What make and model worth renew COE after 10 years

[Beregond]

Mitsubishi Lancer as mentioned by some bros in this tread worth renew. Those glx version according to warranty direct which is feedback from uk drivers. Soon to be ex owner as bought new car. If not renewed coe so high would have continued driving it.

got 2 close friends renew this car.

 

one 10 years.

 

one 5 years.

Hiace is a better drive van than Liteace, and I also think it looks better in design.

hi ace is big van,

liteace is mini van .... 

Edited April 17, 2019 by Beregond

[Mockngbrd]

wow, 50% further discount 

but COE PQP went up le. still same

[Mkl22]

Would like some opinions.

 

Have a CatB coe car due in 12/2021. For sure would renew and keep.

Make sense to renew now at 35k or wait?

 

Current pqp paid was 72k. Bought it used after the coe was paid.

Edited April 19, 2019 by Mkl22

[Ct3833]

Would like some opinions.

 

Have a CatB coe car due in 12/2021. For sure would renew and keep.

Make sense to renew now at 35k or wait?

 

Current pqp paid was 72k. Bought it used after the coe was paid.

This thread is about what make and model, so must share leh .

 

I suppose your PARF written off about $30k, that trasnlates into about 10k depre a year including COE+parf.

If you renew it early now, you will have to forgo about $26k of depre(2year7month). Dont forget, 10 years later, you will have to patch 2.5year of depre because you terminate the current COE earlier. That will be about another $8.75k(3.5k+3.5k+1.75k) of patch.

All in all you lose about $34.75k. The critical questionnis Whether would COE go up by 34k from the current level would be your consideration, but no one has that answer.

Edited April 19, 2019 by Ct3833

[Elmo]

Would like some opinions.

 

Have a CatB coe car due in 12/2021. For sure would renew and keep.

Make sense to renew now at 35k or wait?

 

Current pqp paid was 72k. Bought it used after the coe was paid.

Based on your current PQP of 72K the depre of 7.2K per yr works out to about 17K residue value till 12/2021. That's the amount you will lose by renewing early.

Even if PQP goes up to 50K by Jan 2022 the saving you get by renewing early only adds up to 15K.

 

You also in a sense lose 2.5 yrs of its life by starting early for the next 10 yrs COE cycle.

 

That's how I look at it which I don't think is worth renewing now.

[Mkl22]

This thread is about what make and model, so must share leh .

 

I suppose your PARF written off about $30k, that trasnlates into about 10k depre a year including COE+parf.

If you renew it early now, you will have to forgo about $26k of depre(2year7month). Dont forget, 10 years later, you will have to patch 2.5year of depre because you terminate the current COE earlier. That will be about another $8.75k(3.5k+3.5k+1.75k) of patch.

All in all you lose about $34.75k. The critical questionnis Whether would COE go up by 34k from the current level would be your consideration, but no one has that answer.

It’s a coe Merc. No parf. Just say that it’s rare enough to warrant keeping. Edited April 19, 2019 by Mkl22

[sake]

Would like some opinions.

 

Have a CatB coe car due in 12/2021. For sure would renew and keep.

Make sense to renew now at 35k or wait?

 

Current pqp paid was 72k. Bought it used after the coe was paid.

My calculation is different from the others so i could be dead wrong......but here goes

 

as you already have coe until 12/2021, you are actually paying 35411 for extension of 89 months ( 12/2021 to 4/2029).

 

120/89 x 35411 = 47745 .

 

effective pqp you will be paying is 47745.

Edited April 19, 2019 by sake

[Ct3833]

Itâs a coe Merc. No parf. Just say that itâs rare enough to warrant keeping.

If no parf, your current COE write off for 2.5 year would be about $18k, plus 10 years later you have of replace your car earlier by 2.5years, that opportunity cost is about $8.75k. So all in all, you have about $25k of safety margin from the current COE to play with. The question then, would COE go to $70k by Dec 2021? I think possible but then further higher from 70k is less likely because there would be some 5 year COE car due for recycle then. Your risk and exposure of not renewing now is therefore not high.

Assuming all else equal, if goes to 70k by dec 2021, it would be better you renew in 2021 because you have a 70k COE to support your car value, if at anytime you decide to scrap it, resell or even car get stolen etc etc, you could get back 7k per year of balanced COE, instead of 3.5k per year if you will to renew it now.

Of course my theory and assumptions could be wrong, hope wont confuse your decision making.

This is one unique situation where one have to renew COE when it is high, may sound foolish but it is what it is.

Edited April 19, 2019 by Ct3833

[Ct3833]

My calculation is different from the others so i could be dead wrong......but here goes

 

as you already have coe until 12/2021, you are actually paying 35411 for extension of 89 months ( 12/2021 to 4/2029).

 

120/89 x 35411 = 47745 .

 

effective pqp you will be paying is 47745.

Dont forget he will have no car between 4/2029 and 12/2031. so he would have to spend additional money to get a car for 2.5 years comparing with if he will to continue with his current COE. Other than that your logics is correct too. Edited April 19, 2019 by Ct3833

[Ct3833]

Bro, you calculation like double counting....why later buy new car 10mths earlier need add $5k ?

Also, the 10mths write off should be based on after coe renewed depre which is much lesser. So for a W212, u should use roughly $8+ K depre to add for write off portion and not $14k

 

Anyway, if car is due this year 2019 whether cat a or cat B, better pay by this month April. This is the last boat. It will be sky rocketing, so just forgo the 8months.

Thanks for going into the detail. This is where I find it difficult to explain and I could be wrong.

Why when later buying new car 10 month earlier need to add 5k is because had one not renewing his COE earlier, he would get to drive his existing car for 10 more months without having to buy a new car earlier.

And thanks for your advice, yes I am going to renew my Altis by end April. I will delay W212 renewal, I think the risk is there but small. Hope I am correct. I shall pray...

Edited April 19, 2019 by Ct3833

[Ct3833]

.....

W212 now renew is 35k, now already 48k. End of 2019 how much would it be??? When coe due ??

Yah, damn unwilling. One way is to renew both by this month. I am still having the thought that COE for CAT B should not continue to go up, that is my only hope.

Thanks for sharing your thoughts

Edited April 19, 2019 by Ct3833

[Mkl22]

Thanks for going into the detail. This is where I find it difficult to explain and I could be wrong.

Why when later buying new car 10 month earlier need to add 5k is because had one not renewing his COE earlier, he would get to drive his existing car for 10 more months without having to buy a new car earlier.

And thanks for your advice, yes I am going to renew my Altis by end April. I will delay W212 renewal, I think the risk is there but small. Hope I am correct. I shall pray...

I used another way to calculate, not sure if correct.

 

Let’s say I bought the car 5years ago at 50k. Ignoring maintenance and other cost. By renewing it now means it’s going to be 85k/15yrs which is 5.66/yr depreciation.

To keep the same depreciation means I can afford to pay around 49.73k for pqp on 12/2021.

5.66 x 17.6yr -50k = 49.73k

 

And given the latest prices. I seem to have hit the limit right around now.

Edited April 19, 2019 by Mkl22

[Vinceng]

Yah, damn unwilling. One way is to renew both by this month. I am still having the thought that COE for CAT B should not continue to go up, that is my only hope.

Thanks for sharing your thoughts

 

Wise move, going by COE trends - https://www.aas.com.sg/resources/coe/prevailing-quota-premiums-pqp.html

 

When Cat B COE starts moving to $60K+ range, you can even sell your W212 for a hefty profit. 

 

Dec 2009 W212 with new 10 year  selling for $83K now - https://www.sgcarmart.com/used_cars/info.php?ID=815059&DL=1317

 

Scrap value $26K + PQP $35K = $61K (your cost)

 

If you renew in Dec 2019 when PQP rises to $50K, your cost would be $76K.

 

If Cat B COE continues heading north, you can still sell it for $83K after using for  a year

Edited April 19, 2019 by Vinceng

[Othello]

Would like some opinions.

 

Have a CatB coe car due in 12/2021. For sure would renew and keep.

Make sense to renew now at 35k or wait?

 

Current pqp paid was 72k. Bought it used after the coe was paid.

 

Wah, tough decision to make. 2 years is pretty long way to go. 

Edited April 19, 2019 by Othello

[Othello]

Itâs a coe Merc. No parf. Just say that itâs rare enough to warrant keeping.

Ahhh, its that Merc. Current COE forgone + current level. I say renew. Provided you have that intention all along.

[Othello]

Double post

Edited April 19, 2019 by Othello

[Vinceng]

It’s a coe Merc. No parf. Just say that it’s rare enough to warrant keeping.

 

I'd say renew now and ride on the historical low PQP trends of the years ending with the digit 9.

 

March 2009 - $3K

March 2019 - $33K

[sake]

I'd say renew now and ride on the historical low PQP trends of the years ending with the digit 9.

 

March 2009 - $3K

March 2019 - $33K

that's also one reason i have just renewed my cat B car expiring march 2020.