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Should I scrap my 3 year old Cat A car?


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Just trying to confirm my suspicion that you’re not a happy person, thus the need for such a behavior online. You know it better yourself.

Thanks for helping me to clock post.

 

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My car is also 3 yo and also contemplating changing. The reasons are (some can be rather flimsy)

1) low COE now

2) new car more features

3) get a more powerful engine

4) dump the cvt transmission

5) very common on the road now

6) nice new car smell

 

The against is mainly definitely take a big hit financially.

 

I think I am going to take the irrational route.

Wow the exact same reasons why I recently changed car...except for reason number 6.... I read somewhere the “new car smell” is due to some volatile organic stuff that causes cancer haha
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My car is almost 2 yrs (COE at 50k and car bought 104k, loan abt 60k 7 yrs) but after seeing the possible loss of 20 to 30k and buy new car need to top up maybe 10 to 20k, I think I better keep the car for a longer time. Any experts can advise when is the next good time to change car?

 

My car is also 3 yo and also contemplating changing.  The reasons are (some can be rather flimsy) 

1) low COE now

2) new car more features

3) get a more powerful engine

4) dump the cvt transmission

5) very common on the road now

6) nice new car smell

 

The against is mainly definitely take a big hit financially.

 

I think I am going to take the irrational route.

 

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Thanks to all for their kind replies..

 

Many of them were sensible and it really led me to sit back and rethink a little about my hastiness.

 

After I had a talk with my wife, we both agree its better to hold on to this car awhile longer as it has served us flawlessly all this while.

 

I better not give in to my desires now since there are many new models slated to appear by 2019, e.g. Subaru forester, Elantra, City, Civic.. etc... 

 

I will wait and see what the new Motorshow in Jan 2019 will bring..

 

Yes you can hold and wait for new models and the right time. If COE go high still you can get a better price for your used car to counter the increase in new car price. Should not trade in at paper value if COE go high in future.

 

You can always check SgCarMart Quotz for a better price for your car. Last time i got $3000 extra for my 7 years old VW Golf compared to direct offered by used car dealers and trade-in price was even worse. The deal was also effortless, just a visit to SGcarmart office (Between i am not from SGcarmart  [:p]). Direct selling to the buyer is pain in @**  (Time-consuming, lots of viewing, after sale calls from new buyer and worse is loan issue once the deal is finalized). 

 

If we do the right calculations and take the right action at the right time then it's not always the case that we will lose significant while changing the young age car. Arranging downpayment is different story from losing/ making money. what i see downpayment is like going to buy car first time then also have to arrange :)

 

Forester @ $93K is now bang-for-buck car with the pack of features and safety.  Lets see how they priced new Model which will come with Eyesight feature so there must be an additional cost. The downside is high road tax and much higher insurance (Don't know why insurance companies still treating all Subaru model under high risk whereas Forester 2N.A. is a family car with good reliability)

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Think looking at a 36k loss for selling off a 2year plus honda city is not a correct representation

 

If one is to drive over 10 years, the annual depr for the city based on 2016 price is 8.8-9k/year

 

at this point, the normal depr should be about 18k assuming a straight ten year depr

 

So the actual relative loss is 36-18k = 18k, not 36k

 

 

Agree that actual loss is 18k,not 36k.

But he still need to comes out cash of 12k and start all over again on a new 5yrs loan.

So basically actual loss is 18k+12k cash =30k?

So 30k plus new 5yrs loan again for the new car.

If he keeps his existing car,this 30k can be totally avoid spending.

And his car is 2yrs old so I assume he left only 3yrs more to serve the old loan.

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I also thought of changing to newer car. Current car subaru Forestor 2.0 turbo oct 2015 bought at 128k at 60k coe.

 

New generation forester is 2.0NA, nicer, more auto safety functions and bigger exterior and interior. Downside is no turbo. Could be selling at 95k at today coe level.

 

If I sell my car at 80k, my consumption will be 48k for 3 years and add 95k new car price which is 143k for another new 10 years which will bring the expenditure of car to 143k over 13 years before taking into account scrap value..

 

Still thinking and thinking but I don’t think I can take the 100bhp lesser engine

 

Another poison is XC40... saw it on the road and it looks lovely! Much nicer than xc60.. I don’t dare to go see and test drive scared cannot resist temptation

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I also thought of changing to newer car. Current car subaru Forestor 2.0 turbo oct 2015 bought at 128k at 60k coe.

 

New generation forester is 2.0NA, nicer, more auto safety functions and bigger exterior and interior. Downside is no turbo. Could be selling at 95k at today coe level.

 

If I sell my car at 80k, my consumption will be 48k for 3 years and add 95k new car price which is 143k for another new 10 years which will bring the expenditure of car to 143k over 13 years before taking into account scrap value..

 

Still thinking and thinking but I don’t think I can take the 100bhp lesser engine

 

Another poison is XC40... saw it on the road and it looks lovely! Much nicer than xc60.. I don’t dare to go see and test drive scared cannot resist temptation

 

Bro, Forester without turbo is just......... boring la. I suggest you hold on to your forester turbo.

Subaru cars without turbo is just plain............ un-subaru

Thanks to all for their kind replies..

 

Many of them were sensible and it really led me to sit back and rethink a little about my hastiness.

 

After I had a talk with my wife, we both agree its better to hold on to this car awhile longer as it has served us flawlessly all this while.

 

I better not give in to my desires now since there are many new models slated to appear by 2019, e.g. Subaru forester, Elantra, City, Civic.. etc... 

 

I will wait and see what the new Motorshow in Jan 2019 will bring..

 

Wise decision bro. Buying cars is like buying handphone in Singapore.

Everytime chase new models like chasing handphone.. where can finish one?

 

Always got newer models and better specs, features. 

Somemore car not like handphone..

 

Keep on changing how to tahan?

 

 

Be down to earth better lar hor.

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I also thought of changing to newer car. Current car subaru Forestor 2.0 turbo oct 2015 bought at 128k at 60k coe.

 

New generation forester is 2.0NA, nicer, more auto safety functions and bigger exterior and interior. Downside is no turbo. Could be selling at 95k at today coe level.

 

If I sell my car at 80k, my consumption will be 48k for 3 years and add 95k new car price which is 143k for another new 10 years which will bring the expenditure of car to 143k over 13 years before taking into account scrap value..

 

Still thinking and thinking but I don’t think I can take the 100bhp lesser engine

 

Another poison is XC40... saw it on the road and it looks lovely! Much nicer than xc60.. I don’t dare to go see and test drive scared cannot resist temptation

current coe around 34k you bought yours at 60k. If you sell yours you will incur an immediate loss of about 30k and it will level out. You will also get a less powerful car although it comes with new isight and slightly bigger space. Worth it? Not to me. Unless COE drop to 15k if not you are just beating around the bush.

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Agree that actual loss is 18k,not 36k.

But he still need to comes out cash of 12k and start all over again on a new 5yrs loan.

So basically actual loss is 18k+12k cash =30k?

So 30k plus new 5yrs loan again for the new car.

If he keeps his existing car,this 30k can be totally avoid spending.

And his car is 2yrs old so I assume he left only 3yrs more to serve the old loan.

Yes bro, you are absolutely right!  [laugh]

 

Your assumptions are on point!

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Bro, Forester without turbo is just......... boring la. I suggest you hold on to your forester turbo.

Subaru cars without turbo is just plain............ un-subaru

 

Wise decision bro. Buying cars is like buying handphone in Singapore.

Everytime chase new models like chasing handphone.. where can finish one?

 

Always got newer models and better specs, features. 

Somemore car not like handphone..

 

Keep on changing how to tahan?

 

 

Be down to earth better lar hor.

Yea.. I guess I got bitten by the bug as my cousins who are more well to do change cars every couple of years.

 

2 of them just placed deposits on new cars, and was telling me that this is the best time to take advantage of the lower COE premiums.

 

Reasons like: your coe so high, keep for what? end of the day will still drop to 0. should sell now since paper value still high and just top up a little, get a new car and reset your tenure for 10 whole years. better than wait more and lose more. 

 

As this is my first car, I was rather unsure of what to do.

 

Thats why after hearing advice from here and having a discussion with my wife, we think its better to wait and see what comes next in the near future.

 

To the anonymous bro that downvoted me and criticized me.. its not that I am fickle minded. my reasons says it all. :D

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Yea.. I guess I got bitten by the bug as my cousins who are more well to do change cars every couple of years.

 

2 of them just placed deposits on new cars, and was telling me that this is the best time to take advantage of the lower COE premiums.

 

Reasons like: your coe so high, keep for what? end of the day will still drop to 0. should sell now since paper value still high and just top up a little, get a new car and reset your tenure for 10 whole years. better than wait more and lose more. 

 

As this is my first car, I was rather unsure of what to do.

 

Thats why after hearing advice from here and having a discussion with my wife, we think its better to wait and see what comes next in the near future.

 

To the anonymous bro that downvoted me and criticized me.. its not that I am fickle minded. my reasons says it all. :D

Best is when you change car don't need to come out any cash for downpayment and continue another new 5yrs loan.

So for your case,i think you are right when your car reaches 5yrs old cos you are on 5yrs loan.

 

That time you will get full paper value or full cash for your car if you sell cos you don't own bank anymore.

 

So assume your omv 17,5k-5k(cevs rebate)=12.5k.

-5yrs or 65% of omv translate to 8.1k cash back.

-coe of 55k left 5yrs balance 27.5k

So total 27.5k+8.1k=35.6k cash you can dump into your new car for downpayment.

And I still have not add in your city car body value yet.Maybe still cant get extra 1 or 2k.

 

That's is the time when you buy new car without any cash downpayment.

Just what my neighbour did.

 

Base on today coe,you can get a 120k better and bigger car.

30% downpayment just nice 36k cash.

 

Just forget about the elantra.lol.......

Edited by Sktan10
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Best is when you change car don't need to come out any cash for downpayment and continue another new 5yrs loan.

So for your case,i think you are right when your car reaches 5yrs old cos you are on 5yrs loan.

 

That time you will get full paper value or full cash for your car if you sell cos you don't own bank anymore.

 

So assume your omv 17,5k-5k(cevs rebate)=12.5k.

-5yrs or 65% of omv translate to 8.1k cash back.

-coe of 55k left 5yrs balance 27.5k

So total 27.5k+8.1k=35.6k cash you can dump into your new car for downpayment.

And I still have not add in your city car body value yet.Maybe still cant get extra 1 or 2k.

 

That's is the time when you buy new car without any cash downpayment.

Just what my neighbour did.

 

Base on today coe,you can get a 120k better and bigger car.

30% downpayment just nice 36k cash.

 

Just forget about the elantra.lol.......

To the joker who dislike.

 

People talk about better and bigger car,automatic becomes bmw & Mercedes,lol.....

Why???Cannot jap car or Korean bigger car meh?

Don't like that lah,You drive elantra is it?lol...

 

A180 is 122.8k leh.According to sgcarmart but that is not big car.

So 120k can buy la.Add another 2.8k only.

Maybe can discount to 120k if really serious about it?lol........

Edited by Sktan10
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Yea.. I guess I got bitten by the bug as my cousins who are more well to do change cars every couple of years.

 

2 of them just placed deposits on new cars, and was telling me that this is the best time to take advantage of the lower COE premiums.

 

Reasons like: your coe so high, keep for what? end of the day will still drop to 0. should sell now since paper value still high and just top up a little, get a new car and reset your tenure for 10 whole years. better than wait more and lose more. 

 

As this is my first car, I was rather unsure of what to do.

 

Thats why after hearing advice from here and having a discussion with my wife, we think its better to wait and see what comes next in the near future.

 

To the anonymous bro that downvoted me and criticized me.. its not that I am fickle minded. my reasons says it all. :D

 

Don't be affected by others ba.. stop comparing, will lead easier more carefree & happy life  [thumbsup]

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Yea.. I guess I got bitten by the bug as my cousins who are more well to do change cars every couple of years.

 

2 of them just placed deposits on new cars, and was telling me that this is the best time to take advantage of the lower COE premiums.

 

Reasons like: your coe so high, keep for what? end of the day will still drop to 0. should sell now since paper value still high and just top up a little, get a new car and reset your tenure for 10 whole years. better than wait more and lose more.

 

As this is my first car, I was rather unsure of what to do.

 

Thats why after hearing advice from here and having a discussion with my wife, we think its better to wait and see what comes next in the near future.

 

To the anonymous bro that downvoted me and criticized me.. its not that I am fickle minded. my reasons says it all. :D

I also ganna dislike by anonymous person. Just asking some questions also cannot. Sibei boliao.
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My car is almost 2 yrs (COE at 50k and car bought 104k, loan abt 60k 7 yrs) but after seeing the possible loss of 20 to 30k and buy new car need to top up maybe 10 to 20k, I think I better keep the car for a longer time. Any experts can advise when is the next good time to change car?

 

generally it's about before 5 years and 8-9th year mark

another perspective. 

 

Think looking at a 36k loss for selling off a 2year plus honda city is not a correct representation

 

If one is to drive over 10 years, the annual depr for the city based on 2016 price is 8.8-9k/year

 

at this point, the normal depr should be about 18k assuming a straight ten year depr

 

So the actual relative loss is 36-18k = 18k, not 36k

 

Seeing it from the other angle,

 

The new hyundai elite now cost 83k, and one can bring and add the 18k loss now to the new buy price of 83k

 

=101k

 

2 year ago, when he bought his city, hyundai elite was selling at 103-105k

 

essentially it is a zero sum game

 

He gets to drive a new city for past few years and now buying and can drive a new hyundai at 2016 price

 

For the joy of having driven a new honda city for 2+ years and now going to drive a new Hyundai over the next few years at about 1k depr

 

more per year seems reasonable if affordability is not an issue    

 

I also thought of changing to newer car. Current car subaru Forestor 2.0 turbo oct 2015 bought at 128k at 60k coe.

 

New generation forester is 2.0NA, nicer, more auto safety functions and bigger exterior and interior. Downside is no turbo. Could be selling at 95k at today coe level.

 

If I sell my car at 80k, my consumption will be 48k for 3 years and add 95k new car price which is 143k for another new 10 years which will bring the expenditure of car to 143k over 13 years before taking into account scrap value..

 

Still thinking and thinking but I don’t think I can take the 100bhp lesser engine

 

Another poison is XC40... saw it on the road and it looks lovely! Much nicer than xc60.. I don’t dare to go see and test drive scared cannot resist temptation

 

I think for FXT still possible since of the emissions issue (i dunno the market for FXT).

But if it was any other car, i doubt u will smell anything beyond few k above paper value which is low for subarus.

Edited by Lala81
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I'm comparing against u buying a Note now and keeping ur current Attrage:-

 

1) U buying Nissan Note

 

U bought at 84K, now lets say sell abt 50K. U loose 34K. Lets say u get a better price and end up loose only 30K (within 3yrs). 1 yr u loose 10K.

 

Irregardless wat car u buy, u must add another 30K into ur Car price into ur this decision. E.g Nissan Note now 64K, so u must add 30K. So nw u r actually buying ur Note at 30+64 = 94K.

 

2) U keeping ur current Attrage

 

Ur depreciation shld be abt 7K+ bah. Tats it.

--------------------------------------------------------------------------------------------------

 

Therefore, its $ vs liking. If u r cash tight, then better keep ur car. But if u r not cash tight (gt some extra cash or comfortable cash) and like the Nissan note alot, Y not, go for it [laugh]

The loss of $34k should take into consideration the 3 years usage / depreciation of $8k per year. So the loss is $34-$24= $10k. My own calculation. No right no wrong...
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hi guys,

 

with the recent lower COEs, I have read on the news that more people are considering scrapping their cars(with high COEs) early to take advantage of the lower COEs.

 

This, I believe, is with regards to the supposed lower average depreciation for the duration of the 2 cars' lifespan.

 

am quite keen on this idea, but....

 

Somehow I am unable to work out why.

 

 

Take this example:

 

2015 car purchased new at  = 115k

downpayment 60k, loan 55k,

interest paid over 5yrs = 7k

COE = 59k

 

If I use the current 2015 car for the full 10yrs, depreciation = (115 + 7) / 10yrs = 12.2k per year.

 

------------------------------------------------------------------------------------

 

If I decide to buy a new car now to take advantage of lower COEs,

 

according to onemotoring,

COE rebate amount = 39k

PARF rebate amount = 6k

Therefore if I scrap the car, I get back 45k

 

If I sell to dealer, quoted 52k

If sell privately, maybe 55k

 

-------------------------------------------------------------------------------------

 

Using best case scenario of getting back 55k by selling my car privately..

 

I will have spent a total of:
(cost of car + interest paid & owed to bank) - (amount from sale of car)

= 122k - 55k

= 67k

 

-------------------------------------------------------------------------------------

 

I was quoted 90k for the same model car, albeit a new 2018 version with a low COE.

 

let's not include the new bank loan + interest accrued to keep things even simpler (or to tilt things in favour of buying a new car).

 

depreciation of this new 2018 car: 90k / 10yrs = 9k per year.

 

 

However we need to look at the combined depreciation of both the 2015 and 2018 cars.

 

Combined depreciation:

 

(90k + 67k) / (10yrs + 3yrs) = 12.07k per year

 

???!!!???!!!

 

---------------------------------------------------------------------------------------

 

am I missing out anything?

mathematically, the average depreciation is about the same..

 

how can it be that people will save $$ by getting rid of their high COE cars and buying a new car now??

 

I must have missed out some factors/components...

 

kindly enlighten me pls!!

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hi guys,

 

with the recent lower COEs, I have read on the news that more people are considering scrapping their cars(with high COEs) early to take advantage of the lower COEs.

 

This, I believe, is with regards to the supposed lower average depreciation for the duration of the 2 cars' lifespan.

 

am quite keen on this idea, but....

 

Somehow I am unable to work out why.

 

 

Take this example:

 

2015 car purchased new at  = 115k

downpayment 60k, loan 55k,

interest paid over 5yrs = 7k

COE = 59k

 

If I use the current 2015 car for the full 10yrs, depreciation = (115 + 7) / 10yrs = 12.2k per year.

 

------------------------------------------------------------------------------------

 

If I decide to buy a new car now to take advantage of lower COEs,

 

according to onemotoring,

COE rebate amount = 39k

PARF rebate amount = 6k

Therefore if I scrap the car, I get back 45k

 

If I sell to dealer, quoted 52k

If sell privately, maybe 55k

 

-------------------------------------------------------------------------------------

 

Using best case scenario of getting back 55k by selling my car privately..

 

I will have spent a total of:

(cost of car + interest paid & owed to bank) - (amount from sale of car)

= 122k - 55k

= 67k

 

-------------------------------------------------------------------------------------

 

I was quoted 90k for the same model car, albeit a new 2018 version with a low COE.

 

let's not include the new bank loan + interest accrued to keep things even simpler (or to tilt things in favour of buying a new car).

 

depreciation of this new 2018 car: 90k / 10yrs = 9k per year.

 

 

However we need to look at the combined depreciation of both the 2015 and 2018 cars.

 

Combined depreciation:

 

(90k + 67k) / (10yrs + 3yrs) = 12.07k per year

 

???!!!???!!!

 

---------------------------------------------------------------------------------------

 

 

am I missing out anything?

mathematically, the average depreciation is about the same..

 

how can it be that people will save $$ by getting rid of their high COE cars and buying a new car now??

 

I must have missed out some factors/components...

 

kindly enlighten me pls!!

 

 

you haven't missed anything. That's why I'm still driving my 75k COE (registered Jan '15) car. 

U do get a new car though.

Edited by Lala81
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