High COE cars

[sHy3r]

Dear all,

I need some advice from you guys. 

I am currently driving a 2013 car (2nd owner) with a high COE of $76k. I recently enquire trade in price and was surprise to hear from dealers that they don’t want to take in this car, but they can help me ask exporter price if I want to or drive till end of 10 yrs. (Current car left with 2.5 yrs) Those dealers who willing to quote as trade in, only offer few hundred more than current paper value. 
 

When I purchase the used car in 2017, the dealer told me that high COE is a good buy. Paper is high. But now, there are dealers who don’t want take in this car for resale because the COE is $76k...

Any idea why they don’t want to take in my car for trade in? Is there a reason? How much COE then has resale value in future? Is it a good time to sell my 2013 car now? Or I should keep till scrap?
 

Thank you. 🙂
 

 

[boonhat_91]

2 minutes ago, sHy3r said:

 

When I purchase the used car in 2017, the dealer told me that high COE is a good buy. 

Did you enquire trade in at the same dealer you bought from? If they not keen to take, then that line was obviously BS.

[sHy3r]

12 minutes ago, boonhat_91 said:

Did you enquire trade in at the same dealer you bought from? If they not keen to take, then that line was obviously BS.

No I didnt. Cos the dealer no longer in operation. 🥶

[Ct3833]

21 minutes ago, sHy3r said:

Dear all,

I need some advice from you guys. 

I am currently driving a 2013 car (2nd owner) with a high COE of $76k. I recently enquire trade in price and was surprise to hear from dealers that they don’t want to take in this car, but they can help me ask exporter price if I want to or drive till end of 10 yrs. (Current car left with 2.5 yrs) Those dealers who willing to quote as trade in, only offer few hundred more than current paper value. 
 

When I purchase the used car in 2017, the dealer told me that high COE is a good buy. Paper is high. But now, there are dealers who don’t want take in this car for resale because the COE is $76k...

Any idea why they don’t want to take in my car for trade in? Is there a reason? How much COE then has resale value in future? Is it a good time to sell my 2013 car now? Or I should keep till scrap?
 

Thank you. 🙂
 

 

High COE car is a good buy if the car has to be written off half way for whatever reasons, the owner will get back the COE rebate which is higher. But this scenario is unlikely to happen, it is just like buying an insurance. The statement could  be true if there are two similar cars, one having a higher COE price while the other one with low COE, both are  sold for about the same annual depreciation,  then the one with higher COE makes better sense for reason that i have mentioned. Otherwise , the higher the COE, the more money one will have to write off annually. Lesson learned is, you can trust anyone but not a car salesman , seek enough advice before you make decision in future. 

When come to trade in ,they will take your car for sure but only at paper value plus slightly more, because your car can only be exported or scrapped, they are not able to sell it in the local market because of the the high COE, the car price is just too expensive due to high COE that it  does not make sense for any buyer to accept.

It is a good to sell your car when COE was low at 20+k to 30K. Assuming if  you have sold  your car then, for every year of 7.6k COE would buy you more than 2 year of COE for a new car. But now COE is back at 40k to 50k level, it is not longer  worth doing so partly because you have only 2 more year of  balance COE to recoup, the additional  amount of money  you have to pay for a new car simply outweigh the balanced COE you could recover.

 

 

 

 

 

Edited February 18, 2021 by Ct3833

[sHy3r]

2 minutes ago, Ct3833 said:

High COE car is a good buy if the car has to be written off half way for whatever reasons, the owner will get back the COE rebate which is higher. But this scenario is unlikely to happen, it is just like buying an insurance. The statement could  be true if there are two similar cars, one having a higher COE price while the other one with low COE, both are  sold for about the same annual depreciation,  then the one with higher COE makes better sense for reason that i have mentioned. Otherwise , the higher the COE, the more money one will have to write off annually. Lesson learned is, you can trust anyone but not a car salesman , seek enough advice before you make decision in future. 

When come to trade in ,they will take your car for sure but only at paper value plus slightly more, because your car can only be exported or scrapped, they are not able to sell it in the local market because of the the high COE, the car price is just too expensive due to high COE that it  does not make sense for any buyer to accept.

It is a good to sell your car when COE was low at 20+k to 30K. Assuming if  you have sold  your car then, for every year of 7.6k COE would buy you more than 2 year of COE for a new car. But now COE is back at 40k to 50k level, it is not longer  worth doing so partly because you have only 2 more year of  balance COE to recoup.  

 

 

 

 

 

Thanks for the reply and advice.

So I should keep the car till scrap? I don’t have any issue with keeping the car till scrap. It is just that I itchy hand feeling wanna change car. I taken care of this car very well, by sending to agent for servicing regularly, change parts at agent and mileage only 118000 for a 7.5 yr car... sometimes also feel pity to let go this car as I took good care of it. 😀 

 

 

[Volvobrick]

If the body has some value, can consider exporting just before 8 year old.  118K mileage my guess is a few K at best if it is a normal popular car.  You have to work out your own math the yearly depreciation and maintenance vs a new car.

[Jamesc]

When COE is high we dealers say its a good time to buy because high paper value.

When COE is low we dealers say its a good time to buy because depreciation is low.

When rainy season we dealers say its a good time to buy because wont get wet walking to the bus stop.

When dry season we dealers say its a good time to buy because so hot walking to the bus stop.

When prices going up we dealers say its a good time to buy before prices get any higher.

When prices go down we dealers say its a good time to buy because prices are lower.

We dealers say its a always good time to buy because

when you buy we get commission.

If you never buy we never get commission.

Jamesc - the honest used car dealer

with the best range of good quality used cars at the most affordable prices.

Edited February 18, 2021 by Jamesc

[Ct3833]

33 minutes ago, sHy3r said:

Thanks for the reply and advice.

So I should keep the car till scrap? I don’t have any issue with keeping the car till scrap. It is just that I itchy hand feeling wanna change car. I taken care of this car very well, by sending to agent for servicing regularly, change parts at agent and mileage only 118000 for a 7.5 yr car... sometimes also feel pity to let go this car as I took good care of it. 😀 

 

 

$76K COE  in 2013 can be Cat A or Cat B, if you car  is a Cat A , you get back about 19K COE plus paper value  if you sell off your car now, you will have to see is it worth to get  new car. If it is Cat B, in addition to the balanced COE, the PARF and paper value of your car would be higher, but then you will pay a lot  more for a new Cat B car. I would say at the current COE price, you wont gain from annual  depreciation by refreshing your car vs if you have done it 1.5 to 2 years ago when the COE was lower, the only value proposition is you will get to drive a new car plus warranty whereas your current car may need some repair from time to time. In summary, if  you prioritize your financial spending, then drive on. If you   can easily  afford, follow your heart. 

Edited February 18, 2021 by Ct3833

[ToyotaShuttle]

76k coe? Unless it is a very expensive model, I would have scrapped it ages ago when the coe price was low and gotten a new car.

[ER-3682]

My Mazda 6,2.5 with full Options,bought Feb 2013,COE $96,000,going to sell on June in June,because i booked a new Car,the Price just Paper + $1,000 for the Body,Car in good Condition,just less than 100,000Km...

[Ct3833]

26 minutes ago, ER-3682 said:

My Mazda 6,2.5 with full Options,bought Feb 2013,COE $96,000,going to sell on June in June,because i booked a new Car,the Price just Paper + $1,000 for the Body,Car in good Condition,just less than 100,000Km...

96k COE you still chu chia, respect!😀

[Jamesc]

People say car dealers are crooks because we just want to sell you a car.

Isn't that the same with every salesman?

Do you know who the biggest crooks are?

Have you ever been to a barber shop and the barber days no need to cut lah?

And the worse is go for a trim and the barber just cut a bit and change you full price.

Barber ever say cut so little give you half price lah?

I never sell people half a car like barber cut so little.

I sell two half cars welded together.

Best of both worlds.

[Lala81]

9 hours ago, sHy3r said:

Dear all,

I need some advice from you guys. 

I am currently driving a 2013 car (2nd owner) with a high COE of $76k. I recently enquire trade in price and was surprise to hear from dealers that they don’t want to take in this car, but they can help me ask exporter price if I want to or drive till end of 10 yrs. (Current car left with 2.5 yrs) Those dealers who willing to quote as trade in, only offer few hundred more than current paper value. 
 

When I purchase the used car in 2017, the dealer told me that high COE is a good buy. Paper is high. But now, there are dealers who don’t want take in this car for resale because the COE is $76k...

Any idea why they don’t want to take in my car for trade in? Is there a reason? How much COE then has resale value in future? Is it a good time to sell my 2013 car now? Or I should keep till scrap?
Thank you. 🙂

Haha my COE is around there also 75-76k. Jan 2015, 1st owner.

During CB, i asked a guy who works at 2nd hand dealer in the EDMW AMA thread. His blunt reply is drive until scrap. 
I'm fine with that, in early 2018, i was only quoted +5k for body. 
So i just continued to drive on lor. I only expect to get paper + minimal body value for any trade in. Right now, my paper depre is -9k per year. So actually can do whatever i want until then. 

My car only 82k mileage only!

 

[Mkl22]

Coe prices operates roughly in a cycle. If ones car coe is high and if one drives to 10year scrap, then possibility is higher that you will hit the same coe peak again.
So my opinion is to get out of the cycle and buy when coe is low like 2 years back. 2009 and 2019 were coe lows. 

having a high coe, allows one to scrap and get out anytime without too much loss if one bought it as a second hand and for not too much above paper. It also protects against any major mechanical losses as you can just  scrap. 

[Lala81]

9 hours ago, Ct3833 said:

High COE car is a good buy if the car has to be written off half way for whatever reasons, the owner will get back the COE rebate which is higher. But this scenario is unlikely to happen, it is just like buying an insurance. The statement could  be true if there are two similar cars, one having a higher COE price while the other one with low COE, both are  sold for about the same annual depreciation,  then the one with higher COE makes better sense for reason that i have mentioned. Otherwise , the higher the COE, the more money one will have to write off annually. Lesson learned is, you can trust anyone but not a car salesman , seek enough advice before you make decision in future. 

When come to trade in ,they will take your car for sure but only at paper value plus slightly more, because your car can only be exported or scrapped, they are not able to sell it in the local market because of the the high COE, the car price is just too expensive due to high COE that it  does not make sense for any buyer to accept.

It is a good to sell your car when COE was low at 20+k to 30K. Assuming if  you have sold  your car then, for every year of 7.6k COE would buy you more than 2 year of COE for a new car. But now COE is back at 40k to 50k level, it is not longer  worth doing so partly because you have only 2 more year of  balance COE to recoup, the additional  amount of money  you have to pay for a new car simply outweigh the balanced COE you could recover.

Not really. Like i said, when i went car shopping in 2018, i checked with all the B&B car dealers, best quote is paper + 5k body for a 3 year old car.
Granted my car isn't a popular model. It would be much easier to sell on a Wish or Vezel which i know of friends who did.

Once u have a high COE car. U are pretty much stuck either way you turn. Best thing is not to buy one. Haha.
Or if COE is high, buy a 7-8 year old car and drive to scrap and re-evaluate. Which is probably what i would do retrospectively.

[Lala81]

1 minute ago, Mkl22 said:

Coe prices operates roughly in a cycle. If ones car coe is high and if one drives to 10year scrap, then possibility is higher that you will hit the same coe peak again.
So my opinion is to get out of the cycle and buy when coe is low like 2 years back. 2009 and 2019 were coe lows. 

having a high coe, allows one to scrap and get out anytime without too much loss if one bought it as a second hand and for not too much above paper. It also protects against any major mechanical losses as you can just  scrap. 

Yes. U can choose to do whatever you want lah. It's just booking paper loss to realised loss.
If u want to hold onto near scrap, and it's higher again, better to buy 2nd hand lor.
2019 is past liao lah. Haha 

[Beehive3783]

10 hours ago, sHy3r said:

Dear all,

I need some advice from you guys. 

I am currently driving a 2013 car (2nd owner) with a high COE of $76k. I recently enquire trade in price and was surprise to hear from dealers that they don’t want to take in this car, but they can help me ask exporter price if I want to or drive till end of 10 yrs. (Current car left with 2.5 yrs) Those dealers who willing to quote as trade in, only offer few hundred more than current paper value. 
 

When I purchase the used car in 2017, the dealer told me that high COE is a good buy. Paper is high. But now, there are dealers who don’t want take in this car for resale because the COE is $76k...

Any idea why they don’t want to take in my car for trade in? Is there a reason? How much COE then has resale value in future? Is it a good time to sell my 2013 car now? Or I should keep till scrap?
 

Thank you. 🙂
 

 

Few hundred above paper value not good enough for you? Then how much are you expecting?

[Hamburger]

used car price is not subjected to coe bidded price but the market perceived depreciation/year. 

If I am searching for a particular used car, definitely I would choose a high coe car over a low one.

For one that is selling, I guess is whichever one is higher. Scrap vs depreciation value.