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Why more people are renewing COE?

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I bought my KIA at $57,999 in 2010 April. COE given $30,000.

 

U can do ur math.

 

Now coe how much, and car price how much. ð

I just bought my Hyundai at 61,111.. not much diff leh lol
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I summarize for you.

 

Its not the car

 

Its the MONEY.

 

:grin:

 

Most of my friends around my age (55 and above) renew COE.

 

Why? Money! They all said that it's cheaper to renew their current ride than to buy a new car.

 

Besides, getting loan may be a problem for those reaching close to 60 years.

 

Those friends around my age who bought new cars within the last two years can afford it. Their children are all working so they do not need to support them.

 

One thing we all agree. Say in 7 to 10 years time when cars get too expensive, we will all just give up car ownership and take public transport as we would be in our mid 60s already.

 

My opinion only.

 

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I'm still wondering should I renew a 9yrs old BMW F10 with OMV $36k. I had spent $10k to change the wear and tear 2yrs ago and Mileage is 140k now. Initially, waited to wait till next year closer to expiry to decide on renewal but COE on uptrend.

 

Was thinking to renew $31k in Feb'19 but it went up to $33k and $35k PQP now. If renew now and by next year June decided to scrap/export due to major repair, can still recover the PARF and balance COE of the renewed PQP. If mine is a Merc, shouldn't have much struggle. Anyway, still got 4 days to decide. Ask my wifey, she ok to swap to a new Elantra, her face frowning.

 

Your F10 can fetch at least $35K in the resale mkt now.

 

It's either you -

 

1) Pay $35K now to renew 10 yr COE

2) Sell the F10 and top up $43K to get a brand new Hyundai Avante base model @ $78K, and get back PARF $6K at it's 10th yr. So effectively,bthe top up is only $2K more than the F10 COE renewal option .

 

If you need the status symbol and snob appeal, then renew F10 COE. Otherwise, get a brand new Avante for trouble free motoring. And save on road tax, insurance, fuel consumption and wear & tear parts replacement.

Edited by Vinceng

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I'm still wondering should I renew a 9yrs old BMW F10 with OMV $36k. I had spent $10k to change the wear and tear 2yrs ago and Mileage is 140k now. Initially, waited to wait till next year closer to expiry to decide on renewal but COE on uptrend.

 

Was thinking to renew $31k in Feb'19 but it went up to $33k and $35k PQP now. If renew now and by next year June decided to scrap/export due to major repair, can still recover the PARF and balance COE of the renewed PQP. If mine is a Merc, shouldn't have much struggle. Anyway, still got 4 days to decide. Ask my wifey, she ok to swap to a new Elantra, her face frowning.

 

1 year ago, almost bought a 1 owner, 9yrs old Cayman 2.7L for $60k+. This one no brainer, confirm renew COE

I dont think your assumption is correct. If you renew now, the parf value is forfeited immediately. The clock is reset.

So if you decide to scrap next yr, you only get residual value of the PQP.

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you very spot on.

 

and comparing a new car vs a COE car:

New E200 renew COE

Total price $240k $70k

PARF -$30k $0

net over 10 years $210k $70k

 

The difference of $140k can buy me two more COE cars, will go to dealer margin and LTA. Of course, old car no leather smell, does not look as good, less functionality, and need some money to repair but i dont think the repair cost will go up to 100k. Poor man talk. got money buy new car of course.

Which is why it’s worth it for higher end cars.

 

For bread and butter, the difference narrows but quite an amount. So it’s then not as clear cut.

I dont think your assumption is correct. If you renew now, the parf value is forfeited immediately. The clock is reset.

So if you decide to scrap next yr, you only get residual value of the PQP.

Parf is not forfeit la. Said many many many many times already.

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I dont think your assumption is correct. If you renew now, the parf value is forfeited immediately. The clock is reset.

So if you decide to scrap next yr, you only get residual value of the PQP.

Parf is valid all the way till the last day of the current parf eligibility, this is regardless the date of your revalidated COE. That means after renewing COe, you can still scrap your car and get back the balanced parf value before 10 years. After 10 years there will be no more parf.
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PARF is not forfeited until the 120th mth (10th year) even if you renew COE now.

 

Let's say you renew Cat B PQP @ $35K now. And your car hits its 10th year in April 2020.

 

If you decide to scrap in April 2020, you get back the PARF plus $$31,500 for COE, pro rated.

Edited by Vinceng
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this is a unique SGP auto trade phenomenon, over time, the dealers( ADs) know that they cannot depend on volume to make money due to the limited COE supply. If they sell low price low margin, they may not secure sufficient COE to meet the demand. So instead of selling more at low margin, they rather sell less at higher margin. After a while, they realise selling at higher margin is a better approach, less work, more money, so they continue to sell higher and higher, left behind a few less popular brands who are offering lower mark up but still, it wont be too low because they need min sales volume to survive. end up the dealers and LTA are the one laughing to the bank at the expense of our pockets.

How about perodua? They sell in low volumes.

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Please don't compare a 5er to a avante.

 

Although 5er is an old car but it's still 3X the omv of a avante.

 

 

Not about price but apple to apple comparison.

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Please don't compare a 5er to a avante.

 

Although 5er is an old car but it's still 3X the omv of a avante.

 

 

Not about price but apple to apple comparison.

But maybe 3x the number of problems and cost of repairs.

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How about perodua? They sell in low volumes.

they sell less with low margin, their business may just be break even, at some point their business may not be sustainable, see when they are going to call it a day .

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Please don't compare a 5er to a avante.

 

Although 5er is an old car but it's still 3X the omv of a avante.

 

 

Not about price but apple to apple comparison.

Am comparing based on with the same money, what car can you get.

 

Know of someone who had a budget of $80K and bought a 2009 Mercedes E200 W212 with new 10 yr COE for $78K, instead of his originally planned brand new Kia Cerato @ $79K.

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Am comparing based on with the same money, what car can you get.

 

Know of someone who had a budget of $80K and bought a 2009 Mercedes E200 W212 with new 10 yr COE for $78K, instead of his originally planned brand new Kia Cerato @ $79K.

Pardon me saying this but it's not a good comparison in logical sense.

 

It's a total different needs and expectation.

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F10 is 2.5L. Road tax for coe car will be quite chor.

2.5L where got chor

 

Anyway F10 comes in 2 version.  Ours is the later version with 2 L turbo charged version.  Earlier models, like the 523i uses 6 cyl n is 2.5L.

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PARF is not forfeited until the 120th mth (10th year) even if you renew COE now.

 

Let's say you renew Cat B PQP @ $35K now. And your car hits its 10th year in April 2020.

 

If you decide to scrap in April 2020, you get back the PARF plus $$31,500 for COE, pro rated.

What do you think of the following?

 

Source 1: https://www.onemotoring.com.sg/content/onemotoring/home/owning/coe-renewal.html

 

Your new COE period starts from the 1st day of the month after you renew your COE. You will forfeit any unused portion of your previous COE.

 

For example, if your COE expires on 5 August 2017, you can find out the PQP for July 2017 after the 2nd bidding exercise ends in June 2017. Assuming there is no public holiday the week of the bidding exercise, you can renew your COE using the July 2017 PQP on the Friday immediately after the 2nd bidding exercise in June 2017. Your new COE period starts on 1 August 2017. The unused portion of your previous COE from 1 to 5 August 2017 will be forfeited. This includes any COE rebate your vehicle may have enjoyed from a previous lay-up period.

 

In this case, suppose the 2nd bidding exercise in June 2017 ends on 21 June 2017. You can renew your COE using the July 2017 PQP anytime from 23 June 2017 until the end of July 2017. Check the timeline below. 

 

 

 

Source 2: https://www.sgcarmart.com/news/writeup.php?AID=313&GASRC=dy

 

7. You will forfeit the remaining balance of your COE rebate upon renewal

 

Aside from the PARF value, the LTA also offers a rebate on any 'unused' value of your current COE if you deregister it before the full 10-year tenure is up. However, should you renew your COE before it reaches its expiry date, you will forfeit any COE rebate that you are eligible for.

 

 

It is for this reason that most people tend to renew their COEs very close to the expiry date, or even on the day itself, in order to minimise the 'loss' of this rebate. However, as mentioned on point 6, you can also choose to renew your COE after it has expired as well.

 

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What do you think of the following?

 

Source 1: https://www.onemotoring.com.sg/content/onemotoring/home/owning/coe-renewal.html

 

Your new COE period starts from the 1st day of the month after you renew your COE. You will forfeit any unused portion of your previous COE.

 

For example, if your COE expires on 5 August 2017, you can find out the PQP for July 2017 after the 2nd bidding exercise ends in June 2017. Assuming there is no public holiday the week of the bidding exercise, you can renew your COE using the July 2017 PQP on the Friday immediately after the 2nd bidding exercise in June 2017. Your new COE period starts on 1 August 2017. The unused portion of your previous COE from 1 to 5 August 2017 will be forfeited. This includes any COE rebate your vehicle may have enjoyed from a previous lay-up period.

 

In this case, suppose the 2nd bidding exercise in June 2017 ends on 21 June 2017. You can renew your COE using the July 2017 PQP anytime from 23 June 2017 until the end of July 2017. Check the timeline below.

 

 

 

Source 2: https://www.sgcarmart.com/news/writeup.php?AID=313&GASRC=dy

 

7. You will forfeit the remaining balance of your COE rebate upon renewal

 

Aside from the PARF value, the LTA also offers a rebate on any 'unused' value of your current COE if you deregister it before the full 10-year tenure is up. However, should you renew your COE before it reaches its expiry date, you will forfeit any COE rebate that you are eligible for.

 

It is for this reason that most people tend to renew their COEs very close to the expiry date, or even on the day itself, in order to minimise the 'loss' of this rebate. However, as mentioned on point 6, you can also choose to renew your COE after it has expired as well.

Don’t understand your question. Coe is coe. Parf is parf. Totally unrelated to each other.
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