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238 replies to this topic | 889 praises

#1

Posted 22 May 2015 - 11:45 AM

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I have been thinking for awhile now but still don't understand how this works.

 

I always see pple saying that when COE crash (I don't know how low is consider crash) those pple with high COE (how high is high? 90k 80k 70k?) can change car as it's more "worth" it.

 

But then we can only get back the

  1.  unused COE
  2. half of the OMV (less CEVS if applicable).
  3. am I missing something else?

So if I change car after 3 yrs my depreciation will be very high like 15-20k per year? so how is it worth changing?

 

 

Pls enlighten me lol...

 

 


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#2

Posted 22 May 2015 - 12:00 PM

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The logic goes like this:

 

1. COE: When COE crash, let say from 90K to 30 K, to get a new car, theorically at 60K cheaper

2. PARF, there is a tier system

Age at Deregistration (year) PARF Rebate
(for cars registered with COEs obtained from May 2002 tender onwards)
Not exceeding 5 75% of ARF paid Above 5 but not exceeding 6 70% of ARF paid Above 6 but not exceeding 7 65% of ARF paid Above 7 but not exceeding 8 60% of ARF paid Above 8 but not exceeding 9 55% of ARF paid Above 9 but not exceeding 10 50% of ARF paid

 

So to scrap a car before 5 years, you can get back 75% of the ARF paid.

3. The depreciation of the old car will be higher in this sense but moving forward, the depreciation of the new car will be lower and you can enjoy your ride longer as well. This explain why, suddenly there is alot of people changing to new car from 2005 to 2008,

 


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#3

Posted 22 May 2015 - 12:01 PM

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assuming a $90K coe ... after 3 years ... COE alone can take back $63K

when you say COE crash ... means COE $30K?

if COE $30K ... a new car probably less than $100k

so, trade in a 3 years old $90K coe probably can get a new car with no or little top up

can drive a brand NEW car again for the next 10 years ... worth it or not?

if continue to drive the 3 years old $90K coe car ... COE alone 1 year depreciation is $9K !

depends on how 1 see worth it or not ...

if you talk to car agent ... the answer is sibei worth it ... buy buy buy

then the tsunami of scrapping and buying ...

 

I have been thinking for awhile now but still don't understand how this works.

 

I always see pple saying that when COE crash (I don't know how low is consider crash) those pple with high COE (how high is high? 90k 80k 70k?) can change car as it's more "worth" it.

 

But then we can only get back the

  1.  unused COE
  2. half of the OMV (less CEVS if applicable).
  3. am I missing something else?

So if I change car after 3 yrs my depreciation will be very high like 15-20k per year? so how is it worth changing?

 

 

Pls enlighten me lol...

 


Edited by Wt_know, 22 May 2015 - 12:07 PM.


#4

Posted 22 May 2015 - 12:13 PM

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Lets look at one example ...

 

Current Selling Price : 125k

COE : 65k

OMV(PARF) 12k

 

 

After 3 year, paper value of car upon deregistration ...

 

COE = 65k X 0.7 = 45500

PARF = 0,75 x 12k = 9000

Car Body = 10000

 

Total 64,500

 

Depreciation = 120,000 - 64,500 = 55,500/3 = 18,500 per year.

 

Worth it ?


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#5

Posted 22 May 2015 - 12:16 PM

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assuming you take that $64,500 and buy a brand new car at $80k

$125K + $15.5k (top up) / 13 years = sama sama as $125k / 10 years

just for simple calculation ... worth it?

 

Lets look at one example ...

 

Current Selling Price : 125k

COE : 65k

OMV(PARF) 12k

 

 

After 3 year, paper value of car upon deregistration ...

 

COE = 65k X 0.7 = 45500

PARF = 0,75 x 12k = 9000

Car Body = 10000

 

Total 64,500

 

Depreciation = 120,000 - 64,500 = 55,500/3 = 18,500 per year.

 

Worth it ?

 

 


Edited by Wt_know, 22 May 2015 - 12:21 PM.


#6

Posted 22 May 2015 - 12:18 PM

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The logic goes like this:
 
1. COE: When COE crash, let say from 90K to 30 K, to get a new car, theorically at 60K cheaper
2. PARF, there is a tier system Age at Deregistration (year) PARF Rebate
(for cars registered with COEs obtained from May 2002 tender onwards)
Not exceeding 5 75% of ARF paid Above 5 but not exceeding 6 70% of ARF paid Above 6 but not exceeding 7 65% of ARF paid Above 7 but not exceeding 8 60% of ARF paid Above 8 but not exceeding 9 55% of ARF paid Above 9 but not exceeding 10 50% of ARF paid
 
So to scrap a car before 5 years, you can get back 75% of the ARF paid.
3. The depreciation of the old car will be higher in this sense but moving forward, the depreciation of the new car will be lower and you can enjoy your ride longer as well. This explain why, suddenly there is alot of people changing to new car from 2005 to 2008,
 

got factor in the grossly high dealer profit into the car purchase or not?
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#7

Posted 22 May 2015 - 12:21 PM

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assuming you take that $64,500 and buy a brand new car at $80k

$125K + $15.5k (top up) / 13 years = sama sama as $125k / 10 years

just for simple calculation ... worth it?

 

 

 

 

agree .... provided new car is 80k

 

For new car to be 80 k ..... COE would have to be around 30k ?

 

 


Edited by Civic6228, 22 May 2015 - 12:22 PM.


#8

Posted 22 May 2015 - 12:24 PM

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i believe we might be the only country in the world that scrap more new car than old...due to COE
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#9

Posted 22 May 2015 - 12:40 PM

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let says buy an Altis now at $120k with COE $68k, ARF $18k (assumed reg in Jul, no more CEVS) n loan 60% at 1.88% for 5 yrs.

 

2 yrs later in Jul 2017 assuming COE is cheap, then PCOE=$54.4k, PARF=$13.5k, to pay to redeem loan=~$45k.

so, can get bck $23k!!  can buy what even if COE is dirt cheap?? top up another $30k to buy a new Altis!!?? [bigcry]

total spent over 2yrs = (40% dep)+(instalment for 2 yrs)-$23k = $56k!!! :a-m1524:

 


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#10

Posted 22 May 2015 - 12:40 PM

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Before 2005.. the ARF tax rate is at 140% and the PARF rebate is much higher then current scheme. in 2005, it is certainly cheaper to buy new car and scrap the 3yr old car. 

 

Even now, my friend latio bought about 50+ K in 2008m was offers 30+K as trade in for new car.. if you have the money now, it could be worth it to buy new car. 

 

 



#11

Posted 22 May 2015 - 12:41 PM

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assuming you take that $64,500 and buy a brand new car at $80k
$125K + $15.5k (top up) / 13 years = sama sama as $125k / 10 years
just for simple calculation ... worth it?
 
 
 


You still miss out the interest for the loan If any.
Unless the buyer is T2 group of kaki. But then I think $30 - $40k saving is not in their mind at all when buying car.

#12

Posted 22 May 2015 - 12:41 PM

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let says buy an Altis now at $120k with COE $68k, ARF $18k (assumed reg in Jul, no more CEVS) n loan 60% at 1.88% for 5 yrs.

 

2 yrs later in Jul 2017 assuming COE is cheap, then PCOE=$54.4k, PARF=$13.5k, to pay to redeem loan=~$45k.

so, can get bck $23k!!  can buy what even if COE is dirt cheap?? top up another $30k to buy a new Altis!!?? [bigcry]

total spent over 2yrs = (40% dep)+(instalment for 2 yrs)-$23k = $56k!!! :a-m1524:

 

 

 

lol...Panamera depreciation nia



RESPECT is only for the DEAD!

#13

Posted 22 May 2015 - 12:44 PM

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how much is a new car,s insurance per year?
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#14

Posted 22 May 2015 - 01:02 PM

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if coe crash to $30k
$60k-$70k coe little benefit to scrap
$80k-$90k coe may be can consider

#15

Posted 22 May 2015 - 01:02 PM

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Taking the case of the 120K Altis, 2015 = 120K.  at 2017, assume that COE is at 30k, New Altis will be at about 90K.

 

The interesting point is that, for the last two years, the depreciation is about 28K but the new car, assuming that COE is at 30K will depreciate at less then 9k a year for the next 10 years. so, depend on how you think??? Usually, when you scarp a car at 2 years. the dealer will pay you an additional sum of money for the car body, that will help lower the actual depreciation. furthermore alot of these car are not scrap but resell in the market due to the loan curb. 

 

a 2015 Altis will depreciate at about 11k a year + you got new car without worry of maintenance.. etc. 

 

At the end of the day, it depend on how deep is your pocket.

 

 

 

 

 

let says buy an Altis now at $120k with COE $68k, ARF $18k (assumed reg in Jul, no more CEVS) n loan 60% at 1.88% for 5 yrs.

 

2 yrs later in Jul 2017 assuming COE is cheap, then PCOE=$54.4k, PARF=$13.5k, to pay to redeem loan=~$45k.

so, can get bck $23k!!  can buy what even if COE is dirt cheap?? top up another $30k to buy a new Altis!!??  [bigcry]

total spent over 2yrs = (40% dep)+(instalment for 2 yrs)-$23k = $56k!!!  :a-m1524:



#16

Posted 22 May 2015 - 01:10 PM

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deep pocket no care coe is $90k or $30k and simi depreciation
my boss change car every 2-3 years ... not sure pay full cash or not ... muahahaha

Edited by Wt_know, 22 May 2015 - 01:11 PM.


#17

Posted 22 May 2015 - 01:13 PM

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lol...Panamera depreciation nia

 

but....but.....altis goot goot hor, neber overheat like conti, never breakdown like conti, neber jiak yu like conti. best of all, neighbour's unker & auntie and the rest of the herd has one so it must be goot. simi panamera?...pui!



#18

Posted 22 May 2015 - 01:15 PM

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but....but.....altis goot goot hor, neber overheat like conti, never breakdown like conti, neber jiak yu like conti. best of all, neighbour's unker & auntie and the rest of the herd has one so it must be goot. simi panamera?...pui!

 

 

and its the fastest leh...

 

no matter how fast you are, there is always another one ahead of you :D  :a-m1524:



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#19

Posted 22 May 2015 - 01:18 PM

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and its the fastest leh...

 

no matter how fast you are, there is always another one ahead of you :D  :a-m1524:

 

 

got TRD version hor. dun pray pray. that big spoiler muz be worth at least 50 bhp.  [bounce1]

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#20

Posted 22 May 2015 - 01:19 PM

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got TRD version hor. dun pray pray. that big spoiler muz be worth at least 50 bhp.  [bounce1]

 

 

wpid-img_27286553709256.jpeg



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