childcare), my wife and dad didn't want/dare to drive a manual car. And it has no airbag/abs (can't realistically expect it when monthly depreciation was less than $200!!) So when it was time to go, we let it. The replacement was the cheapest auto car with airbag/ABS i could find at that time. 

 

For the wish aircon, we were told that the cooling coil is leaking, and that it'll prob need fixing in 1.5 mth, when we went to an a/c workshop in Jan this year. But it has lasted till now, although like you said, need to rev a bit when it stays idle for a while.

5 weeks left would mean u already decided to renew liao?

Even if ready stock, getting a car in 3-4 weeks is not easy.

 

ha ha… well unfortunately we're still undecided. I just came back from taiwan last Fri, so now must decide soon. On Sun, we went test drive Ody, which wasn't high on my list originally becos of the 3rd row being a bench. 

and the SE already told us want to get in Jan is 'can only try', even if we book now.

 

i was more thinking of getting an old used car to tide over, maybe until the right model appears - and coe gets lower...

Consider also that if Coe dips say $20,000 in two years time, not many will buy your car at the prices you want. Likely only take back Coe scrap of 48K. If at that point you decide to change to a new ride, you would have to take a total depreciation of 11+12K in two years. Excluding the increased costs associated with an old ride plus doing away with the possibility of better FC that comes with many new models. With such high petrol prices, this can add up to more than a hundred bucks a month. Much more if oil prices go back up which it will in a year or two. 95 oil will easily see $2.80 to $3 at that point.

 

Do your sums correctly. Dun just look at upfront and easy assumptions of depreciation etc.

 

Whatever it is, if no choice, can renew Coe. At least you can still change new ride later if the Coe dips significantly. Right now if you step into a showroom, you can still get a immediate ride cos they can offer open Category Coe.

 

Cheers.

 

Yup, it's likely that if i can sell at high price (to my benefit), it'll likely cost more to get a new car too (not to my benefit). It will only be sure win if COE remains high, or go even higher, and i give up driving 

 

Dilemma...

[Lala81]

old used car? tide over how long? 1-2 years?

I guess u really have to look hard and hunt for "bargains"

But as little_prince said, the used car market looks dam bohua for people who can afford the DP for a new ride.

 

might as well renew 5 years and just drive your wish for another 5 years.

AC also not say very expensive to replace. even u swap out the whole thing including labour is only $800+ niah and will last you the rest of your car's life.

 

ha ha… well unfortunately we're still undecided. I just came back from taiwan last Fri, so now must decide soon. On Sun, we went test drive Ody, which wasn't high on my list originally becos of the 3rd row being a bench. 

and the SE already told us want to get in Jan is 'can only try', even if we book now.

 

i was more thinking of getting an old used car to tide over, maybe until the right model appears - and coe gets lower...

 

[Chrispie]

old used car? tide over how long? 1-2 years?

I guess u really have to look hard and hunt for "bargains"

But as little_prince said, the used car market looks dam bohua for people who can afford the DP for a new ride.

 

might as well renew 5 years and just drive your wish for another 5 years.

AC also not say very expensive to replace. even u swap out the whole thing including labour is only $800+ niah and will last you the rest of your car's life.

 

like some bro said.. the used car market is crazy. Even Toyota Bnb cars also at around 10-11k dep.

 

I rather buy a new car at 12-13k dep.

[Showster]

Our favourite motorist has spoken... and we were right in guessing he will renew his COE. 

 

Why I renewed my COE for another 10 years

 

Christopher Tan

PUBLISHED10 HOURS AGO

Decision to renew a COE instead of buying a new car is based on both dollars and sense

When I wrote last month about a potentially life-changing decision I had to make as my Toyota Wish approached its year of no return, many readers e-mailed to offer suggestions.

 

Some said I should just get a new Wish, but most made a case for the Mazda MX-5. "Time to live a little," chorused the latter group - and quite persuasively too.

 

But without exception, everyone wanted to know what my final decision would be. Friends, acquaintances and contacts inquired. Even strangers walked up to me in public to ask. So I feel duty-bound to write a follow-up.

 

 

Dear readers, I have renewed my car's COE for another 10 years. And it feels good.

 

I paid the prevailing quota premium of about $58,000, which was 90 per cent of the total price I bore for the car when it was brand new.

 

The economists among you will appreciate the decision. Over 20 years, the annual depreciation of my dependable MPV - which still drives exceptionally well - works out to be just a little more than $6,000.

 

Even with the road tax surcharges, potentially higher insurance premiums, more frequent inspections and the wear-and-tear items I would need to replace, the depreciation would not exceed $7,500.

 

The rate for a new car would be more than $10,000.

 

Call me Scrooge if you like, but having an old car is liberating. I don't have to sweat over minor dinks and dents. And having two new drivers in the house, dinks and dents are almost unavoidable.

 

A new car, while appealing, enslaves you. It demands a certain level of attention. On that score, I agree with a line in Professor Kishore Mahbubani's opinion piece last month which said we should not worship our cars. (It is the only line in the column which I agree with, but that's another story.)

 

The other strong motivator for me to pick COE renewal over other options was the ridiculous price scrap car dealers were quoting for my ride.

 

The best I got was $800, which was back in August. By December, it had fallen to $300. To me, that was plain insulting.

 

While driving a car beyond its 10th year may seem novel in Singapore, it is not unusual at all in other countries.

 

Even in consumeristic America, where you can buy a car on a month's salary, the average age of cars is 11.5 years, according to research firm IHS Automotive. In Europe, the average is close to 10, according to the European Automobile Manufacturers Association.

 

In Singapore, the average is six, with 84 per cent of cars below 10 years of age and nearly 25 per cent below five years old. As recently as 2007, the average age of cars here was 2.7 years.

 

Now, you don't have to be Al Gore to see that that is an enormous waste of resources. Not only that, the early scrappage of cars has a huge impact on the environment. It may not be measurable on a country level, but it contributes to the growing global carbon footprint nonetheless.

 

And rising sea levels affects everybody. Especially if you live in a low-lying place surrounded by water.

 

Now I know what some of you are thinking - if you are such a greenie, why don't you take public transport? Well, I do take public transport occasionally.

 

And the thing is, public transport may not be as green as advocates make it out to be. Consider the low average occupancy of buses and the huge engines they lug. On a per- passenger trip basis, a 1.6-litre car with four onboard is possibly more efficient than a bus.

 

But enough of this rationalisation. COE prices fell in the latest tender this week, and will continue to trend downwards for at least another 18 months.

 

Who knows? That MX-5 may still be an option down the road.

[Atrecord]

old used car? tide over how long? 1-2 years?

I guess u really have to look hard and hunt for "bargains"

But as little_prince said, the used car market looks dam bohua for people who can afford the DP for a new ride.

 

might as well renew 5 years and just drive your wish for another 5 years.

AC also not say very expensive to replace. even u swap out the whole thing including labour is only $800+ niah and will last you the rest of your car's life.

 

This morning I renewed the COE for my wish for another 10 yr. Finally...

 

Did it online. The actual process this morning took less than 3 min. Which is surprising...

 

Why, i took days to call up my bank, eNets, and LTA to ask how to ensure that i can pay the ~$59k on-line, and everybody gives me different advice, some of which i'm not sure is correct. And I actually tried doing so last night just before midnight. It ended up my bank saying the amt exceeded limit so it didn't go through. Calling up the bank, i was told i needed to select (raise) my transfer limit first before I can pay so much… and the option was not showing up in the tablet I was using!

 

Finally managed to do so after i switched on my PC and logged in, and needed to use OTP from bank token (i normally use my phone for OTP for convenience) to raise the limit. When that was done, it was past midnight and LTA website went into maintenance!

 

Next up would be to renew my insurance and road tax, then maybe change my tyres and do something about the aircon...

 

Thanks for everyone for suggesting the renewal option, which i actually didn't consider previously. Now wait for new Estima to come out hopefully end this year or early next...

 

And on my other car, due in April… that's another headache coming up soon. It's not easy to find a good bargain for a start to tide over the 1-2 yr i planned. And it's made more complicated by the likely fast-approaching possible drop in COE. ..

[Lala81]

like some bro said.. the used car market is crazy. Even Toyota Bnb cars also at around 10-11k dep.

 

I rather buy a new car at 12-13k dep.

 

with the recent drop should be cheaper bah. my BIL's mz3 sedan is 9.7k depre

[13177]

like some bro said.. the used car market is crazy. Even Toyota Bnb cars also at around 10-11k dep.

 

I rather buy a new car at 12-13k dep.

Used car market really crazy. Cant believe for altis which left 1 year, priced around 20k, which is even much more expensive than renting one for exact same period?! Lol.

[Bismarck]

This morning I renewed the COE for my wish for another 10 yr. Finally...

 

Did it online. The actual process this morning took less than 3 min. Which is surprising...

 

Why, i took days to call up my bank, eNets, and LTA to ask how to ensure that i can pay the ~$59k on-line, and everybody gives me different advice, some of which i'm not sure is correct. And I actually tried doing so last night just before midnight. It ended up my bank saying the amt exceeded limit so it didn't go through. Calling up the bank, i was told i needed to select (raise) my transfer limit first before I can pay so much… and the option was not showing up in the tablet I was using!

 

Finally managed to do so after i switched on my PC and logged in, and needed to use OTP from bank token (i normally use my phone for OTP for convenience) to raise the limit. When that was done, it was past midnight and LTA website went into maintenance!

 

Next up would be to renew my insurance and road tax, then maybe change my tyres and do something about the aircon...

 

Thanks for everyone for suggesting the renewal option, which i actually didn't consider previously. Now wait for new Estima to come out hopefully end this year or early next...

 

And on my other car, due in April… that's another headache coming up soon. It's not easy to find a good bargain for a start to tide over the 1-2 yr i planned. And it's made more complicated by the likely fast-approaching possible drop in COE. ..

 

Happy for you. You made the right choice. I will be doing that for my wife's car too in 2 years time if COE remains at this current level. I feel renewing coe for japanese car like Toyota or Honda is one of the best option around, especially if you know your car well and current new cars are not to your taste. 

[AndrewLee72]

Hi Atrecord, why you didn't consider renew your Wish just for 5 years?

[0wnage]

Hi Atrecord, why you didn't consider renew your Wish just for 5 years?

 

If you have the cash, renewing for 10yrs would be a better option as you can further renew the COE again after the 10yrs is up.

However, you are forced to scrap your car after 5yrs for the 5yrs renewal. No further renewal is allowed for this option.

No difference to the PARF value that you lost as renewing for 5 or 10 yrs also results in the PARF rebate being forfeited.

Furthermore, you can still choose to scrap your car anytime and receive the pro-rated refund of the remaining COE value. 

[kennytansk]

This morning I renewed the COE for my wish for another 10 yr. Finally...

 

Did it online. The actual process this morning took less than 3 min. Which is surprising...

 

~~edited for length

 

And on my other car, due in April… that's another headache coming up soon. It's not easy to find a good bargain for a start to tide over the 1-2 yr i planned. And it's made more complicated by the likely fast-approaching possible drop in COE. ..

 

Hi Atrecord,

What car are u renewing the COE for?

 

I've also the dilemma of renewing COE or not. I've to make the decision mid year and hopefully can get a lower PQP.

[Atrecord]

Hi Atrecord, why you didn't consider renew your Wish just for 5 years?

 

Am thinking 10 yr got the flexibility to either:

• scrap at 5 yr, which will be the same as renewing 5 yr - except lend the $29k to LTA to buy toto for 5 yr.
• max out the car for 10 yr, if there is a need and if it's still going strong at that time. This option when exercised also means the lowest depreciation.
• sell the car away when either a suitable model comes along in maybe 2 yrs' time. If COE hasn't dropped much, there might just be a market for a decent used MPV that is priced significantly cheaper than new equivalent car, proportionately.

 

Dun know wise or not...

Hi Atrecord,

What car are u renewing the COE for?

 

I've also the dilemma of renewing COE or not. I've to make the decision mid year and hopefully can get a lower PQP.

 

Mine is a 06 Toyota Wish. 

Almost certainly lower PQP, judging from the trend of these 2 bids plus the increased quota for next quarter.

 

Unless replica of today's Cat A rebound keeps happening...

Happy for you. You made the right choice. I will be doing that for my wife's car too in 2 years time if COE remains at this current level. I feel renewing coe for japanese car like Toyota or Honda is one of the best option around, especially if you know your car well and current new cars are not to your taste. 

 

But if it's 2 yr, then COE might go down significantly from the current level, in which case the savings of renewing COE (c.f. to buying new) might not be so obvious anymore.

 

Must calculate carefully, ok?

[13177]

Maybe can stop driving for a while and wait for the coe to drop further and stable, then decide to buy again.

 

 

 

[kennytansk]

 

Maybe can stop driving for a while and wait for the coe to drop further and stable, then decide to buy again.

 

 

 

 

Yup, maybe that is the best idea of them all.

[Vinceng]

When you buy  a car, you are essentially using money to buy :

 

1) Time

2) Comfort

3) Private space

[Victor68]

This thread people seem to differ from the Sept COE bidding thread. Over there, people seem to think COE will continue to climb regardless of economy situation. Car is a must have item and to chong when COE drops slightly.

 

Isn't that interesting?

[Dna_engine]

This thread people seem to differ from the Sept COE bidding thread. Over there, people seem to think COE will continue to climb regardless of economy situation. Car is a must have item and to chong when COE drops slightly.

 

Isn't that interesting?

I actually found a 2016 budget comparison table and in it the revenue Vehicle Quota Premium is projected at $5.65B. With roughly 100,000 COE this year... You can do the maths to know how much the COE will be.

[Char]

Of course if can afford must buy new Japaness and Korean car as the used car depreciate can be higher than new one ! No brainer at all ! Continental car only must buy secondhand as they depreciate faster than Japannese and Korean made , simply can saw resale no value !