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Number of cars with renewed COEs hit high of 41,777

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Number of cars with renewed COEs hit high of 41,777

SINGAPORE - The tendency for people to keep their cars beyond 10 years has grown stronger.

Last year, the number of certificate of entitlement (COE) revalidations hit a new high of 41,777 - 12.6 per cent higher than the previous record of 37,114 in 2018.

The number is estimated to represent more than half of the cohort of cars which turned 10 last year.

...

https://www.straitstimes.com/singapore/transport/number-of-cars-with-renewed-coes-hit-high-of-41777

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The ADs and PIs will have a lot fewer cars to sell in the next few years.  Car workshops on the other hand might see better business with more old cars on the road.

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More people prefer to keep the old car, save the money and drive on. Others like me, no money, boh bian. 

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Great to save the earth! Most of our 10 year old cars have more than 50% useful lifespan to go. 

The govt will have to increase GST, petrol duties etc to make up the revenue shortfall from ARF.... 

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1 hour ago, awhtc said:

Number of cars with renewed COEs hit high of 41,777

SINGAPORE - The tendency for people to keep their cars beyond 10 years has grown stronger.

Last year, the number of certificate of entitlement (COE) revalidations hit a new high of 41,777 - 12.6 per cent higher than the previous record of 37,114 in 2018.

The number is estimated to represent more than half of the cohort of cars which turned 10 last year.

...

https://www.straitstimes.com/singapore/transport/number-of-cars-with-renewed-coes-hit-high-of-41777

I think more pple know how to do their sum liao.  For example, Outlander, when 50K COE(late 2017) and now 30K(2020), still selling the SAME Price.

Something has to drop somewhere.  Or wait for COE to climb up to 50K THEN BUY.  Because it is GOING to be the SAME PRICE.....

My COE 49996, very happy, SAME PRICE.  But my car EOL liao.  As a matter of facts, when COE drop big big in 2018, they even cost more liao.

So in SG, want MPV, smelly smelly 100K++++++ and Saloon or whatever 5 seater 80K.  To ADD 2 more seat MUST pay 20K+++......  Want to pay or don't want to pay.

 

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It makes sense to renew COE instead of buying new.

When you renew COE, you only forgo the PARF value which is $6K for most bread and butter 1600cc cars.

The PARF forgone is less than the additional registration fee, GST and other taxes you need to pay.

In event your car is totalled in an accident, you get back pro rated COE.

Only set backs are you pay progressive increment in road tax up to 50% and need to send for annual inspection but the lower 3rd insurance cost makes up for these.

 

Edited by Vinceng
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Renewed mine in 2014 at $35k for 5 years usage only, 🤣 already scrapped the car.

Current renewal at $33k Cat A and $38k Cat B for full 10 years. I believe a lot of these are used for private hire thus the high stats.

Edited by Dafansu
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If you zoom into the LTA statistics, for Cat A 5-year renewals are typically double of 10-year renewals. The reverse is true for Cat B.

For Cat A cars, I agree that majority are meant to be used as PHVs.  For Cat B cars it is more due to the high PARF forfeit, it makes more sense to go for 10-year renewal.

Since COE has dropped again and the economy is weak, 2020 could see another wave of renewals. 

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7 hours ago, Vinceng said:

It makes sense to renew COE instead of buying new.

 

 

errr... i thought you just bought a Passat during the recent car show??

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2 hours ago, Dafansu said:

Renewed mine in 2014 at $35k for 5 years usage only, 🤣 already scrapped the car.

Current renewal at $33k Cat A and $38k Cat B for full 10 years. I believe a lot of these are used for private hire thus the high stats.

 agree, most of the B&B COE cars are likely PH.  However,  dont forget there is still a huge % of CAT B, most of them should be for private usage. 

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If you look at the economy outlook it's no wonder ppl are renewing their coe but once the economy starts climbing again so does the new car buying. Ppl are more or less imo "buying" time, waiting for their money to come. Once there they will start buying new car.

Let's be honest. If you have the finances you wont think make sense or not. You once bought your car new isnt it, why didnt you say it makes more sense to buy used back then? LoL...

Any machinery after 10 years of constant usage parts will koyak no matter what ppl say. Electric and electronics parts are the easiest to deteriorate when expose to heat. 10 over years is a long time. Even for maintenance it's no small fee when you add them up but ppl will justify by saying still cheaper than new car. That's not wrong, I dont disagree with that saying.

I'm always reading ppl justifying their cause of renewing their car's coe. What you wanna say.... that's you. Nothing right or nothing wrong. It's just your opinion imo. It's abit sian always reading the same saying. Ok, I get it.

 

 

 

Edited by Watwheels

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2 hours ago, awhtc said:

If you zoom into the LTA statistics, for Cat A 5-year renewals are typically double of 10-year renewals. The reverse is true for Cat B.

.......

last year's 10-year renewal (21,682) is more than 5-year renewal (20,095)😮

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2 hours ago, Ody_2004 said:

errr... i thought you just bought a Passat during the recent car show??

I prefer to defy convention. 😁

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8 minutes ago, Jp66 said:

last year's 10-year renewal (21,682) is more than 5-year renewal (20,095)😮

2024 and 2029 should see COE at one of its lowest points with the extensive number of renewed COE cars due for scrap.

But then again, renewing COE a 2nd time is best as there's no PARF to forgo. Anytime there's no spare parts, just scrap and get back pro rated COE. Minimal loss.

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4 minutes ago, Vinceng said:

I prefer to defy convention. 😁

Whahahahahahaha..

What color u bot? guess is their latest color "transparent" technology!

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Shouldn't it be the reverse? When COE is low buy new one, when COE is high renew. I dont know.

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26 minutes ago, Watwheels said:

Any machinery after 10 years of constant usage parts will koyak no matter what ppl say. Electric and electronics parts are the easiest to deteriorate when expose to heat. 10 over years is a long time. Even for maintenance it's no small fee when you add them up but ppl will justify by saying still cheaper than new car. That's not wrong, I dont disagree with that saying.

It's only in S'pore that when parts of a car is due for replacement, people say it's time to change car, rather than replace the worn out part.

Honestly, cars are good to go for 20 years , given S'pore's good road condition.

On renewing COE, in the current climate, it costs about $37K (PQP + PARF forgone) to drive a renewed COE car for another 10 yrs, excluding road tax surcharge and higher maintenance costs.

Dealers are taking in almost 10 yr old bread and butter 1.6l cars and selling them with 10 yrs renewed COE at $50K. Or with 5 year COE renewals at $30K. Definitely not worth the buy at $5K annual dep for a decade old car.

Another school of thought is to get a BRAND NEW budget car like Hyundai Accent, Mitsubishi Attrage, Perodua Bezza / MYVI, which will set you back by about $5,500 in annual dep or just about an additional $1,500 annually over a COE renewed car (assuming you renew your own car COE, not buy from dealer at $50K). This only works out well if you get a budget new car.

Edited by Vinceng
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21 minutes ago, Vinceng said:

2024 and 2029 should see COE at one of its lowest points with the extensive number of renewed COE cars due for scrap.

But then again, renewing COE a 2nd time is best as there's no PARF to forgo. Anytime there's no spare parts, just scrap and get back pro rated COE. Minimal loss.

Not 100% true. You are assuming everyone takes the 5yr Coe till the end.

anyway just go See LTA stats. High quota numbers doesn’t always mean low prices. 2016-2018 had a huge number of registrations. Easily 80k/yr. easily higher than 2024 projected numbers(2014 new reg was 28k and 2019 5yr coe was 20k) why won’t 2026-2028 be lower based on quota number.  

Edited by Mkl22
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