Renew COE or Buy pre-owned?

[FourZero]

Bro, I had the similar dilemma abeit a bit difference situation from you. Currently I am driving a 2.4 CRV which sees a depreciation of 10.5K per month. This car still got another 3.5 years to go and just hit 110k km. Still in good condition I would say with no breakdown and 100% maintained by KM. However, despite the many predictions of COE dropping in 2015/16, my current 8km/l petrol consumption which amount to $500/600 petrol cost per month tweaked me to look at a new car. Furthermore, I was offered quite an ok trade in price for the CRV. By changing over to a new car (smaller cc but newer tech), I faced the same depreciation, but I save on the running costs such as roadtax, insurance, petrol and maintenance (including tyres wear and tear, other issues that may arise from a over-5 yrs car). Hence to change or not to change is still a dilemma to me as it may appear I actually save more in the next 3.5 yrs during my current car lifespan if I were to change. Of course one can say that if prices decrease, I may save more in future if I buy only after I scrapped my current ride, but this is what if. No doubt COE may drop in the coming months (or may not??!!!), but my car resale value will also drop. So unless it dropped significantly (which the recent Nov 14 - Jan 15 COE bidding proved many wrong in a rising COE despite increasing quota), it is difficult to determine the breaking point. Besides, if COE really did not decrease over the next 3.5 yrs, I may end up having to throw in more money by then. I may be one of the few "stupid ones" (no offence) to consider changing car despite my car still having a gd lifespan compared to many second hand out there. So perhaps any bros here can advise more.

 

I will use the same car made (NEW) to compare on the yearly depre to make a decision. If new car depre is S$15K, renewal car including losing OMV per year at least can save you 30% then can consider. This also depend if you love driving or its a car that is reliable lar

[Andyngps]

 

I will use the same car made (NEW) to compare on the yearly depre to make a decision. If new car depre is S$15K, renewal car including losing OMV per year at least can save you 30% then can consider. This also depend if you love driving or its a car that is reliable lar

True bro. But I am not looking at the same model. Looking at a reliable one which depreciation is same or even slightly lesser than my current. Why did you set 30%? Is it because you forsee a 30% drop in coe premiums?

[FourZero]

True bro. But I am not looking at the same model. Looking at a reliable one which depreciation is same or even slightly lesser than my current. Why did you set 30%? Is it because you forsee a 30% drop in coe premiums?

 

30% is a gauge to me, that will set me a $4K to $5K difference for new car depre. With this much difference (same car comparison) it will gv me some allowance to use the difference to do parts change and etc and still hv saving of ard $2K to $3K a yr kind....

 

So if you are looking for new and different car made then its altogether another kind of consideration then...

 

With tight control of budget, then look for 2 yrs old car that hv already depreciated more than 35% then its worth buying. tats my thoughts

Edited January 15, 2015 by FourZero

[Kombahbao]

My COE is going to be up in end 2016.

 

Other than the GE factor where COE prices might somehow drop by then, the best way for me is still to get a pre-owned.

 

Renewing COE for an old car is not worth it with the additional maintenance. The money (Cash/PARF/COE) you get back when you sell/scrap your car somewhat helps to offset the next purchase.

 

And another intangible benefit is getting another car, so won't get bored. :)

[Andyngps]

My COE is going to be up in end 2016.

 

Other than the GE factor where COE prices might somehow drop by then, the best way for me is still to get a pre-owned.

 

Renewing COE for an old car is not worth it with the additional maintenance. The money (Cash/PARF/COE) you get back when you sell/scrap your car somewhat helps to offset the next purchase.

 

And another intangible benefit is getting another car, so won't get bored. :)

How about the factor of your trade in value? If your current car has a good trade in value and also we are making so called an intelligent guess that COE may dip, but what if it did not change much? If my current ride got a good trade in, the idea of change may sound tempting. If it is not, getting back the PARF and hoping the COE will correct drastically will be a better bet.

[Forte3737]

Trade in price from dealers where got good price one? alll offer very low

How about the factor of your trade in value? If your current car has a good trade in value and also we are making so called an intelligent guess that COE may dip, but what if it did not change much? If my current ride got a good trade in, the idea of change may sound tempting. If it is not, getting back the PARF and hoping the COE will correct drastically will be a better bet.

 

[Rationalexuberance]

Bro, I had the similar dilemma abeit a bit difference situation from you. Currently I am driving a 2.4 CRV which sees a depreciation of 10.5K per month. This car still got another 3.5 years to go and just hit 110k km. Still in good condition I would say with no breakdown and 100% maintained by KM. However, despite the many predictions of COE dropping in 2015/16, my current 8km/l petrol consumption which amount to $500/600 petrol cost per month tweaked me to look at a new car. Furthermore, I was offered quite an ok trade in price for the CRV. By changing over to a new car (smaller cc but newer tech), I faced the same depreciation, but I save on the running costs such as roadtax, insurance, petrol and maintenance (including tyres wear and tear, other issues that may arise from a over-5 yrs car). Hence to change or not to change is still a dilemma to me as it may appear I actually save more in the next 3.5 yrs during my current car lifespan if I were to change. Of course one can say that if prices decrease, I may save more in future if I buy only after I scrapped my current ride, but this is what if. No doubt COE may drop in the coming months (or may not??!!!), but my car resale value will also drop. So unless it dropped significantly (which the recent Nov 14 - Jan 15 COE bidding proved many wrong in a rising COE despite increasing quota), it is difficult to determine the breaking point. Besides, if COE really did not decrease over the next 3.5 yrs, I may end up having to throw in more money by then. I may be one of the few "stupid ones" (no offence) to consider changing car despite my car still having a gd lifespan compared to many second hand out there. So perhaps any bros here can advise more.

 

 

totally agree and totally share the same point of view. Driving a 2.4L accord. wanna change to vezel. Wife pregnant alredy. if can reduce running costs, it would be approx 2-2.7k per year of petrol, rd tax & insurance.

saving on running costs wud also mean saving up for wife's next car, likely to be family mpv

[Andyngps]

So what is your verdict bro? I reckon unless COE dropped by 20K, otherwise it is like not going to make big difference. I may be wrong in my calculation though.

Edited January 15, 2015 by Andyngps

[Kombahbao]

How about the factor of your trade in value? If your current car has a good trade in value and also we are making so called an intelligent guess that COE may dip, but what if it did not change much? If my current ride got a good trade in, the idea of change may sound tempting. If it is not, getting back the PARF and hoping the COE will correct drastically will be a better bet.

 

Actually we are all guessing here lor. Skalli next year some more new policy and whatnot then all headache again. LOL.

[Yeobt]

all the drivers in singapore are just puppet and be played by our govt.

[Toeknee_33]

Lets not all forget that old cars past 10 years may not be eligible for comprehensive insurance. You have to repair your car at your own costs if you suay suay kenna an accident.

 

For parents with growing kids who might be driving your car some day in the future, it may not be such a good idea.

[Dafansu]

Lets not all forget that old cars past 10 years may not be eligible for comprehensive insurance. You have to repair your car at your own costs if you suay suay kenna an accident.

 

For parents with growing kids who might be driving your car some day in the future, it may not be such a good idea.

 

comprehensive is still applicable for insurance. Maybe only selective companies will not want such business.

[Whosnex]

Car registered in 2010 as cat A, being 1598cc with 138bhp.

 

Question - come 2020 when renewing the COE, which category of PQP applies? Cat A or B ? Tks.

[Darryn]

Car registered in 2010 as cat A, being 1598cc with 138bhp.

 

Question - come 2020 when renewing the COE, which category of PQP applies? Cat A or B ? Tks.

I don't know what the law actually says,

 

BUT

 

I'd be willing to bet that renewal will be based on original cat it was registered under. (note - "open" is converted to the cat the car is open registration)

[bambind]

In this case really need to give up cars, Cause renew coe or buy 2nd hand, dep also high.

well that what our government wants....what if one day everyone give up on cars and motor bikes, and change to bicycle...no worries of bus lane / speed camera / ERP gantry / COE raising up up up (better then buying shares)

[Sunset73]

I vote for buy pre-owned. You can easily get those 8-9 year old vios. Lower depreciation and you get back parf value after scrap. Just bring a mechanic along to help verify car condition. Set aside 3-5k for repairs if really needed.

 

If you renew COE, take note of the higher road tax from 10th year onwards. It will go up by 10% per year cap at 150% regardless of age after 15 years. Availability of parts is also an issue, depending on what car you drive.

 

If you are driving cars like BMW E36, then I will say go ahead to renew the COE! that is a car with timeless look and worth every penny.

It will still garner value if you sell to collectors next time.

[Hondatoyota]

Hi all Bros, new to this forum and need some advice from u guys. Currently, thinking of getting a mpv but in a dilemma on which step should I take.

1) Get a mpv left with 1-2 yrs and renew it for another 5 yrs ie.

 

2) Get a newer mpv left with 6-7 yrs to drive.

 

Which is a most smart choice.

 

Thinking of a wish or estima.

 

Hope to have some valuable advice from u guys.

Thanks

[Ingenius]

Hi all Bros, new to this forum and need some advice from u guys. Currently, thinking of getting a mpv but in a dilemma on which step should I take.

1) Get a mpv left with 1-2 yrs and renew it for another 5 yrs ie.

 

2) Get a newer mpv left with 6-7 yrs to drive.

 

Which is a most smart choice.

 

Thinking of a wish or estima.

 

Hope to have some valuable advice from u guys.

Thanks

There are so many variables and factors to consider, before we can recommend you the course of action.