Renew COE or not?

[Jj5599]

In a couple of years my car would be 10 years. Currently very low mileage. Was wondering whether it is more economical to renew COE than to buy a 2nd hand car, assuming the price of Cat B COE then is around current prices. The 2nd hand car would cost about $70K (5 years old), which means i can drive another 5 years or should i renew COE at around $40k but can drive 10 years.

 

thanks

[C-K]

How much is the rebate you're going to get at the end of the 10th year?

 

If it's not a lot and your car is still in good condition, IMO it's more economical to just renew the COE and praying hard that the COE price will drop some time in the next couple of years.

 

However, if the PARF rebate amount is substantial, it's better to just get a new car. Use the rebate + some spare cash to pay for downpayment. This way, you don't need to worry for major maintenance for the next 3 to 5 years.

[Jj5599]

I think its about $24k

[Ferraricalifornia]

does any new car appeal to you currently???

[Roh96]

Not worth to renew COE at this level. Scrap and get 2nd hand car should be a better option.

[Roh96]

See, 24k scrap value + PQP COE of 40K+ = 65k+. Do you want to drive a COE car that dep >6.5k PA?

[Galantspeedz]

I think its about $24k

 

i am facing the exact same problem as you.. mine left 2 yrs... will decide again next year

[Jj5599]

Can the rebate be used to pay off 2nd hand car?

[Acemundo]

renew coe or not is dependent on the assessment of the reliability of the car upon continued use into the next decade vs the lost of the parf rebate.

 

cos when you renew, you lose the parf rebate but you continue using the car for the next 10 years. if you car is spoil beyond repair on the 10th year +1st day, you lose the parf rebate.

 

but if your car can serve you well for the next 10 years, you would have saved at least 40-70k (ie new car price - parf rebate from current car) from an alternative choice of new car.

 

 

[PDK]

In a couple of years my car would be 10 years. Currently very low mileage. Was wondering whether it is more economical to renew COE than to buy a 2nd hand car, assuming the price of Cat B COE then is around current prices. The 2nd hand car would cost about $70K (5 years old), which means i can drive another 5 years or should i renew COE at around $40k but can drive 10 years.

 

thanks

 

I guess your decision as to whether you should renew the COE of your car would depend on a few factors:

 

a the type car of you're driving

 

b. how well it is being maintained (and can it last the next 10 years?)

 

c. what would you get in return should you scrap it (residual value of OMV, body)

 

d. are you "emotionally attached" to it (e.g. it got you your wife, new girlfriend, you fetch your first born back from hospital in it etc)

 

e. do you want to remain "debt free?" Usually unless you can afford to pay in full, you'll end up with a loan for a new car due to its higher price. But you generally would have to renew the COE paying in full. A "COE" loan by some car dealers would attract very high interest rates.

 

f. finally your "hidden desire" to change your present car as you don't want to be seen driving the same car for eternity..

 

All said, do remember that most car enthusiasts look at cars from their hearts and not from their heads. So when the heart starts to flutter...you can ignore all the above as the heart will rule your head

 

 

[Jj5599]

thanks for your reply!

[Ehchang8]

also consider

new car, new technology, more efficient, more features ...

coe car, higher road tax, lower insurance, higher fc, higher maintenance ...

[Nf0rc3r]

See, 24k scrap value + PQP COE of 40K+ = 65k+. Do you want to drive a COE car that dep >6.5k PA?

 

Depreciation cannot take in scrape value. Once u renew straight lose 24k. Depreciation is 4k per year.

[Jj5599]

What is the significance of a high and low depreciation? What does it affect?

[PDK]

What is the significance of a high and low depreciation? What does it affect?

 

Depreciation only affects your wallet ! Needless to say, if your car depreciates more, you become less rich. Depreciation is an action, and in this case becoming less rich as a result of the depreciation is the equal and opposite reaction. I recall that about 10 years ago (when the economy was still strong and buying cars were in good fashion), no one would blink an eye lid when buying a luxury car with an annual depreciation of between $28k-$35k, assuming that he uses the car for 10 years. Those were the years when the ADs' profit margins could go into 6 figures for each luxury car they sell.

 

When I was working and living in the UK, cars were cheap. I recalled buying my brand new Porsche Boxter S for GBP 38k (about S$85k) in 2002, about equal to the price of a Toyota Corolla in Singapore. It didn't had any residual value like OMV or COE. But friends who bought the same car as me in Singapore paid something like close to S$320k. I dorve the S for about 3 years and offloaded it to a colleague for GBP 20k, suffering a depreciation of GBP 18k (about S$40.5k) for the 3 years of ownership. For approximately S$13.5k a year for depreciation, I'd probably be driving a Korean or Malaysia-made car..but I was living in a different country, a different continent. So things were different in many ways, especially when it came to car ownership. It was most fortunate that during my time overseas, I took the opportunity to own and drive as many cars as I could just to satisfy my passion! I would be guilty (and shameful) to say that at one point, I had 5 cars in my garage! But to do the same in Singapore is just senseless due to the many punitive measures imposed on car ownership. But hey, if you're super rich, that's not a bother at all is it?

 

 

[Ez_rider]

My ride coming to 20years next year.Im gonna scrap it 'cos no point to renew its coe(high maintanence)

[Lectrosphere]

In a couple of years my car would be 10 years. Currently very low mileage. Was wondering whether it is more economical to renew COE than to buy a 2nd hand car, assuming the price of Cat B COE then is around current prices. The 2nd hand car would cost about $70K (5 years old), which means i can drive another 5 years or should i renew COE at around $40k but can drive 10 years.

 

thanks

 

 

if by the time the COE is not high... i would renew... especially would if im the first owner of the vehicle... cause i know the condition of the vehicle when its out of the factory

[Hiphiphoray]

i would suggest driving the car until max 10yrs if there are no major repairs required. Then scarp it.

 

No point renewing the COE cos u will never know the engine or some major parts might just go kaput on the 11th year. U will lose that 20k just like that. Giving the start-stop driving conditions in spore roads, it will be difficult to last the car 10 yrs let alone 15 or 20 years.

 

 

 

Depreciation cannot take in scrape value. Once u renew straight lose 24k. Depreciation is 4k per year.