What make and model worth renew COE after 10 years

[DioBless]

My Saab 9-3 2.0T is expiring in March 2019. Within the last 2 years, I have changed the engine mounting, the lower arm, the radiator, the coolant pump, the power steering pump, and the coolant fan. Is this car worth the renewal now? Or I'll wait until it's near the March 2018? Any suggestion?

[DACH]

My Saab 9-3 2.0T is expiring in March 2019. Within the last 2 years, I have changed the engine mounting, the lower arm, the radiator, the coolant pump, the power steering pump, and the coolant fan. Is this car worth the renewal now? Or I'll wait until it's near the March 2018? Any suggestion?

 

You mean 2019?

[DioBless]

Oh.. I meant 2019

[Ct3833]

My Saab 9-3 2.0T is expiring in March 2019. Within the last 2 years, I have changed the engine mounting, the lower arm, the radiator, the coolant pump, the power steering pump, and the coolant fan. Is this car worth the renewal now? Or I'll wait until it's near the March 2018? Any suggestion?

You meant to say Mar 2019.

It depends on the depre of your Saab. Assuming your Saab will to depreciate $500 a month, then the depre from now till Mar 2019 will be $4,000. If you believe PQP will go up by more than $4,000 in Mar 2019, then it is worth to renew now. Otherwise no.

If your car depre is $1,000 a month, then the PQP will need to go up by $8,000 in Mar to make it worth while to renew now.

So is it worth to renew COE now ? Judging from the COE trend, PQP will stay flat or slightly up, but it will not be 10k more by Mar 2019, your risk of not renewing it now is low.

But if you want to play safe, you can renew now, next month or wait for a few months to observe the trend, you still have time to react if you see the COE start to creep up since PQP climb is slower than COE as it has a delay effect because it take the 3 months moving average of the 3 preceding months.

Edited August 8, 2018 by Ct3833

[Albeniz]

You meant to say Mar 2019.

It depends on the depre of your Saab. Assuming your Saab will to depreciate $500 a month, then the depre from now till Mar 2019 will be $4,000. If you believe PQP will go up by more than $4,000 in Mar 2019, then it is worth to renew now. Otherwise no.

If your car depre is $1,000 a month, then the PQP will need to go up by $8,000 in Mar to make it worth while to renew now.

So is it worth to renew COE now ? Judging from the COE trend, PQP will stay flat or slightly up, but it will not be 10k more by Mar 2019, your risk of not renewing it now is low.

But if you want to play safe, you can renew now, next month or wait for a few months to observe the trend, you still have time to react if you see the COE start to creep up since PQP climb is slower than COE as it has a delay effect because it take the 3 months moving average of the 3 preceding months.

Well-explained.

[Hachi]

For car registered 02 Jan 2009, COE end 01 Jan 2019. and 1st Jan is public holiday, LTA close. If want to renew COE how can it be done if do not want to renew in advance.

 

can somebody advise?

LTA will send you a letter, renewing using Dec pqp, your additional renewal period will start on 03 Jan, so there is no incentive to renew on the actual date. Edited August 11, 2018 by Hachi

[DJ4eva]

My Wife has the intention of renewing her VW 2009 1.6A Beetle.

 

Need advice from you guys if it is a car that is worth renewing COE for.

 

Thanks!

 

Sorry, maybe I be a bit more specific.

 

Anyone owned a VW beetle before? How much is the engine overhaul and how much are the parts, like air con compressor, engine mount, etc etc? Every little info helps. Thanks again!

Edited November 25, 2018 by DJ4eva

[JimmyTan66]

My Wife has the intention of renewing her VW 2009 1.6A Beetle.

 

Need advice from you guys if it is a car that is worth renewing COE for.

 

Thanks!

 

Sorry, maybe I be a bit more specific.

 

Anyone owned a VW beetle before? How much is the engine overhaul and how much are the parts, like air con compressor, engine mount, etc etc? Every little info helps. Thanks again!

VW Beetle is notorious worldwide for mechanical problems.

 

Highly advice against it as it will be a money pit.

 

The car is nothing like the original Beetle from the 60’s which were a lot more reliable.

 

Here is a link

 

 

Edited November 25, 2018 by JimmyTan66

[Ct3833]

My Wife has the intention of renewing her VW 2009 1.6A Beetle.

 

Need advice from you guys if it is a car that is worth renewing COE for.

 

Thanks!

 

Sorry, maybe I be a bit more specific.

 

Anyone owned a VW beetle before? How much is the engine overhaul and how much are the parts, like air con compressor, engine mount, etc etc? Every little info helps. Thanks again!

JimmyTan66 mentioned the potential pitfalls of this car, but more importantly is how long has your wife been owning this model and what is her experience with the car? If the car has been giving her trobulefree ride, then likelihood the same would continue other then normal wear and tear , but if the car has been problematic, then likelihood will be the same after renwing COE. Edited November 25, 2018 by Ct3833

[JimmyTan66]

“The death of the volkwagon Beetle, What Went Wrong”

 

Do a search of the above on youtube.

 

Unfortunately, unable to attach link here.

[Ahbengdriver]

Like to a post a question on COE extension.

 

My sister in law owns a Merc E, 7 years old.  Think the COE of the car when it was bought is around $70k.  She thinking of renewing 10 year COE, and watching COE trend.  

 

What considerations to extend COE?  She was thinking now maybe a good time to renew at around $30k but some say she will effectivey be giving up 3 years of existing annual COE or $21k($7k x 3 years remaining).  Or should she wait till car left 1 to 2 years then reconsider but then COE by then dunno what level liao.

Edited November 27, 2018 by Ahbengdriver

[Ody_2004]

Like to a post a question on COE extension.

 

My sister in law owns a Merc E, 7 years old.  Think the COE of the car when it was bought is around $70k.  She thinking of renewing 10 year COE, and watching COE trend.  

 

What considerations to extend COE?  She was thinking now maybe a good time to renew at around $30k but some say she will effectivey be giving up 3 years of existing annual COE or $21k($7k x 3 years remaining).  Or should she wait till car left 1 to 2 years then reconsider but then COE by then dunno what level liao.

 

I will hold back mainly due to the forfeited PARF if renew now. E Class PARF guess about 30k plus?

[Wallaw819]

Like to a post a question on COE extension.

 

My sister in law owns a Merc E, 7 years old.  Think the COE of the car when it was bought is around $70k.  She thinking of renewing 10 year COE, and watching COE trend.  

 

What considerations to extend COE?  She was thinking now maybe a good time to renew at around $30k but some say she will effectivey be giving up 3 years of existing annual COE or $21k($7k x 3 years remaining).  Or should she wait till car left 1 to 2 years then reconsider but then COE by then dunno what level liao.

 

Just monitor COE trends since take a few bidding (with huge differences) to effectively affect the PQP amount.

 

Need to forgo parf which should be substantial for E class too.

 

Also who can predict what rules will be in place 3 years from now.

 

 

 

[Appl3FooL]

Like to a post a question on COE extension.

 

My sister in law owns a Merc E, 7 years old. Think the COE of the car when it was bought is around $70k. She thinking of renewing 10 year COE, and watching COE trend.

 

What considerations to extend COE? She was thinking now maybe a good time to renew at around $30k but some say she will effectivey be giving up 3 years of existing annual COE or $21k($7k x 3 years remaining). Or should she wait till car left 1 to 2 years then reconsider but then COE by then dunno what level liao.

I think the Total Rebate Amount for her E-Class is quite high based on the QPF (COE) value, not to mention the PARF value she will get at the end.

 

About extent COE, you will need to gave up the PARF value of the car just to extent another 5/10 yrs, so it will depends on the car condition, if the car condition is well maintain, it's considerable, since a car with around 10 yrs driving condition, the maintenance fee normally will start to become costly.

 

Btw, you may check your Total Rebate Amount from here,

 

https://vrl.lta.gov.sg/lta/vrl/action/pubfunc?ID=EnquireRebateBeforeDeReg

[Ct3833]

Like to a post a question on COE extension.

 

My sister in law owns a Merc E, 7 years old.  Think the COE of the car when it was bought is around $70k.  She thinking of renewing 10 year COE, and watching COE trend.  

 

What considerations to extend COE?  She was thinking now maybe a good time to renew at around $30k but some say she will effectivey be giving up 3 years of existing annual COE or $21k($7k x 3 years remaining).  Or should she wait till car left 1 to 2 years then reconsider but then COE by then dunno what level liao.

if your sis's  E class is 7 year old, that  means she bought it in around end 2011. The E class price at that point in time was about $240k depending on whether she had trade in discount or other discount.  If she drives the car for 10 years before renewing COE, the linear depre will be $24k per year, that is to say that if she will to renew COE now, she will have to write off 24x3=$72K, that is a lot of money to write off. But it is difficult to tell whether is it right or wrong to renew COE now.

 

I would rather use two scenario to explain the case here.

1. renew now at current PQP of $32k

Total 17 years spending = $240K + PQP $32K = $272k 

Linear annual depreciation over(current 7 years +future 10 years) 17 years = $272k/17 = $16k.

 

2, renew in 3 years time, assuming PQP $70K in 2021

Total 20 years spending = $240 + PQP $70K = $310k

Linear annual depreciation over 20 years(10 years current COE + 10 years PQP) = $310k/20 years = $15.5K.

 

You can see that the yearly depre is only different by $500 dollar per year, but dont forget that is $500X20 years = $10K difference.

 

The key consideration is what would the PQP price be in 2021 when your sis car is due to renewal. Nobody could give you a definite answer. You can use the same formula and  try to play around the PQP assumption in 3 years time and see what is the break even value to decide f she should renew now or renew in 3 years time.

Edited November 28, 2018 by Ct3833

[Ahbengdriver]

if your sis's  E class is 7 year old, that  means she bought it in around end 2011. The E class price at that point in time was about $240k depending on whether she had trade in discount or other discount.  If she drives the car for 10 years before renewing COE, the linear depre will be $24k per year, that is to say that if she will to renew COE now, she will have to write off 24x3=$72K, that is a lot of money to write off. But it is difficult to tell whether is it right or wrong to renew COE now.

 

I would rather use two scenario to explain the case here.

1. renew now at current PQP of $32k

Total 17 years spending = $240K + PQP $32K = $272k 

Linear annual depreciation over(current 7 years +future 10 years) 17 years = $272k/17 = $16k.

 

2, renew in 3 years time, assuming PQP $70K in 2021

Total 20 years spending = $240 + PQP $70K = $310k

Linear annual depreciation over 20 years(10 years current COE + 10 years PQP) = $310k/20 years = $15.5K.

 

You can see that the yearly depre is only different by $500 dollar per year, but dont forget that is $500X20 years = $10K difference.

 

The key consideration is what would the PQP price be in 2021 when your sis car is due to renewal. Nobody could give you a definite answer. You can use the same formula and  try to play around the PQP assumption in 3 years time and see what is the break even value to decide f she should renew now or renew in 3 years time.

 

Thx Ct3833.

 

I was also advising my sister in law to consider trading in her current E class, for a new car if she believes this is more or less the low COE level.  But she was trying to lower her car ownership costs too(which is why thinking to extend COE as an option).  Maybe one option is to get a new C-class, or A-class or B-class, which is cheaper than her E based on annual depre?

[flashbang]

R8 renewed COE is pretty good, only 200k for a supercar! Road tax will be crazy though.

[Ct3833]

Thx Ct3833.

 

I was also advising my sister in law to consider trading in her current E class, for a new car if she believes this is more or less the low COE level. But she was trying to lower her car ownership costs too(which is why thinking to extend COE as an option). Maybe one option is to get a new C-class, or A-class or B-class, which is cheaper than her E based on annual depre?

I just use simple maths model to share my thoughts, hope i am not misleading you or anyone here. There is no easy comparison between buying new vs renewing COE.

 

If your sis in law will to change car now, she could sell her 7 years old E Class for about 55k to 60k +-. Taking back about 13k depre return per year, plus getting back the parf. By buying a new car, she would end up no advantage in depre per year. You can try to use the same method i did to do a comparison but remember to knock off the sell price of her E200. I am sure the total cost of ownership(cureent plus new) of buying new car scenario will be more expensive then renewing COE. You have to be mindful that in reality not many people would compute or think this way, most people would just cut loss by selling off existing car, buy a new one and move on. We have to understand that the problem is her existing car is very expensive to begin with, so as long as we add the cost of her existing car into the equation, the total cost of ownership will be expensive no matter how.

 

Buying a B Class may lower the cost of ownership somewhat but a C Class wont come cheap, so it would not help reduce cost of ownership.

The other important consideration is whether she would like the ride of those smaller Merc. I am not saying smaller Merc are no good but the drive, feel and comfort of smaller merc is very different from that of a E class. It is important that she goes test drive to see if she would like it. I myself switch from a E to a C before i switch back to a E now. Though old car, i could feel significant difference even between the C and E.

 

My own thoughts is if she will to rewnew COE, she could wait for at least another year or even till end of her current COE is due for renewal, depending on how fast the PQP is escalating.

If she will to change to a new car, short answer is that now is the time. Because in 3 years time, she would likely to buy into the high COE cycle, it takes a longer explanation to show why.

Edited November 29, 2018 by Ct3833