COE issue

[Dark]

 

You cannot calculate this way cuz you will be deducting the scrap value twice. I think he is assuming both cars scrap value 10k. If you buy a 2nd hand car at 70k, after deducting 10k as the scrap value of the second hand car, you depreciation is 60k over 5 years which is 12k.

 

You don't deduct this 10k scrap value you get from your old car when calculating the depreciation of the 2nd hand car because that 10k is included in his calculation where the COE is renewed over 5 years. This 10k scrap value of the old car will be gone whether you renew COE or get a 2nd hand car.

 

I think wonwon is correct since if you scrap the old car you get 10k on hand to offset your 70k purchase of the 2nd-hand 5yo car. At the end of 5 yrs you get back the parf rebate of the newly bought 2nd-hand car.

 

So there is no double-count.

 

If you renew you lose the 10k parf rebate plus 5 yrs later get nothing back.

[13177]

 

My Corona was in very good condition. Easily can last 30 years.

 

Now my Optra also in very good condition. I thinking of renew COE if the price comes down to <$20K in a couple of years. Maybe can even renew COE twice.

 

Actually when people say car in good condition, meaning in what area le?

 

COE to comes down below $20K a bit hard.

[Nzy]

 

Actually when people say car in good condition, meaning in what area le?

 

COE to comes down below $20K a bit hard.

 

I guess at least don't go into workshop except for the regular servicing can be considered as ok condition already. To me good condition means the car performs close to what it was like when it was new la. Of course will have a little more vibration and noise but overall shouldn't be much worse.

[Pisces69]

 

Actually when people say car in good condition, meaning in what area le?

 

COE to comes down below $20K a bit hard.

 

Good condition main r engine, autobox n body.

 

Last time COE went to $100K. Pple say wil never drop till very low again. Then in a few years it dropped to $7K.

[Nzy]

 

I think wonwon is correct since if you scrap the old car you get 10k on hand to offset your 70k purchase of the 2nd-hand 5yo car. At the end of 5 yrs you get back the parf rebate of the newly bought 2nd-hand car.

 

So there is no double-count.

 

If you renew you lose the 10k parf rebate plus 5 yrs later get nothing back.

 

It does seem logical to think this way if you want to justify getting a second hand car rather than to renew COE. But this 10k is your money. When you renew the COE you calculate the depreciation based on you will lose this 10k so you add 10k to the COE price and calculate the depreciation.

 

So when you use this 10k to get a second hand car instead of renewing COE, shouldn't it be included in the calculation of the depreciation? The money is still yours whether you decide to renew COE or scrap and get the money to fund a new car. Either way, this 10k goes into the next COE you get.

[Kezg1]

 

My Corona was in very good condition. Easily can last 30 years.

 

Now my Optra also in very good condition. I thinking of renew COE if the price comes down to <$20K in a couple of years. Maybe can even renew COE twice.

 

IMO...not likely to go below 50k in few yrs...

 

Good condition main r engine, autobox n body.

 

Last time COE went to $100K. Pple say wil never drop till very low again. Then in a few years it dropped to $7K.

Previously...population was ard 3millions...now ard 5.3 millions...do u think it will drop to 7k....fat hope,

Pappy won't let this happen...lol

[Pisces69]

IMO...not likely to go below 50k in few yrs...

 

Previously...population was ard 3millions...now ard 5.3 millions...do u think it will drop to 7k....fat hope,

Pappy won't let this happen...lol

 

 

Last time also same. Pple say CANNOT drop so low again. Then in a couple of years it dropped. Hahaha.

 

A lot also depends on the economy n stock market. When these drop, COE also drop.

 

U research back since the start of COE. The cycle has gone round a few times already n it will continue to go round many times more. Just like the economy n stock market.

 

There wil always b pple who wil buy stocks when the market is high n these r the losers when it drops. The winners r those who buy low.

[Maseratigood]

 

 

Last time also same. Pple say CANNOT drop so low again. Then in a couple of years it dropped. Hahaha.

 

A lot also depends on the economy n stock market. When these drop, COE also drop.

 

U research back since the start of COE. The cycle has gone round a few times already n it will continue to go round many times more. Just like the economy n stock market.

 

There wil always b pple who wil buy stocks when the market is high n these r the losers when it drops. The winners r those who buy low.

My coe expires in 3yrs+ ..... hopefully prices dip within next 3yrs!

[Pisces69]

My coe expires in 3yrs+ ..... hopefully prices dip within next 3yrs!

 

Mine in 2016. I hope it drop to $1 by then. Hahaha.

[WONWON]

 

Mine in 2016. I hope it drop to $1 by then. Hahaha.

 

 

2016 to 2017, there'll be alot of people scrapping their cars......owners of Sunny 40K only etc even if COE dropped to 30K.

Govt should be smart enough to reserve some of the COE for future years, this is a goldmine.

[WONWON]

 

So when you use this 10k to get a second hand car instead of renewing COE, shouldn't it be included in the calculation of the depreciation?

 

yeah, that's what Dark is saying. The 10K should be included.

[Pisces69]

 

 

2016 to 2017, there'll be alot of people scrapping their cars......owners of Sunny 40K only etc even if COE dropped to 30K.

Govt should be smart enough to reserve some of the COE for future years, this is a goldmine.

 

Yes. From abt 2016 to 2019 there sud b many cars going for scrap n COE sud drop ..................unless the gharmen again steps in to "tweak" the system to keep COE price high.

 

Im waiting to see what happens as the time comes. During 2009, COE dropped to abt $7K IIRC. Keeping my fingers crossed.

[Baal]

 

Yes. From abt 2016 to 2019 there sud b many cars going for scrap n COE sud drop ..................unless the gharmen again steps in to "tweak" the system to keep COE price high.

 

Im waiting to see what happens as the time comes. During 2009, COE dropped to abt $7K IIRC. Keeping my fingers crossed.

Prob is I don't have that luxury to wait. My beginning 2016 end liao. Unless renew 5yrs instead & keep fingers crossed ?

[Maseratigood]

 

Mine in 2016. I hope it drop to $1 by then. Hahaha.

 

possible or not? your gut feels are telling you something is gonna happen and bring down the market??? not the dealth of someone, i hope?

[Pisces69]

Prob is I don't have that luxury to wait. My beginning 2016 end liao. Unless renew 5yrs instead & keep fingers crossed ?

 

Mine also mar 2016 expire. No choice but to wait n see how the COE price moves a few monthe b4 that.

 

Worse is I just scrap cap n buy a COE or older bike to ride for transport. If need a car, I just borrow lah.

 

possible or not? your gut feels are telling you something is gonna happen and bring down the market??? not the dealth of someone, i hope?

 

Even the death of "someone" cannot dictate COE price.

 

Only economy n how many COEs r avaliable at the time wil decide how much we pay for it.

 

But now seems gharmen wil "tweak" the qty now n then to keep the price high, unless ty wan the price to come down. Then ty just "tweak" the qty again to bring it down.

 

COE has stopped being a Free Market System to control the number of cars on our roads. With all the "tweaking" being done, how can it still b a Free Market System?

[Baal]

Yep, just like flats, they control the supply. So when demand is low, they can simply make supply even lower to maintain high price.

[Little_prince]

 

possible or not? your gut feels are telling you something is gonna happen and bring down the market??? not the dealth of someone, i hope?

 

2016 is erections....

 

to build good will amongst the peasants from 2015 onwards should see a downtrend in coe.

 

so as to prevent it from being a election issue.

[Kangadrool]

 

2016 is erections....

 

to build good will amongst the peasants from 2015 onwards should see a downtrend in coe.

 

so as to prevent it from being a election issue.

 

may even go up higher you know. Confidence to the future! You very sure it will drop just to appease certain segments of the population. If COE is too low, what will happen to those who have paid at high COE? Not happy also right? It's like raiding the owner's assets. [laugh]

 

If need car, buy now. If want to and can afford to change, change now. Else, do nothing. That's the only way COE can stabilize. Don't understand why some people kpkb about high COE and cannot change car when their cars is only 4-5 years old relatively fault-free.

Edited December 2, 2013 by Kangadrool