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High COE cars


sHy3r
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On 12/24/2021 at 10:44 AM, Throttle2 said:

Then the law is useless? 
Or the people who drafted the law didnt think hard enough?

i am puzzled

 

What law useless? I didnt say that.

It is just that the law isnt perfect. There are loopholes to exploit.  That is what lawyers do too. Find loopholes in the law to their advantage. Are they so called lawless as well? Maybe so. I dunno.

Puzzle not. The law isnt perfect and cant be perfect the way ppl wants it.

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7 hours ago, Volvobrick said:

This is turning out to be a lesson on English.... 

They say birds of a feather flock together... I should start reflecting on my life since I am spending time in the same forum as GLB guy, eclipse guy and now this guy :X

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7 hours ago, Watwheels said:

What law useless? I didnt say that.

It is just that the law isnt perfect. There are loopholes to exploit.  That is what lawyers do too. Find loopholes in the law to their advantage. Are they so called lawless as well? Maybe so. I dunno.

Puzzle not. The law isnt perfect and cant be perfect the way ppl wants it.

On the topic of lawless lawyer, I actually highly recommend this kdrama!

https://mydramalist.com/27441-lawless-attorney

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(edited)

I have a 5 year old Cat A car.  I can sell / trade in the car $33K above paper value as shown on the LTA website (scrap value + remaining COE).  But I need a car and will be paying for a car with high COE now (Cat A = $74+K).  If I wait 3 more years until my car is 8 years old, will a car dealer only pay me paper value + $1K or $2K?  Would it make sense for me to "sell high, but high" just because I can get a good trade-in value now?

I got tempted and enquired at one of these promotions & that's how the offer was made to me

Edited by SLing
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On 7/3/2022 at 3:20 AM, SLing said:

I have a 5 year old Cat A car.  I can sell / trade in the car $33K above paper value as shown on the LTA website (scrap value + remaining COE).  But I need a car and will be paying for a car with high COE now (Cat A = $74+K).  If I wait 3 more years until my car is 8 years old, will a car dealer only pay me paper value + $1K or $2K?  Would it make sense for me to "sell high, but high" just because I can get a good trade-in value now?

I got tempted and enquired at one of these promotions & that's how the offer was made to me

i doubt if it would make sense money-wise ..

let us see the absolute numbers? 

your car value now, if you use until 10 years what would it cost you per year?

vs buy new now and use next 10 years ..

doubt if it will be cheaper buying new vs keeping your 5 year old car ..

you cannot benefit from high car prices now because you need a car .. you may benefit only if you sell and not buy ..

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It's almost certain man could not think straight when it comes to car.

Hence cooling down period is imperative when decision making comes to play when switching car.

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On 7/3/2022 at 3:20 AM, SLing said:

I have a 5 year old Cat A car.  I can sell / trade in the car $33K above paper value as shown on the LTA website (scrap value + remaining COE).  But I need a car and will be paying for a car with high COE now (Cat A = $74+K).  If I wait 3 more years until my car is 8 years old, will a car dealer only pay me paper value + $1K or $2K?  Would it make sense for me to "sell high, but high" just because I can get a good trade-in value now?

I got tempted and enquired at one of these promotions & that's how the offer was made to me

Simple answer is NO.

first you have to verify if the $33K above paper value is indeed true (sound too good to be true figure) because car dealers will quote you anything to make you trade in your car or to start the selling process.

With high COE, your annual depreciation is going to be going through the roof.

End of the day, just have to be cognizant of the fact that this change in car now is definitely a want than a need.

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(edited)

The question is whether it is better to sell high & buy high or sell low & buy low.   The purpose of getting new car is to save on servicing and petrol / fc, warranty.   My friends advised me that it is better not to buy high no matter what because the depreciation is higher.   But selling the old car at a high price also saves money because the trade-in value is higher.  The scrap values below = paper value

 

Old Car Price 2018                                 : 71000

Scrap Value before 8th year                  : -16451

New Car Price 2025                               110000 (likely average Cat A price in 2025?)

Top Up in 2025 (after trade-in)             :93500

Scrap Value New Car 2033                   :-13410

(Calculated based on Cat A COE in 2025 of $50K - too high / low?)

Total Cost (93.5K+71K - scrap)              :151090

Total Number of Years 2018 - 2033     : 16

Depreciation per year                            : 9443

 

 

But what about sell high and buy high in 2022 based on Cat A COE of $75K?

 

Old Car Price 2018                                :71000

New Car Price 2022                              :62000

Scrap Value 2030 (after 8 years)          :-20410

Total Cost                                               :112590

Total Number of Years 2018 - 2030      :12

Depreciation per year                             :9383

 

So no real difference between sell high / buy high and sell low / buy low?

 

In previous posts, I notice that people say that if the car has a high COE it is better to scrap early.  So what if the new car is scrapped just before 5th birthday before warranty etc expires?

 

Old Car Price 2018                                 :71000

New Car Price 2022                               :62000

Scrap in 2028                                          :-42910

Total Cost                                                :90090

Total Number of Years 2018 - 2028       :10

Depreciation per year                              :9009

 

So it is cheapest to buy low / sell high / scrap early?  Or does that apply on a case-to-case basis?  What can go wrong with these calculations? COE doesn’t drop, COE drops a lot, new car price doesn’t drop, scrap value, ARF rebates changes?  Is it accurate to estimate a Cat A COE of $50K in 2025.  What will the effect 2% increase in GST be on cars?

Edited by SLing
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13 minutes ago, SLing said:

The question is whether it is better to sell high & buy high or sell low & buy low.   The purpose of getting new car is to save on servicing and petrol / fc, warranty.   My friends advised me that it is better not to buy high no matter what because the depreciation is higher.   But selling the old car at a high price also saves money because the trade-in value is higher.  The scrap values below = paper value

 

Old Car Price 2018                                 : 71000

Scrap Value before 8th year                  : -16451

New Car Price 2025                               110000 (likely average Cat A price in 2025?)

Top Up in 2025 (after trade-in)             :93500

Scrap Value New Car 2033                   :-13410

(Calculated based on Cat A COE in 2025 of $50K - too high / low?)

Total Cost (93.5K+71K - scrap)              :151090

Total Number of Years 2018 - 2033     : 16

Depreciation per year                            : 9443

 

 

But what about sell high and buy high in 2022 based on Cat A COE of $75K?

 

Old Car Price 2018                                :71000

New Car Price 2022                              :62000

Scrap Value 2030 (after 8 years)          :-20410

Total Cost                                               :112590

Total Number of Years 2018 - 2030      :12

Depreciation per year                             :9383

 

So no real difference between sell high / buy high and sell low / buy low?

 

In previous posts, I notice that people say that if the car has a high COE it is better to scrap early.  So what if the new car is scrapped just before 5th birthday before warranty etc expires?

 

Old Car Price 2018                                 :71000

New Car Price 2022                               :62000

Scrap in 2028                                          :-42910

Total Cost                                                :90090

Total Number of Years 2018 - 2028       :10

Depreciation per year                              :9009

 

So it is cheapest to buy low / sell high / scrap early?  Or does that apply on a case-to-case basis?  What can go wrong with these calculations? COE doesn’t drop, COE drops a lot, new car price doesn’t drop, scrap value, ARF rebates changes?  Is it accurate to estimate a Cat A COE of $50K in 2025.  What will the effect 2% increase in GST be on cars?

You didn't take into consideration how the returns from the spare cash (62K) you save by not changing car.  Maybe it will double to 114K and you get a brand new car for that 62K!

 

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1 hour ago, SLing said:

The question is whether it is better to sell high & buy high or sell low & buy low.   The purpose of getting new car is to save on servicing and petrol / fc, warranty.   My friends advised me that it is better not to buy high no matter what because the depreciation is higher.   But selling the old car at a high price also saves money because the trade-in value is higher.  The scrap values below = paper value

 

Old Car Price 2018                                 : 71000

Scrap Value before 8th year                  : -16451

New Car Price 2025                               110000 (likely average Cat A price in 2025?)

Top Up in 2025 (after trade-in)             :93500

Scrap Value New Car 2033                   :-13410

(Calculated based on Cat A COE in 2025 of $50K - too high / low?)

Total Cost (93.5K+71K - scrap)              :151090

Total Number of Years 2018 - 2033     : 16

Depreciation per year                            : 9443

 

 

But what about sell high and buy high in 2022 based on Cat A COE of $75K?

 

Old Car Price 2018                                :71000

New Car Price 2022                              :62000

Scrap Value 2030 (after 8 years)          :-20410

Total Cost                                               :112590

Total Number of Years 2018 - 2030      :12

Depreciation per year                             :9383

 

So no real difference between sell high / buy high and sell low / buy low?

 

In previous posts, I notice that people say that if the car has a high COE it is better to scrap early.  So what if the new car is scrapped just before 5th birthday before warranty etc expires?

 

Old Car Price 2018                                 :71000

New Car Price 2022                               :62000

Scrap in 2028                                          :-42910

Total Cost                                                :90090

Total Number of Years 2018 - 2028       :10

Depreciation per year                              :9009

 

So it is cheapest to buy low / sell high / scrap early?  Or does that apply on a case-to-case basis?  What can go wrong with these calculations? COE doesn’t drop, COE drops a lot, new car price doesn’t drop, scrap value, ARF rebates changes?  Is it accurate to estimate a Cat A COE of $50K in 2025.  What will the effect 2% increase in GST be on cars?

ok maybe i am trying to look at it in a simple way ..

what is car value now? what is scrap value at 10 years? the difference is the depreciation per year for next 5 years .. thats what it will cost you to drive per year for next 5 years.

now look at new car price and scrap value of the new car .. what is depreciation per year?

is this number lower than the one above for your present car?  if it is lower then indeed it is better for you to change cars now .. otherwise its best to just sit tight ..

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1 hour ago, SLing said:

Old Car Price 2018                                :71000

New Car Price 2022                              :62000

Scrap Value 2030 (after 8 years)          :-20410

Total Cost                                               :112590

Total Number of Years 2018 - 2030      :12

Depreciation per year                             :9383

 

So no real difference between sell high / buy high and sell low / buy low?

No trade in for the old 2018 car?? car is only 4 year old (2022-2018), trade in will be much higher than 16451 at the 8th year.. 

i don't understand how will "buy low/sell low" be worse off than "buy high/sell high"... hmmm..

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Turbocharged
(edited)

Recently I buy high and sell high also.  I worked out the sum, new car depreciation at current coe level, is surely much higher than your current car, even if you sell high.  The extra sale proceed from selling your car at a 'high' price, will not come close to the new car price, given the crazy coe price today.

But i thought how many years can i wait for coe to come down before i can enjoy a new car ?  so i just go ahead without thinking too much.  sometimes is not the money, but the justification that we need to overcome. 

Whether coe fall or rise from now, i dont care and wont be bothered, just enjoy the ride.  

Edited by Ingenius
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Twincharged
14 minutes ago, Ingenius said:

Recently I buy high and sell high also.  I worked out the sum, new car depreciation at current coe level, is surely much higher than your current car, even if you sell high.  The extra sale proceed from selling your car at a 'high' price, will not come close to the new car price, given the crazy coe price today.

But i thought how many years can i wait for coe to come down before i can enjoy a new car ?  so i just go ahead without thinking too much.  sometimes is not the money, but the justification that we need to overcome. 

Whether coe fall or rise from now, i dont care and wont be bothered, just enjoy the ride.  

exactly. no way sell high buy high will be better off than sell low buy low.  anyway dont understand his math and calculation.

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