How is 2nd hand paper value calculated?

[Kyosho1]

Just wondering, how car dealers calculate the residue value of a car, for a 6 months old car and a 5 year old car.

It is just based on ARF and COE?

 

For eg, I believe the reg Fee and GST would to be lost by the 1st owner upon selling his car. Would the car company profit be lost as well, which seem to be the case whenever a car dealer buys from you. I know that ARF decreases every year.

 

Broken down Total Cost of a New Car:

OMV

Custom Duty (25%OMV)

GST 5%

ARF (110%OMV) - decreases every year.

Reg Fee

COE - decreases every year.

Car Company Profit

Edited July 16, 2004 by Kyosho1

[Seaweed]

add the parf...add the left over coe...add the car body value if any...then that's it lor...

[Soya]

paper value is purely COE rebate + parf rebate. all other $$ simply vanishes into thin air.

[Kyosho1]

Wah, if that is the case, a 2nd hand 6 month-1 year old car losses a lot since residue PARF these days is quite low.

[Seaweed]

that's why first few yr you sell your car will lost damm alot of money mah...

[Soya]

but nobody and is not an escapee frm woodbridge, will sell at paper value for a 6 mth old car, esp under the 65% & 55% parf schemes.

[Kyosho1]

hmmmm..... why then are some 6 months-1 year old cars still sold above their COE (left over) + PARF value?

[Soya]

paper value & market value are 2 diff things altogether.

[Seaweed]

ya...agree...if sell so cheap might as well keep...like my sunny i buy 77k 9 mths back...now paper value only about 40++....if can only sell paper value then no one will sell liao...

[Seaweed]

for newer car it depend more on the value of brand new car lor....not so much on paper value....but for car 4-5 yrs old then it's mostly near paper value lor for the current situation....

[Kyosho1]

Does anyone know when paper value and market value becomes equal to each other besides other than when the car has reached 10 years old?

Edited July 16, 2004 by Kyosho1

[Seaweed]

that is difficult to say....paper value is fix....but market value changes...imagine suddenly coe go damm high in 5 yrs time and brand new sunny price suddenly shot up sky high..maybe 200k....probably then the market value of my nissan at that time is the price I buy it....so i drive 5 yrs for free....that's what happen last time when coe went rocket high...some can even drive a few yrs for free...see that pals ??

[Kyosho1]

Oh I see. Alamak I was looking at some 2nd hand Rex prices, with PARF of less than 20K left and with COE of less than 25K left - made me thinking , but it is still sold close to 90K.

 

So it is market forces/value that is maintaining their prices. If that is the case, Subaru WRX seems to hold their value as comparable to Toyota and Honda.

[Redeel]

Ermm... Toyota and Honda what? If you're talking about Corolla and Civic, then it's not a fair comparison of cars and their values against the WRX!!!

 

eddie