Paper Value of Off Peak Cars (OPC)

[TandemAssassin]

Dear members,

 

I have been looking around at Off Peak Cars but am somewhat confused by the Paper Value calculations for such cars, be it new or pre-owned. Hence I am hoping for some advice.

 

For a new off peak car, and assuming the following:

 

COE = 30k

OMV = 14k

 

Am I right in saying that the Paper Value at around Year 5 is:

 

COE = (30k less 17k)*(5/10)

Parf Rebate = 75% of 14k

 

add both to get paper value of 17k?

 

For a pre-owned off peak car, assuming:

 

COE = fully deducted

OMV = 14k

Min Parf Benefit = 6k

 

Paper value around Year 5 after its first registration is:

(6k/50)*75 = ~9k

 

I hope my example is not too confusing. Taking in all advice! Thanks and have a good night!

Edited June 22, 2010 by TandemAssassin

[Iisterry]

https://vrl.lta.gov.sg/lta/vrl/action/pubfu...bateBeforeDeReg

[Mrbms]

hmm... i think paper value is merely an academic figure

 

it is a weapon/tool/excuse/blah blah for 2nd hand car dealers to buy ur used car for a song..

[TandemAssassin]

https://vrl.lta.gov.sg/lta/vrl/action/pubfu...bateBeforeDeReg

 

Bro Terry,

 

I know got the link, but I can't use it unless I have the car owner's details right? What about new car?

 

Cause right now, I am trying to compare annual depreciation between buying new OPC and preowned OPC to my estimated date of selling. Hence, would like to know the actual calculations.

 

Btw Terry, do you take in commercial vehicles?

Edited June 23, 2010 by TandemAssassin

[TandemAssassin]

hmm... i think paper value is merely an academic figure

 

it is a weapon/tool/excuse/blah blah for 2nd hand car dealers to buy ur used car for a song..

 

yup, but it is in reality the worst case scenario. how much the car can fetch even if no one wants it. a useful baseline to determine worst case depreciation of the purchase.

[Galantspeedz]

if i rem correctly, for OPC.. the 17k will be used to offset your OMV then your COE so in your case, if the OMV is 14k and COE is 30k.... this means at onset your OMV will be 0 and your COE is 27k. so at end of 5yrs your COE value is 13.5k.. your paper value also 13.5k..... and enf of 10yrs, it is worthless.. there is no min. PARF since you have 0 OMV.

 

use the same calculation for pre-owned

 

hope this helps

[Desmondtwb]

Actually I believe it's the other way round, COE first then OMV.

[Iisterry]

Bro Terry,

 

I know got the link, but I can't use it unless I have the car owner's details right? What about new car?

 

Cause right now, I am trying to compare annual depreciation between buying new OPC and preowned OPC to my estimated date of selling. Hence, would like to know the actual calculations.

 

Btw Terry, do you take in commercial vehicles?

 

For used car, its straightforward. Subtract 17k off the COE first, if it is insufficient, then subtract from the PARF/OMV. You get back 50% of it at the end (before 10 yrs is up).

 

For new cars, you can safely assume that the COE should be above 17k based on current trends so you just need to know the OMV of the ride that you're getting.

 

If your estimated date of selling is before the 5th year or so, the car should be worth more than paper + body.

 

I don't do commercial but I can answer your queries if you have any.

[Notsogoodman]

if i rem correctly, for OPC.. the 17k will be used to offset your OMV then your COE so in your case, if the OMV is 14k and COE is 30k.... this means at onset your OMV will be 0 and your COE is 27k. so at end of 5yrs your COE value is 13.5k.. your paper value also 13.5k..... and enf of 10yrs, it is worthless.. there is no min. PARF since you have 0 OMV.

 

use the same calculation for pre-owned

 

hope this helps

 

Wrong, the OPC rebate of 17k will be used to offset COE first, if the COE is lesser than 17k, then the balance will use to offset against ARF (not OMV), which will result in one getting a lower PARF rebate.

Basically for OPCs, dealers are selling lower paper value for high markup (especially those registered from 2006-2009)...

 

[Ayotee]

then for example this one.. how do u calculate.

http://www.sgcarmart.com/used_cars/info.ph...926&DL=2013

[Iisterry]

then for example this one.. how do u calculate.

http://www.sgcarmart.com/used_cars/info.ph...926&DL=2013

 

Either get the car plate and key it into the following url to obtain the actual COE value.

https://vrl.lta.gov.sg/lta/vrl/action/pubfu...uireTransferFee

 

Or use SGC's depreciation figure as a guide (their automated calculation might be wrong). The car is roughly 4 years old.

 

Assuming their figure of $2,128 depreciation per year is correct, at the purchase price of $20,000. It means you get back $7,232 just before COE expiry.

 

Total depreciation = $2,128 * 6 years.

Purchase price - $$12,768 (total depreciation) = $7,232

 

You can also check historical COE prices here. Of cos you will need to know which category of COE was used.

http://www.lta.gov.sg/corp_info/doc/COE_Result_2005_2010.pdf

 

The most accurate way is to ask the dealer to print out the de-reg value for you just before COE expiry. In this case, for the date 10 Aug 2006 since it is registered 11 Aug 2006.

Edited June 23, 2010 by Iisterry

[TandemAssassin]

For used car, its straightforward. Subtract 17k off the COE first, if it is insufficient, then subtract from the PARF/OMV. You get back 50% of it at the end (before 10 yrs is up).

 

For new cars, you can safely assume that the COE should be above 17k based on current trends so you just need to know the OMV of the ride that you're getting.

 

If your estimated date of selling is before the 5th year or so, the car should be worth more than paper + body.

 

I don't do commercial but I can answer your queries if you have any.

 

Thanks. So I can say that I am more or less calculating it the right way. It is just that the calculated depreciation on some of the pre-owned OPCs end up very similar to buying a new OPC which led me to wonder whether my calculations were wrong.

 

As for commercial, I am just looking for quotes for my van, which I have to sell as closing down the company.

[Baal]

I have an idea & wish to seek some advise on. Say If i renewed my ride for 5 yrs in early 2016 & take a 3 yr loan.

 

That would mean loan complete end 2018.

 

End 2018/start 2019 is the time that those cars' coe were <5k. Now I am targeting OPC cars. Hence, based on 17k rebate (which offset arf 1st then coe), would it mean that those OPC cars purchased end 2008/start 2009 would be of no value other than body?

 

I am looking at Honda City 5AT. So in this case I just need to get a 10 year coe & fork out xtra 2-3k for the car? Not to mention if I scrap my balance of about 2 yrs worth of coe at that point, I should at least have a few thousand for repairs if required.

 

So in the end I get a regular plate car with fresh 10ys again. ( + a boot & its a Honda )

 

Am I missing anything here? Thanks in advance.

Edited February 8, 2014 by Baal

[LiuDeHua]

I have an idea & wish to seek some advise on. Say If i renewed my ride for 5 yrs in early 2016 & take a 3 yr loan.

 

That would mean loan complete end 2018.

 

End 2018/start 2019 is the time that those cars' coe were <5k. Now I am targeting OPC cars. Hence, based on 17k rebate (which offset arf 1st then coe), would it mean that those OPC cars purchased end 2008/start 2009 would be of no value other than body?

 

I am looking at Honda City 5AT. So in this case I just need to get a 10 year coe & fork out xtra 2-3k for the car? Not to mention if I scrap my balance of about 2 yrs worth of coe at that point, I should at least have a few thousand for repairs if required.

 

So in the end I get a regular plate car with fresh 10ys again. ( + a boot & its a Honda )

 

Am I missing anything here? Thanks in advance.

 

Everything sounds right save for that you cannot further renew the COE of a car if you have renewed it previously for 5 years only. Only if you had renewed it for 10 years, can you further renew the COE.

[Baal]

 

Everything sounds right save for that you cannot further renew the COE of a car if you have renewed it previously for 5 years only. Only if you had renewed it for 10 years, can you further renew the COE.

Thanks bro. Yep, i am aware of the implications of 5 yr renewel.

[Acemundo]

brother, I got a few question on off peak cars scheme

 

1) can off-peak car renew coe? if yes, do they enjoy the 17k rebate for the renewed coe?

 

2) can normal car apply to become opc upon coe renewal? if yes, do they also enjoy the 17k rebate for the renewed coe?

 

http://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/transport-options-for-motorists/revised-off-peak-car-and-opc-and-weekend-car.html#9

 

my guess is the 17k rebate isn't going to be awarded for both scenarios.....

Edited June 10, 2015 by Acemundo

[flashbang]

brother, I got a few question on off peak cars scheme

 

1) can off-peak car renew coe? if yes, do they enjoy the 17k rebate for the renewed coe?

 

2) can normal car apply to become opc upon coe renewal? if yes, do they also enjoy the 17k rebate for the renewed coe?

 

http://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/transport-options-for-motorists/revised-off-peak-car-and-opc-and-weekend-car.html#9

 

my guess is the 17k rebate isn't going to be awarded for both scenarios.....

 

Yup, there is no more 17k rebate once your car is above 10 years old. You can however choose to renew it as a normal plate or OPC, though it just makes sense to renew as a normal plate.

[ZechTan]

Hi guys,

 

Don't mind I hijack this thread to ask a question about PARF.

 

I'm intending to buy a car but am not sure about how to calculate its PARF. 

 

The car was registered in early Dec '08 and has an OMV of $14k. But when it was first purchased it was an OPC car. I'm not sure about what the COE for this car is. 

 

If I convert it to a normal car I calculate that I will pay about $5k for the conversion. In that case, will the OMV for the car be fully restored to $14k thus giving me a PARK of about $7k? Or do I have to deduct the $17k initial OPC rebate from this value thus giving me $0 scrap value?

 

Thanks for your help!