Sdf4786k Twincharged June 4, 2017 Share June 4, 2017 (edited) My take is if cannot afford a prudent 40% down payment, then they seriously cannot afford to own a car, period. correct lor.. its because of face value... Its never a sin to be poor.... Its good to have ambition. But should never try to pretend to load up and family suffer as a result. Worst are those happy happy buy HDB and contra once price go up after the period with a hope that every property they touch turns to gold. So the COV and what not take and spend and live it up like tycoon. Because you only live once mentality ... Edited June 4, 2017 by Sdf4786k ↡ Advertisement 2 Link to post Share on other sites More sharing options...
Showster Twincharged June 4, 2017 Share June 4, 2017 correct lor.. its because of face value... Its never a sin to be poor.... Its good to have ambition. But should never try to pretend to load up and family suffer as a result. Worst are those happy happy buy HDB and contra once price go up after the period with a hope that every property they touch turns to gold. So the COV and what not take and spend and live it up like tycoon. Because you only live once mentality ... So is it a bigger sin to loan on new car or loan on old car with same depreciation? Link to post Share on other sites More sharing options...
Eyke Supercharged June 4, 2017 Share June 4, 2017 So is it a bigger sin to loan on new car or loan on old car with same depreciation?depends on the finance cost: quantum, interest rate, tenure 1 Link to post Share on other sites More sharing options...
Beng2 5th Gear June 5, 2017 Share June 5, 2017 All this old car depreciates the same as new car is based on the assumption that both cars are owned until end of their COE. If the new car is not used for 10 years, it throws the equation off. I would say the chances of owners owning old cars till the end of COE (say, 3 years) are always higher compared to new cars. And we all know the steep depreciation of cars after 3 years (unless COE premiums suddenly skyrocket). 1 Link to post Share on other sites More sharing options...
Showster Twincharged June 5, 2017 Share June 5, 2017 It's hard to say for sure due to COE movement. I bought a new car in 2008, and in 2013 the selling price of the 5 year old car overshot my initial buying price, and it stayed that way for close to 2 years... If only I could give up driving for a few years then! All this old car depreciates the same as new car is based on the assumption that both cars are owned until end of their COE. If the new car is not used for 10 years, it throws the equation off. I would say the chances of owners owning old cars till the end of COE (say, 3 years) are always higher compared to new cars. And we all know the steep depreciation of cars after 3 years (unless COE premiums suddenly skyrocket). 1 Link to post Share on other sites More sharing options...
Kzone 3rd Gear June 5, 2017 Share June 5, 2017 Comparing depreciation is only useful at the point when u want to buy/change/renew COE for a car at that moment in time. U cant compare depreciation of a car bought 2 years ago vs buying now. 2 Link to post Share on other sites More sharing options...
beninsing Clutched March 9, 2018 Share March 9, 2018 Talking about depreciation ... i have a question if i buy a 2nd hand car at 100k with a written depreciation at 10k/y Does it mean i can sell the car at 90k in 1 year?? Or how does this 10k/yr work? Thanks Link to post Share on other sites More sharing options...
Ben5266 Supercharged March 9, 2018 Share March 9, 2018 (edited) Talking about depreciation ... i have a question if i buy a 2nd hand car at 100k with a written depreciation at 10k/y Does it mean i can sell the car at 90k in 1 year?? Or how does this 10k/yr work? Thanks It is only true if you drive till end of COE. If you sell after 1 year, you will lose big unless COE swing up very high. Take note of the value if deregister today. If it is $60k and you are paying $100k, it means, you lose $40k on the day you collect the car unless you can find another carrot head to buy your car at $99k. Watch the trap. Especially now where the COE has higher chance of going down than up. Edited March 9, 2018 by Ben5266 4 Link to post Share on other sites More sharing options...
beninsing Clutched March 9, 2018 Share March 9, 2018 It is only true if you drive till end of COE. If you sell after 1 year, you will lose big unless COE swing up very high. Take note of the value if deregister today. If it is $60k and you are paying $100k, it means, you lose $40k on the day you collect the car unless you can find another carrot head to buy your car at $99k. Watch the trap. Especially now where the COE has higher chance of going down than up. Ok .. did not think about this point (till end of COE) ... How to check the deregister value of the car? People (friends) tell me to look for low depre when buying a car ... Does it really matter if i plan to sell it before end of COE? Link to post Share on other sites More sharing options...
Ben5266 Supercharged March 9, 2018 Share March 9, 2018 Ok .. did not think about this point (till end of COE) ... How to check the deregister value of the car? People (friends) tell me to look for low depre when buying a car ... Does it really matter if i plan to sell it before end of COE? agak agak 55%-70% of the ARF (depending on the years left) + COE *(n/10) where n = years left. meaning, if the COE is $70k and it has 6.5 years left, and the ARF is like $25k 0.6*25k + 6.5/10*70k = 15k+ 45.5k = $60.5k. For this case, scrap value at 10 is about $12.5k. annual depreciation of $10k will mean, the selling price is about $77.5k. If the selling price is $90k, the annual depreciation will be $11.9k. Link to post Share on other sites More sharing options...
beninsing Clutched March 9, 2018 Share March 9, 2018 agak agak 55%-70% of the ARF (depending on the years left) + COE *(n/10) where n = years left. meaning, if the COE is $70k and it has 6.5 years left, and the ARF is like $25k 0.6*25k + 6.5/10*70k = 15k+ 45.5k = $60.5k. For this case, scrap value at 10 is about $12.5k. annual depreciation of $10k will mean, the selling price is about $77.5k. If the selling price is $90k, the annual depreciation will be $11.9k. Thanks a lot for the quick and detailed explanation!! Really appreciate Link to post Share on other sites More sharing options...
Sdf4786k Twincharged March 9, 2018 Share March 9, 2018 It is only true if you drive till end of COE. If you sell after 1 year, you will lose big unless COE swing up very high. Take note of the value if deregister today. If it is $60k and you are paying $100k, it means, you lose $40k on the day you collect the car unless you can find another carrot head to buy your car at $99k. Watch the trap. Especially now where the COE has higher chance of going down than up. Its sad but true. The depreciation is never a straight line or easy to understand. On one hand you would imagine that 100K divide by 10 years , per year equal 10. Yes and no. You need to get your scrap value back. IF you happy happy buy a large CEV rebate of 20 K, you may be looking at 2 K scrap value at 10 year mark. And hence my depends statement. So, year 1 buy. Change of mind. Sell on second hand market. Again, depends on the COE at the time of purchase. If like some of the so-called lucky ones who bought an Audi A3 1.8T 8P during the clearance sale, you looking at capital appreciation after one year. If you bought a GTI low specs/ Ltd Edition as VCS term it at 106K, you can almost sell it at 72 to 78 K after 3 years usage. So, there is no clear definition on selling. Just dont get caught in the used car trap of, " I give u 3 k for body + what every scarp value, else u go DIY" . Because the SE will tell you, not use car, not this price for new car liao. So, the car market is not fully regulated. Other than the commision of Insurance and Loans that the SE get. Imagine, on a good year, the loan and insurance commission can range from 150 to 330 K from what I heard during a kopi stirring session. 4 Link to post Share on other sites More sharing options...
Wt_know Supersonic March 9, 2018 Share March 9, 2018 (edited) annual depreciation is if you drive the car until scrap it’s not 1 year depreciation .... muahahahaha Edited March 9, 2018 by Wt_know 3 Link to post Share on other sites More sharing options...
Zxcvb Turbocharged March 9, 2018 Share March 9, 2018 (edited) It's hard to say for sure due to COE movement. I bought a new car in 2008, and in 2013 the selling price of the 5 year old car overshot my initial buying price, and it stayed that way for close to 2 years... If only I could give up driving for a few years then! Price of new car in 2008 = 50k. Price of same car in 2013 as used car = 50k Never depreciate, some can even appreciate. Can search back older threads circa 2013/2014. Lol. Edited March 9, 2018 by Zxcvb 1 Link to post Share on other sites More sharing options...
Wt_know Supersonic March 9, 2018 Share March 9, 2018 (edited) Price of new car in 2008 = 50k. Price of same car in 2013 as used car = 50k Never depreciate, some can even appreciate. Can search back older threads circa 2013/2014. Lol. hahaha .... owner lose until pants dropAD and used car dealer .. laughing to the bank Edited March 9, 2018 by Wt_know Link to post Share on other sites More sharing options...
Kopites Supersonic March 9, 2018 Share March 9, 2018 (edited) Talking about depreciation ... i have a question if i buy a 2nd hand car at 100k with a written depreciation at 10k/y Does it mean i can sell the car at 90k in 1 year?? Or how does this 10k/yr work? Thanks If you sell your car at Five year mark mean your depreciation 20/year? No don't work that way. Take depreciation at part of total cost of owning a car compare to the cost of other mode of transports. Bear in mind you still need to factor in other costs like fuel,parking,insurance etc etc Edited March 9, 2018 by Kopites 1 Link to post Share on other sites More sharing options...
Sdf4786k Twincharged March 9, 2018 Share March 9, 2018 (edited) If you sell your car at Five year mark mean your depreciation 20/year? No don't work that way. Take depreciation at part of total cost of owning a car compare to the cost of other mode of transports. Bear in mind you still need to factor in other costs like fuel,parking,insurance etc etc I have a hypothetical question. Imagine you bought a car 2 years back at 100 K. Assuming u paid coe at 60K 2 years later , the same brand and model has drop to 90K due to coe drop. Used car dealer take in your car and you top up 20 K for the new car. Do u then take the offer as it equates to per year depreciation at 10 K. Or do you need to deduct the cost that the car has depreciated, in this case 70K for trade in value.? A lost of 30K or 15 K per year? Just for discussion and lets leave out the CEVs component assuming that it is neutral band. Edited March 9, 2018 by Sdf4786k Link to post Share on other sites More sharing options...
Volvobrick Supersonic March 9, 2018 Share March 9, 2018 (edited) Depreciation is the difference between your buy and sell price divided by the number of years. In your example, buy 100 sell to dealer 70, over 2 years means 15k per year for the first car. Now for second car 90 assuming you drive for 10 years and scrap at 10k, would be 8k a year. Different period different depreciation. Since they are 2 different cars anyway. If you want to make yourself happy, then average out the 12 years (10k per year) and tell yourself your Ave depreciation is only 10k a year for the first car. Edited March 9, 2018 by Volvobrick ↡ Advertisement Link to post Share on other sites More sharing options...
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