Worth to Scrap High COE Car ?

[Guanleng]

Hi All ,

 

I bought my Vios at $66000 June 2004 , registered on 3 Sep 2004 .

 

OMV $12,149 , COE $28,331.00

 

Loan $46000 ( 70% ) - 7 year

 

still Owed Bank 20+ k .

 

Would it be advisable to scrap my car and buy a 2005/2006 2nd hand car ? ( Altis / Civic / Lancer / Colt )

 

Do i need to top up any cash ? Any dealer around ?

 

Thanks !

[Titanium]

My COE is 21k, i also thinking of scrap n get a 2005 car.

[Diehardsu]

I think U shld hv brk even,it's better 2 chg new car. 2nd hand u might get a lemon.

[Titanium]

ya... break even quite long ago.

 

New car very ex leh... wanna to cut cost mah.

[Diehardsu]

Where got ex, last time COE $28K not Ex, now COE 12to 15K ex meh ?

[Titanium]

No lah...

 

- i dun wish to downpayment.

- installment ard $500 ~ $600+- per mth.

- prefer 7 yr loan.

- wanna get back cash for my current car.

 

Choice available is either a 2nd hand car, or a Eurovan (When the COE is cheap).

[Diehardsu]

Nowadays where got get back money, when u sell car unless u dun wan 2 drive anymore.

assuming u get $5K back, u still hv 2 pay installment 4 e 2nd hand car.Oso u hv 2 pay higher interest, transfer fees, shorter repayment period meanin higher installment

[Titanium]

if i not wrong can get back ard 7k ~ 8k if i scrap now.

 

ya man, everything is abt money, must plan well before committing mah...

[Diehardsu]

It all depends on yr peference, u still can keep yr 7K, if u go 4 smaller car around 40k to 44k

[Titanium]

but my current car already very small le...

[Diehardsu]

If u buy a bigger 2nd hand car FC, road tax, insurance will go. lagi worse

[Jl1500k]

If really wat 2 cut cost you have to change to Van liao but not now.

 

Now the cost of the EuroVan can buy a 1000cc car

[Booboon]

take bus is the best. Can take money bk, big somemore. Best of both whole.

[Nobrainer32007]

Let me try to suggest:-

 

sell your house if it is not within 5 min walking distance to any MRT station.

 

downgrade to a smaller house within 5 min to mrt.

 

if work place is not near mrt, change to one that is near mrt

 

sell car

 

take mrt

 

weekend outing :any place near MRt

 

if feel itch to drive, go for free test drives.

 

 

 

life is full of choices.

[Roh96]

I am in same situation as you, bought my car in Mar 2004 at high price. I will have to decide whether to change it on the 5th year or continue to drive till COE ends. In my opinion, is better for you to drive a while longer till the 5th year. Anyway you will be getting paper + body value if u sell now. So why not wait and see. Don't anyhow jump from one hole to another. Nowadays buying car is easy, but getting rid is hard.

[Apollo]

at this point is no. try to target COE+OMV rebate in end yr 2008 to 2009 (ie 5 yr).

 

use www.onemotoring.com

 

also plot a chart of ur monthly repayment (some $660) on a regressive line and see where the breakeven is.

[Redwood]

OMV = $12,149

COE = $28,331

Loan 7 years, $46k

I assume interest at 2.5% PA and you start paying your 1st installment on Sep 04.

 

Answer: Your breakeven date is Apr 07. Assume your scrap metal = $0/-. After paying off bank, you will have $2500/- in your pocket if you scrap in Dec 07.

Edited December 20, 2007 by Redwood

[Redwood]

I think you can look into the following options,

 

1. Status Quo - i.e. Continue to drive this car

2. Scrap car and don't drive anymore

3. Scrap car and buy a second hand car

4. Scrap car and buy a new car

5. Repeat option 2 to 4, but ask some agent to sell your car

 

Measure of Effectiveness (MOE)

1. Total cost of ownership (10 years)

2. Monthly installment or yearly expenses on car's fixed cost

Edited December 20, 2007 by Redwood