Buy now or wait till COE expire?

[KiaCeratoHB]

Hi bros,

 

I've been calculating but not sure which is the more economical option for me. Appreciate your thoughts and advise which is an overall more economical decision.

 

I'm currently driving a 2008 Stream, COE expiring March 2018 with $15K loan left and OMV $20,486.

Is it more economical to change car now or wait till COE expire? If I were to change now, I will likely go for 5+2 cars such as Wish & Touran.

 

Putting aside COE fluctuations, let's assume COE remains at current level from now till 2018.

 

1) If I wait till COE expire (20 mths fm now)

Outstanding loan : $15K

Scrap Value at end of 10 Yrs : $10K

Nett Cost if usage : $5K

Annualised depreciation : ($15K-$10K)/20 * 12 = $3K

 

2) If I change car now

Expected selling price of existing car : $27K (is this a reasonable assumption?)

 

 

So I basically loose $17K for using this car for 20 months

which works out to be $10,200 annually.

 

so which is the more "correct way" of looking at the cost of ownership? The other thing is that assuming I use the next car for 10 years,

 

Option 1 will allow me to drive the new car till 2028

option 2 will allow me to drive the new car till 2026

 

how do I consider that 2026 to 2028 difference for this decision?

 

[RadX]

Many other threads and no need to start your own

 

 

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