To Sell or to convert to OPC?

[Ekardo]

background:

i started new work in town and it's more convenient for me to take MRT

 

I currently own a bike and also a Honda fit 08 (bought in 2008 nov, coe was $11k)

 

since I dun drive during weekday, i was wondering if I should sell the car, or to convert to OPC.

 

advise needed here.

 

1) is it only $100 to convert from normal to OPC? how much to pay for the RED number plate?

2) is it right that the Insurance is only slightly cheaper for OPC? and not like half price?

3) I read that I can get back up to $1100 every half yearly, how is this calculated? cos 20 X $1100 is already 22k in total

4) any complication if I wanna convert back to normal car like in 2 years ? (maybe change of job? or new gf wanna drive to work?)

5) if I wanna sell my car, i only get a few k more than the paper value right? meaning, the buyer will gain since my COE so cheap.

 

thanks for any advise...

 

[Digibee]

If you are not driving during weekdays; best is to convert to OPC.

Then you still can use the car during weekends and weeknights.

 

You can read up OPC on the net : eg. http://www.sgcarmart.com/news/writeup.php?AID=80

[Jman888]

how long do you think you can last in the new job ?

[Expertz]

OPC rebate is 17k

had you bought your car as OPC from the start your rebate would only have been 11k instead of 17k due to the low COE

 

i doubt that govt will return you 1.1k every 6 months cause then you would have benefited 2x

better check properly before converting!

[Iisterry]

1) is it only $100 to convert from normal to OPC? how much to pay for the RED number plate?

 

$100 for the admin fee, about the same for number plate + seal + inspection. All in around $200+ in costs. Just visit any of the shops near LTA and they can settle the whole process for you.

 

2) is it right that the Insurance is only slightly cheaper for OPC? and not like half price?

 

Usually at least from 15 - 25%

 

3) I read that I can get back up to $1100 every half yearly, how is this calculated? cos 20 X $1100 is already 22k in total

 

Keyword being up to $1100. For the exact amount, ask LTA. It is to prevent people from buying 999 Chery QQs with $2 COE and converting them.

 

http://www.onemotoring.com.sg/publish/onem...nquiries/4.html

 

4) any complication if I wanna convert back to normal car like in 2 years ? (maybe change of job? or new gf wanna drive to work?)

 

You do the same process again, approx $200+ in costs.

 

5) if I wanna sell my car, i only get a few k more than the paper value right? meaning, the buyer will gain since my COE so cheap.

 

Paper value + few k above is a rubbish misconception. Trade in price for a 08 Fit should be around mid to high 40s.

 

*Conclusion*

If you foresee yourself needing a car, keep it and convert to OPC. The price which you bought your car at cannot be re-visited in the foreseeable future.

 

OPC rebate is 17k

had you bought your car as OPC from the start your rebate would only have been 11k instead of 17k due to the low COE

 

Even if the COE was only 11k, the remainder of the rebate will be subtracted from the OMV/ARF portion. Fit's OMV is definitely above 6k.

Edited October 12, 2010 by Iisterry

[SimonTan]

The interesting thing about car ownership in Singapore is always a confusing mystery for many of us.

With all the convoluting rules and fees, it really takes a expert to know the nitty gritty to get to the cost effective answer.

Although the various rules as clearly spell out in onemotoring and LTA website, it can takes a few days to fully understand and work out the correct answer and costs.

 

Depreciation for similar cars are never linear and similar.

Same model can have different COE and OMV, giving rise to different depreciation value on the secondhand market.

[Expertz]

OPC rebate is 17k

had you bought your car as OPC from the start your rebate would only have been 11k instead of 17k due to the low COE

 

Even if the COE was only 11k, the remainder of the rebate will be subtracted from the OMV/ARF portion. Fit's OMV is definitely above 6k.

 

so assuming my COE is 11k and i buy normal plate, after 1 mth i convert to OPC

over 9 years 11 months i earn govt rebate of 22k

then on the final month i convert back to normal plate

 

can i assume that my OMV won't be affected because afterall i expired as normal plate?

[Mugen85]

Convert to OPC

[Booboon]

sell it

[Ekardo]

something which I am not very sure..

 

eg,

CASE 1:

year 3 onwards, I change to OPC

 

so I get 7 years of COE refunded to be over the next 7 years.

then, got Weekend car for pass 10 year car?

 

 

CASE 2:

year 3 onwards, I change to OPC

 

so I get 7 years of COE refunded to be over the next 7 years.

 

but in the 5th year, I decided to change back to Normal car, do I have to pay back the $ that was refunded to me?

 

[Speedz76]

something which I am not very sure..

 

eg,

CASE 1:

year 3 onwards, I change to OPC

 

so I get 7 years of COE refunded to be over the next 7 years.

then, got Weekend car for pass 10 year car?

 

dun think so.. anyway... is that a real concern? r u sure u will still be driving the same car aft 10 years?

 

CASE 2:

year 3 onwards, I change to OPC

 

so I get 7 years of COE refunded to be over the next 7 years.

 

but in the 5th year, I decided to change back to Normal car, do I have to pay back the $ that was refunded to me?

do not have to pay back.. as during the period you convert, u already cant drive from 7am to 7pm on weekdays, and you are compensated $1100 every 6 mths for that

 

[Doraemarc]

convert...

 

it's easier to convert from normal to OPC n back to normal again....

 

if register as OPC den wanna convert to normal needa top up COE (pro rate from $17k) in cash...

 

though u getting rebated of $1.1k/half yearly (total amt $22k over 10 years), rmb ur bank loan is still based on amt before any rebate from LTA so those thinking of buying new car n convert OPC to earn e diff of $5k, think again... moreover u muz drive full 10yrs to get $22k....

 

 

[Iisterry]

so assuming my COE is 11k and i buy normal plate, after 1 mth i convert to OPC

over 9 years 11 months i earn govt rebate of 22k

then on the final month i convert back to normal plate

 

can i assume that my OMV won't be affected because afterall i expired as normal plate?

 

Your OMV is never affected. It is PARF that depreciates slowly. PARF is derived from your OMV.

 

It does not matter since you can't take advantage of it.

 

Your OMV determines your PARF rebate. When you register the car at birth, the PARF is already fixed (automatically reduced if your COE QP is less than 17k).

 

Your PARF rebate is according to the timeline available at OneMotoring.

 

You can get back close to a maximum of 22k for converting a normal plate to a revised-OPC immediately upon registration and driving it up to 10 years.

 

The quantum of the OPC cash rebate amount is calculated in accordance with the amount of upfront rebate that a car would have enjoyed if the car was registered as an OPC. Hence, if the sum of the COE QP and ARF payable is less than $17,000, the cash rebates will be pro-rated accordingly. For example, if a converted revised OPC had been registered as an OPC and was only able to enjoy an OPC upfront rebate of $12,000, instead of the full $17,000, the OPC cash rebate to be granted every 6 months would be pro-rated to $776 (i.e. $12,000/$17,000 x $1,100).

 

In layman terms, you either get roughly up to 22k over 10 years or an upfront rebate of 17k.

 

If you choose to register as a normal plate and convert it to OPC and back to normal plate again just before 10 years, it has no effect on the PARF as Ah Gong takes in the fact that you did not receive any subsidy upon initial registration.

 

The only way you can really "beat the system" is to manufacture a car with negligible OMV and a COE of $17,000(to achieve the maximum $1,100 rebate bi-annually). You can "earn" approximately $5,000 over 10 years for an initial $17,000 outlay (less than 3% annualised ROI).

 

Not to mention that you can't really complete 20 cycles of "6 months" in 10 years due to time needed for conversion/registration. It's more like 18 cycles * $1,100.

 

Plus it only takes a slight tweak of government policy to throw your 10 year masterplan out the window. Let's focus the grey matter on other issues instead of trying to cheat Ah Gong. You need to give the ivory tower scholars more credit than that.

Edited October 12, 2010 by Iisterry

[Doraemarc]

Plus it only takes a slight tweak of government policy to throw your 10 year masterplan out the window. Let's focus the grey matter on other issues instead of trying to cheat Ah Gong. You need to give the ivory tower scholars more credit than that.

 

well said... to e scholars, it's juz a tweak... to us, it's a SHAKEUP!!

Edited October 12, 2010 by Doraemarc

[Ekardo]

guys, any shop to recommend for changing number plate to RED one ?

[Majordan]

i always thought it's bo hwa to convert to red plate cos LTA take their time to return you the OPC rebate (1k MAX per half year).. while u service your full bank loan with INTEREST

 

u are effectively lending money you borrowed from the bank to LTA for FREE

 

if possible, don't convert or sell away since you got bike

[Ekardo]

ya.I was comtemplating whether to sell or not, but I might change job or current gf might start to drive or new gf will drive?

 

I will also need my car during the weekend to woo gals.. :)

[Majordan]

i would suggest u keep the car... sell the bike? or if 1k every half a year (i.e. less than 200 a month) means a lot to you, then convert lor

 

keep it black lah