The last 2nd paragraph quotes Singapore Vehicle Traders Association first vice-president Raymond Tang, "Why not take back your $8,000 or $9,000, for example, and use this money to pay for a second-hand car?"

Politically correct statement for SVTA which does not benefit car buyers.

Doesn't make any sense to purchase a used Cat A Japanese branded car at $11K to $12K annual depreciation, with just a few years left to drive, and unforeseen parts replacement costs.

Renewal of 10 year COE makes the most economic sense, at only $6,000 annual depreciation over 10 years ($50K CAT A PQP + $7K to $9K scrap value foregone).

Even if you thrown in another $5,000 for wear and tear parts replacement, it costs you only $6,500 a year over 10 years.

Anytime you want to scrap the car, you get back pro rated COE value and is not at the mercy of used car dealers who offer ridiculous trade in prices.

The last 2nd paragraph quotes Singapore Vehicle Traders Association first vice-president Raymond Tang, "Why not take back your $8,000 or $9,000, for example, and use this money to pay for a second-hand car?"

 

Politically correct statement for SVTA which does not benefit car buyers.

 

Doesn't make any sense to purchase a used Cat A Japanese branded car at $11K to $12K annual depreciation, with just a few years left to drive, and unforeseen parts replacement costs.

 

Renewal of 10 year COE makes the most economic sense, at only $6,000 annual depreciation over 10 years ($50K CAT A PQP + $7K to $9K scrap value foregone).

 

Even if you thrown in another $5,000 for wear and tear parts replacement, it costs you only $6,500 a year over 10 years.

 

Anytime you want to scrap the car, you get back pro rated COE value and is not at the mercy of used car dealers who offer ridiculous trade in prices.

Plus u r "getting" a car that u know well mechanically compared to buying an unknown car from a car dealer

Plus u r "getting" a car that u know well mechanically compared to buying an unknown car from a car dealer

Actually, there are pros and cons. No perfect choice, depending on the individual's car model and condition. 

Let's analyze the 2 options.

Option 1: Renew COE

If choose to renew existing car's COE, need to fork out at least $20K+ for the privilege to drive 5 years. 

Pros: If existing car is in relatively good condition with less problems, this will free up a lot of money in the long run, as there will be no more installments to pay. Only need to standby some money for the occasional wear-&-tear and repairs, associated with older cars after 10th year

Cons: Need to fork out cold hard cash of $20K+ and forego the PARF value of existing car. If existing car is a high-end one, it may not make sense to renew as one is foregoing the PARF value, which can be substantial. For instance, the popular Merc C 180, the scrap value can be worth at least $25K. So it is like $25K+COE renewal $$ going down the drain. Total damage could be up to $50K.

Option 2: Sell car and get 2nd hand

There is a wide range of models to choose from, in the second hand market.  Can opt to get a relatively new one, like those less than 2 years old to minimize possible costs in repairs and wear-&-tear replacement.

Pros: 

Can use the car's scrap value to offset the downpayment required. Is a good option for those who foresee expensive wear-&-tear issues with their existing cars.

For instance, the ever popular Altis model 2015 needs an downpayment of about $20K+, so after offsetting, the cash outlay can be lower than $20K only or even lesser and you can still be entitled to get back some PARF on the second hand car. 

Hence, less cash outlay in this option, as opposed to Option 1.

Cons: 

Slight worries about picking up a lemon car. But this is reduced if choosing brands which are known to be reliable, or newer models. And need to pay installments again. 

Conclusion

If one is driving an existing car and has experienced many wear-&-tear or repairs, it is more economical to go for Option 2, since the cash outlay in Option 2 is generally lesser than that in Option 1. 

However, if one is driving an existing car and has not experienced forking out huge amounts for repairs or wear-&-tear, then it makes sense to go for Option 1. 

Actually, to go for Option 1, one is potentially letting go a lot of $$, as explained above. 

This Mr Tang lives in his ideal world. If every car don't need repair, no problem, of course his statement is ok. He don't know almost all 2nd hand car buyer will repair or replace certain parts of the "new car" (not mod). And he think the time taken to and fro workshop is free? Then not need calculate the hassle of sourcing a reliable and reasonable priced car/dealer?