Ready for high COE?

[Quantum]

That is why there are risk for renewing coe.... if after coe renewal all the problems start surfacing, repair will be expensive.it is a gamble to certain extend.

renew coe risk is subject to car brand, driver style, mileage etc,

normally Japanese models, low mileage, gentle driving, extend 5 years COE should be safe

[Fastnfaster]

 

Not trying to troll but..the smile and joy when receiving new car, pricess

Also need to consider what new cars may offer like better space, features, safety equipment etc.

 

There is always temptation to change a new.

 

Based on current market, I did a simple calculations on the cost to renew COE for a b&b car which work out about $7-8k depreciation per year. The depreciation of a new car of the same class is around $9-10k. This does not include the extra cost for repair/maintenance, higher road tax for renewing the COE. So the net saving from renewing the coe is actually even lesser.

 

Hence, it depends how you view the $1-2k saving (per year). If can afford, I think it make sense to buy new one.

[Powxus]

 

There is always temptation to change a new.

 

Based on current market, I did a simple calculations on the cost to renew COE for a b&b car which work out about $7-8k depreciation per year. The depreciation of a new car of the same class is around $9-10k. This does not include the extra cost for repair/maintenance, higher road tax for renewing the COE. So the net saving from renewing the coe is actually even lesser.

 

Hence, it depends how you view the $1-2k saving (per year). If can afford, I think it make sense to buy new one.

 

Sorry, which is the new car that gives you $9-10k depreciation including interest ?

[Fastnfaster]

 

Sorry, which is the new car that gives you $9-10k depreciation including interest ?

 

Sorry, I just did a simple calculations without considering the interest & other factors e.g. new car packages normally come with free servicing, grooming, etc ..

 

Anyway, I'm looking at Almera or Swift. Someone quoted $94k?

 

Assuming you have $60k cash to renew coe. So the loan needed for a new car = $94k - $60k = $34k.

 

Interest paid = $34,000 X 0.288 (interest rate) x 5yr = say $5,000

 

Cost of new Car = $94k (purchase price) + $5k (interest paid) - $6k (scrap value) = $93k

 

Depreciation of new car = $93k/ 10 yr = $9.3k/ year (assuming drive for 10 years)

 

Hope I did not miss out something major ...

[Tjkbeluga]

Up to individual preference lah, no right or wrong.

 

For me, if I choose to renew, I will renew with 10 yr. If the intent of renewing is to save cost, then 10 yr PQP make more sense.

 

My rule of thumb is simple, if the cost of renew plus lost of parf is half that of a new car of same class, I will go for it.

 

 

 

OK, this I don't understand, why 10 years instead of 5 years makes more sense? To me 5 years makes more sense

1) Lesser upfront money.

2) Not sure car can make it for another 10 years or not. 5 years is safer.

 

OK, one thing better for renew 10 years is that there is a limit to one time renewal?

Can anyone tell me, if I renew for another 5 years, can I renew again when the 5 years is up?

[Mrmilktooth]

 

OK, this I don't understand, why 10 years instead of 5 years makes more sense? To me 5 years makes more sense

1) Lesser upfront money.

2) Not sure car can make it for another 10 years or not. 5 years is safer.

 

OK, one thing better for renew 10 years is that there is a limit to one time renewal?

Can anyone tell me, if I renew for another 5 years, can I renew again when the 5 years is up?

 

i heard from a fren say can now.. but pls check with LTA to confirm..

 

renew 5 years or 10 years also pay PQP (prorated.) so if i got enough cash for 5 years only. and enough again after another 5 years why cant i renew again?..

 

LTA still earn the same amount.. lol.. sometimes dunno understand their scholar logic..

[Tjkbeluga]

 

i heard from a fren say can now.. but pls check with LTA to confirm..

 

renew 5 years or 10 years also pay PQP (prorated.) so if i got enough cash for 5 years only. and enough again after another 5 years why cant i renew again?..

 

LTA still earn the same amount.. lol.. sometimes dunno understand their scholar logic..

 

Every renewal is subjected to that point of time PQP right? So it could go both ways...

[Quantum]

 

OK, this I don't understand, why 10 years instead of 5 years makes more sense? To me 5 years makes more sense

1) Lesser upfront money.

2) Not sure car can make it for another 10 years or not. 5 years is safer.

 

OK, one thing better for renew 10 years is that there is a limit to one time renewal?

Can anyone tell me, if I renew for another 5 years, can I renew again when the 5 years is up?

IMO, unless your car mileage very low, let's say less than 100k, otherwise don't choice renew COE,

even rent a car or buy a one year COE car to pass the high COE period, once COE drop buy new car

[yo2020]

i am thinking hard to renew my korean 1.6L (hyundai verna) and have been doing the calculations comparing to a brand new korean. all calculations based on 10 years for variables. Pls let me know how i can further improve this simple calculation. Assumptions are that i will drive for full 10 years and that no value pegged to convenience and face value. all models compared are basic models since they are already likely to be better than my current hyundai verna

 

car and COE

renew $64k

kia forte 1.6 $110k

hyundai elantra 1.6 $100k

hyundai accent 1.4 $95k

nissan almera 1.5 $94k

suzuki swift 1.2 $93k

 

rd tax

renew $10.5k

brand new 1.6L $7.5k

brand new 1.4L, $6k

brand new 1.5L, $7k

brand new 1.2L, $5.5k

 

Anticipated Maintenance

renew $15k

brand new $7.5k

 

Insurance

renew $7k

brand new $15k

 

grand total

renew $86.5k

brand new kia forte $140k

brand new hyundai elantra $130k

brand new hyundai accent $123.5k

brand new nissan amera $124.5k

brand new suzuki swift $121k

hv u considered the lost in PARF for renewing the COE?

in other words, if scrap/sell the Verna, there is certain value can offset the new car.

[Xers007]

 

i heard from a fren say can now.. but pls check with LTA to confirm..

 

renew 5 years or 10 years also pay PQP (prorated.) so if i got enough cash for 5 years only. and enough again after another 5 years why cant i renew again?..

 

LTA still earn the same amount.. lol.. sometimes dunno understand their scholar logic..

 

no same lah... 30k for 5 years and 60k for 10 years gives different interest... if for 1000 cars that amount is not small liao hor... can earn big interest

 

 

[Nzy]

 

OK, this I don't understand, why 10 years instead of 5 years makes more sense? To me 5 years makes more sense

1) Lesser upfront money.

2) Not sure car can make it for another 10 years or not. 5 years is safer.

 

OK, one thing better for renew 10 years is that there is a limit to one time renewal?

Can anyone tell me, if I renew for another 5 years, can I renew again when the 5 years is up?

 

Depends on your car also. For me I know my Hyundai and toyota can easily last another 10 years so we are planning to renew 10 years. I never hear anything about renewing 5 years can renew again. Currently is renew 5 years means must scrap at the end of that 5 years. Only renew 10 years can keep renewing.

[yo2020]

OK, this I don't understand, why 10 years instead of 5 years makes more sense? To me 5 years makes more sense

1) Lesser upfront money.

2) Not sure car can make it for another 10 years or not. 5 years is safer.

 

OK, one thing better for renew 10 years is that there is a limit to one time renewal?

Can anyone tell me, if I renew for another 5 years, can I renew again when the 5 years is up?

no, if renewed 5 yrs, cannot renew further. i guess 5 yrs' renewal is a special concession, but comes with this limitation (to plug loophole).

if renewed 10 yrs, can keep renewing.

 

http://www.onemotoring.com.sg/publish/onemotoring/en/lta_information_guidelines/maintain_vehicle/coe1.html

 

edited: add link

Edited October 21, 2014 by yo2020

[Nzy]

hv u considered the lost in PARF for renewing the COE?

in other words, if scrap/sell the Verna, there is certain value can offset the new car.

 

I also have verna preparing to renew COE for 10 years in 2016/7. Parf rebate only 5+k. Body maybe a few hundred? So I think its worth it to renew cuz this amount is very low. Contributes around $500 to the depreciation only.

 

The car that my family have trouble deciding whether to renew or not is a 335i. Cuz the rebate is alot higher so this adds quite a bit to the depreciation for the next 10 years. Probably sell it off and get another Korean/Jap car instead.

Edited October 21, 2014 by Nzy

[Tjkbeluga]

no, if renewed 5 yrs, cannot renew further. i guess 5 yrs' renewal is a special concession, but comes with this limitation (to plug loophole).

if renewed 10 yrs, can keep renewing.

 

Basket..... Cheng hu, think far far liao....

 

[Baal]

i have called LTA recently. Renew 5 yrs cfm cannot renew again.

10yr advantage is that, some times timing sway. example, GB cui at 12th year....if rebuild only can use another 3yrs. But if renew 10, can easily use another 5-6 yrs & scrap at 18th year or so.


10yr more flexibility. In the case of 5yrs example, of the owner dont rebuild & scrap, he would have lost the arf for nothing.

[Powxus]

 

OK, this I don't understand, why 10 years instead of 5 years makes more sense? To me 5 years makes more sense

1) Lesser upfront money.

2) Not sure car can make it for another 10 years or not. 5 years is safer.

 

OK, one thing better for renew 10 years is that there is a limit to one time renewal?

Can anyone tell me, if I renew for another 5 years, can I renew again when the 5 years is up?

 

Renew 10 years, the loss of parf rebate is less per year as compared to renew 5 years.

[Luckydrawcar]

 

vios repair is cheap, parts can get from stockist. have been doing this for my servicing. one servicing is only $50 as mentioned.

That one is servicing lah. If anything major breaks down then how? Moreover more than 10yr old car likely to have major repairs coming. I also druving vios now nxt yr may 2014 scrap. I rather take public transport than renew coe.

 

Why doesn't it make sense?

 

If you own the Getz or Verna for the last 10 years

 

and the condition of the car is very good then

 

renewing COE makes sense.

 

Its very hard to get a good condition 5 year old

 

thats cheap. Even bad condition 5 year olds are expensive.

 

The parts for the Getz are also cheap.

 

If mileage very low then prob can consider renew. Likewise if 10 yrs and mileage like more than 150k can forget it liow. Edited October 21, 2014 by Luckydrawcar

[Amazon777]

Scraping my 120k mileage BMW 5 series next month. Pay $70k PQP + loss $30k parf, don't think is wise choice