COE down, those bought at high COE how?

[Miles]

Car A fully paid? Whether it's fully paid or still under loan, why issit worth it? Fully paid means an expense and under loan means whatever require to pay as loan is the 'loss' or expense.

 assumption is, car 'A' fully paid. 

[flashbang]

how about this.

 

Bought car 'A' 2 years ago at $180k with COE at $70k.

 

Now interested in car 'B' priced at $120k @ COE $40k

 

Practically, can change cars without topping up as trade in price for car 'A' is about the same as price of car 'B', assuming car 'A' fully paid.

 

Difference of OMV for both cars is about $5k (car 'B' has lower OMV).

 

Technically, projected annual depreciation based on straight line for the life of both car 'A' + 'B' (assuming use car 'B' for 10 years) will be $180k - PARF of car 'B' (let's say at about 6k after CEV rebate deduction) / 12 years = 14.5k/year.

 

If keep car 'A' for 10 years, annual depreciation on similar assumption will be $180k - PARF of car 'A' (lets say about 13k after CEV rebate deduction) / 10 years = 16.6k/year

 

worth it?

Based on this calculation, worth it to make a change if both cars are similar. If it's a downgrade then not so worth it.

[Alfc]

Based on this calculation, worth it to make a change if both cars are similar. If it's a downgrade then not so worth it.

Excluding COE, car A cost $110k while car B cost $80k. Obviously different class and is a downgrade.

[Runforyourlife]

assumption is, car 'A' fully paid.

It's also considered an expense if it's paid. So that itself is a 'loss' haha.

[Axela72]

Excluding COE, car A cost $110k while car B cost $80k. Obviously different class and is a downgrade.

In my opinion it depend how one's viewed. To me, if the new car has better techology it may consider as part of an upgrade. Eg the current old civic change to the latest Elantra

 

Nevertheless, those that have already bought their car at higher may not be a bad idea if view in long term. If u refer to another thread, coe quota will likely be lowest again by 2023. Those that have already bought earlier can change car before the next coe drought. As for those that just bought on the next 2 to 3 yrs later, they may not be able to change in time before the next drought cycle repeat due to their pending loan. So they will be stuck with their ride for more than 10 yrs before the next lowest COE return

Edited February 14, 2016 by Axela72

[Miles]

It's also considered an expense if it's paid. So that itself is a 'loss' haha.

To me it's sunk cost. Depreciation is based on straight line for 10 years or 12 years for the same cost.

[Miles]

Based on this calculation, worth it to make a change if both cars are similar. If it's a downgrade then not so worth it.

What is considered downgrade?

[Jusnel]

Cannot always look at $ number to change car.

 

There are many other reasons, like current car giving mechanical problems, owner getting sick of current car, owner want bigger car now, new car has better technology, etc

 

If only lose 20k-30k, why not change? Take 20-30k and divde over next 10 yrs, its peanuts

[Runforyourlife]

Cannot always look at $ number to change car.

 

There are many other reasons, like current car giving mechanical problems, owner getting sick of current car, owner want bigger car now, new car has better technology, etc

 

If only lose 20k-30k, why not change? Take 20-30k and divde over next 10 yrs, its peanuts

The prob is everyone always calculate across 10 years to 'console' own self. In actual fact, everybody seek to change car every 5 years or before that haha

[Jusnel]

The prob is everyone always calculate across 10 years to 'console' own self. In actual fact, everybody seek to change car every 5 years or before that haha

Even if u take 5 yrs to calculate, 20k-30k over 5 yrs, its still peanuts.

 

There would be other push factors to change cars.

[flashbang]

What is considered downgrade?

 

I would consider a smaller car a downgrade.

[Alfc]

In my opinion it depend how one's viewed. To me, if the new car has better techology it may consider as part of an upgrade. Eg the current old civic change to the latest Elantra

 

Nevertheless, those that have already bought their car at higher may not be a bad idea if view in long term. If u refer to another thread, coe quota will likely be lowest again by 2023. Those that have already bought earlier can change car before the next coe drought. As for those that just bought on the next 2 to 3 yrs later, they may not be able to change in time before the next drought cycle repeat due to their pending loan. So they will be stuck with their ride for more than 10 yrs before the next lowest COE return

Exactly depending on view. imo a camry regardless of age if change to altis (even if latest model) is consider downgrade.

A replacement in the same class should be another camry (or equivalent).

rationale: one would have enjoyed certain "advantages" of the camry over the altis say 10 years ago when bought.

today, to enjoy the same "advantages" over the same altis, one should get the camry to be status quo. Otherwise, it is downgrading. Anyways, just my view.

Edited February 14, 2016 by Alfc

[Kazuya]

Primary 3 math question 

 

I am driving a honda freed, registered 2009.  I bought it for 60k in 2009 with COE at 4k.

Some Dealers are offering about 60k for my car now.  

 

Should I let it go and get a new car at 120K ( topping up another 60k for a new car) at current COE price of 62k?

or should I drive till the end and hope that COE will drop in the future?

 

How to do this math question as I am in a dilemma now !!!   Pls help.  

 

I was in the same situation as you. This is actually to your benefit. I was driving a car bought in end 2009 which I bought for $55,000. I sold my car for $49,000 last November and have been on BMW while waiting for the COE to plunge (which thankfully, the market did not disappoint). Remember if you go for trade in, High COE (higher trade in value), low COE (lower trade in value). That was what all dealers told me when I wanted to change a car back in Sept-Oct 2015. In the end, I sold the car. When market crash, just re-enter.  I would do the same now, if given the choice. So in your position, I would, sell the car, wait for another 6 months for COE to plunge, then re-enter the market. 

 

If you die die need a car, then just change now. Anyway low priced COE cars have higher depreciation in the last 3-4 years of its shelf life. Dont wait till then

Edited February 14, 2016 by Kazuya

[Wt_know]

best is keep 2 cars

coe high at $80k ... sell low coe car

coe low ... chop chop buy the latest model car

so .. why would the rich make a lost? lol

now i understand why my neighbour keep 3 cars

1 he drive, 1 wife drive, 1 to flip when time is right ... lol

Edited February 14, 2016 by Wt_know

[Throttle2]

 

No need assume here assume there.

 

I bought new Cat A car with $56k COE and also renewed CAT B COE at $67k

 

So COE drop, so what?

 

A Car is an expense, you buy, you expense. Thats all.

best is keep 2 cars

coe high at $80k ... sell low coe car

coe low ... chop chop buy the latest model car

so .. why would the rich make a lost? lol

now i understand why my neighbour keep 3 cars

1 he drive, 1 wife drive, 1 to flip when time is right ... lol

Yup kinda just like property.

If want to take advantage of market, must hv spare one.

Otherwise difficult lah.

[Miles]

I would consider a smaller car a downgrade.

 

From Camry to 1 series considered downgrade?

[flashbang]

From Camry to 1 series considered downgrade?

 

Well it's a downgrade in space and power, but an upgrade in badge 

[Miles]

Well it's a downgrade in space and power, but an upgrade in badge

Ultimate upgrade for space would be to large MPV even if it's Chery?

 

It's highly subjective whether it's upgrade or downgrade, whether by space or by badge. To some people, increase space is an upgrade. To others, losing the roof is an upgrade. But for some, finding the right drive regardless of price, badge or space, is the ultimate upgrade.