COE Crashed

[Acemundo]

bro,

 

which car dealer need to mark to your book depn at historical cost?

 

ur 5k depn is what u paid for, but there's no committment from the dealer to take in at same rate of depn.

 

if car valuation is as straightforward as straight line depn of historical prices, then pple won't have get so much shock talking to 2nd hand car dealers abt the valuation of their car

[Civic155]

well I am not sure thats why I am asking around

thinking of trading in at the dealer

btw I just checked my rebates

 

OMV: $12,317

PARF Rebate: $10,161

COE Rebate: $15,687

 

 

Total is $38,165. This is the minimum amount I should be getting if I trade in my car right?

 

No. You only take by $25848 + car body value.

[Erikkson]

bro,

 

car dealers don't take in ur car this way

 

if say ur car is sunny and first hand sunny now drop to 4.8k depn per year, they will only take in ur car at say 4.6k depn per year - 3k (say)

 

if u work ur sum this way, you will know that the amount you lost is not just 1/6 of 5k

 

if car valuation is as straightforward as straight line depn of historical prices, then pple won't have get so much shock talking to 2nd hand car dealers abt the valuation of their car

 

ok lets say lets say they deduct 3k straightaway

this is still less than the drop in COE prices ($16k - $11k = $5k)

so if I trade in my car, I only lose $3k + 1/6 (COE $1.6k)

Edited October 6, 2005 by Erikkson

[Acemundo]

brother, not like that lah....tell me ur current car, what price u paid for, what is the parf.....

 

then i show u how they price ur car in 2nd hand market.

[Erikkson]

No. You only take by $25848 + car body value.

pai seh, u mean OMV is not counted? roughly how much is the car body? Thanks.

[Erikkson]

brother, not like that lah....tell me ur current car, what price u paid for, what is the parf.....

 

then i show u how they price ur car in 2nd hand market.

 

hi bro, I paid $54.5k for my car. Registered on 27/07/05

 

OMV: $12,317

PARF Rebate: $10,161

COE Rebate: $15,687

 

Thanks.

[Kanr]

sound like u are a professional car dealer,bro!!!

[Acemundo]

ur book depn is (54500-10161)/10 = $4.4k per annum.

 

COE have fell by 3.8k since ur COE price.

 

assuming the first hand car of same model as you will now depreciate at (54500-3800-10161)/10 = $4k per annum.

 

so meaning if u resell ur car in the resale market, it will likely fetch 3.8k per annum only

 

then since you have 117months left in your car, it will be valued at = 10.2K + 3.8K/12 * 117

= 47k

 

minus away the agent margin, of say 5k, he will only take in from you at = 47k-5k

= 42K

 

so your loss at the minmum would have been = 54.5k - 42k - 1k (book depn)

= 11.5k

[Acemundo]

haha...hey there are real car dealers around in mcf lah...

 

i not as professional as them, just that i talk to such pple before and understand roughly the valluation mechanism.

[Genie47]

Aiyah, drive until the car until its COE is used up loh. What to do. By doing this, you still save heaps even though you bought the car with a more expensive COE.

 

Those with cars more than 5yrs old should go shopping if they still want a car. Those with no car better go shopping if they can afford and desire a car.

[Erikkson]

ur book depn is (54500-10161)/10 = $4.4k per annum.

 

COE have fell by 3.8k since ur COE price.

 

assuming the first hand car of same model as you will now depreciate at (54500-3800-10161)/10 = $4k per annum.

 

so meaning if u resell ur car in the resale market, it will likely fetch 3.8k per annum only

 

then since you have 117months left in your car, it will be valued at = 10.2K + 3.8K/12 * 117

= 47k

 

minus away the agent margin, of say 5k, he will only take in from you at = 47k-5k

= 42K

 

so your loss at the minmum would have been = 54.5k - 42k - 1k (book depn)

= 11.5k

 

sounds like u are really a pro car dealer

but don't really understand ur calculation

pls enlighten, thanks.

[En0203]

drive until the car until its COE is used up loh

 

yalor, i also say

[Acemundo]

dun understand must tell me which part mah......

 

the rationale is market depn have fallen and 2nd hand car have to sell at further discount to depn of first hand cars and don't forget the car dealer commission

 

so it is a triple whammy

 

i can only tell u ur guaranteed loss is around 11.5k

[Acemundo]

yeah, not that i advocating for everyone to change.

 

do the sums, compare.

 

for some it is worthwhile, for others, probably not.

[Erikkson]

hi bro don't understand how come u factored in the $3.8k COE and $10.2k PARF depreciation

 

assuming the first hand car of same model as you will now depreciate at (54500-3800-10161)/10 = $4k per annum.

 

 

can u explain step by step how u arrive at each figure? Thanks :)

Edited October 6, 2005 by Erikkson

[Redtrack]

i just checked some car prices eg. lancer but this C&C dealer has not reduced the price based on the drop in COE. Probably, the dealers are too shocked to decide on the car prices.

 

would be car buyers....please be careful

[Erikkson]

i just checked some car prices eg. lancer but this C&C dealer has not reduced the price based on the drop in COE. Probably, the dealers are too shocked to decide on the car prices.

 

would be car buyers....please be careful

 

yup I am aware...as of yesterday the Lancer car price is still $52.5k

C&C's COE rebate is $12k, but the COE as of yesterday is already $11k

so I guess they have to pay back all the new car customers the difference in the COE liao

Edited October 6, 2005 by Erikkson

[Genie47]

Bro. Not dealer. Stealer.