High COE cars

[Beehive3783]

3 minutes ago, sHy3r said:

Erm renew coe at $110k? 🥶 

If I dont renew my coe at $110k.. top up abit can buy brand new Vezel petrol at $140k… 

Ok, since you already decided, go ahead and get a new car then

[mersaylee]

16 minutes ago, sHy3r said:

Hmm ya but im afraid of the next car price (increase coe) n increase of gst…

 

dealers say coe wont drop until after 2025…

They'll say the same in 2025...but the numbers may be 2028...

Ask our resident honest tasmanian devil car dealer @Jamesc if you donch believe me...😁

[Ct3833]

26 minutes ago, sHy3r said:

dealers say coe wont drop until after 2025…

this is the reason I was suggesting to buy 7 to 8 year old car next year when the COE of your existing car is up.

24 minutes ago, sHy3r said:

Hmm.. thank you for the advice. 
will there be a “good” car of 7-8 years old? I very scare of used cars that dealers tune milege, need big ticket repairs after warranty period.. 

There would be some risk for sure, but think about it, there are so many old cars running around, do we see many old cars breaking down on the road ?  Of course it takes some research and pain to find a suitable condition car, but that would mean you may save up to 30k or 40k COE even for CAT A when COE price will to be lower in 2025 to 2026....if that really happen, the gap for CAT B would be even higher.  

But if you are scared, then buy a new car next year. 

[Fitmugen]

I am starting to think COE will never come down to 50-60k levels again. When 2025 after election, population maybe 6+ million liao. and most of the newcomers can afford high coe one 🤕

[Volvobrick]

12 minutes ago, Fitmugen said:

I am starting to think COE will never come down to 50-60k levels again. When 2025 after election, population maybe 6+ million liao. and most of the newcomers can afford high coe one 🤕

Never say never.....Like would people expect mortgage rates to be back to 4-5%?

 

[Rickster]

On 7/4/2022 at 2:07 PM, 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?

Another important cost I'd suggest that you factor in the repair/wear and tear costs for your car too, this can add up to a significant cost for the remaining years of your old car. U may want to add in another 1.5-2K/year of break-fix cost for an old car. If you're driving an older premium marque u may want to double that amount.

I had done a similar calculation like yours and I downgraded my car. Now I enjoy warranty coverage, lower road tax and much better fuel efficiency, annual depreciation, it's also slightly lower. No need to worry about break-fix cost for the next few years.

Edited September 19, 2022 by Rickster

[Rickster]

26 minutes ago, Volvobrick said:

Never say never.....Like would people expect mortgage rates to be back to 4-5%?

 

It's now already over 3%... at the current trajectory of rate hikes, it'll likely breach the 4% by year end or Q1 next year. 

But for passive income investors, no sweat at all, because rental rates have easily went up 30-40% for the past 1 year. Some locations even have gains of >50% in rental yield. 

[sHy3r]

2 hours ago, Beehive3783 said:

Ok, since you already decided, go ahead and get a new car then

Hmm still not decided because I was hoping coe will drop within these 11 mths but also scare will go higher… dilemma in whether to take the step now or wait later 😞

[sHy3r]

2 hours ago, mersaylee said:

They'll say the same in 2025...but the numbers may be 2028...

Ask our resident honest tasmanian devil car dealer @Jamesc if you donch believe me...😁

Ya, i only believe half half what dealer said. Haha. Got 1 dealer offer me 0.98%. Hahaha…

[sHy3r]

1 hour ago, Ct3833 said:

this is the reason I was suggesting to buy 7 to 8 year old car next year when the COE of your existing car is up.

There would be some risk for sure, but think about it, there are so many old cars running around, do we see many old cars breaking down on the road ?  Of course it takes some research and pain to find a suitable condition car, but that would mean you may save up to 30k or 40k COE even for CAT A when COE price will to be lower in 2025 to 2026....if that really happen, the gap for CAT B would be even higher.  

But if you are scared, then buy a new car next year. 

Hmm but next year GST increase and dunno if car price will significant increase and dunno if coe will balloon even higher…

[sHy3r]

1 hour ago, Fitmugen said:

I am starting to think COE will never come down to 50-60k levels again. When 2025 after election, population maybe 6+ million liao. and most of the newcomers can afford high coe one 🤕

Ya.. now already damn high already. Unless Govt change the COE system? Will that happen? 😔

[Ct3833]

6 minutes ago, sHy3r said:

Hmm but next year GST increase and dunno if car price will significant increase and dunno if coe will balloon even higher…

Gst 1% nia, the one to worry abt is COE price. Hopefully, COE should not shoot up too high from the current level, but if it does, then you should have a plan B like buying an old car or even dropping driving altogether.   But if you could afford the price  and feeling uneasy with the uncertainty, then just go grab a new car , no point living in fear when you have money to solve your anxieties. 

Some people like me no money, must always think about how to save money  mah.😅

[inlinesix]

5 years COE + Loss PARF => 5 or 6 year old Vezel.

[Beehive3783]

48 minutes ago, sHy3r said:

Hmm still not decided because I was hoping coe will drop within these 11 mths but also scare will go higher… dilemma in whether to take the step now or wait later 😞

aiya mai keh keh la, you already decided but still wanted to ask here to justify your decision

[Sdf4786k]

On 12/22/2021 at 10:01 AM, Dp26 said:

Only 120k car? 
shit man I’m super off from most of your thinkings  

 

Better 面壁思过

 

im not saying they should buy 240k car but 120k car max? We talking about cannot afford or shouldn’t purchase? 

🤔

If u doing 240k most likely got 4 k transport allowance so no issue to buy 240k car lah 

[Jamesc]

I say until COE come down just buy a used car first lah.

4 hours ago, mersaylee said:

They'll say the same in 2025...but the numbers may be 2028...

Ask our resident honest tasmanian devil car dealer @Jamesc if you donch believe me...😁

 

[Jamesc]

COE come down is like raiding our reserves right?

Don't want lah. COE come down they will increase gst then how?

COE only affect car owners. GST is everything.

Even my kaya roti and tea terik.

[sHy3r]

3 hours ago, Ct3833 said:

Gst 1% nia, the one to worry abt is COE price. Hopefully, COE should not shoot up too high from the current level, but if it does, then you should have a plan B like buying an old car or even dropping driving altogether.   But if you could afford the price  and feeling uneasy with the uncertainty, then just go grab a new car , no point living in fear when you have money to solve your anxieties. 

Some people like me no money, must always think about how to save money  mah.😅

Yeah… budget wise still okay. But dunno how the coe will go in the coming months. Likely shoot up especially people get new car for CNY…