starofall Clutched May 22, 2015 Share May 22, 2015 I have been thinking for awhile now but still don't understand how this works. I always see pple saying that when COE crash (I don't know how low is consider crash) those pple with high COE (how high is high? 90k 80k 70k?) can change car as it's more "worth" it. But then we can only get back the unused COE half of the OMV (less CEVS if applicable). am I missing something else? So if I change car after 3 yrs my depreciation will be very high like 15-20k per year? so how is it worth changing? Pls enlighten me lol... ↡ Advertisement 2 Link to post Share on other sites More sharing options...
Tua 1st Gear May 22, 2015 Share May 22, 2015 The logic goes like this: 1. COE: When COE crash, let say from 90K to 30 K, to get a new car, theorically at 60K cheaper 2. PARF, there is a tier system Age at Deregistration (year) PARF Rebate (for cars registered with COEs obtained from May 2002 tender onwards) Not exceeding 5 75% of ARF paid Above 5 but not exceeding 6 70% of ARF paid Above 6 but not exceeding 7 65% of ARF paid Above 7 but not exceeding 8 60% of ARF paid Above 8 but not exceeding 9 55% of ARF paid Above 9 but not exceeding 10 50% of ARF paid So to scrap a car before 5 years, you can get back 75% of the ARF paid. 3. The depreciation of the old car will be higher in this sense but moving forward, the depreciation of the new car will be lower and you can enjoy your ride longer as well. This explain why, suddenly there is alot of people changing to new car from 2005 to 2008, 2 Link to post Share on other sites More sharing options...
Wt_know Supersonic May 22, 2015 Share May 22, 2015 (edited) assuming a $90K coe ... after 3 years ... COE alone can take back $63K when you say COE crash ... means COE $30K? if COE $30K ... a new car probably less than $100k so, trade in a 3 years old $90K coe probably can get a new car with no or little top up can drive a brand NEW car again for the next 10 years ... worth it or not? if continue to drive the 3 years old $90K coe car ... COE alone 1 year depreciation is $9K ! depends on how 1 see worth it or not ... if you talk to car agent ... the answer is sibei worth it ... buy buy buy then the tsunami of scrapping and buying ... I have been thinking for awhile now but still don't understand how this works. I always see pple saying that when COE crash (I don't know how low is consider crash) those pple with high COE (how high is high? 90k 80k 70k?) can change car as it's more "worth" it. But then we can only get back the unused COE half of the OMV (less CEVS if applicable). am I missing something else? So if I change car after 3 yrs my depreciation will be very high like 15-20k per year? so how is it worth changing? Pls enlighten me lol... Edited May 22, 2015 by Wt_know Link to post Share on other sites More sharing options...
Civic6228 6th Gear May 22, 2015 Share May 22, 2015 Lets look at one example ... Current Selling Price : 125k COE : 65k OMV(PARF) 12k After 3 year, paper value of car upon deregistration ... COE = 65k X 0.7 = 45500 PARF = 0,75 x 12k = 9000 Car Body = 10000 Total 64,500 Depreciation = 120,000 - 64,500 = 55,500/3 = 18,500 per year. Worth it ? 1 Link to post Share on other sites More sharing options...
Wt_know Supersonic May 22, 2015 Share May 22, 2015 (edited) assuming you take that $64,500 and buy a brand new car at $80k $125K + $15.5k (top up) / 13 years = sama sama as $125k / 10 years just for simple calculation ... worth it? Lets look at one example ... Current Selling Price : 125k COE : 65k OMV(PARF) 12k After 3 year, paper value of car upon deregistration ... COE = 65k X 0.7 = 45500 PARF = 0,75 x 12k = 9000 Car Body = 10000 Total 64,500 Depreciation = 120,000 - 64,500 = 55,500/3 = 18,500 per year. Worth it ? Edited May 22, 2015 by Wt_know Link to post Share on other sites More sharing options...
Chucky2007 Turbocharged May 22, 2015 Share May 22, 2015 The logic goes like this: 1. COE: When COE crash, let say from 90K to 30 K, to get a new car, theorically at 60K cheaper 2. PARF, there is a tier system Age at Deregistration (year) PARF Rebate (for cars registered with COEs obtained from May 2002 tender onwards) Not exceeding 5 75% of ARF paid Above 5 but not exceeding 6 70% of ARF paid Above 6 but not exceeding 7 65% of ARF paid Above 7 but not exceeding 8 60% of ARF paid Above 8 but not exceeding 9 55% of ARF paid Above 9 but not exceeding 10 50% of ARF paid So to scrap a car before 5 years, you can get back 75% of the ARF paid. 3. The depreciation of the old car will be higher in this sense but moving forward, the depreciation of the new car will be lower and you can enjoy your ride longer as well. This explain why, suddenly there is alot of people changing to new car from 2005 to 2008, got factor in the grossly high dealer profit into the car purchase or not? Link to post Share on other sites More sharing options...
Civic6228 6th Gear May 22, 2015 Share May 22, 2015 (edited) assuming you take that $64,500 and buy a brand new car at $80k $125K + $15.5k (top up) / 13 years = sama sama as $125k / 10 years just for simple calculation ... worth it? agree .... provided new car is 80k For new car to be 80 k ..... COE would have to be around 30k ? Edited May 22, 2015 by Civic6228 Link to post Share on other sites More sharing options...
Gaolow 4th Gear May 22, 2015 Share May 22, 2015 i believe we might be the only country in the world that scrap more new car than old...due to COE 3 Link to post Share on other sites More sharing options...
yo2020 6th Gear May 22, 2015 Share May 22, 2015 let says buy an Altis now at $120k with COE $68k, ARF $18k (assumed reg in Jul, no more CEVS) n loan 60% at 1.88% for 5 yrs. 2 yrs later in Jul 2017 assuming COE is cheap, then PCOE=$54.4k, PARF=$13.5k, to pay to redeem loan=~$45k. so, can get bck $23k!! can buy what even if COE is dirt cheap?? top up another $30k to buy a new Altis!!?? total spent over 2yrs = (40% dep)+(instalment for 2 yrs)-$23k = $56k!!! 3 Link to post Share on other sites More sharing options...
Tua 1st Gear May 22, 2015 Share May 22, 2015 Before 2005.. the ARF tax rate is at 140% and the PARF rebate is much higher then current scheme. in 2005, it is certainly cheaper to buy new car and scrap the 3yr old car. Even now, my friend latio bought about 50+ K in 2008m was offers 30+K as trade in for new car.. if you have the money now, it could be worth it to buy new car. Link to post Share on other sites More sharing options...
Tohto Hypersonic May 22, 2015 Share May 22, 2015 assuming you take that $64,500 and buy a brand new car at $80k $125K + $15.5k (top up) / 13 years = sama sama as $125k / 10 years just for simple calculation ... worth it? You still miss out the interest for the loan If any. Unless the buyer is T2 group of kaki. But then I think $30 - $40k saving is not in their mind at all when buying car. Link to post Share on other sites More sharing options...
RadX Moderator May 22, 2015 Share May 22, 2015 let says buy an Altis now at $120k with COE $68k, ARF $18k (assumed reg in Jul, no more CEVS) n loan 60% at 1.88% for 5 yrs. 2 yrs later in Jul 2017 assuming COE is cheap, then PCOE=$54.4k, PARF=$13.5k, to pay to redeem loan=~$45k. so, can get bck $23k!! can buy what even if COE is dirt cheap?? top up another $30k to buy a new Altis!!?? total spent over 2yrs = (40% dep)+(instalment for 2 yrs)-$23k = $56k!!! lol...Panamera depreciation nia Link to post Share on other sites More sharing options...
nazerath Turbocharged May 22, 2015 Share May 22, 2015 how much is a new car,s insurance per year? 4 Link to post Share on other sites More sharing options...
Wt_know Supersonic May 22, 2015 Share May 22, 2015 if coe crash to $30k $60k-$70k coe little benefit to scrap $80k-$90k coe may be can consider Link to post Share on other sites More sharing options...
Tua 1st Gear May 22, 2015 Share May 22, 2015 Taking the case of the 120K Altis, 2015 = 120K. at 2017, assume that COE is at 30k, New Altis will be at about 90K. The interesting point is that, for the last two years, the depreciation is about 28K but the new car, assuming that COE is at 30K will depreciate at less then 9k a year for the next 10 years. so, depend on how you think??? Usually, when you scarp a car at 2 years. the dealer will pay you an additional sum of money for the car body, that will help lower the actual depreciation. furthermore alot of these car are not scrap but resell in the market due to the loan curb. a 2015 Altis will depreciate at about 11k a year + you got new car without worry of maintenance.. etc. At the end of the day, it depend on how deep is your pocket. let says buy an Altis now at $120k with COE $68k, ARF $18k (assumed reg in Jul, no more CEVS) n loan 60% at 1.88% for 5 yrs. 2 yrs later in Jul 2017 assuming COE is cheap, then PCOE=$54.4k, PARF=$13.5k, to pay to redeem loan=~$45k. so, can get bck $23k!! can buy what even if COE is dirt cheap?? top up another $30k to buy a new Altis!!?? total spent over 2yrs = (40% dep)+(instalment for 2 yrs)-$23k = $56k!!! Link to post Share on other sites More sharing options...
Wt_know Supersonic May 22, 2015 Share May 22, 2015 (edited) deep pocket no care coe is $90k or $30k and simi depreciation my boss change car every 2-3 years ... not sure pay full cash or not ... muahahaha Edited May 22, 2015 by Wt_know Link to post Share on other sites More sharing options...
Soya Supersonic May 22, 2015 Share May 22, 2015 lol...Panamera depreciation nia but....but.....altis goot goot hor, neber overheat like conti, never breakdown like conti, neber jiak yu like conti. best of all, neighbour's unker & auntie and the rest of the herd has one so it must be goot. simi panamera?...pui! Link to post Share on other sites More sharing options...
RadX Moderator May 22, 2015 Share May 22, 2015 but....but.....altis goot goot hor, neber overheat like conti, never breakdown like conti, neber jiak yu like conti. best of all, neighbour's unker & auntie and the rest of the herd has one so it must be goot. simi panamera?...pui! and its the fastest leh... no matter how fast you are, there is always another one ahead of you ↡ Advertisement Link to post Share on other sites More sharing options...
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