High OMV vs Low Selling Price: Where do you draw the line?

[Kilion]

I'm looking into buying a new car and I've got 2 contrasting quotes from 2 different PIs. Using rounded figures for simplicity..

 

Quote 1

OMV: $32000

Selling price: $107000

 

Quote 2

OMV: $27000

Selling price: $100000

 

I understand that good cars in general will have higher OMV but how much does it really matter? How far should one go to get a car with high OMV?

 

Correct me if I'm wrong but if you sell your car within 5 years, you'll only get the PARF rebate (75% of ARF = 82.5% of OMV), a portion of your COE price paid plus your car's selling price, right? So in the above example when I have to pay 7k more for a better PARF rebate of around 4k, is it worth it?

 

I'm new to all this so will appreciate even if u've got half a cent to contribute. :) Thanks!

[Silver_blade]

I will get the one with the lowest ration between OMV and selling price....cos that means the seller is making less for the car.

 

But you will have to make sure that the cheaper one will sell you the car at the agreed price...no top-ups, extra admin fee, etc...

[Nkps]

take quote 2.

[Dee_dum]

in actual fact its 7k more plus interest..assuming its same level of specs for different omv.

 

also u have to put a price on factors such as dealer support, service

[Boxster]

I will calculate this way if I am going to drive 10 yrs

 

Quote 1

PARF=0.55X32k =17.6k

dep per yr = 107k-17.6k /10 =8940/yr

 

Quote 2

PARF=0.55X27k =14.85k

dep per yr = 100k-14.85k /10 =8515/yr

 

Being a buyer I think no point paying more $$ which go to the ARF and so on.

Most important if the dealer got into problem for under declared OMV the buyer should not be made to pay the difference.

[Falc]

Only get the higher OMV one if the 10 year dep are the same for both.

In your example, Quote 1 dep is much higher than Quote 2, so no point.

 

To calculate 10 yr dep:

(selling price - OMV*0.55) divide 10

[Kernong]

sorry, noob here. how does depn play a part in buying/selling of new/old cars?

[Lucien]

Just get the cheapest option.

No matter what rebate or parf value. It comes back in % form. You not getting a full amt. That few k omv aint gonna make a difference in rebate value

[Boxster]

I think at the end of the day most of us would like to get the most out of the $$ paid. So wouldn't you buy the car with least dep/yr

[Kernong]

is there any difference if i dun drive it for 10 yrs? juz tryin to find out the implication of computing depn for the car.

[Boxster]

I guess you have to compute the parf you get according to the yrs you own it.

Bear in mind this is only the parf return in paper form

DO check out onemotoring.com.sg for more info

[Porker]

Yes Yes Yes!!!

[Kilion]

the few k in omv does make a difference to the rebate value, as shown in the example(s) above (i.e. 4k). Now the question is whether it's worth it to fork out 7k for the difference.

 

Of course, 7k for 4k is def not worth it but does a higher omv mean higher resale price too? if so, how much higher? will it make the 7k worth it?

 

I can see that depn is also a thing i need to factor into all this. so if i intend to keep the car for 4 yrs, the diff in depn will amt to abt 2k. So now the cost difference is 7k + 2k - 4k = 5k.

 

The truth of the matter is that quote 1 is from a dealer i trust more, better tech expertise/knowledge, servicing and dealership in one, closer to my home/work place so easier to send for servicing, etc. Quote 2 seems more attractive financially but servicing is @ mbm/kbs, which i've not heard much of.

 

So will higher omv = higher resale price? Comments?

[Falc]

If u r going for 1, make sure they state in contract the omv value itself. If anything lower, they should refund u 2.3 times the difference.